SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 11, 1999
RENAISSANCERE HOLDINGS LTD.
(Exact name of registrant as specified in charter)
Bermuda 34-0-26512 98-013-8020
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
Renaissance House, 8-12 East Broadway H 19
Pembroke, Bermuda (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (441) 295-4513
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Item 5. Other Events
On January 11, 1999, RenaissanceRe Holdings Ltd. (the "Company")
issued the press release attached hereto as Exhibit 99.1 and incorporated by
reference herein.
Item 7. Financial Statements and Exhibits
(c) Exhibits:
99.1 Press Release issued by RenaissanceRe Holdings Ltd.,
dated January 11, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
RENAISSANCERE HOLDINGS LTD.
/s/ John M. Lummis
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Name: John M. Lummis
Title: Senior Vice President and
Chief Financial Officer
January 11, 1999
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EXHIBIT INDEX
Exhibit
99.1 Press Release of the Company, dated January 11, 1999.
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Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT:
John M. Lummis Martin J. Merritt.
Senior Vice President and CFO Vice President, Finance
RenaissanceRe Holdings Ltd. RenaissanceRe Holdings Ltd.
(441) 295-4513 (441) 295-4513
RenRe Expects Charge for its Nobel Subsidiary in the Fourth Quarter; Strong
Performance Continues in its Core Reinsurance Operations
Pembroke, Bermuda, January 11, 1999--RenaissanceRe Holdings Ltd. (NYSE: RNR)
announced that it expects to report a loss in the fourth quarter due to a charge
arising from Nobel Insurance Company, which was acquired in June 1998. Excluding
the Nobel charge, the results for the fourth quarter are expected to be in line
with analysts' expectations.
The estimated after-tax charge from Nobel is $40 million, consisting of
after-tax losses of $30 million of adverse development on surety and casualty
reserves, $5 million of goodwill writedown, and $5 million of other charges.
Included in the $30 million of adverse development is $13 million relating to
losses for which Nobel is economically indemnified, but required to delay
recognition of the indemnification under FASB 113.
Nobel expects to sell each of its current business units, which consist of low
value dwelling, casualty, and bail bonds. Cochran, Caronia & Co. and E.W. Blanch
have been retained as advisors. Nobel will continue to operate these business
units during the sales process. A.M. Best Company has advised Nobel that its
rating will be lowered to "B+" (very good).
Renaissance Re Holdings also announced Keith Hynes will be leaving the Company
effective March 31, 1999. Mr. Hynes had served as Executive Vice
President--Primary Operations at the parent company and President of Renaissance
U.S. Holdings Inc. James N. Stanard, Chairman, President and Chief Executive
Officer of RenaissanceRe Holdings Ltd., will assume the position of President of
Renaissance U.S.
Holdings.
Mr. Stanard commented: "We are obviously very disappointed that the promise we
saw in Nobel has not been fulfilled. Faced with deteriorating claim experience
and the need to advance additional capital to support ongoing business
development, we concluded that our shareholders would fare better with
reinvestment in our core reinsurance business. Our catastrophe reinsurance
business continues to produce market-leading results, and our other primary
operations, DeSoto and Glencoe, are performing according to plan."
RenaissanceRe Holdings Ltd., is a global provider of reinsurance and insurance.
The Company's principal product is property catastrophe reinsurance.
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Cautionary Statement under "Safe Harbor" Provision of the Private Securities
Litigation Reform Act of 1995: Statements made in this news release contain
information about the Company's future business prospects. These statements may
be considered "forward-looking." These statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
set forth in or implied by such forward-looking statements. For further
information regarding cautionary statements and factors affecting future
operations results, please refer to RenaissanceRe Holdings Ltd.'s annual report
on Form 10-k for the year ended December 31, 1997 and Form 10-q for the quarter
ended September 30, 1998.
