RenaissanceRe Holdings, a Bermuda-based reinsurer of natural and man-made catastrophes, has signed a deal with Munich Re to sell its American weather and energy risk management unit, RenRe Energy Advisors (REAL).
REAL offers a wide range of energy and weather-related risk management solutions across the globe.
It is mainly known for its traditional weather derivative structures, dual-trigger weather risk management products, and capability for risk management solutions involving storage and delivery of natural gas.
RenaissanceRe Holdings CEO Kevin O'Donnell said their decision to sell this unit reflects their commitment to a focused strategy of expanding their underwriting platforms in Bermuda, London, the US and Asia.
"Munich Re has been working with REAL for over three years as a risk capacity provider, and we are pleased to consummate this transaction with a valued long-term trading partner," O'Donnell added.
The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in fourth quarter of 2013.