Bermuda reinsurer Validus Holdings Ltd. has completed its takeover of IPC Holdings Ltd. after shareholders of both companies gave their approval.

Approximately 87 percent of the shareholders voted at a special general meeting in favour of the issuance of the Validus common shares required as part of the acquisition, which marks the culmination of a six-month bidding war.

At a separate meeting also held on Friday, IPC shareholders adopted the amalgamation agreement with Validus with the support of approximately 95 percent of shareholders.

Ed Noonan, Validus' chairman and CEO, said: "We are delighted to have completed this compelling strategic combination, which provides major benefits to customers and shareholders of both companies.

"With significantly increased capacity, a global platform and leading positions in attractive insurance and reinsurance markets, Validus is well positioned to meet the evolving needs of clients and to deliver continued growth to shareholders.

"In addition, Bermuda will benefit from being home to a larger, stronger business that is committed to its markets and well-positioned for long-term growth. We will be working diligently to ensure a seamless integration of IPC that maximises the market opportunities offered by this transaction."

According to the amalgamation agreement, shareholder of former IPC shares will receive $7.50 in cash and 0.9727 Validus voting common shares for each IPC common share.

The acquisition of IPC will boost Validus's capital base to around $3.4 billion, allowing it to sell more reinsurance policies, which have seen significant rises in rates this year.

The common shares of IPC, which was formed 16 years ago in Bermuda in response to the need for extra reinsurance capacity in the wake of Hurricane Andrew, ceased trading last Friday.