RenaissanceRe Holdings Ltd. has announced the company has entered into an agreement with QBE Holdings Inc. to sell its US property and casualty business underwritten through managing general agents, its crop insurance business underwritten through Agro National Inc., and its commercial property insurance operation.

Consideration for this transaction is year-end 2010 GAAP book value, currently estimated to be approximately $275 million, payable in cash at closing. The transaction represents substantially all of the company's insurance segment business and will be immediately accretive to RenaissanceRe's tangible book value per share.

Neill Currie, CEO of RenaissanceRe Holdings Ltd., said: "We are pleased to enter into this transaction with QBE to sell our US insurance business. We believe the time is right for us to exit in light of the relatively small scale of our US-based insurance operations in an environment that currently favours consolidation in certain US insurance lines."

He continued: "We will continue to participate in the US excess and surplus lines insurance market through our Lloyd's platform and Glencoe Insurance Ltd., our Bermuda-domiciled insurer. As always, we are committed to disciplined underwriting and to managing our portfolio of businesses to generate superior returns over time."

The transaction is expected to close in the first half of 2011, and is subject to regulatory approvals and customary closing conditions.

• RenRe Insurance and its members have been placed under review with negative implications the financial strength rating (FSR) of A (excellent) and issuer credit rating (ICR) of "a" by AM Best Co.

The rating actions follow the recent announcement of RenaissanceRe Holdings Ltd.'s agreement to sell its US property/casualty businesses to QBE Holdings Inc. (QBE).

The under review status will be resolved once the transaction has closed and Best completes its analysis. As part of the analysis of the entities being sold, the ratings agency will consider the strategic importance, integration plan and any explicit support to be provided by QBE going forward.

Similarly, for Glencoe Insurance Ltd., which will be retained, the strategic importance and any explicit support to be provided by RenaissanceRe Holdings Ltd. will be considered. The transaction is expected to close in the first half of 2011, subject to regulatory approvals and customary closing conditions.