RenaissanceRe to settle shareholder suit

PEMBROKE, Bermuda--RenaissanceRe Holdings Ltd. has said it will pay $13.5 million to resolve a consolidated shareholder securities lawsuit, according to a regulatory filing.

The Pembroke, Bermuda-based reinsurer "executed a memorandum of understanding with plaintiffs' representatives" on Feb. 14, a U.S. Securities and Exchange Commission filing on Tuesday said. The settlement agreement is subject to court approval.

Under the terms of the agreement, the sum to be paid to settle all of the cases is $13.5 million, which RenaissanceRe previously reserved in 2006. A portion of that amount is expected to be offset by insurance recoveries, RenaissanceRe said.

"The settlement provides for the release of all parties, including the company's present and former directors and officers, including without limitation the defendants who were named in the suits," the filing noted.

RenaissanceRe's settlement of shareholder litigation follows a $15 million pact with the SEC finalized earlier this month over allegations of finite reinsurance abuse (BI, Feb. 12).