Bermuda-based RenaissanceRe Holdings Ltd. has agreed to acquireSpectrum Partners Ltd. in a stock deal that could be worthapproximately $7 million at current prices. The company did notdisclose financial terms.

Spectrum has as its principal operating subsidiary SpectrumSyndicate Management Ltd., a Lloyd's managing agent. No other termswere announced for the transaction, which will see theestablishment of RenaissanceRe Syndicate 1458, for which Spectrumserves as the managing agent.

RenaissanceRe said its syndicate operations began last month,with underwriting of property and specialty business beginning June1.

Richard Murphy, chief executive officer of Spectrum, willcontinue in his current capacity and Spectrum's management teamwill remain in place. The transaction is subject to approval byLloyd's and the U.K. Financial Services Authority.

“Over the last year we have had the opportunity to work withSpectrum and recognize the value and experience that they bring toRenaissanceRe and our new Lloyd's Syndicate,” said Neill Currie,RenaissanceRe president and CEO.

“Consistent with our strategy to better serve our customersthrough our presence in the Lloyd's market, we believe acombination would enable us to operate effectively and efficientlyin London and to meet the growing demand for our products andservices,” he added. “We look forward to welcoming the managementand staff of Spectrum to the RenaissanceRe organization.”

The parties have entered into definitive transaction documentsgranting RenaissanceRe an option to purchase all of the outstandingshares of Spectrum Partners.

If the option is exercised and, subject to customary conditions,the transaction is completed, as part of the consideration fortheir shares, Mr. Murphy and Kim Fox, Spectrum's chief operatingofficer, will receive an aggregate of 105,689 and 42,275 commonshares of RenaissanceRe.

Those shares would be subject to certain vesting conditionsbased in part upon continued performance of services toSpectrum.