Covéa enters into an agreement with the owner of PartnerRe to relaunch the acquisition
After their initial deal failed in 2020, French mutual insurer CovÃ©a and Amsterdam-based diversified holding company Exor have now signed a definitive agreement for the sale of global reinsurer PartnerRe.
Controlled by the Agnelli family, Exor sells the Bermuda-based company for US $ 9 billion (approximately â¬ 7.8 billion) in cash. It is not clear whether an additional dividend of US $ 50 million – which was part of last year’s MoU – is still included this time around.
CovÃ©a’s coup for PartnerRe encountered a problem in May 2020 due to âunprecedented conditions and significant uncertainties threatening the global economic outlookâ at the time.
Now, the relaunched purchase is expected to be completed by mid-2022.
In a joint announcement, CovÃ©a and Exor declared: âThis transaction with CovÃ©a will strengthen the development of PartnerRe as a large company in its sector thanks to a significant increase in the size and the strength of the capital that the membership of a larger financial institution, and the value it represents to its clients.
âAfter the successful closing of the transaction, Exor and CovÃ©a will continue their cooperation in reinsurance, with Exor acquiring from CovÃ©a stakes in ad hoc reinsurance vehicles managed by PartnerRe for approximately $ 725 million. CovÃ©a, Exor and PartnerRe will also continue to invest jointly in funds managed by Exor with enhanced alignment of interests.
As of June 30, PartnerRe’s total assets were US $ 28.3 billion; total capital, 9.2 billion US dollars; and total equity, US $ 7.2 billion. In the meantime, preferred shares issued by the reinsurer and listed on the New York Stock Exchange will not form part of the acquisition.