Covéa enters into an agreement with the owner of PartnerRe to relaunch the acquisition

After their initial deal failed in 2020, French mutual insurer Covéa 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 € 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.

Covéa’s coup for PartnerRe encountered a problem in May 2020 due to “unprecedented conditions and significant uncertainties threatening the global economic outlook” at the time.

Now, the relaunched purchase is expected to be completed by mid-2022.

In a joint announcement, Covéa and Exor declared: “This transaction with Covéa 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.

“After the successful closing of the transaction, Exor and Covéa will continue their cooperation in reinsurance, with Exor acquiring from Covéa stakes in ad hoc reinsurance vehicles managed by PartnerRe for approximately $ 725 million. Covéa, 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.

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