Bermuda-based firms Axis Capital Holdings and PartnerRe have entered into an amalgamation agreement, in a bid to establish one of the world’s largest specialty insurance and reinsurance companies.


As part of the deal, PartnerRe shareholders will receive 2.18 shares of the combined firm’s common shares for each share of its common shares they own, while Axis shareholders will secure one share of the combined company’s common shares for each share of its common shares they own.

The shareholders of PartnerRe and Axis will own around 51.6% and 48.4% of the combined company, once the deal concludes.

With headquarters in Bermuda, the combined company will carry out operations in around 39 geographic locations on five continents.

PartnerRe chairman Jean-Paul Montupet will serve as non-executive chairman of the combined company, while Axis CEO Albert Benchimol will act as CEO of the combined company.

Benchimol said: "The combined company will have three strongly positioned businesses – a top-five global reinsurer, a $2.5bn specialty insurance underwriting business, and a highly successful and growing life, accident and health franchise – all with increased strategic flexibility.

"As a top five global reinsurer with leading positions in a number of specialty lines, we will be strongly positioned to turn the challenges presented by the structural changes in the reinsurance market into opportunities."

The new combined company will have gross premiums written in excess of $10bn, total capital of around $14bn and cash and invested assets of about 33bn, noted ParnerRe.

The combined company is expected to be one of the world’s top five reinsurers among reinsurance companies with combined gross premiums written of $7bn.

Subject to approval by the shareholders of both firms, regulatory clearance and customary closing conditions, the transaction is expected to be completed in the second half of 2015.

Image: Insurers Axis Capital and PartnerRe have signed an amalgamation agreement. Photo: courtesy of Stuart Miles/