PartnerRe, which serves insurance firms with multi-line reinsurance services, was acquired by EXOR in 2016 for $6.72bn


Covéa set to acquire PartnerRe from EXOR. (Credit: Pixabay/Gerd Altmann)

EXOR is set to sell its 100% stake in Bermuda-based global reinsurer PartnerRe to French mutual insurer Covéa for $9bn in an all-cash deal.

In this connection, the European holding company has signed a memorandum of understanding (MoU) with Covéa. The MoU also includes a cash dividend of $50m to be paid to EXOR before the closing of the deal.

PartnerRe serves insurance firms with multi-line reinsurance services. In addition to that, the reinsurer provides capital markets products like weather and credit protection to financial, service, and industrial companies.

EXOR acquired the reinsurer in March 2016 for $6.72bn. The investment company said that it had closely worked with PartnerRe’s management team over the last four years to bolster and expand the reinsurer’s business.

Furthermore, EXOR claims to have helped the Bermuda-based reinsurance company in creating a sizeable footprint in life and health reinsurance by means of organic growth and also through the acquisition of Aurigen, a North American life reinsurance company, for about $286m in 2017.

EXOR expects to realise an aggregate cash return of $3bn through the sale of PartnerRe after including dividends received since 2016.

EXOR chairman and chief executive John Elkann said: “PartnerRe today is a stronger company, with a more complete and efficient business. We have now been presented with an outstanding chance for PartnerRe to further strengthen its competitive advantage while providing important new opportunities for its people under Covéa’s ownership.”

For Covéa, the deal is expected to consolidate its diversification and international expansion to create a top tier insurance and reinsurance group in Europe. In France, the enlarged group is likely to have a leading position in property and casualty insurance apart from being a major reinsurer with a global franchise and diversified portfolio.

Covéa CEO comments on the acquisition of PartnerRe

Covéa chairman and CEO Thierry Derez said: “This acquisition project comes at a time when the insurance sector is undergoing fundamental transformation, with emergence of new risks and new lifestyles, and increasing new participants entering insurance markets.

“It perfectly fits our growth strategy, our ability to adapt, the necessary complementarity of expertises and the importance of risks mutualization on a global basis. It would consolidate the future of PartnerRe and our mutual Group, serving the interests of our members and clients, as well as of our employees and partners.”