Investment firm Exor has signed an agreement to acquire Bermuda-based reinsurer PartnerRe, for around $6.9bn.
Under the deal, Exor will purchase all of the outstanding common shares of PartnerRe for an all-cash consideration of $140.50 per share, including a special pre-closing dividend of $3.00 per share.
PartnerRe chairman Jean-Paul Montupet said: "We have carefully and thoroughly evaluated each development over the past several months, and believe that this thoughtful and deliberate approach was critical to delivering a transaction that represents a significant improvement in the price and terms of Exor’s original proposal.
"Importantly, Exor is committed to ensuring that the unique culture, brand and business that our dedicated employees have successfully built over the past 20 years remain intact."
Axis Capital Holdings has agreed to terminate the amalgamation agreement with PartnerRe, which was signed by both firms in January this year.
Axis will receive $315m breakup fee from PartnerRe to immediately terminate the amalgamation agreement.
PartnerRe provides multi-line reinsurance to insurance firms and also capital markets products such as weather and credit protection to financial, industrial and service firms through its wholly owned subsidiaries.
The firm provides risks reinsured products, including property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, multi-line and other non-life products.
The firm also provides mortality, longevity and accident and health products, as well as alternative risk products.
Subject to approval by PartnerRe shareholders, regulatory clearances and other customary closing conditions, the deal is expected to complete in the first quarter of 2016.
Image: PartnerRe provides multi-line reinsurance to insurance firms. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.