PartnerRe, a provider of diversified reinsurance services, has entered into a definitive agreement to acquire Presidio Reinsurance Group.

Presidio Reinsurance Group is a specialty accident and health reinsurance and insurance writer, principally comprising of a Managing General Agency (MGA).

Under the terms of agreement, PartnerRe will pay $72m as consideration for the MGA, alongside tangible book value as consideration for the Presidio reinsurance carrier, which will be determined at the time of the closing.

PartnerRe president and CEO Costas Miranthis said the accident and health business will complement the company’s portfolio and also possesses limited correlation with its current book of risks.

”As we continue to operate under somewhat challenging market conditions, we expect this new risk class will add consistent risk-adjusted profitability to the overall portfolio,” Miranthis added.

Presidio Reinsurance Group’s existing management team, including its founder and CEO, Dennis Heinzig, will be retained.

Subject to customary regulatory approvals, the acquisition is expected to complete during the first quarter of 2013, and PartnerRe will also pay additional consideration if the acquired business exceeds certain profitability targets.

Established in 1994, The Presidio Reinsurance Group underwrites HMO reinsurance and is a provider of stop-loss insurance in the US.