Covéa to buy PartnerRe from Exor for $ 9 billion

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PARIS / BANGALORE (Reuters) – French insurance coverage group Covéa will purchase the reinsurer PartnerRe from Exor, the monetary holding firm of the Italian household Agnelli, for 9 billion dollars (round 7.three billion euros), introduced Tuesday night each events.

“Covéa accepted right now a memorandum of understanding with Exor, regarding the challenge to amass in money all of the unusual shares making up the capital of PartnerRe,” stated the French insurer in a press launch.

“This acquisition would permit Covéa to consolidate its diversification and internationalization, by forming a number one European insurance coverage and reinsurance group, supported on the one hand, by a number one place in injury and legal responsibility insurance coverage in France and “however, on a big world and diversified reinsurer”, continues the French mutual insurer, which teams collectively the insurers GMF, MAAF and MMA.

Because of the complementarity of the Covéa and PartnerRe companies and their geographic places, the French insurer doesn’t anticipate any impression on employment or on relationships with its clients.

The Dutch holding firm acquired PartnerRe in March 2016 for a complete quantity of $ 6.72 billion.

“We are actually within the presence of an distinctive likelihood for PartnerRe to additional strengthen its aggressive benefit whereas creating new alternatives for its workers underneath the possession of Covéa,” commented John Elkann, CEO of Exor, in a press launch https://www.exor.com/press-releases/2020-03-03/exor-announces-memorandum-understanding-sale-partnerre-covea-9-billion.

Thierry Derez, Chairman and CEO of Covéa, stated that “this acquisition challenge is going down in a quickly altering sector, with the emergence of recent dangers, new life and the proliferation of gamers coming into the insurance coverage market. “

“It matches completely with our growth technique, our capability to adapt, the mandatory complementarity of experience and the significance of worldwide danger pooling,” he provides.

The deliberate transaction, which is able to quickly be introduced to the related worker consultant our bodies, may very well be accomplished through the fourth quarter of 2020, topic to the prior inexperienced gentle from the regulatory and competitors authorities, specifies Covéa.

The acquisition worth can be totally financed from accessible personal sources. The French insurer had been on the lookout for months to ascertain itself on the reinsurance market. A yr in the past, he gave up taking management of Scor.

(Henri-Pierre André and Ismail Shakil)