Exor has entered into a memorandum of understanding under which Covéa, following a consultation with employee unions, has agreed to buy acquire PartnerRe for US$9 billion in cash.
Italy headquartered Exor has made a healthy return on the reinsurer having acquired PartnerRe in March 2016 having paid US$6.72 billion in cash.
The deal will significantly expand Covéa’s Asia reach.
In 2018 11% of PartnerRe’s US$6.3 billion gross written premiums were written across Asia Pacific – where it has a particularly strong presence in Australia, Japan and New Zealand. The reinsurer has 65 people based in Singapore and Hong Kong and is headed up in Asia by Singapore-based chief executive James Beedle.
Emmanuel Clarke, chief executive of PartnerRe, said: “Over the past four years, under Exor’s ownership, we have strengthened PartnerRe’s position as a global, diversified reinsurer, thanks to a continuous focus on enhancing our client and broker franchise, our underwriting and investments portfolios and our operational efficiency.”
Clarke added: “The proposed transaction is expected to be completed by the end of this year, subject to customary closing conditions, antitrust, regulatory and other approvals.”
The deal will also include a cash dividend of US$50 million to be paid before closing.
PartnerRe’s operating performance since 2016 has enabled it to pay Exor a total of US$661 million in dividends and to grow its book value to common shareholders by US$510 million to US$6.57 billion Including dividends received since 2016. The aggregate cash return to Exor following completion of the proposed transaction will amount to US$3 billion.
John Elkann, chairman and chief executive of Exor, said: “We have…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.”
Goldman Sachs acted as sole financial adviser to Exor and Sullivan & Cromwell acted as legal adviser to Exor on the transaction.

Leave a Reply

e: [email protected] | t: +852-8191-5120 (hong kong) | t2: 050-5806-7296 (from japan)