EXOR and Covéa have agreed on the sale price for PartnerRe.
According to the Memorandum of Understanding between the two camps, Bermuda-based global reinsurer PartnerRe will be sold by its Amsterdam-headquartered parent to French mutual insurer Covéa for a total cash consideration of US$9 billion (around AU$13.6 billion) plus a cash dividend of US$50 million (around AU$75.83 million).
“PartnerRe today is a stronger company, with a more complete and efficient business,” stated EXOR chair and chief executive John Elkann. “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.
“We are proud to have fulfilled EXOR’s purpose of building another great company and are grateful to PartnerRe’s board, leadership, and people for all they have done to make this possible.”
Commenting on the deal, which is expected to be completed by the end of 2020, PartnerRe CEO Emmanuel Clarke noted: “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.
“And I’m confident we are in a very good position to further evolve under our new ownership.”
EXOR, the holding company whose portfolio includes Ferrari and Fiat Chrysler Automobiles, acquired PartnerRe in 2016 for US$6.72 billion (around AU$10.19 billion) in cash.