Global reinsurer to enter billion dollar merger

Global reinsurer to enter billion dollar merger

Global reinsurer to enter billion dollar merger Arch Capital is reportedly considering a bid for Axis Capital, joining PartnerRe and Exor with bids for the company.

With Italian holding company Exor upping its offer to US$6.8 billion in a bid to scupper a deal already in place between PartnerRe and Axis, Arch could enter the fray with US$6.56 billion bid, The Financial Times reports.

The report stressed that Arch has “informally” said that it is considering a bid for the rival firm while sources for Reuters stressed that Axis “has not communicated” with Arch.

The Axis deal, whether it is with PartnerRe or one of the rival bidders, follows on the heels of another major reinsurance merger which was confirmed earlier this year as XL Catlin was formed.

A PartnerRe, Axis Capital deal would create the fifth largest reinsurer in the world combining over $12 billion worth of gross written premium for the Bermuda-based reinsurers.