The revived multibillion-dollar sale of reinsurer PartnerRe to French mutual insurer Covéa is no longer so cheap.
In a release, Amsterdam-headquartered diversified holding company Exor noted: “The agreed cash consideration of US$9 billion to be paid by Covéa at closing of the transaction was based on a consolidated common shareholders’ equity value of US$7 billion.
“Based on PartnerRe’s common shareholders’ equity at December 31, 2021, the agreed cash consideration will be adjusted, as per the agreed terms, to include additional proceeds for around US$328 million (of which US$150 million to be paid by Covéa and US$178 million to be paid by PartnerRe as a special dividend).”
The increase is higher than the additional consideration set out in the original agreement, which was scrapped in 2020 following significant economic uncertainties due to the coronavirus pandemic. Two years ago, what was originally agreed upon spanned a cash consideration of US$9 billion plus a cash dividend worth US$50 million.
The swoop for Bermuda-based PartnerRe was subsequently back on the table, with a definitive agreement signed in late 2021. Completion is slated for the middle of the year.
