Covea Buys PartnerRe
Covea buys PartnerRe.
Covea buys PartnerRe from Exor for $9 billion.
Exor is the Agnelli family holding company which also controls Fiat Chrysler, CNH Industrial, and Ferrari.
PartnerRe is a pure-play reinsurer offering risk solutions for agriculture, aviation & space, cyber risk, directors & officers, downstream energy, engineering & construction, financial risks, financial institutions, health, life, marine & upstream energy, nuclear, property & casualty, property catastrophe, specialty property, sports, leisure & entertainment, structured & customized solutions, and terrorism. Scale is ever more important for reinsurers as their clients merge and then seek counterparties with greater capital strength when reinsuring their risks. Following this deal with Covéa, PartnerRe enters the top tier of reinsurers worldwide.
For Covéa, owned by its customers and operating in France, this diversifies its business beyond home, auto, life, and health. Insurers and reinsurers are under pressure from low to negative interest rates where they have to invest a large chunk of their premiums. They turn to deal-making and diversifying their revenue streams, such as moves into reinsurance and asset management.
Thierry Derez of Covéa said: ‘This acquisition project takes place in a changing sector, with the emergence of new risks, new lifestyles and the proliferation of players entering the insurance market. It's in perfect coherence with our development strategy, our adaptability, the necessary complementarity of ability, and the importance of international risk pooling. It will join the future of PartnerRe and our mutualist group, respecting the interests of our members and customers, our employees, and our partners. By consolidating our diversification and internationalization, we create a top tier European insurance and reinsurance group.’
Emmanuel Clarke 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. And I’m confident we are in a good position to further evolve under our new ownership.’
John Elkann of Exor said: ‘PartnerRe today is a stronger company, with a more complete and efficient business. 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 Covea’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.’
Rothschild, Barclays, and JP Morgan served as financial advisors to Covéa. Bredin Prat and Debevoise & Plimpton served as legal advisors.
Goldman Sachs served as financial adviser to Exor. Sullivan & Cromwell served as legal advisor.
Covea buys PartnerRe from Exor for $9 billion.
Exor is the Agnelli family holding company which also controls Fiat Chrysler, CNH Industrial, and Ferrari.
PartnerRe is a pure-play reinsurer offering risk solutions for agriculture, aviation & space, cyber risk, directors & officers, downstream energy, engineering & construction, financial risks, financial institutions, health, life, marine & upstream energy, nuclear, property & casualty, property catastrophe, specialty property, sports, leisure & entertainment, structured & customized solutions, and terrorism. Scale is ever more important for reinsurers as their clients merge and then seek counterparties with greater capital strength when reinsuring their risks. Following this deal with Covéa, PartnerRe enters the top tier of reinsurers worldwide.
For Covéa, owned by its customers and operating in France, this diversifies its business beyond home, auto, life, and health. Insurers and reinsurers are under pressure from low to negative interest rates where they have to invest a large chunk of their premiums. They turn to deal-making and diversifying their revenue streams, such as moves into reinsurance and asset management.
Thierry Derez of Covéa said: ‘This acquisition project takes place in a changing sector, with the emergence of new risks, new lifestyles and the proliferation of players entering the insurance market. It's in perfect coherence with our development strategy, our adaptability, the necessary complementarity of ability, and the importance of international risk pooling. It will join the future of PartnerRe and our mutualist group, respecting the interests of our members and customers, our employees, and our partners. By consolidating our diversification and internationalization, we create a top tier European insurance and reinsurance group.’
Emmanuel Clarke 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. And I’m confident we are in a good position to further evolve under our new ownership.’
John Elkann of Exor said: ‘PartnerRe today is a stronger company, with a more complete and efficient business. 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 Covea’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.’
Rothschild, Barclays, and JP Morgan served as financial advisors to Covéa. Bredin Prat and Debevoise & Plimpton served as legal advisors.
Goldman Sachs served as financial adviser to Exor. Sullivan & Cromwell served as legal advisor.
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