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Covéa acquires PartnerRe for £6.82bn

The transaction is expected to be complete in mid-2022, with Exor also acquiring Covéa’s interests in special purpose reinsurance vehicles for $725m (£549m).

Covéa, a French mutual insurer, has signed a Definitive Agreement with Exor under which the company will acquire PartnerRe, the global reinsurer wholly-owned by Exor.

The agreed cash consideration of $9bn (£6.82bn) is to be paid by Covéa on the closing of the transaction, which is based on a consolidated common shareholders’ equity value of $7bn (£5.3bn).

Subject to obtaining approvals from the applicable regulatory and competition authorities, it is expected that the transaction will complete in mid-2022, based on PartnerRe’s audited consolidated common shareholders’ equity as at 31 December 2021.

Following a successful closing of the transaction, Exor and Covéa will continue their reinsurance cooperation, with Exor acquiring Covéa’s interests in special purpose reinsurance vehicles managed by PartnerRe for approximately $725m (£549m). 

Additionally, Covéa said the transaction will reinforce PartnerRe’s position in the industry due to a “significant increase in the scale and capital strength that membership of a larger financial institution will bring, and the value that it represents for its clients”.

Covéa, Exor and PartnerRe will also continue to jointly invest in Exor-managed funds with “reinforced alignment of interests”.

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