French mutual insurer Covéa has closed the acquisition of PartnerRe from Exor for $9.3bn in cash.
The deal, which was announced in December last year, aims to bolster PartnerRe’s position in the global reinsurance market.
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A memorandum of understanding (MoU) for the transaction was reached in October 2021, after initial attempts collapsed in May 2020 due to “significant uncertainties threatening the global economic outlook”.
Exor is a diversified holding company managed by the Agnelli family.
In a statement, Exor said: “The acquisition of PartnerRe by Covéa reinforces PartnerRe’s development as a great company in its industry thanks to a significant increase in the scale and capital strength that membership of a larger financial institution brings, and the value that it represents for its clients.
“As previously announced Exor and Covéa will continue their cooperation following the completion of the transaction.”
The deal consideration is based on a combined common shareholders’ equity value of $7.3bn. It does not cover the preferred shares issued by PartnerRe and listed on the New York stock exchange (NYSE), Covéa said at the time of announcing the deal.
The concerned entities will also maintain their reinsurance alliance, with Exor buying Covéa’s stakes in special purpose reinsurance vehicles managed by PartnerRe for nearly $725m.
Besides, the trio will continue to jointly invest in Exor-managed funds, in what is claimed to support “reinforced alignment of interests”.
