Covéa agrees $9bn purchase of Bermuda-based global reinsurer

Written by Adam Cadle

04/03/2020

Bermuda-based global reinsurer, PartnerRe, is to be sold to French mutual insurer, Covéa, for a total cash consideration of $9bn plus a cash dividend of $50m.

According to a Memorandum of Understanding between the two parties, the new group would represent approximately €23bn in premium.

Covéa is financing the acquisition price entirely from available own resources. Covéa’s proforma Solvency II ratio is estimated at more than 240% (standard formula) and would remain among the highest in Europe.

The proposed transaction is subject to the consultation of the competent workers councils. Completion of the proposed transaction could occur during the fourth quarter of 2020, subject to obtaining prior approvals from applicable regulatory and competition authorities.

“Given strong complementarity between business and geographic locations of Covéa and PartnerRe, Covéa does not anticipate any impact of the transaction on employment and on customer relationships, including on Covéa Coopérations inwards reinsurance business,” the Memorandum of Understanding stated.

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