Partner Re acquisition would 'weaken' Covéa's balance sheet but 'not eliminate capital/leverage strengths'

Written by Adam Cadle

21/02/2020

Any potential acquisition of a reinsurer of a size of Partner Re, by Covéa, would "weaken Covéa's balance sheet but it would "not eliminate Covéa's capital and leverage strengths relative to other Aa-rated peers", Moody's has said.

Covéa is in exclusive talks to buy PartnerRe in an all-cash deal worth $9bn.

"Positively, the acquisition would enhance Covéa's business and geographic diversification," Moody's said. "Partner Re is the 12th largest global reinsurer with gross written premiums of $6.3bn in 2018.

"While the company is predominantly focused on P&C reinsurance, it has a growing life insurance business, accounting for 21% of 2018 net premiums, which sets it apart from a number of the other single-A rated reinsurers. Partner Re would provide a strong platform for Covéato diversify its business and grow into reinsurance."

Related Articles