Axis CEO ‘disappointed’ PartnerRe merger fell through

The chief executive officer (CEO) of spurned Axis Capital has said he is “disappointed” that its merger with PartnerRe has fallen through.

Today (August 3, 2015), PartnerRe agreed to be acquired by Italian investment company Exor for $6.9 billion.

Following the termination of the agreement with Axis, PartnerRe will pay Axis $315 million.

Michael Butt, chairman of the Axis board of directors, said: “Prior to PartnerRe reaching out to us last December to discuss a combination of our companies, we were confident in continuing with our strategy as a stand-alone company, building our three strong businesses incrementally.

“We will now proceed with that strategy, with strengthened resolve. We have been very conscious of our responsibilities to our shareholders throughout these negotiations and believe we have demonstrated prudence and financial discipline in our approach.”

Albert Benchimol, president and chief executive officer of Axis, added: “Our proposed transaction with PartnerRe stood to create a powerful mix of two financially strong and independent companies with compelling insurance/reinsurance franchises.

“While I am disappointed that the merger will not proceed, I have no doubt that the best days for Axis, our employees, clients, brokers and shareholders lie ahead. We have built a powerful global platform on which to continue to advance our hybrid insurance model with three diversified businesses in specialty insurance, reinsurance, and accident and health.”