Covéa increases cash price for $9bn PartnerRe deal with Exor
French mutual insurer Covéa has increased its consideration for the purchase of PartnerRe, the global reinsurer wholly-owned by Exor, from the previously agreed $9 billion sum.
Italian investment firm Exor has revealed that the cash consideration for the sale of PartnerRe to Covéa has been increased by $328 million.
The increased amount will be paid as $150million by Covéa to Exor, and $178 million by PartnerRe through a special dividend.
The previously agreed $9 billion to be paid by Covéa on the closing of the transaction was based on a consolidated common shareholders’ equity value of $7 billion.
Exor said, based on PartnerRe's common shareholders' equity at December 31, 2021, the cash consideration will be adjusted to include additional proceeds for around $328 million.
On December 16, 2021, Exor and Covéa signed a definitive agreement to sell PartnerRe. Subject to obtaining approvals from the regulatory and competition authorities, the deal is expected to complete in mid-2022.
Upon closing, Exor and Covéa will continue their reinsurance cooperation, with Exor acquiring from Covéa interests in special purpose reinsurance vehicles managed by PartnerRe for approximately $725million.
These vehicles will invest in property catastrophe and other short-tail reinsurance contracts underwritten by PartnerRe.
Covéa, Exor and PartnerRe will also continue to invest jointly in Exor-managed funds with “reinforced alignment of interests”.
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