Covéa makes bold move for AXA XL after failed PartnerRe, SCOR deals
Mutual insurer Covéa is mulling a deal with Bermuda-based global reinsurer AXA XL Re, according to media reports in France, following the abrupt collapse of PartnerRe deal last year, and a failed hostile takeover bid for Paris-based reinsurer SCOR.
Recent local media reports have suggested that the France-headquartered company is exploring the acquisition of AXA Group’s non-life reinsurance unit AXA XL Re. Both companies have neither confirmed or denied the reports at the time of publication.
The news comes a year after its deal to acquire Bermuda-based global reinsurer PartnerRe from Italian investment company Exor fell through due to Covéa's "refusal to honour its commitments under the MoU".
In February 2020, Exor entered into exclusive discussions with Covéa regarding a possible all-cash $9 billion sale of PartnerRe. However, the deal was called off three months later as Exor decided to not sell PartnerRe on 'inferior' terms.
Covéa was originally eyeing SCOR when it proposed a €8.2 billion bid to acquire the global reinsurer in late 2018, which was unanimously rejected by the company's shareholders, and followed a period of hostility between the two groups. The reinsurer alleged that the procedure and methods used by Covéa CEO Thierry Derez and the company to take over SCOR was " hostile and unfriendly", and it significantly disrupted the functioning of the company.
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