PartnerRe boosts footprint with C$375m acquisition

PartnerRe has moved to boost its life and health footprint, a strategic goal of the company, by acquiring Aurigen, a Canadian life reinsurance company, for C$375 million ($286 million) in a cash deal funded by PartnerRe’s excess cash.

Emmanuel Clarke, president and CEO of PartnerRe, said the deal fits in with the reinsurer’s strategy to grow its life and health business.

Formed in 2007, Aurigen is a top-five life reinsurer in Canada based on recurring new reinsurance business. It has also written mortality business in the US since 2013. Aurigen posted gross premiums written of $110 million in 2015 and has delivered a gross premiums compound annual growth rate of 16 percent over the last five years.

“Aurigen is a well-respected life reinsurance partner in the North American market and will be a highly complementary addition to PartnerRe’s existing business,” said Clarke.

“This acquisition is expected to be financially accretive to PartnerRe’s book value per share in 2017 and aligns particularly well with our overall strategy to grow our life and health business.

“Aurigen will expand our life reinsurance footprint in Canada and the US.” with virtually no overlap in market coverage.

“We look forward to welcoming Aurigen to PartnerRe and to bringing all the benefits of PartnerRe’s strong balance sheet, excellent ratings and global franchise to existing and future clients in this market.”

Aurigen’s CEO, Alan Ryder, said: “We are very excited to be joining PartnerRe and look forward to helping grow its life reinsurance business. We believe there is a strong strategic fit between our two organisations and that the combination of Aurigen’s expertise in the life reinsurance market and PartnerRe’s strength and international presence will be of tremendous benefit to our clients.

“Under PartnerRe’s ownership, our clients can expect the innovative reinsurance solutions and exceptional service they’ve come to know from Aurigen to continue and, over time, a broadened product offering and extended risk appetite.”