EXOR, Again, Agrees to Sell PartnerRe to France’s Covéa for $9 Billion (€7.8 Billion)

French mutual insurer Covéa and EXOR, a holding company controlled by the Agnelli family, have officially agreed to a delayed deal in which Covéa will acquire the global reinsurer PartnerRe for cash consideration of $9.0 billion (approximately €7.8 billion).

The price to be paid by Covéa on the closing of the transaction is based on a consolidated common shareholders’ equity value of $7 billion. Preferred shares issued by PartnerRe and listed on the New York Stock Exchange will not be included in the proposed acquisition.

Today’s announcement revives a transaction that collapsed in May 2020 at the onset of the pandemic when EXOR rejected Covéa’s request for a discount due to “significant uncertainties threatening the global economic outlook.”

EXOR and Covéa signed a memorandum of understanding last month to proceed with the proposed deal, which was then subject to the consultation of Covéa workers councils. That consultation has been completed.

The acquisition of PartnerRe will help Covéa expand beyond home, auto, life and health insurance coverage.

EXOR and Covéa said they will continue their reinsurance cooperation following the closing of the transaction, with EXOR acquiring from Covéa interests in special purpose reinsurance vehicles managed by PartnerRe for approximately $725 million.

Covéa, EXOR and PartnerRe will also continue to invest jointly in EXOR-managed funds with reinforced alignment of interests.

Subject to applicable regulatory authorities, the firms expect the transaction will complete 31, in mid-2022, based on PartnerRe’s audited consolidated common shareholders’ equity as of Dec. 31, 2021.