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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