PartnerRe boosts presence in life reinsurance with acquisition

PartnerRe has taken an important step to boost its life and health footprint by acquiring Aurigen, a North American life reinsurance company.

Aurigen’s gross premiums written in 2015 were $110 million, with the company delivering a gross premiums CAGR 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 Emmanuel Clarke, president and CEO of PartnerRe.

“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 U.S. 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 organizations 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.”

The acquisition will be financed through the utilisation of PartnerRe’s excess cash on hand and no debt or equity financing will be required.