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Covéa to invest €1.5bn with EXOR & PartnerRe managed reinsurance vehicles

4th August 2020 - Author: Luke Gallin

French insurer Covéa has entered into a €750 million investment cooperation with EXOR and, at the same time, has signed a €750 million reinsurance cooperation agreement with Bermuda-based reinsurer, PartnerRe.

covea-partnerre-exor-logosCovéa group is set to allocate €750 million over 2021 – 2023 for investment opportunities alongside the EXOR group, one of Europe’s leading family-controlled holding companies.

Additionally, the insurer has entered into a reinsurance cooperation arrangement with PartnerRe, under which Covéa is set to allocate €750 million over a five year period in numerous special purpose reinsurance vehicles managed by PartnerRe. According to an announcement on the arrangement, investments will be made in property catastrophe and other short-tail reinsurance contracts.

Initially, a €500 million investment in special purpose insurance vehicles will be made on Jan 1, 2021 with an additional €250 million investment to be made prior to or on Jan 1, 2024.

Chairman and Chief Executive Officer (CEO) of EXOR, John Elkann, said: “After having decided definitively to continue our project to build one of the world’s leading independent reinsurers, we’re more than happy now to have been able to agree with Covéa this constructive cooperation extending also to other fields of our activity.”

Not too long ago, it was revealed that the Agnelli family owned holding company, EXOR had reached an agreement with Covéa over the €9 billion sale of PartnerRe. As the COVID-19 pandemic accelerated and started to have a significant impact on global financial markets, Covéa said that it remained committed to the deal.

However, in early May it was reported that the deal had been called off after owner EXOR declined to renegotiate the price in the context of the pandemic.

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