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Exor bumps up price of PartnerRe by €328m

25th March 2022 - Author: Pete Carvill

Exor has increased the sales price for PartnerRe by €328m.

PartnerRe logoLast year, the firm made a deal with Covéa to sell PartnerRe for $9bn. However, Exor said, in announcing its board of directors approving its 2021 figures, that the price had risen.

Exor wrote: “The agreed cash consideration of $9.0bn to be paid by Covéa at closing of the transaction was based on a consolidated common shareholders’ equity value of $7bn. Based on PartnerRe’s common shareholders’ equity at 31 December 2021, the agreed cash consideration will be adjusted, as per the agreed terms, to include additional proceeds for around $328m (of which $150m to be paid by Covéa and $178m to be paid by PartnerRe as a special dividend).”

It added in a later note: “At 31 December 2021 the fair value is aligned with the price under the terms of the definitive agreement signed with Covéa on 16 December 2021, equal to $9bn plus a price adjustment of around $328m. At 31 December 2020, the fair value was determined by an independent expert.”

The acquisition of PartnerRe by Covéa has already received positive reviews. In December, AM Best said that it had an ‘optimistic view’ on the acquisition, saying the diversification is positive for Covéa, while PartnerRe will benefit from increased scale and capital strength.

Stratumn, by SIA Partners

Back then, AM Best said that the acquisition would be beneficial for PartnerRe, although it said it did not believe that the sale would make a material impact on its credit profile.

Even while PartnerRe is expected to ‘improve the diversification of the greater Covéa Coop’, AM Best noted that “[…] the stand-alone operations of PartnerRe are anticipated to remain generally consistent with prior years.”

Positively, the rating agency further said: “PartnerRe could benefit from the increased scale and capital strength that Covéa Coop provides in future years.”

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