Analysts at AM Best have reported that the recent acquisition of PartnerRe could lead to an improvement in Covéa’s business profile by significantly diversifying its offerings on a product and geographic basis.
The rating agency stated that its financial strength ratings for Covéa remain unchanged following the announcement last week that it completed its pending acquisition of PartnerRe from Exor.
Ratings for PartnerRe also remain unchanged, and the outlook for both sets of ratings is stable.
AM Best added that the ratings of Covéa Coop will remain under review with positive implications while the firm completes its evaluation of the impact of the acquisition on its rating fundamentals.
Analysts do not anticipate PartnerRe’s credit profile being impacted at this time as a result of the purchase.
They explained that Covéa’s scale and quality of capital can provide substantial financial flexibility to PartnerRe’s already favorable standalone balance sheet strength position.
The current expectation is that PartnerRe will continue to operate as it has and AM Best will continue to monitor PartnerRe’s capitalization and business strategy as the group begins to operate as a material part of Covéa.
After the completion of its acquisition, a number of changes were made to the Board of Directors of PartnerRe, including the appointment of Thierry Derez, Chief Executive Officer (CEO) of Covéa, as Chairman of the Board, replacing Brian Dowd.