According to SEC filings from both companies, reinsurance firm PartnerRe is to sell its PartnerRe Insurance Company of New York entity to workers compensation specialists Employers Group, Inc.
The unit is being sold to Nevada-headquartered Employers Group for a purchase price equal to the statutory capital and surplus of PartnerRe Insurance Company of New York at closing plus $5.8 million. Employers is expected to fund the acquisition
PartnerRe has been rationalising its business units and overall structure since it was taken over by investment conglomerate EXOR over a year ago, this sale would appear to be part of that rationalisation.
All the liabilities and obligations associated with the PartnerRe Insurance Company of New York will be assumed by Employers Group as part of the acquisition.
For PartnerRe there will be no change to day-to-day operations as a result of the sale, with no in-force cover or contacts being transferred and all remaining within the PartnerRe group. The reinsurer also said that there will be no job losses as a result of the sale.
PartnerRe said that this sale is aligned with its “strategy to operate as a cost-effective, lean organization by streamlining its legal entities.”
