PartnerRe taregeted by Covéa

The French mutualist group Covéa got engaged in negotiations with the holding company EXOR for the acquisition of the reinsurer PartnerRe. EXOR, which belongs to the Agnelli family, acquired Partner Re in 2015 for the sum of 6.9 billion USD.

Scor, which has a dispute with Covéa, had already proposed to Partner Re an equal-footing merger based on a valuation ranging between 7 and 8 billion EUR (7.8 to 8.9 billion USD).

This proposal was rejected by EXOR. Having become the leading property and casualty insurer in France, Covéa's personal lines portfolio is essentially France-centred. It is seeking growth in all insurance businesses and also aims to expand internationally, hence its attempts to establish closer ties with a reinsurer.

The French mutualist group is ready to invest 9 billion EUR (10 billion USD) in cash to complete the transaction. This proposal is in line with the aspirations of EXOR. Negotiations could possibly last a few weeks.