The French mutualist group Covéa got engaged in negotiations with the holding company EXOR for the acquisition of the reinsurer PartnerRe [4]. 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 [5], 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.