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Exor, Covea enter into $ 9 billion PartnerRe agreement on pre-pandemic terms



(Reuters) – Exor, the holding company of the Italian Agnelli family, has agreed to sell its PartnerRe reinsurer to the French insurance group Covea for $ 9 billion, bringing home a deal that had derailed coronavirus. [19659002] The price tag is unchanged from last year, when Covea withdrew from the purchase of Agnelli's Bermuda-based company and said it could no longer buy it under terms agreed before the pandemic while Exor refused to give in.

Exor had said. At that time, PartnerRe had one of the highest capital and liquidity ratios in the global reinsurance industry and was not expected to be significantly affected by the pandemic.

The deal further increases Exor's firepower for future acquisitions, which currently amount to around € 3 billion.

Exor and Covea said in a joint statement that they had signed a memorandum of understanding and that they would complete the deal by the end of the year, after Covea consultations with works councils as required to do so.

Completion of the agreement is expected by mid-2022. -listed preference shares of PartnerRe were not part of the acquisition.

"The acquisition of PartnerRe is fully consistent with Covea's long-term strategy to anticipate the development of the global insurance environment through international growth and through product, risk and geographic area diversification," the statement said.

Following the collapse of the business, Covea agreed to invest EUR 1

.5 billion in units managed by PartnerRe and in secret investments related to Exor, in an attempt to normalize relations between the two companies.

Covea said the reinsurance and reinsurance. investment partnership agreements involving Exor, PartnerRe and Covea had helped the company to better know and appreciate PartnerRe and its management. for about $ 725 million.

These vehicles will invest in real estate disasters and other short-tail reinsurance contracts signed by PartnerRe, the companies said. ] Covea, Exor and PartnerRe will also continue to jointly invest in Exor-managed funds.

Under the original terms of the agreement with Covea, Exor would have received a total cash return of $ 3 billion from its acquisition and divestment of PartnerRe, including dividends paid by the reinsurer since 2016, Exor had said.

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