Best’s News & Research Service - December 22, 2021 11:33 AM (EST)
AM Best Comments on Credit Ratings of PartnerRe Ltd. Following the Signing of a Definitive Agreement of Sale
- December 22, 2021 11:33 AM (EST)
Oldwick //BestWire// - AM Best has commented that the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) for the members of PartnerRe Ltd. (Bermuda) remain unchanged following the signing of a definitive agreement between EXOR N.V. and Covéa Coopérations (Covéa Coop) for the sale of PartnerRe Ltd. (PartnerRe) and its members.
Under the terms of the agreement, Covéa Coop will acquire all ordinary shares of PartnerRe for an agreed cash consideration of USD 9.0 billion (approximately EUR 7.8 billion) to be paid by Covéa Coop upon the closing of the transaction. This price is based on PartnerRe’s consolidated common shareholders’ equity value of USD 7 billion. Preferred shares issued by PartnerRe and listed on the New York Stock Exchange are not included in the agreement. The transaction is expected to close in the second or third quarter of 2022, subject to approvals from applicable regulatory and competition authorities.
AM Best does not anticipate PartnerRe’s credit profile being impacted materially as a result of the sale. While PartnerRe could improve the diversification of the greater Covéa Coop, the stand-alone operations of PartnerRe are anticipated to remain generally consistent with prior years. However, PartnerRe could benefit from the increased scale and capital strength that Covéa Coop provides in future years.
AM Best will continue to monitor the progress of this sale, and if the original assumptions regarding the post-sale operations begin to deviate materially, then these Credit Ratings could be subject to review. For more information regarding the potential impact of the sale in regards to Covéa Coop, please see the associated AM Best press release.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.