PartnerRe Acquires Aurigen Capital Limited
PartnerRe Ltd. and Aurigen Capital Limited announced a definitive agreement for PartnerRe to acquire 100% of the outstanding ordinary shares of Aurigen, a North American life reinsurance company.
Since its formation in 2007, Aurigen has leveraged its technical expertise, longstanding relationships, and local knowledge to serve clients and is today a top-five life reinsurer in Canada based on recurring new reinsurance business.
The Company has also been providing mortality risk solutions in the U.S. since 2013. Aurigen’s gross premiums written in 2015 were USD 110 million, with the Company delivering a gross premiums CAGR of 16% over the last five years.
PartnerRe’s President and CEO, Emmanuel Clarke, welcomed the deal saying: “Aurigen is a well-respected life reinsurance partner in the North American market and will be a highly complementary addition to PartnerRe’s existing business.
“This acquisition is expected to be financially accretive to PartnerRe’s book value per share in 2017 and aligns particularly well with our overall strategy to grow our Life and Health business. Aurigen will expand our life reinsurance footprint in Canada and the U.S. with virtually no overlap in market coverage.
“We look forward to welcoming Aurigen to PartnerRe and to bringing all the benefits of PartnerRe’s strong balance sheet, excellent ratings and global franchise to existing and future clients in this market.”
Aurigen’s CEO, Alan Ryder, said: “We are very excited to be joining PartnerRe and look forward to helping grow its life reinsurance business.
“We believe there is a strong strategic fit between our two organizations and that the combination of Aurigen’s expertise in the life reinsurance market and PartnerRe’s strength and international presence will be of tremendous benefit to our clients.
“Under PartnerRe’s ownership, our clients can expect the innovative reinsurance solutions and exceptional service they’ve come to know from Aurigen to continue and, over time, a broadened product offering and extended risk appetite.”
The cash consideration for the transaction is CAD 375 million [about USD 286 million]. The acquisition will be financed through the utilization of PartnerRe’s excess cash on hand and no debt or equity financing will be required.
The acquisition is subject to customary closing conditions including the receipt of required regulatory approvals and is expected to be completed by the first quarter of 2017.
Willis Capital Markets & Advisory is acting as the financial advisor to PartnerRe and Evercore is acting as the financial advisor to Aurigen.
