AM Best On Covéa & PartnerRe After MoU
AM Best said that the Financial Strength Rating of A [Excellent] and the Long-Term Issuer Credit Rating of “a+” [Excellent] of Covéa Coopérations remain unchanged following the announcement of a memorandum of understanding between Exor N.V. and Covéa Coop for the sale of PartnerRe Ltd. and its members.
Additionally, AM Best has commented that the FSR of A+ [Superior] and the Long-Term ICR of “aa-” [Superior] for the members of PartnerRe Ltd. [Bermuda] remain unchanged following the same announcement.
A statement from the ratings agency said, “Under the memorandum of understanding, Covéa Coop and Exor N.V. would enter into a definitive agreement for the sale of PartnerRe, following the completion of a required consultation with works councils.
“The parties’ intention is to sign the definitive sale agreement by the end of the year. Under the proposed transaction, Covéa Coop would acquire all ordinary shares of PartnerRe for a total cash consideration of USD 9 billion. Preferred shares issued by PartnerRe and listed on the New York Stock Exchange would not be included in the proposed acquisition.
“The sale is expected to close in mid-2022, subject to approvals from applicable regulatory and competition authorities.
“As the two sides progress toward a definitive agreement, AM Best will continue to evaluate the potential credit profile impact to each organization, and respond to any material planned or executed changes.”
