AM Best Comments On PartnerRe Ratings

December 24, 2021 | 0 Comments

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 for the sale of PartnerRe Ltd. and its members.

A statement from the ratings agency said, “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. “

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