AM Best Comments: Covéa & PartnerRe Ratings
AM Best has commented that the Financial Strength Rating [FSR] of A [Excellent] and the Long-Term Issuer Credit Rating [Long-Term ICR] of “a+” [Excellent] of Covéa Coopérations [Covéa Coop] [France] remain unchanged following the announcement that it has completed the acquisition of PartnerRe Ltd. [PartnerRe] from Exor N.V. These Credit Ratings [ratings] remain under review with positive implications. Covéa Coop is an intermediate operating holding company for Société de Groupe d’Assurance Mutuelle Covéa [Covéa].
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. [PartnerRe] [Bermuda] remain unchanged following Covéa Coop’s announcement of the completed acquisition. The outlook of these ratings is stable.
A statement from the ratings agency said, “On July 12, 2022, Covéa Coop completed its acquisition of PartnerRe from Exor N.V. for a total cash consideration of EUR 7.9 billion. The transaction includes all of the issued Class A common shares of PartnerRe; preferred shares issued by PartnerRe and listed on the New York Stock Exchange were not part of the transaction.
“AM Best expects the acquisition to lead to an improvement in Covéa’s business profile by significantly diversifying its offerings on a product and geographic basis. The ratings of Covéa Coop will remain under review with positive implications while AM Best completes its evaluation of the impact of the acquisition on its rating fundamentals.
“AM Best does not anticipate PartnerRe’s credit profile being impacted at this time as a result of the purchase. Covéa’s scale and quality of capital can provide substantial financial flexibility to PartnerRe’s already favorable standalone balance sheet strength position. The current expectation is that PartnerRe will continue to operate as it has and AM Best will continue to monitor PartnerRe’s capitalization and business strategy as the group begins to operate as a material part of Covéa.”
