By Ed Frankl

 

Exor NV has agreed to sell its reinsurance subsidiary PartnerRe Ltd. to France's Covea in a $9 billion deal, the two companies said Thursday.

Exor and Covea signed a definitive agreement expected to close in mid-2022, based on a consolidated common shareholders' equity value of $7 billion, the companies said in a statement.

Both companies had already reached a memorandum of understanding on the deal in late October, after a similar deal from early 2020 fell apart during the economic uncertainty of the pandemic.

Following the closing of the deal, Exor and Covéa said they will continue their reinsurance and investment cooperation, including through Exor's acquisition from Covéa of interests in special-purpose reinsurance vehicles managed by PartnerRe for approximately $725 million.

"This transaction with Covéa will reinforce PartnerRe's development as a great company in its industry thanks to a significant increase in the scale and capital strength that membership of a larger financial institution will bring, and the value that it represents for its clients," the companies said.

 

Write to Ed Frankl at edward.frankl@dowjones.com

 

(END) Dow Jones Newswires

December 16, 2021 12:13 ET (17:13 GMT)

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