AM Best says PartnerRe sale could bring long term benefit
AM Best has said it does not anticipate there will be any material impact on the credit profile of Bermuda reinsurer Partner Re Ltd. as a result of the consequence of its $9 billion sale and combination with EXOR N.V. and Covéa Coopérations.
The rating agency said: “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.”
Best has placed under review with positive implications Covéa Coop’s Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent).
The analysts expect the acquisition to lead to an improvement in Covéa’s business profile by significantly diversifying its offering, both on a product and geographic basis.
The ratings are expected to remain under review until the transaction closes and AM Best completes its evaluation of the impact of the acquisition on Covéa Coop’s rating fundamentals.
The under review status may be updated in the interim period if new facts and circumstances present themselves.
The transaction is expected to close in the second or third quarter of 2022, subject to approvals from applicable regulatory and competition authorities.
Preferred shares issued by PartnerRe and listed on the New York Stock Exchange are not included in the agreement.