Log In

Reset Password
BERMUDA | RSS PODCAST

PartnerRe to acquire Presidio Reinsurance for $72m

PartnerRe has announced it is acquiring Presidio Reinsurance Group, a US specialty accident and health reinsurance and insurance writer.

The Bermudian reinsurer will purchase the San Francisco-based firm, comprised principally of a Managing General Agency (MGA) and a reinsurance carrier.

Under the terms of the agreement, PartnerRe will pay $72 million as consideration for the MGA, plus tangible book value as consideration for the Presidio reinsurance carrier, with such book value to be determined at the time of the closing.

Additional consideration may be paid if the acquired business exceeds certain profitability targets over time.

Formed in 1994, The Presidio Reinsurance Group and is a leading writer of HMO reinsurance and provider of stop-loss insurance in the US and currently underwrites approximately $250 million of accident and health premiums. Additionally, the company writes medical treaty reinsurance, employer stop-loss insurance, and accident insurance and reinsurance.

The current management team of the Presidio Reinsurance Group will be retained, including its founder and CEO, Dennis Heinzig.

“Presidio is a leader in US specialty accident and health insurance and reinsurance, with an excellent 18-year track record of underwriting profitability,” said PartnerRe president and CEO Costas Miranthis. “We see significant opportunity in this market and with Presidio’s experienced team and strong market position, we will be well-positioned to take advantage of future growth opportunities.

“The Presidio Accident & Health business complements our portfolio well and has limited correlation with our existing book of risks,” Mr. Miranthis added. “As we continue to operate under somewhat challenging market conditions, we expect this new risk class will add consistent risk-adjusted profitability to the overall portfolio.”

The acquisition is subject to customary regulatory approvals and is expected to be completed during the first quarter of 2013.

PartnerRe CEO Costas Miranthis

You must be Registered or to post comment or to vote.

Published December 19, 2012 at 8:00 am (Updated December 18, 2012 at 6:47 pm)

PartnerRe to acquire Presidio Reinsurance for $72m

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon