Aurigen acquisition will be critical in a planned expansion into Canada and the US
An article on the Royal Gazette reports that Bermuda-based reinsurance firm PartnerRe Ltd has agreed to buy Canadian life reinsurer Aurigen Capital Ltd in a $350 million deal.
In a statement, the Bermudian firm characterized Aurigen as a “top-five life reinsurer” in Canada, whose gross premiums written last year amounted to US$110 million.
PartnerRE CEO Emmanuel Clarke remarked that the acquisition lined up “well with our overall strategy to grow our Life and Health business.”
“Aurigen is a well-respected life reinsurance partner in the North American market and will be a highly complementary addition to PartnerRe’s existing business,” Clarke said. “This acquisition is expected to be financially accretive to PartnerRe’s book value per share in 2017.
“Aurigen will expand our life reinsurance footprint in Canada and the US with virtually no overlap in market coverage,” he added. “We look forward to welcoming Aurigen to PartnerRe and to bringing all the benefits of PartnerRe’s strong balance sheet, excellent ratings and global franchise to existing and future clients in this market.”
A nine-year-old company, Aurigen is licensed to transact life reinsurance in Canada, the US and Bermuda. Its life reinsurance in-force portfolio is worth more than $100 billion, and its consolidated assets are in excess of $750 million.
“We are very excited to be joining PartnerRe and look forward to helping grow its life reinsurance business,” said Aurigen CEO Alan Ryder. “We believe there is a strong strategic fit between our two organizations and that the combination of Aurigen’s expertise in the life reinsurance market and PartnerRe’s strength and international presence will be of tremendous benefit to our clients.”
Following the announcement of the deal, rating agency AM Best placed Aurigen’s financial strength rating of A- (excellent) under review with positive implications.
“The under review with positive implications status reflects the potential financial and operational benefits that will be derived from Aurigen being a significant operation within a larger, higher-rated organization,” AM Best said. The rating agency has given PartnerRe a grade of A for financial strength.
According to PartnerRe, the deal would be funded by cash on hand and is expected to close in the first quarter of next year, pending regulatory approvals. Willis Capital Markets & Advisory is acting as the financial adviser to PartnerRe, while Evercore is acting as the financial adviser to Aurigen.
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In a statement, the Bermudian firm characterized Aurigen as a “top-five life reinsurer” in Canada, whose gross premiums written last year amounted to US$110 million.
PartnerRE CEO Emmanuel Clarke remarked that the acquisition lined up “well with our overall strategy to grow our Life and Health business.”
“Aurigen is a well-respected life reinsurance partner in the North American market and will be a highly complementary addition to PartnerRe’s existing business,” Clarke said. “This acquisition is expected to be financially accretive to PartnerRe’s book value per share in 2017.
“Aurigen will expand our life reinsurance footprint in Canada and the US with virtually no overlap in market coverage,” he added. “We look forward to welcoming Aurigen to PartnerRe and to bringing all the benefits of PartnerRe’s strong balance sheet, excellent ratings and global franchise to existing and future clients in this market.”
A nine-year-old company, Aurigen is licensed to transact life reinsurance in Canada, the US and Bermuda. Its life reinsurance in-force portfolio is worth more than $100 billion, and its consolidated assets are in excess of $750 million.
“We are very excited to be joining PartnerRe and look forward to helping grow its life reinsurance business,” said Aurigen CEO Alan Ryder. “We believe there is a strong strategic fit between our two organizations and that the combination of Aurigen’s expertise in the life reinsurance market and PartnerRe’s strength and international presence will be of tremendous benefit to our clients.”
Following the announcement of the deal, rating agency AM Best placed Aurigen’s financial strength rating of A- (excellent) under review with positive implications.
“The under review with positive implications status reflects the potential financial and operational benefits that will be derived from Aurigen being a significant operation within a larger, higher-rated organization,” AM Best said. The rating agency has given PartnerRe a grade of A for financial strength.
According to PartnerRe, the deal would be funded by cash on hand and is expected to close in the first quarter of next year, pending regulatory approvals. Willis Capital Markets & Advisory is acting as the financial adviser to PartnerRe, while Evercore is acting as the financial adviser to Aurigen.
Related stories:
$20 trillion life insurance ‘protection gap’ needs addressing, says Swiss Re Canada CEO
Canada Life International Re pursuing European acquisition
