Global reinsurance firm plans to expand its life and health operations with deal
Global reinsurance leader PartnerRe has strengthened its position in the North American market by completing its $350 million acquisition of Canadian firm Aurigen Capital.
The two firms announced a definitive agreement has been signed for PartnerRe to acquire 100% of the outstanding ordinary shares of Aurigen. Addressing the deal, PartnerRe’s President and CEO Emmanuel Clarke explained the benefits of this partnership.
“This acquisition is expected to be financially accretive to PartnerRe’s book value per share in 2017 and aligns particularly well with our overall strategy to grow our life and health business,” he says. “Aurigen will expand our life reinsurance footprint in Canada and the US with virtually no overlap in market coverage.
PartnerRe is a global operation with offices in such diverse markets as Mexico City, São Paulo and Beijing. Its business is divided into three main segments, P&C, Specialty, and Life and Health, and its total assets were $21.9 billion at the end of 2016.
Aurigen was formed in 2007 and since then has become a top-five life reinsurer in Canada. The company branched out into the US in 2013 when it began providing mortality risk solutions and it now has a life reinsurance portfolio in excess of $100 billion and consolidated assets in excess of $750 million. These financials make it a valuable asset for PartnerRe to add to its corporate family.
Discussing the acquisition, Aurigen’s CEO Alan Ryder outlined his expectations for the company heading forward. “We believe there is a strong strategic fit between our two organizations and 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.”
The transaction will be financed through PartnerRe’s excess cash reserves, meaning no debt or equity financing is required. Aurigen’s management team and employees will join PartnerRe’s existing Life & Health segment as a newly formed business unit called North America Life. This unit will be led by Alan Ryder, reporting to Marc Archambault, CEO of Life & Health.
Related stories:
Canadian life reinsurer agrees to acquisition by Bermudian firm
Industrial Alliance to acquire HollisWealth
The two firms announced a definitive agreement has been signed for PartnerRe to acquire 100% of the outstanding ordinary shares of Aurigen. Addressing the deal, PartnerRe’s President and CEO Emmanuel Clarke explained the benefits of this partnership.
“This acquisition is expected to be financially accretive to PartnerRe’s book value per share in 2017 and aligns particularly well with our overall strategy to grow our life and health business,” he says. “Aurigen will expand our life reinsurance footprint in Canada and the US with virtually no overlap in market coverage.
PartnerRe is a global operation with offices in such diverse markets as Mexico City, São Paulo and Beijing. Its business is divided into three main segments, P&C, Specialty, and Life and Health, and its total assets were $21.9 billion at the end of 2016.
Aurigen was formed in 2007 and since then has become a top-five life reinsurer in Canada. The company branched out into the US in 2013 when it began providing mortality risk solutions and it now has a life reinsurance portfolio in excess of $100 billion and consolidated assets in excess of $750 million. These financials make it a valuable asset for PartnerRe to add to its corporate family.
Discussing the acquisition, Aurigen’s CEO Alan Ryder outlined his expectations for the company heading forward. “We believe there is a strong strategic fit between our two organizations and 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.”
The transaction will be financed through PartnerRe’s excess cash reserves, meaning no debt or equity financing is required. Aurigen’s management team and employees will join PartnerRe’s existing Life & Health segment as a newly formed business unit called North America Life. This unit will be led by Alan Ryder, reporting to Marc Archambault, CEO of Life & Health.
Related stories:
Canadian life reinsurer agrees to acquisition by Bermudian firm
Industrial Alliance to acquire HollisWealth
