Total 69 of the capital are already secured

Operation "winner winner", both for the purchaser to the target. PartnerRe announced Sunday evening an agreement for the acquisition of its Swiss competitor Paris Re, thus accessing the Top 5 global reinsurance. The Bermudian reinsurer déboursera total 2 billion (EUR 1.44 billion) to get their hands on the ex - AXA Re, who had been assigned to a group of investors in April 2006 and introduced at the Paris stock exchange in June 2007.

With this acquisition, "the ideal target," said, PartnerRe is going to change status. Without claim to compete with the big sector such as Munich Re, Swiss Re and Berkshire Hathaway, he moves closer, with his 5.4 billion in premiums pro forma, of average size as Hannover Re or SCOR actors. With its 5.5 billion of combined equity and its AA rating-, confirmed by Standard & Poor's, even if the prospect is passed to "negative" in view of the risks of integration, exceed them even, he said, in terms of financial strength.

"The world has changed with the crisis and it is more uncertain." "As a reinsurer, need us to minimize the risk by increasing the capital and with greater diversification, to increase the stability of the results", explains to the Patrick Thiele, CEO of PartnerRe "Echos". Paris Re, on the other hand, ensures have suffered its shareholders "no strategic pressure" to sell more quickly than expected. The company, which began to make a name, has a healthy balance (it is noted A-) and the support of its shareholders. But it faced a problem of liquidity on the stock exchange that hindered it in its development and reflected in a haircut of approximately 40 on its net tangible assets (excluding intangible). In short, each finds his account.

69-Safe operation

The transaction appears to be rather well engaged, even if it will take place over several months in view of the approvals necessary for shareholders of both companies and the stock market authorities. PartnerRe, who has already acquired 6 of Paris Re for 0.3 action against 1, will acquire in the fourth quarter 2009 block majority of 57 of the capital belonging to six funds present prior to the introduction on the stock exchange (Stone Point, Hellman & Friedman, Vestar Capital Partners, Crestview Partners, New Mountain and Caisse de Dépôt et Placement Quebec).

A public exchange offer will be launched end of 2009 on the balance of the capital, under the same conditions, knowing that shareholders representing 6 of the capital of Paris Re (including AXA, which still holds a 3) committed themselves to make their titles. Total 69 of the capital are already secured. PartnerRe will then conduct a mandatory merger under Swiss rules if it holds more than 90 of the shares of the target at the end of the CFS.

PartnerRe did not wish to communicate, at this stage, on synergies or potential cost reductions. The group just indicates that it will be more balanced, Paris Re more exposure on some specialties, the non-proportional treaties and emerging markets. Duplication should be limited to 20 of the portfolio. Taking into account the calendar of the operation, the two groups arise again separately for January 1 renewal campaign.