AMSTERDAM--(BUSINESS WIRE)--AM Best has placed under review with developing implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of Covéa Coopérations (Covéa) (France).
The Credit Rating (rating) action follows an announcement that Covéa has approved a memorandum of understanding with Exor N.V. under which Covéa will acquire all ordinary shares of PartnerRe Ltd (PartnerRe) for a total cash consideration of USD 9 billion. Preferred shares issued by PartnerRe and listed on the New York Stock Exchange would not be included in the proposed acquisition.
The proposed transaction is expected to close in the fourth quarter of 2020, subject to approvals from applicable regulatory and competition authorities.
The ratings will remain under review until the transaction closes and AM Best completes its evaluation of the impact of the planned acquisition on Covéa’s rating fundamentals. The under review status may be updated in the interim period if new facts and circumstances present themselves.
Concurrently, AM Best has commented that the FSR of A- (Excellent) and the Long-Term ICR of “a-” of Civil Service Employees Insurance Company (USA) and CSE Safeguard Insurance Company (USA), both part of the Covéa group, remain unchanged following the Covéa announcement.
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