AXIS Capital Holdings Limited and PartnerRe Ltd. have agreed to merge, creating a global specialty insurance and reinsurance company with gross premiums written in excess of $10 billion, total capital of more than $14 billion, and cash and invested assets of more than $33 billion.
The merger has been unanimously approved by the boards of directors of both companies.
PartnerRe Chairman Jean-Paul L. Montupet will be non-executive chairman of the combined company. AXIS Capital Chief Executive Officer Albert A. Benchimol will serve as CEO of the combined company. The new company will have a 14 person board of directors, consisting of seven AXIS Capital directors and seven PartnerRe directors, including Messrs. Montupet and Benchimol. Current AXIS Capital Chairman Michael A. Butt will continue to serve on the board as chairman emeritus.
Mr. Benchimol stated, “This transformational combination will leverage the complementary strengths of both companies and create an organization with the size and breadth to enhance product and service offerings, maximize growth opportunities, optimize portfolios, and deliver both economies of scale and capital efficiencies. The combined company will have three strongly positioned businesses – a top-five global reinsurer, a $2.5 billion specialty insurance underwriting business, and a highly successful and growing life, accident, and health franchise – all with increased strategic flexibility. As a top five global reinsurer with leading positions in a number of specialty lines, we will be strongly positioned to turn the challenges presented by the structural changes in the reinsurance market into opportunities.”
Mr. Benchimol continued, “For our clients and brokers, this transaction brings together two companies with outstanding underwriting talent and service to deliver more comprehensive solutions backed by the financial strength they have come to rely on from both companies. I look forward to working closely together to make this vision a reality, while achieving diversified and consistent earnings growth for our shareholders.”
In connection with the transaction, Costas Miranthis will step down as CEO of PartnerRe and as a member of the PartnerRe board. At that time, current PartnerRe director David Zwiener will assume the position of interim CEO of PartnerRe until the completion of the transaction.
The company headquarters will be located in Bermuda.
Learn more: www.partnerre.com; www.axiscapital.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].