EXO Exor NV

By Eric Sylvers 

Exor NV, the holding company of Italy's Agnelli family, is in advanced talks to sell reinsurance company PartnerRe Ltd. to French insurer Covéa Coopérations in a deal that could value PartnerRe at about $9 billion, according to a person familiar with the negotiations.

Though at an advanced stage, the talks might not conclude in a sale of PartnerRe, the person said. John Elkann, the Agnelli scion who is chairman and chief executive of Exor, wasn't looking to sell PartnerRe, but agreed to engage in the talks because he considered Covéa's initial offer to be favorable, according to the person.

Exor, which has a controlling stake in Fiat Chrysler Automobiles NV, agreed to buy PartnerRe in 2015 for $6.9 billion, the holding company's largest acquisition in its multiyear move to diversify its assets and lessen its reliance on the automobile industry. While PartnerRe produces rich dividends for Exor, which can either be reinvested or distributed to shareholders, a sale at $9 billion would allow the holding company to book a 30% gain on an asset it has held for less than four years.

The acquisition would allow Covéa to diversify away from its reliance on France's property and damage sectors while boosting its presence in the lucrative reinsurance business. Covéa failed last year in an attempt to buy French reinsurer Scor. The two companies engaged in an acrimonious battle that led France's banking and insurance regulator to ask them to desist for the sake of the country's financial stability.

Exor owns 30% of Fiat Chrysler, a stake that will be cut in half when the Italian-American car maker completes its merger with Peugeot maker PSA Group by early next year. The holding company also owns 23% of luxury car maker Ferrari, almost two-thirds of Italian soccer club Juventus, and 27% of agricultural equipment maker CNH Industrial NV.

Exor, which is 53% owned by the Agnelli family, declined to comment. Covéa didn't respond to a request for comment.

French newspaper Journal Du Dimanche reported the talks earlier on Sunday.

Write to Eric Sylvers at eric.sylvers@wsj.com

(END) Dow Jones Newswires

February 09, 2020 09:26 ET (14:26 GMT)

Exor NV (BIT:EXO)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024

Exor NV (BIT:EXO)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024