AXIS will receive a $315m break-up fee from PartnerRe as a result of merger agreement being terminated

Italian investment group Exor has reached an agreement to buy reinsurer PartnerRe for $6.9bn – seeing off competition from AXIS who announced an $11bn merger with PartnerRe in January.

As a result of the agreement between PartnerRe and AXIS being terminated, AXIS will receive a $315m break-up fee from PartnerRe.

In a statement today PartnerRe said: “Delivering shareholder value and certainty over the past three years the PartnerRe Board has carefully analyzed the challenges facing the reinsurance industry.

“During this time, the PartnerRe board and management team actively considered various strategic options and a range of potential transactions, ultimately leading to the amalgamation agreement announced on January 25, 2015 with AXIS Capital Holdings Limited.

“Since then, and following Exor’s initial proposal in April, 2015, the PartnerRe Board has managed to negotiate significant enhancements to Exor’s initial proposal.”

PartnerRe chairman Jean-Paul Montupet added: “We are pleased to reach this agreement with Exor, which we believe is in the best interest of our shareholders. Since Exor made its initial offer to acquire the Company in April, 2015, the PartnerRe Board has been focused on maximizing value for our shareholders while positioning PartnerRe for long-term success.

“We have carefully and thoroughly evaluated each development over the past several months, and believe that this thoughtful and deliberate approach was critical to delivering a transaction that represents a significant improvement in the price and terms of Exor original proposal.

“Importantly, Exor is committed to ensuring that the unique culture, brand and business that our dedicated employees have successfully built over the past 20 years remain intact.”