The deal failed in 2020 because of Covid as the parties could not agree on a revised price.
Indeed, Exor clearly indicated that “their revised price did not properly reflect the company’s true value and its bright prospects”.
Most importantly, it seems as if Exor/PartnerRe and Covéa have maintained a very decent working relationship:
• Exor indicated that “All our interactions with Covéa on this matter were professional and constructive”
• PartnerRe is still acting as one of Covéa’s most important reinsurance counterparts
• In addition, Exor and Covéa announced in August 2020 a €1.5bn co-investment agreement whereby Covéa committed to invest €750m alongside PartnerRe and another €750m alongside Exor
The latest PartnerRe “Market Value” update from Exor was on June 30, 2021 and the value was €6,942m (value disclosed in its NAV).
If we increase this Market Value by 9% to account for the performance of the peers and indices since June 30, 2021 (see full calculations details in section D/), we come up with an adjusted value of €7,636m for PartnerRe.
This number represent 95% of PartnerRe’s Market value at the end of 2019 (€8,001m) which could guide us to believe that an offer close to the original one is possible.
However, we note that PartnerRe’s net debt has, in the meantime, increased significantly. The net debt was €1,950m as of H1 2021 while it was nil at YE 2020.
Still the PartnerRe “Market Value” remained almost unchanged in Exor’s NAV (see details below) between YE 2020 and H1 2021.