Emmanuel Clarke responds to recent rumours about a merger with French reinsurer Scor
PartnerRe remains keen on bolt-on acquisitions as it seeks to remain a privately held company, according to chief executive Emmanuel Clarke.
There have been rumours that French reinsurer Scor is interested in a merger with PartnerRe.
But Clarke said: “We do not need to do any large transformational acquisitions. But we are open to bolt-on acquisitions.”
Bermudian reinsurer PartnerRe was bought by Italian private equity fund Exor in 2015.
Pointing to acquisitions that would work for PartnerRe, Clarke said this could be in life and accident business.
He pointed to PartnerRe’s acquisition last year of North American life reinsurance company Aurigen Capital Limited as the type of deal they could seek.
Striking a positive tone, Clarke said reinsurers had a bright future if they could increase their relevance to clients in a riskier world where demand for volatility is growing.
He pointed to a reversing trend in recent years among large global insurers that are now looking for reinsurance solutions for both capital management and volatility control.
Asked if PartnerRe should list on the stock market, Clarke said the business model was at its best as a privately-owned company.
PartnerRe offered value to clients over the long term, he said.
“Our insurance clients want to work with reinsurance partners that have a vested interested in helping them to grow and develop their businesses, support their most confidential initiatives and that can provide capacity after large or unexpected events,” he said.
“PartnerRe’s business model as a pure-play, privately-owned reinsurer perfectly positions us for that role.”
Property and casualty chief executive Charles Goldie said he envisioned a positive future for reinsurers that could match capital to lower the overall cost of capital for clients across a broad suite of reinsurance solutions.
“Reinsurers need to become experts at sourcing and matching capital. We believe using all forms of capital to improve our product offering for our clients is the right thing to do,” he said.
Goldie said the market was consolidating and the most successful reinsurers would be those that can remain nimble and agile as they get bigger