French insurer Covéa will invest €750 million in special purpose reinsurance vehicles managed by PartnerRe that invest in property catastrophe and other short-tail reinsurance contracts.
The investment will be made over a five year period.
The arrangement is part of a €1.5 billion investment and reinsurance cooperation agreement between Covéa and Exor that will see Covéa allocate a total of €750 million over the 2021-2023 period for investment opportunities alongside the Exor group.
Covéa will make a €500 million investment in special purpose insurance vehicles on January 1, 2021, with an additional €250 million investment following by January 1, 2024. The agreement aims to seize investment opportunities in the context of a deeply changing economy, the French insurer said.
John Elkann, chairman and chief executive officer of Exor, said: “After having decided definitively to continue our project to build one of the world’s leading independent reinsurers, we’re more than happy now to have been able to agree with Covéa this constructive cooperation extending also to other fields of our activity."
Covéa, PartnerRe, Exor, John Elkann