PartnerRe announced on Tuesday that it has officially acquired California-based managing general agency (MGA) and reinsurance underwriter, Presidio Reinsurance Group.
Founded in 1994, Presidio writes approximately $250 million of accident and health premiums a year and is a leading writer of health medical organisation reinsurance and provider of stop-loss insurance in the US.
Under the terms of PartnerRe’s agreement with Presidio, the Bermuda-based re/insurance player will pay $72 million in consideration of the MGA, plus tangible book value for the reinsurance carrier. Exact numbers will be decided upon closing, expected in the first quarter of 2013, and may increase if the acquired business exceeds certain profitability targets over time.
PartnerRe president and CEO Costas Miranthis said: “Presidio is a leader in US specialty accident and health insurance and reinsurance, with an excellent 18-year track record of underwriting profitability. We see significant opportunity in this market and with Presidio’s experienced team and strong market position, we will be well-positioned to take advantage of future growth opportunities. This acquisition is consistent with PartnerRe’s long-standing diversified strategy and provides us with another specialty risk class, which we do not currently access. The Presidio Accident & Health business complements our portfolio well and has limited correlation with our existing book of risks. As we continue to operate under somewhat challenging market conditions, we expect this new risk class will add consistent risk-adjusted profitability to the overall portfolio.”