Fitch puts PartnerRe on positive watch

Fitch Ratings said it placed PartnerRe Ltd.'s ratings on rating watch positive, including its A- issuer default rating.

Fitch's rating action follows the announcement that Covea, a French mutual insurer, entered into a memorandum of understanding to acquire PartnerRe from EXOR NV for $9 billion cash plus a cash dividend of $50 million to be paid before closing. The transaction is expected to close by the end of 2020, subject to customary closing conditions, antitrust, regulatory and other approvals.

The rating watch positive mirrors the potential for ownership by Covea, a larger property and casualty, health and life insurance organization, to benefit PartnerRe's ratings under a group credit approach. Fitch does not currently rate Covea.

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