Axis Capital Holdings Ltd and PartnerRe Ltd have agreed an all-share $11 billion merger to create one of the world's largest reinsurers, responding to intensifying pressure in the industry to consolidate.Reinsurers are being squeezed by price competition and subdued demand from insurers for their products and consolidation in various forms is expected for companies that lack either global reach or a specialized focus.The combination of the two Bermuda-based companies may displace France's Scor as the world's fifth largest property and casualty reinsurer. It will have gross premiums topping $10 billion, PartnerRe said in a statement."This is not a sale; we're not buying them, they're not buying us," Axis Capital Chief Executive Albert A. Benchimol, who will be CEO of the new company, told a conference call with investors.
PartnerRe Ltd. (PartnerRe) is the ultimate holding company for its international reinsurance and insurance group. Shares of PRE traded higher by 0.6% or $0.69/share to $114.83. In the past year, the shares have traded as low as $94.50 and as high as $118.47. On average, 298005 shares of PRE exchange hands on a given day and today's volume is recorded at 622326.
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