Axis Capital Holdings Ltd and PartnerRe Ltd have agreed to an $11 billion merger to create one of the world's largest reinsurers, PartnerRe said on Sunday. The move is the latest indication that fierce competition and falling premiums in the reinsurance sector has led market players to consolidate. Reinsurers help insurers pay large damage claims in exchange for part of the profit.The combined company will have gross premiums topping $10 billion, total capitalization of more than $14 billion, and total cash and invested assets of more than $33 billion, according to the PartnerRe statement.PartnerRe shareholders will own 51.6 percent of the new company, and Axis holders, 48.4 percent, according to the statement.Net income at the top 31 reinsurers rose to $14 billion in the first six months of 2014, up 12 percent from the same period the prior year.
PartnerRe Ltd. (PartnerRe) is the ultimate holding company for its international reinsurance and insurance group. Shares of PRE fell by 0.74% or $-0.85/share to $114.14. 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 284645.
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