Axis Capital Holdings Ltd and PartnerRe Ltd have agreed an $11 billion merger to create one of the world's largest reinsurers, responding to intensifying consolidation pressure in the industry.The combined Axis Capital-PartnerRe may displace France's Scor as the world's fifth largest reinsurer. It will have gross premiums topping $10 billion, a total capitalization of more than $14 billion, and cash and invested assets of more than $33 billion, PartnerRe said in a statement.Reinsurers are being squeezed by price competition and subdued demand from insurers for their products, and traditional mergers may still not be enough to save those that lack either global reach or a specialized focus."It's all about achieving scale in an industry where demand is declining and pricing is reducing," Canaccord Genuity analyst Ben Cohen said. "Scor has been active in M&A and may look to respond to consolidation in the market."
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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