PartnerRe buys Aurigen

By Andrew Rickard | October 21 2016 11:56AM

Photo: Freepik

PartnerRe is purchasing Aurigen, one of Canada's life reinsurers.

Aurigen was formed in 2007 with $500 million of equity from a number of firms, including EdgeStone Capital Partners, Englefield Capital, Pine Brook Road Partners, as well as billionaire George Soros. In 2013 the company had expanded its operations into the United States. By 2015, the reinsurer's gross premiums written came to $110 million (USD). Alan Ryder, former head of Employers Reassurance Canada, has been the firm's president from the outset.

In a press release issued yesterday, PartnerRe revealed that it had entered into a definitive agreement to buy 100% of Aurigen's outstanding ordinary shares. The cash consideration for the transaction is $375 million (CAD), and the acquisition will be financed with PartnerRe’s excess cash on hand; no debt or equity financing will be required.

"We are very excited to be joining PartnerRe and look forward to helping grow its life reinsurance business. We believe there is a strong strategic fit between our two organizations and that the combination of Aurigen’s expertise in the life reinsurance market and PartnerRe’s strength and international presence will be of tremendous benefit to our clients," says Ryder. "Under PartnerRe’s ownership, our clients can expect the innovative reinsurance solutions and exceptional service they’ve come to know from Aurigen to continue and, over time, a broadened product offering and extended risk appetite."