Bermuda insurer and reinsurer Axis Capital Holdings Ltd is not considering improving on its offer for Bermuda-based reinsurer PartnerRe Ltd after rival bidder Exor’s raised $6.8 billion bid, according to a report by Reuters.

The report cites a a source with knowledge of the private deliberations and the report sates Axis is confident that its all-stock offer for PartnerRe is superior to the all-cash, $137.50 per share offer that was made by Italian investment firm Exor, which is controlled by the wealthy Agnelli family.

PartnerRe’s board has said it will consider Exor’s latest offer, which was increased last week from its original $130-a-share offer last month.

Exor has also built up a 9.3 per cent stake in PartnerRe, making it the reinsurer’s largest shareholder.

Should PartnerRe opt to accept the Exor offer and abandon its Axis merger agreement, Axis would receive $280 million, as this is the “break-up fee” built into the deal. The fee has been described as “excessive” by Exor.

The Axis-PartnerRe deal would create the world’s fifth largest reinsurer and the two companies have said the combined operation would achieve cost savings of some $200 million a year, with some of the savings achieved through redundancies.

Exor, which controls Fiat Chrysler, is seeking diversification through PartnerRe and in its public statements the Italian firm has suggested it would leave the current management in place.