The cash consideration for the sale of Bermudian-based reinsurer Partner Re Ltd to French mutual insurer Covéa is to increase by $328 million.

Sellers Exor, the diversified holding company controlled by the Agnelli family, said in their 2021 annual report that the agreed cash consideration of $9 billion to be paid by Covéa at closing of the transaction was based on a consolidated common shareholders’ equity value of $7 billion.

However, Exor said, based on PartnerRe's common shareholders' equity at December 31 2021, the agreed cash consideration will be adjusted, as per the agreed terms, to include additional proceeds for about $328 million (of which $150 million is to be paid by Covéa and $178 million is to be paid by PartnerRe as a special dividend).

Exor and Covéa signed a definitive agreement to sell PartnerRe, the global reinsurer wholly owned by Exor, on December 16.

Subject to obtaining approvals from the applicable regulatory and competition authorities, it is expected that the transaction will be completed in mid-2022.

After a successful closing of the transaction, the annual report said, Exor and Covéa will continue their reinsurance co-operation, with Exor acquiring from Covéa interests in special purpose reinsurance vehicles managed by PartnerRe for approximately $725 million.

These vehicles will invest in property catastrophe and other short-tail reinsurance contracts underwritten by PartnerRe.

Covéa, Exor and PartnerRe will also continue to invest jointly in Exor-managed funds with reinforced alignment of interests.

The operating companies controlled by the Agnelli family also include Juventus Football Club.