By Enda Curran 

Axis Capital Holdings Ltd. and PartnerRe Ltd. said Sunday they have agreed to merge and form one of the world's biggest reinsurance and specialist insurance companies, a firm with a combined market value of $11 billion.

The new company will be in the top five of reinsurers globally, rivaling such companies as Swiss Re AG, Munich Re and Berkshire Hathaway Inc.'s Gen Re subsidiary.

The merger is the latest example of consolidation in the reinsurance sector, which has been suffering from shrinking premiums and stiff competition.

In November, RenaissanceRe Holdings Ltd. agreed to buy Platinum Underwriters Holdings Ltd. in a stock-and-cash deal valued at more than $1.9 billion. Earlier this month, XL Group PLC agreed to buy rival Catlin Group Ltd. in a deal valued at GBP2.79 billion ($4.21 billion).

Reinsurers charge fees to insurers for taking on some responsibility for policies sold to a company or person.

Described as a "merger of equals," the combination of Axis and PartnerRe will create a company with gross premiums in excess of $10 billion and total capitalization above $14 billion, the two companies said.

The new company will also have a $2.5 billion specialty insurance underwriting business along with a life, accident and health business.

"This transformational combination will leverage the complementary strengths of both companies and create an organization with the size and breadth to enhance product and service offerings, maximize growth opportunities, optimize portfolios, and deliver both economies of scale and capital efficiencies," Albert A. Benchimol, chief executive officer of Axis Capital, said in the statement.

Mr. Benchimol will also be CEO of the newly combined company. Costas Miranthis is to step down as PartnerRe CEO.

Under the deal, PartnerRe shareholders will receive 2.18 shares of the combined company's common shares for each PartnerRe common share they own.

Shareholders in Axis Capital will receive one share of the combined company's common shares for each Axis Capital common share they own.

When the deal is completed, PartnerRe shareholders will own 51.6% of the new company and Axis Capital shareholders around 48.4%.

The transaction, which is expected to achieve a minimum of $200 million in cost savings, is expected to close in the second half of 2015.

Access Investor Kit for AXIS Capital Holdings Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=BMG0692U1099

Access Investor Kit for Catlin Group Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=BMG196F11004

Access Investor Kit for PartnerRe Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=BMG6852T1053

Access Investor Kit for Platinum Underwriters Holdings Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=BMG7127P1005

Access Investor Kit for RenaissanceRe Holdings Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=BMG7496G1033

Access Investor Kit for Swiss Re AG

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=CH0126881561

Access Investor Kit for XL Group Plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=IE00B5LRLL25

Access Investor Kit for Berkshire Hathaway, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US0846701086

Access Investor Kit for Berkshire Hathaway, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US0846707026

Access Investor Kit for Catlin Group Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US1491881041

Access Investor Kit for Swiss Re AG

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US8708861088

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

XL Fleet (NYSE:XL)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more XL Fleet Charts.
XL Fleet (NYSE:XL)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more XL Fleet Charts.