John Elkann, Chairman and CEO of diversified Italian investment holding company EXOR S.p.A has been appointed Chairman of EXOR’s newly acquired reinsurance operation PartnerRe’s Board of Directors. Also Emmanuel Clarke, President of PartnerRe Ltd., has been named President and CEO.
The $6.9 billion acquisition of Bermudian reinsurer PartnerRe by EXOR, which is the investment group’s first foray into the reinsurance market as an owner, completed just last week.
Appointing Elkann to the chair of the board demonstrates just how seriously EXOR takes this acquisition and the oversight it intends to have of the reinsurance operations.
And that’s no bad thing, with the diversification factor of PartnerRe’s returns within EXOR’s wider holdings adding an element of additional efficiency to the reinsurers underwriting capacity.
Elkann commented on the appointment; “I am honored to assume the role of Chairman of PartnerRe, and very pleased that we can appoint from within the company a CEO of the caliber and experience of Emmanuel Clarke. His intimate knowledge of PartnerRe and his deep understanding of the sector will prove crucial as we embrace the challenges and the many exciting opportunities we have in front of us.”
Clarke was CEO of PartnerRe Global and has been a member of the executive management team since 2010, with a 19-year career at the reinsurer. He became Head of Credit and Surety, Global in 2001, then Deputy Head of Specialty Lines, Global in 2002, followed by Head of Property and Casualty, Global in 2006 and Head of Specialty Lines, Global in 2008.
Clarke explained; “I am thrilled to accept the Board’s appointment. PartnerRe is at an exciting place in its evolution, and I look forward to working with the Board and our talented teams to build on the success we have achieved so far. PartnerRe is strongly positioned to deliver value through high quality partnerships and responsive, reliable reinsurance solutions.”
It’s going to be interesting to see just how competitive PartnerRe can be, as a provider of risk capital, as a part of a larger, diversified investment holdings group.
Whether EXOR is looking for access to long-term capital float as well, we can’t be sure, but the addition of reinsurance premiums helps EXOR shift towards a more Warren Buffett, or Berkshire Hathaway style model, which provides opportunity to wield the new capital efficiency in the reinsurance market.