July 6, 2009 (FinancialWire) — PartnerRe (NYSE: PRE) said it has entered into definitive agreements to acquire Paris Re, a Swiss-based reinsurer. Under the deal, PartnerRe will exchange 0.30 of its common shares for each Paris Re common share outstanding in a stock-for-stock transaction.

According to PartnerRe, the acquisition is expected to add $1.7 billion in new shareholders’ equity to the company.

Paris Re is expected to distribute $310 million in cash as a return of capital to its shareholders, leading to a total transaction value of around $2 billion.

Bermuda-based PartnerRe provides multi-line reinsurance to insurance companies. The company also offers alternative risk products that include weather and credit protection to financial, industrial and service companies.

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