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Axis Captial and PartnerRe Merge In $11 Billion Deal

Axis Capital Holdings Ltd. and PartnerRe Ltd have agreed to and $11 billion merger. The deal is creating one of the world’s largest reinsurers.

This deal is another indication that strong competition and falling premiums in the reinsurance market has led market player to consolidate. Reinsurers aid insurers pay large damage claims in exchange for part of the profit.

The new company will have gross premiums topping $10 billion, total capitalization of $14 billion and total cash and invested assets of more than $33 billion, according to PartnerRe.

PartnerRe shareholders will own 51.6% of the new company and Axis holders, 48.4%.