Covéa has been sued by Didier Calmels and his association for the protection of the principles of mutualism (ASPM). The businessman and his group have been attempting to prevent the company from taking over PartnerRe for a sum of 9 billion USD. He accuses it of using the accumulated treasure for the takeover of the Bermudan reinsurer whereas the money was supposed to be returned to the member-policyholders in various forms including a decrease in premiums.
The plaintiffs have initiated two initial legal proceedings for the cancellation of this acquisition, including one with the The French Prudential Supervision and Resolution Authority (ACPR). The ACPR has not yet taken a decision, but in the absence of a response within two months, Didier Calmels and the ASPM may bring the matter before the Council of State.
The second procedure has been initiated at the Judicial Court of Paris. The complaint will surely not be heard by a judge before June 2022, the date on which the takeover will be finalized.
A third action alleging deceptive marketing practices is expected to be filed in April. The group is believed to have marketed insurance policies under the label of a mutual company without the knowledge of its insured.
Other actions in France have been filed with the Bermuda and US regulators.
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