SCOR has decided, on 4 October 2023, to partially exercise the option to purchase its own shares from Covéa in accordance with the settlement agreement signed on 10 June 2021 between the two groups, under the umbrella of the French Prudential Supervision and Resolution Authority (ACPR).
The transaction concerns the buyback of 9 million SCOR shares, representing 5.01% of the company's capital. These shares will subsequently be sold to BNP Paribas Cardif.
Upon completion of the transaction, Covéa will no longer be SCOR's largest shareholder, with only 3.7% of its capital.
For reference, a conflict was sparked in 2018 between the two French market heavyweights [4] when the mutual group wanted to take control of the French reinsurer. This proposal was rejected by the reinsurance company's Board of Directors.
In January 2019, SCOR initiated criminal proceedings against Covéa [5] and its CEO Thierry Derez for the respective offenses of concealment of breach of trust and breach of trust. It is worth recalling that T. Derez resigned from SCOR's Board of Directors after the acquisition proposal was rejected.
In May 2019, the ACPR called on the two groups to put an end to their dispute [6]. It was not until June 2021 that a settlement agreement was reached. The latter set out certain key points, including the Implementation of life quota-share retrocession treaties under which SCOR cedes 30% of its life portfolio held by its entities in Ireland to Covéa.