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Japanese insurer backs off on stake in French reinsurer Scor

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Japanese insurer Sompo Japan Nipponkoa Insurance Inc. will abandon its plans to raise its stake to 15% from 9% in French reinsurer Scor S.E. and may even dispose of shares currently owned.

The news was reported Wednesday by Nikkei Asian Review.

The report said that Sompo Japan has spent about 70 billion yen ($568.4 million) to amass its 9% stake and make the Japanese insurer Scor's leading shareholder.

Sompo in March said it would make Scor an equity affiliate by raising its stake and placing a director with the French carrier, according to the Nikkei report.

Difference in business strategy reportedly came up during negotiations, however, placing expected synergies in doubt and causing Sompo to reverse course, the report said.

A strategic review at Sompo and an increase in Scor share prices may also have played a part in the company's decision, according to the report.