French reinsurer Scor posts profit in defense against Covea bid
(Reuters) — French reinsurer Scor SE delivered a 2018 third-quarter net profit Wednesday, saying this helped justify its rejection of last month’s €8.2 billion ($9.4 billion) bid by rival Covea.
“This performance bears witness to the relevance of our strategy,” Scor Chief Executive Denis Kessler said in a statement, later adding that “the board of directors doesn’t wish Scor to become a Covea subsidiary.”
Although Covea, an increasingly assertive player on the French insurance market with wider European ambitions, has said it intends to take over Scor despite the rejection, Mr. Kessler said it had not received any new offer.
Covea, which already owns about 8.5% of Scor, offered in late August to pay €43 per share, but this was rejected by Scor’s board as undervaluing it.
Scor shares, which were up 1.4% following its earnings, have gained roughly 15% since Covea’s bid.
Excluding the effects of a U.S. tax reform, Scor was close to meeting its 2019 targets during the third quarter, Mr. Kessler said after the reinsurer said its third-quarter net income had risen to €80 million.
This compared with a loss of €267 million a year ago, when earnings were hit by the impact of hurricanes Harvey, Irma and Maria and devastating earthquakes in Mexico.
Scor’s net profit over the first nine months of the year rose to €342 million from €25 million last year. Excluding the negative effects of U.S. tax reforms, Scor said its net profit was €405 million.
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