Scor’s 2018 profit rises despite blows from natural disasters
(Reuters) — French reinsurer Scor SE, which was the target of a thwarted acquisition by rival Covea Mutual Insurance Group Co. last year, posted a surge in overall 2018 net income despite a loss in the fourth quarter caused by a spate of natural disasters.
Net income rose 13% in 2018 to €322 million ($365 million), while gross written premiums rose 3.2% to €15.26 billion.
For the fourth quarter alone, Scor had a €20 million net loss after hurricanes in the United States, typhoons in Japan and wildfires in California hit its business. That loss compared with a €261 million profit in the fourth quarter of 2017.
Chief Executive Denis Kessler said Scor managed “robust” growth and “solid profitability” during the year.
Scor also proposed a dividend of €1.75 per share, up from €1.65 per share in the previous year.
In reference to the failed attempted by insurer Covea to take over Scor in the second half of 2018, Mr. Kessler reiterated Scor intended to remain independent.
Unlisted cooperative insurer Covea, an increasingly assertive player on the French insurance market with wider European ambitions, made public an offer for Scor that valued the company at more than €8 billion. Covea offered a 21% premium over Scor’s market price.
Covea CEO Thierry Derez intended to create a major player in the European insurance market capable of swallowing smaller rivals as the industry consolidates.
Scor’s board rejected the offer for undervaluing the company. The opposition between the two CEOs escalated, and Scor eventually sued Mr. Derez for breach of trust.
Covea abandoned the plans to buy Scor in late January.
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