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Member, Beacon International Group, Ltd.
ZUG, SwitzerlandConverium Holding Ltd. said its income from continuing operations for the first quarter of 2007 has tripled, and the reinsurer announced that it continues to reject SCOR S.A.'s bid for the company.
Zug, Switzerland-based Converium said that, despite the adverse effect of a $44.6 million loss from winter storm Kyrill, it posted income of $150.9 million from continuing operations.
"We believe that our financial performance and the demonstrable progress in pursuing our road map add further substance to our claim that SCOR's hostile offer undervalues Converium and its medium-term prospects," Inga Beale, chief executive officer of Converium, said in a statement.
"We are convinced Converium's standalone prospects are more promising than with SCOR. In the interest of our shareholders, we will continue to oppose SCOR's unfriendly approach should it remain unchanged," she added.
In a statement, Paris-based SCOR said it regretted the stance taken by Converium's board, and said it was confident "Converium shareholders will acknowledge the merit of the combination with SCOR."
Earlier in the week, Converium launched a lawsuit against SCOR in the United States on the grounds that it believed SCOR had excluded its U.S. shareholders from its bid and that the French reinsurer had failed to make proper disclosures about its purchase of Converium shares.
Meanwhile, Moody's Investors Service has affirmed and withdrawn its Baa3 insurance financial strength rating of Converium Reinsurance (North America), which is in runoff.