Scor’s first-quarter profit falls, CEO survives ouster votePosted On: Apr. 26, 2019 7:24 AM CST
(Reuters) — French reinsurer Scor, whose CEO faced a vote on his demotion during a shareholders meeting on Friday, said its net income in the first quarter fell 21% as a result of the impact of 2018 typhoons in Japan.
Scor booked a net profit of €131 million ($145.89 million) in the first quarter of this year, down from €166 million in the same period last year.
The company’s gross written premiums rose 5.7% to €3.99 billion. Overall, Scor’s annualized return on equity fell 2.2 percentage points to 9%, the company said.
Meanwhile, activist fund CIAM failed in its bid to oust Scor CEO Denis Kessler from the board. Scor shareholders rejected a request by CIAM to remove Mr. Kessler, although his pay deal was only approved by a slim majority.
About 54% of shareholders present at the company’s annual meeting approved Mr. Kessler’s pay package for 2018 and 2019.
Mr. Kessler was granted a €6.5 million ($7.24 million) pay package for 2018.
CIAM’s attempt to oust Mr. Kessler came after months of tension over French cooperative insurer Covea Mutual Insurance Group Co.’s failed €8.2 billion takeover bid for Scor last year, which was opposed by Mr. Kessler and had earned him criticism from CIAM.