French insurance group Covéa and Paris-headquartered global reinsurer SCOR have now handed each other an olive branch, signified by the signing of a settlement agreement that was drawn up under the aegis of Autorité de Contrôle Prudentiel et de Résolution (ACPR) vice chairman Jean-Paul Faugère.
In a joint announcement, the previously warring firms stated: “Covéa and SCOR wish to restore peaceful relations, based on professionalism and in keeping with their respective independence. These two major players in the insurance and reinsurance industry in France have decided to renew the relationship based on trust and mutual support that they enjoyed for many years.”
Implying no admission of liability on either side, the settlement agreement outlines the implementation of an orderly exit by Covéa from the share capital of SCOR, the restoration of peaceful relations “in order to move forward,” and the implementation of quota share retrocession treaties.
As part of the peace pact, reinsurance relations between Covéa and SCOR will be resumed and all legal actions by both camps will also be immediately withdrawn. Additionally, a reciprocal seven-year non-disparagement obligation has been agreed, and Covéa is paying a €20 million indemnity settlement to SCOR as well.
“Covéa and SCOR firmly believe that this course of action will open up a new period of trust, in the interests of both parties, their stakeholders, and more generally the insurance sector in France and the Paris marketplace,” they noted in the joint release.
“The boards of directors of Covéa and SCOR, which met on June 09 and 08, 2021, respectively, have approved the key points of a settlement agreement, which was signed [on June 10] between Covéa SGAM, Covéa Coopérations, and SCOR SE in the presence of the vice chairman of the ACPR.”