SCOR renews contingent capital facility

Written by Michael Griffiths

20/12/2022

SCOR has announced that it has renewed a contingent capital facility for three years that would provide the group with additional capital of up to €300m coverage.

The group said this would cover cases of extreme events, such asnatural catastrophe or life events impacting mortality, or a significant fall in the share price.

SCOR added that the facility aims to protect the Group’s share capital and therefore its solvency. It is the fourth renewal of this facility, which was introduced in January 2011.

The contingent capital facility rests on share subscription warrants, issued by SCOR and subscribed by J.P. Morgan, which will be exercised automatically in the scenarios set out in the agreement, with the period covered by the renewed facility running from 1 January 2023, to 31 December 2025.

In the absence of any triggering event during this period, no shares will be exercised. SCOR has the option to terminate the agreement on 31 December of each year.

SCOR CEO, Laurent Rousseau, commented: “In a fast-changing environment driven by a number of paradigm shifts, SCOR has issued a new contingent capital facility and sticks to its strategic cornerstone of maintaining a robust capital shield.

“The renewal of this contingent capital facility is an essential part of our active capital management and balance sheet protection policy, which helps to protect the Group’s solvency and resilience at a low cost.

“We are building from a sound base to take advantage of market tailwinds such as the hardening of the P&C market, the increasing demand for life reinsurance products, and the increase in interest rates.”

Related Articles