France’s SCOR Group announced that it has called a special meeting of its The Board of Directors for November 5 to consider a capital increase of around 400 million euros ($393.4 million).
The increase would enable SCOR “to embark, in excellent conditions, upon a new stage in its development,” said the announcement. “This transaction fulfils the wishes of the Group’s main shareholders to see it pursue its strategy of selective growth in what is a very positive environment for the reinsurance industry, in particular for property & casualty reinsurance and large corporate accounts,” it continued.
SCOR indicated that it would issue new shares to raise the €400 million euros, with existing shareholders having preferential rights to acquire them.
Commenting on the transaction, SCOR’ Chairman and CEO, Jacques Blondeau, stated that, “We are convinced that this further reinforcement of our strong financial base, at a time when recovery in the reinsurance cycle is being confirmed, is the best strategic choice for SCOR and its shareholders. This will allow us to offer our clients additional underwriting capacity for the 2003 renewal season and thus to respond to the strong demand from the insurance markets.”
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