French reinsurer SCOR Group announced that it has reached agreement with the Alea Group to acquire the renewal rights to its European reinsurance treaties for 2006.
The move follows Alea’s sale of its renewal rights to certain portions of its U.S. primary program business written by Alea Alternative Risk to subsidiaries of AmTrust Group (See IJ Website Nov. 22).
SCOR agreed to the payment in 2006 of a 9.5 percent commission on gross written premiums on Alea Europe’s business that it renews. The Group’s announcement indicated that the parties valuation of the renewal rights is in the range of €8.3 million [$9.93 million) to €16.6 million [$19 .9 million], “depending on the treaties actually renewed by SCOR.”
The transaction is subject to conditions including the obtaining of regulatory approvals and the execution of definitive legal documentation. SCOR also said it will “ensure the continued service and financial security of Alea Europe’s clients, and will provide the necessary capacity available to this end.”
The bulletin also indicated that the “transaction will enable SCOR to consolidate its current presence on the major continental European markets where Alea Europe operates. The SCOR Group will be assisted by Alea Europe’s underwriting teams in the current treaty renewals.”
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