SCOR, Highfields Dispute Update

August 23, 2006

The dispute continues between French reinsurer SCOR Group and Boston-based Highfields Capital Management over the valuation of the 46.6 percent ownership of IRP Holdings Ltd., an Irish company formed in 2001 for the purpose of reinsuring part of SCOR’s worldwide non-life insurance business. (See IJ Website May 12, June 23, 2005). SCOR acquired the interest in 2005.

The U.S. District Court for the District of Massachusetts threw out Highfields action against SCOR on August 16, but on jursidictional grounds and without prejudice. Highfields promptly filed a new complaint in the Superior Court of the State of Massachusetts. SCOR said it has “not yet been served with that pleading.”

In an additional comment on the lawsuit SCOR said it has “always considered and continues to consider that the Highfields investment funds made a successful, highly profitable investment in IRP, and SCOR believes the Highfields investment funds have no legitimate basis for complaint.

“SCOR intends to defend against any such newly commenced action, to preserve its options to seek redress, and to pursue the Highfields investment funds for damages and expenses incurred in defending itself against what it believes is unfounded litigation by the Highfields investment funds.”

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