Source - GNW

Press Release
26 September 2016 - N° 23


SCOR disputes that the State aid granted to the CCR is compatible with the internal market and intends to take recourse against today's decision by the European Commission

 

 

 

Following on from the ruling by the Paris administrative court on 12 July 2016, the European Commission has confirmed the economic nature of the CCR's natural catastrophe reinsurance activity and the existence the existence of illegal State aid in the guarantee granted by the State to the CCR.

However, the European Commission considers that this State aid is "compatible with the internal market". SCOR disputes this statement and intends to take recourse against the European Commission's decision before the Court of First Instance of the European Union.

In 2012 SCOR applied to the administrative court to contest the conditions of the guarantee granted by the State to the CCR, which gives it a virtual monopoly with a share of over 90% of the French natural catastrophe reinsurance market. SCOR has been acting for many years to promote the opening up of the natural catastrophe reinsurance market in France. There are other, cheaper and more efficient solutions to cover French people against natural catastrophes, which would guarantee the rights and obligations of all the players on this market.

SCOR considers it unacceptable that the new agreement notified by the State has not been made public. This also happened with the previous version of the agreement from 1993, which SCOR obtained through legal means.

Moreover, SCOR has always contested the fact that the CCR, a 100% State-owned public company, is able to pursue commercial activities in France and abroad. It is not French State's role to take catastrophe risks in other countries. For its commercial activities, the CCR benefitted until now from the same rating as the French State. SCOR challenged this situation, and is pleased to have obtained the subsidiarisation of the CCR's commercial activities, which has led to a downgrade of the Standard & Poor's rating attributed  to these activities by 4 notches (from AA to A-). This very significant rating difference shows the extent of the aid from which the CCR has benefitted over the past few years for its so-called commercial activities.

Like other European countries, SCOR continues to consider that its citizens should be protected against natural catastrophes through a scheme that respects the spirit and the rules of competition law.

SCOR considers that the CCR and the State should in any event abstain from involvement in the coverage of natural catastrophes outside of France.

SCOR will take all action necessary with the relevant authorities to ensure that the current scheme evolves.

 

   

 

Contact details

 

Marie-Laurence Bouchon

Group Head of Communications

+33 (0)1 58 44 76 10

[email protected]

 

 

Bertrand Bougon

Head of Investor Relations

& Rating Agencies

+33 (0)1 58 44 71 68

[email protected]

 

http://www.scor.com/

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Forward-looking statements

 

SCOR does not communicate "profit forecasts" in the sense of Article 2 of (EC) Regulation n°809/2004 of the European Commission. Thus, any forward-.looking statements contained in this communication should not be held as corresponding to such profit forecasts. Information in this communication may include "forward-looking statements", including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions and include any statement which does not directly relate to a historical fact or current fact. Forward-looking statements are typically identified by words or phrases such as, without limitation, "anticipate", "assume", "believe", "continue", "estimate", "expect", "foresee", "intend", "may increase" and "may fluctuate" and similar expressions or by future or conditional verbs such as, without limitations, "will", "should", "would" and "could." Undue reliance should not be placed on such statements, because, by their nature, they are subject to known and unknown risks, uncertainties and other factors, which may cause actual results, on the one hand, to differ from any results expressed or implied by the present communication, on the other hand.

Please refer to the 2015 reference document filed on 4 March 2016 under number D.16-0108 with the French Autorité des marchés financiers (AMF) posted on SCOR's website www.scor.com (the "Document de Référence"), for a description of certain important factors, risks and uncertainties that may affect the business of the SCOR Group. As a result of the extreme and unprecedented volatility and disruption of the current global financial crisis, SCOR is exposed to significant financial, capital market and other risks, including movements in interest rates, credit spreads, equity prices, and currency movements, changes in rating agency policies or practices, and the lowering or loss of financial strength or other ratings.

The Group's financial information is prepared on the basis of IFRS and interpretations issued and approved by the European Union. This financial information does not constitute a set of financial statements for an interim period as defined by IAS 34 "Interim Financial Reporting".The Group's financial information is prepared on the basis of IFRS and interpretations issued and approved by the European Union. This financial information does not constitute a set of financial statements for an interim period as defined by IAS 34 "Interim Financial Reporting".





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Source: SCOR via Globenewswire