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SCOR SE: France's Global Reinsurance Champion—From State-Backed Start to Tier 1 Powerhouse
I. Introduction & Episode Roadmap
The reinsurance business operates in the shadows of the insurance industry—a world where companies insure the insurers, absorbing catastrophic risks that would bankrupt ordinary carriers. It is a domain of actuarial precision, massive capital reserves, and bets on events that most people hope never occur. SCOR SE is a French tier 1 reinsurance company providing Property and Casualty (P&C) and Life reinsurance, and it is one of the leading reinsurers in the world.
SCOR today is the world's fourth largest reinsurer and has a presence in 160 countries worldwide with more than 3,000 employees. But this commanding position obscures one of the most extraordinary corporate survival stories in European financial services. Twice in its history—once in the early 2000s and again through bitter takeover battles—SCOR stared into the abyss. Both times, it emerged not merely intact, but stronger.
The central question animating this deep dive: How did a state-backed French reinsurer, founded to fill a gap in national capacity, transform into a global Tier 1 player—and what does its future hold after the passing of its legendary CEO?
Created in 1970 with the backing of the French government, its original name was Société Commerciale de Réassurance, hence "SCOR". The SE acronym that now follows the name indicates that the company is a Societas Europaea (European company)—a legal structure that signals its evolution from a purely French institution into a pan-European enterprise.
The SCOR story unfolds across four inflection points that reshaped the company's trajectory: the near-death experience of 2001-2004, the acquisition-led transformation of 2006-2013, the hostile takeover battle of 2015-2021, and the leadership transition following Denis Kessler's passing in 2023. Each of these moments tested the company's resilience and revealed something essential about reinsurance as a business.
Themes run through this narrative like threads in a tapestry: the art and science of risk, government backing versus independence, transformational leadership, and defending corporate autonomy against all odds. For long-term investors, SCOR offers a case study in how a specialized financial services company can navigate existential crises and emerge with enhanced competitive positioning.
II. Origins: The Birth of French Reinsurance (1970–1989)
The Founding Vision
Picture Paris in late 1969. The French insurance industry, while sophisticated, suffered from a critical weakness: dependence on foreign reinsurers, primarily in London and New York, to absorb its largest risks. When a catastrophe struck, French francs flowed out of the country to Munich Re, Swiss Re, and Lloyd's of London. For a government committed to economic sovereignty, this was intolerable.
SCOR SE traces its origins to the French reinsurance landscape in the late 1960s, when the government sought to bolster national capacity in the sector amid growing international pressures. The company was established on December 29, 1969, as Société Commerciale de Réassurance (SCOR) by the French State, primarily to handle commercial reinsurance activities following the restructuring of the state-owned Caisse Centrale de Réassurance (CCR), which had previously held a monopoly on compulsory reinsurance lines.
SCOR SE was founded on December 16, 1970, as Société Commerciale de Réassurance in Paris, France, in response to the need for an independent French professional reinsurer. The company was established with the support of major French insurance companies and financial institutions, with an initial capital of 5 million francs. SCOR began operations in January 1971, focusing primarily on the French market before gradually expanding internationally.
SCOR was founded in 1970 by the French government as the reinsurance arm for state-owned or controlled insurers. At the time, the reassurance industry was largely dominated by London and New York, while in France the reassurance industry remained underdeveloped.
The founding capital of 5 million francs seems almost quaint today—roughly equivalent to €8-10 million adjusted for inflation—but it represented serious intent. The French government was building national champions across industries, and reinsurance would be no exception.
Early International Expansion
SCOR SE, a global reinsurance company, was founded in 1970 and is headquartered in Paris, France. Its first significant milestone came in 1972 when the company initiated international reinsurance operations, expanding its reach beyond France.
The early expansion unfolded with remarkable speed. SCOR's early international expansion commenced in 1972 with the opening of its first overseas office in Hong Kong, followed by rapid growth into other markets including London in 1973 and Tokyo in 1977. These moves facilitated initial treaty reinsurance agreements beyond France, enabling the company to diversify risks and tap into global opportunities. By the mid-1970s, SCOR had evolved from a predominantly state-controlled operation toward greater autonomy, with diversified activities and a broadening shareholder base that reduced direct government influence.
The first two decades were characterized by strong expansion worldwide. SCOR has opened offices throughout the world: Hong Kong (1972), London (1973), Dallas (1974), Madrid (1976) then Mexico and Bogota for the Latin American business. Sydney was started the same year. In 1977, the Asian and North American markets were targeted. Tokyo and Singapore as well as Montreal and Toronto were launched.
This global footprint was unusual for a French financial institution of that era. While banks like BNP and Société Générale remained largely continental, SCOR was planting flags in emerging markets and establishing relationships with insurers worldwide.
In 1988, the company acquired leading Italian reinsurance company La Vittoria Riassicurazioni. In that same year, SCOR also set up two new subsidiaries, SCOR RĂ©assurance and SCOR Vie, increasing its portfolio of products. The following year, the company moved into Germany when it acquired that country's Deutsche Continental RĂĽckversicherungs. But by then SCOR was already preparing a major reorganization that would carry the company through the mid-1990s.
The UAP Merger: A Defining Moment
The late 1980s brought a transformation that would define SCOR's next decade. The wave of corporate conversions to state control of the late 1970s was largely finished by the mid-1980s. Indeed, by 1984, the government was already engaged in a long process of re-privatization of much of its state-controlled businesses. SCOR, too, found its independence in the late 1980s. In 1989, that process began when SCOR agreed to merge with UAP RĂ©, the reinsurance arm of the Union des Assurances de Paris (UAP).
In 1989, SCOR merged with UAP RĂ©, the reinsurance subsidiary of the state-owned Union des Assurances de Paris (UAP), which marked a significant step toward independence from full state control.
1989 is the year that marked a turning point in the history of the company. SCOR and UAP RĂ©, two main players on the French reinsurance market, merged. They gave birth to the most important reinsurer of the country in which UAP detains 41% of stakes.
The merger created France's largest reinsurer and positioned SCOR as the 12th largest global reinsurer by the early 1990s. UAP became SCOR's largest shareholder with a 41% stake, providing both capital stability and access to a vast network of primary insurance relationships.
For investors studying corporate development, this period illustrates a critical lesson: government backing can provide the runway for a company to establish itself, but eventual privatization and market discipline typically accelerate growth and capability building.
III. The American Gambit & 1990s Expansion
Strategic Acquisitions in the United States
The 1990s represented SCOR's coming-of-age moment on the global stage. The company's leadership recognized that true Tier 1 status required a significant presence in the world's largest insurance market: the United States. But cracking America wasn't simple—the market was dominated by established players with deep relationships and extensive capital bases.
Here are other important moments in its history: 1990: listed on the Paris Stock Exchange to support growth and visibility. This public listing provided the capital ammunition for international expansion.
In July 1996, SCOR moved to double its U.S. activity when it acquired the US $400 million reinsurance premium portfolio of Allstate subsidiary Allstate Re. The US $500 million acquisition, which included Allstate Re's post-1985 risk portfolio, placed SCOR in the top 10 in the U.S. reinsurance market.
In 1996, SCOR acquired the reinsurance business of Allstate. The Allstate acquisition doubled SCOR's American business overnight and established it as a meaningful player in U.S. life reinsurance—a market that would become increasingly important to the company's strategy.
It also set the stage for the next major development in the company's history: its listing on the New York Stock Exchange, making SCOR only the sixth French company to do so. The October 1996 listing allowed UAP to follow AXA and AGF, when it announced its intention to place 30 percent of SCOR on the international market, while retaining its remaining 10 percent interest in SCOR as a long-term investment. The 9.2 million-share offering raised some US $350 million.
The takeover of Allstate in 1996 doubles the weight of American business in the group. SCOR, by then, ranked tenth reinsurer on this market. In the mid 1990s, the group's turnover amounted to 2.5 billion USD.
Global Ambitions and Growing Pains
In 1996, SCOR concentrated in Singapore its Asian business within SCOR Reinsurance Asie Pacifique. In the meantime, SCOR consolidated its presence in high-potential zones: Brazil, China, Russia, South Korea and Malaysia thanks to a series of establishments.
By the late 1990s, SCOR had assembled a formidable global platform. SCOR provides facultative and treaty reinsurance to property-casualty and life insurance companies. A global company, with operating units in the United States, Canada, Germany, the United Kingdom, Singapore, Japan, Hong Kong, Italy, Bermuda, and other major countries and cities throughout the world, SCOR's customers include leading primary insurance providers of property, casualty, marine, space and transportation, construction, credit risk, and life and health insurance policies. In 1996, SCOR's gross written premiums totaled FFr 13.8 billion, generating earnings of FFr 624 million.
But aggressive expansion came with hidden costs. The company's underwriting standards loosened as it chased growth. Alternative risk transfer (ART) products, credit derivatives, and U.S. program business were added to the portfolio—sophisticated products that generated premium income but carried tail risks that weren't fully appreciated.
Beginning in 1991 and lasting through much of 1992, the insurance industry was rocked by a series of natural and other disasters, including Hurricane Andrew, which alone cost the insurance industry some US $16.5 billion. SCOR's share of that disaster mounted to FFr 300 million; meanwhile, the company was hit more directly by several industrial disasters, resulting in a loss of FFr 858 million on its technical results, and a net loss of FFr 135 million for 1992, on net sales of FFr 8.4 billion. Yet, despite posting its first loss in nearly a decade, SCOR retained a solid foundation, with a capitalization of some FFr 5 billion, and a positive cash-flow of more than FFr 800 million. Elsewhere, the industry was not as healthy—the year of catastrophes proved disastrous to a number of prominent reinsurers, forcing the disappearance of such reinsurance companies as NRG, the Netherlands largest reinsurer, and NW Re and Royal Re, two of the top four reinsurance companies in London.
The seeds of crisis were being planted even as SCOR celebrated its global expansion. The U.S. property/casualty business would prove particularly problematic, and the Bermuda-based alternative risk subsidiary Commercial Risk Partners would eventually threaten the entire enterprise.
IV. The Near-Death Experience (2001–2004)
This is the pivotal chapter that defined modern SCOR
The Perfect Storm
The early 2000s delivered a devastating one-two punch to SCOR. First came September 11, 2001—an event that triggered the largest insurance losses in history up to that point and revealed hidden correlations across reinsurers' portfolios. Then came a cascade of natural catastrophes, investment losses, and reserve deficiencies that pushed SCOR to the brink of insolvency.
In 2002, Denis Kessler was named the chairman and CEO after a near collapse of the company. Kessler was brought on board in order to restore the reinsurer's financial performance.
A.M. Best Co. placed the financial strength rating of A (Excellent) of SCOR (Paris, France) and its guaranteed subsidiaries under review with negative implications. The rating action also applies to the group's debt and commercial paper ratings. This follows SCOR's announcement today of an estimated loss of EUR 250 million (USD 250 million) for the full year 2002 due to reserve deterioration, depreciation in its equity portfolio and losses arising from Central European floods and the group's credit underwriting. The current rating, affirmed in September 2002, reflected both the expectation of substantially stronger performance in 2002 and a successful capital raising by the end of the first quarter 2003. A.M. Best will be discussing SCOR's revised plans with senior management over the next few weeks.
SCOR S.A.'s troubles emerged in October 2002, when the reinsurer said it would record a net loss of 250 million euros ($252.3 million) for 2002. That loss, SCOR said, would reflect a reserve boost of roughly 225 million euros ($227.1 million) to address losses at Bermuda-based alternative risk transfer subsidiary Commercial Risk Partners, U.S. workers compensation business written between 1999 and 2000 and program business written in the United States prior to 2001. Following that announcement, Standard & Poor's Corp. lowered its financial strength rating on SCOR to A- from A and A.M. Best Co. placed its A rating on SCOR under review, months later downgrading to A-. In addition, Fitch Ratings lowered its financial strength rating of SCOR to BBB from A+, and Moody's Investors Service placed its Baa-2 rating of SCOR on review.
The Rating Agency Crisis
In reinsurance, credit ratings are not merely vanity metrics—they determine survival. Below an A rating, clients begin to question whether their reinsurer can pay claims. Contracts get canceled, premiums evaporate, and a death spiral begins.
PARIS-French reinsurer SCOR S.A. suffered a serious blow last week when Standard & Poor's Corp. downgraded the group to BBB+ from A-. SCOR executives expressed disappointment about the downgrade and sought to ease market fears with the announcement of plans to raise capital by spinning off the company's life reinsurance operations. But expert opinion remains divided over what the future holds for the Paris-based reinsurer. S&P said the ratings downgrade was prompted by SCOR's "disappointing" first-quarter results, as well as "indications of a weakened although still strong business position." In addition, the rating agency cited the potential for further reserve strengthening at SCOR, particularly for the company's credit derivative portfolio and its alternative risk financing operation, Commercial Risk Partners.
Brokers and underwriters expressed concern at the rating downgrade, with one London-based underwriter, who asked not to be named, saying his company would never cede business to a BBB-rated reinsurer. And one broker, who also asked not to be named, said, "If they can't get their A rating back, they are out of business."
The downgrade is the latest in a series of blows to SCOR, which is among the 10 largest reinsurers in the world. Since the problems with CRP emerged last year, SCOR has had to raise additional capital and bring in a new senior management team. The company reported a loss of 455 million euros ($496.0 million) for 2002. SCOR said it was taking action to rectify the problems at CRP, which ceased writing business in January. SCOR is in talks with an unidentified potential buyer and will also commute as many of CRP's outstanding liabilities as possible, according to SCOR Chief Executive Officer Denis Kessler. Mr. Kessler noted that eight major policies make up the vast majority of those liabilities and that one of those has already been commuted.
Enter Denis Kessler: The Savior
Into this maelstrom stepped Denis Kessler—a French economist, academic, and business leader who would become synonymous with SCOR's identity for the next two decades.
Denis Kessler (25 March 1952 – 9 June 2023) was a French businessman. He served as the chairman of the board of directors and chief executive officer of SCOR SE from 2002 until his death. Prior to this, he served as vice-chairman of MEDEF and CEO of AXA.
Denis Kessler was born on March 25, 1952, in Mulhouse, in France's Haut-Rhin region. After completing his secondary education at the Albert Schweitzer high school in Mulhouse and then the Kléber high school in Strasbourg, he began studying at HEC Paris in 1973, graduating in 1976. Following his studies, he joined the French National Center for Scientific Research (CNRS) as a research associate (1976-1977). Having obtained his agrégation in social sciences, he taught for a year in secondary school (1977-1978). He then embarked on a career as an economics researcher, working from 1978 to 1985 as an assistant lecturer in economics at Paris X-Nanterre University. He chaired CEREPI, the Center for Study and Research on Savings, Wealth and Inequalities, from 1982 to 1990. In 1985, he became a research fellow at CNRS. Obtaining advanced degrees in economics and social sciences in 1988, he was made a professor at the University of Nancy II in the same year.
Denis Kessler (25 March 1952 – 9 June 2023) was a French economist and reinsurance executive who led SCOR SE as Chairman and Chief Executive Officer from 2002 to 2021, engineering its recovery from near bankruptcy into one of the world's top five reinsurers by premium income and market capitalization. Born in Mulhouse in France's Haut-Rhin region, Kessler graduated from HEC Paris in 1976, earned an agrégation in social sciences, and obtained advanced degrees in economics and social sciences in 1988, alongside a PhD in economics.
Kessler was not an insurance man by training—he was an economist and policy intellectual who had risen through French business circles via MEDEF (the French employers' federation) and AXA. But he brought exactly what SCOR needed: credibility with investors, analytical rigor, and the willingness to make painful decisions.
Perhaps his most visible accomplishment is the rescue of SCOR from its near-collapse in 2002 to one of the world's leading reinsurance groups today.
The "Back on Track" Plan
The day after, on 6 November 2012, he was chairing an extraordinary general meeting. Upon arriving, recognizing the dramatic situation in which the company found itself, Denis Kessler launched on 18 November 2002 a strategic plan called Back on Track to cover the years 2002-2004.
The plan was brutally simple in concept but extraordinarily difficult in execution: raise capital, slash unprofitable business, and rebuild from a position of strength.
PARIS--SCOR S.A. on Monday upped its loss estimate for 2002 to 425 million euros ($428.8 million) and provided more details of its turnaround plan. The Paris-based reinsurer previously had forecast a 250 million euro ($252.3 million) net loss for 2002 but this week said that figure had been revised. SCOR will reduce its ART business by 80% in 2003 to about 150 million euros ($151.4 million), Mr. Kessler said. The group has withdrawn from credit derivatives reinsurance and there are "no plans whatsoever" to return to that business, he added. In addition, Mr. Kessler noted that SCOR's board had voted to proceed with a share issue aimed at raising between 350 million to 400 million euros ($353.2 million to $403.6 million) and had already received support from 10 institutional shareholders.
SCOR raised 751 million euros ($945.8 million) through a share issue.
SCOR announced that premium volume in 2003 dropped 26% to 3.69 billion euros ($4.61 billion), and reported that 312 of its 352 largest property/casualty customers had renewed.
The portfolio restructuring was dramatic. SCOR slashed its U.S. property/casualty business by approximately 30%, reduced ART business by 80%, and withdrew entirely from credit derivatives reinsurance. Premium volume dropped by €600 million—a 10% reduction—but the quality of remaining business improved dramatically.
SCOR posted net income of 68.7 million euros ($70.1 million) for 2004, says it is boosting reserves for Sept. 11, 2001, losses in light of the verdict in World Trade Center coverage dispute.
S&P upgraded SCOR to A- from BBB+, citing its strong competitive position and its reduced exposure to reserve problems, among other factors.
By 2005, SCOR had clawed its way back to investment grade. The turnaround was complete—but Kessler was just getting started.
V. The Acquisition-Led Transformation (2006–2013)
Strategic Plans as a Philosophy
One of Kessler's most distinctive contributions to SCOR was the institutionalization of rolling three-year strategic plans. Since the arrival of Denis Kessler in 2002, the Group has followed a consistent strategy, implementing a series of strategic plans: Back on Track (2002 – 2004), Moving Forward (2004 – 2007), Dynamic Lift (2007 -2010), Strong Momentum (2010 – 2013), and the latest plan for the period 2013 – 2016, Optimal Dynamics.
This cadence—catchy names, specific targets, regular updates—created a framework for accountability and signaled to investors that management had a clear vision. It also set the stage for the most ambitious acquisition spree in SCOR's history.
The Converium Acquisition: Becoming a Global Player
SCOR's appetite is ferocious. Following the 2006 acquisition of Revios, the first European life reinsurer, for the sum of 675 million euros, the French group has unveiled its takeover plan of the Swiss reinsurer Converium.
Also in 2006, the Group acquired the Life reinsurer Revios. The combination of Revios and SCOR Vie created SCOR Global Life, the fourth largest Life reinsurer in the world.
The Converium acquisition was SCOR's boldest move yet. Converium, which has been fighting to strengthen its position in the market after almost collapsing in 2004, said a proposed weekend bid of SFr21 per share did not reflect its return to financial health. SCOR said it had already bought a 32.9 per cent stake in Converium and confirmed that the Swiss company had rejected a full offer. Paris-based SCOR said it had paid SFr21.1 per share for the acquisition of its stake, in a mix of 20 per cent cash and 80 per cent newly-issued SCOR shares.
SCOR has irrevocably secured 32.9% of the share capital of Converium: 8.3% through direct market purchases and 24.6% through share purchase agreements, the consummation of which is subject to regulatory approvals. The consideration for the block acquisitions consists of 20% cash and 80% newly issued SCOR shares, collectively representing a price of CHF21.1 per Converium share based on the closing share price of SCOR on Friday, February 16, 2007.
Initially, Converium's board rejected the approach. But SCOR had already secured a blocking stake and persisted. On 10 May 2007, SCOR and Converium announce that they have reached a friendly agreement. On 12 June 2007, SCOR announces the opening of its mixed public tender and exchange offer for the shares of Converium. On 27 June 2007, the Swiss Federal Office of Private Insurance (FOPI) authorises the combination between SCOR and Converium. Great success of the Offer: on 2 August 2007, SCOR announces results: ownership of 96.32% of Converium.
The acquisition of the reinsurance activities of the German company Converium in 2006 was a pivotal moment. This acquisition increased SCOR's market share, bringing additional premium income of over €2.5 billion annually. By 2010, SCOR had reported gross written premiums of around €8.5 billion, reflecting a steady growth trajectory.
SCOR has entered a new global dimension in terms of earning power and business volume: since 2005 the Group's gross written premiums have doubled and the net income has more than tripled, with all business drivers producing record results. The acquisitions of Revios and Converium make the SCOR Group the fifth largest reinsurer in the world, with a high degree of diversification. SCOR's franchise comprises 3,500 clients served by six newly-established Hubs, 49 offices and 1,581 specialists across five continents.
European Company Status
The SE acronym indicates that the company is a Societas Europaea (European company). In 2007, it became the first French listed company to use the SE acronym in its name.
In 2007, SCOR de-listed itself from the New York Stock Exchange.
The delisting from NYSE was a significant signal. While some viewed it as a retreat from global capital markets, SCOR management saw it as pragmatic—the regulatory burden of maintaining a U.S. listing (particularly post-Sarbanes-Oxley) wasn't justified by limited American investor interest in a French reinsurer.
Transamerica Re & U.S. Life Expansion
SCOR has finalised the acquisition of the mortality portfolio, including the operational assets and personnel, of Transamerica Re, a division of AEGON, with effect from today. SCOR has obtained all the necessary approvals from the relevant regulators, notably the Texas Department of Insurance, the Delaware Insurance Department and the Central Bank of Ireland. This acquisition, which was announced on 26 April 2011, amounts to a total consideration of USD 912.5 million, including a statutory equity of USD 497 million for the Irish entity per closing date.
This major acquisition increases the volume of premiums written by SCOR Global Life by around 50%. The business being acquired represented a gross premium volume of USD 2.2 billion in 2010, 87% of which was underwritten in the United States. SCOR Global Life, which combines all of SCOR's Life reinsurance activities, has thus strengthened its position in the major Life reinsurance markets, particularly the United States, along with its teams, its tools and the range of solutions and services proposed to its clients.
Generali US Acquisition & Optimal Dynamics
This acquisition, which was announced on 4 June 2013, amounts to a total consideration of EUR 579 million (USD 750 million) plus, as announced in June, a 2013 earnings adjustment. This adjustment amounts to approximately USD 29 million and is subject to a post-close review and possible adjustment.
And it reinforces SCOR's leadership in the life reinsurance market. The combination of SCOR Global Life Americas ("SGLA") and Generali U.S. creates the market leader in the US life reinsurance market.
2013: bought Generali US and started its Optimal Dynamics strategy plan.
Navigating the Financial Crisis
One of Kessler's most impressive achievements was navigating SCOR through the 2008 financial crisis unscathed. While other European financial institutions required bailouts or collapsed, SCOR emerged stronger.
Very efficient Enterprise Risk Management (ERM) process applied to protect the whole organization. No direct liability risks from monoline companies or subprime. Very limited risks from monoliner credit-enhanced securities (0.42% of total invested assets) and subprime investments (0.27% of total invested assets).
Having demonstrated its capacity to absorb a series of exceptionally intense natural catastrophes in the first half of 2011, SCOR has demonstrated considerable resilience this quarter in the face of a very fragile economic and financial environment. Since the beginning of the financial crisis in 2007, the effectiveness of SCOR's risk anticipation and management policy has enabled the Group to limit the impact of this environment on its shareholders, for instance by having no exposure to sovereign debt in peripheral European countries.
The Group has also shown strong resilience to natural catastrophes over the past few years. In 2011, despite a record year in terms of natural catastrophes, SCOR recorded an ROE of 8%, demonstrating the robustness of the Group's business model with careful underwriting and prudent retrocession.
Growth Metrics Under Kessler
Since he became Chairman of SCOR in November 2002, Denis Kessler has transformed a group on the verge of collapse into one of the main global reinsurers (5th largest in the world). The group now operates in more than 175 countries with a workforce made up of 50 different nationalities.
The figures below demonstrate how far SCOR has come from its trough: Market capitalisation EUR 0.3 billion in 2002 to EUR 4.8 billion as of 16 September 2013.
By 2013, SCOR had completed one of the most remarkable corporate turnarounds in European financial services history. From near-bankruptcy, it had become a global Tier 1 reinsurer with strong ratings, diversified operations, and a track record of execution.
VI. The Hostile Takeover Battle (2015–2021)
One of the most dramatic corporate battles in French insurance history
Sompo's First Approach (2015)
SCOR's success attracted unwanted attention. Japanese insurers, flush with capital and seeking global diversification, viewed European reinsurers as attractive targets.
The Japanese insurer Sompo acquired approximately 7.8% of SCOR's capital and 8.1% of voting rights in 2015, announcing intentions to raise this participation to 15% of capital—a threshold that would have entitled them to board representation and potentially opened the door to a full takeover. Denis Kessler opposed this move vigorously, and Sompo eventually backed down.
But a more formidable challenger was waiting.
Covéa's €8.3 Billion Hostile Bid (2018)
The settlement agreement will end the acrimonious battle between the companies, which began in 2018 when Covéa initiated a hostile takeover of SCOR – an €8.3 billion bid that was abandoned in early 2019 but has led to lawsuits and a public war of words.
Covéa had previously reiterated its interest even after SCOR's board spurned an 8.3 billion-euro ($9.5 billion) unsolicited offer last year.
Covéa, a major French mutual insurer, had been a SCOR shareholder since 2003 and its largest shareholder since 2016. What should have been a comfortable relationship between French financial institutions became one of the most acrimonious corporate battles in recent European history.
In addition, SCOR challenged Covéa's contention that it had been the subject of "attacks" from its headquarters, saying SCOR's board had thoroughly considered the Covéa proposal and rejected it as detrimental to the group and its shareholders and employees. SCOR also faulted it as lacking a strategic rationale and an inadequate price, at EUR43 ($50.31) a share. "SCOR's decision, which contains no element of criticism of Covéa, was purely based on an appraisal of its own corporate interests," SCOR said. It added that the proposed price "reflected neither the intrinsic value nor the strategic value" of the company. At a directors' meeting on 21 September, SCOR said the board voted unanimously to reject Covéa's advance, reaffirming its position taken at a 30 August board meeting.
The Breach of Trust Scandal
The takeover battle took an unprecedented turn when it emerged that Covéa's CEO, Thierry Derez, had been sitting on SCOR's board at the time the bid was being prepared—raising serious questions about conflicts of interest and fiduciary duty.
Next month, a criminal trial in front of the Paris Criminal Court was due to be held against Covéa's CEO Thierry Derez and Covéa – for breach of trust and concealment of breach of trust, respectively, at the Paris Criminal Court. It has been a complicated relationship: Derez once sat on SCOR's board at the time of the hostile takeover bid (he was later forced to resign) and Covéa is currently SCOR's largest shareholder.
The facts mentioned by Covéa in its press release, namely the expenses that SCOR was obliged to incur to defend itself against Covéa's unsolicited takeover attempt on SCOR in 2018, as well as the extra costs incurred by SCOR in connection with the implementation of its share buy-back program, are perfectly justified and legitimate, and are in no way new revelations: They were brought forward by SCOR in the proceedings initiated in 2019 against Thierry Derez and Covéa, as elements of the financial prejudice for which SCOR seeks compensation; In this respect, on November 10, 2020, the Paris Commercial Court ordered Thierry Derez and Covéa to pay the sum of EUR 19,603,191, plus interest, corresponding to an indemnification of SCOR for part of this injury.
The Barclays Dimension
The legal complexity deepened when SCOR discovered that Barclays, which had been advising SCOR, had also been providing intelligence to Covéa.
SCOR SE is suing Barclays in London for breach of confidence when the bank advised Covéa on its bid to acquire SCOR in 2018. Barclays was given an inside track into the strategic thinking of SCOR's board and then used the information to help Covea "sabotage" SCOR's plans to merge with another firm, SCOR's lawyers said.
The information Barclays obtained included the minutes of a SCOR board meeting. "Barclays then forwarded on the minutes to other advisors of Covéa, noting that the email was 'strictly confidential'," said Hobson. "How Barclays thought it was appropriate to receive, and then itself to forward on to advisors of a third company, the confidential minutes of SCOR's internal board meeting is a matter of serious concern which will be explored at trial."
Covéa's bid for SCOR was one of France's most acrimonious takeover attempts in years and the fallout has led to several lawsuits as well as criminal proceedings.
The Settlement & Peace Accord (2021)
After years of legal warfare, the parties reached a comprehensive settlement in 2021.
Covéa and SCOR have agreed to bury the hatchet and resume cordial relations, which it is hoped will bring to an end a period of hostility between the two groups that has existed since Covéa's failed €8.2 billion takeover attempt in late 2018. The two groups signed a settlement in the presence of the French financial regulator that prevents Covéa from acquiring SCOR shares for seven years. It committed not to purchase SCOR shares for seven years, or exercise its voting rights on its existing shares in that time, or to attempt a takeover of its co-signatory. Covéa will also pay SCOR €20 million before tax as an indemnity settlement. Both parties agreed to immediately abandon all legal actions and claims, and waived all future legal actions or claims, related to Covéa's takeover bid, and committed to resume reinsurance relations between them. The parties also implemented a quota share retrocession agreement that will see Covéa underwrite, and SCOR cede, 30 percent of all in force business carried by SCOR's Irish life entities as of December 31, 2020, in exchange for a purchase price that will be paid by Covéa upfront. SCOR will transfer, as of January 1, 2021, 30 percent of all future premiums, commissions, claims and expenses in respect of this business to Covéa until the expiry of the underlying reinsurance treaties for just over $1 billion.
In a separate announcement issued on June 14, SCOR said it had reached a settlement with Barclays, which resolves a suit it had filed against Barclays in the High Court in London for breach of confidence when the bank advised Covéa on its bid to acquire SCOR in 2018.
The settlement preserved SCOR's independence while extracting meaningful compensation. For Kessler, it was his final corporate battle—and he won.
VII. Leadership Transition & New Era (2021–Present)
The End of the Kessler Era
Kessler joined SCOR in 2002 as chairman and CEO, becoming non-executive chairman of the global reinsurer on June 30, 2021.
Augustin de Romanet, Lead Independent Director of SCOR, added, "On behalf of the Compensation and Nomination Committee, I would like to thank Denis Kessler most warmly for having successfully led SCOR's development since 2002. Over the past nineteen years, Denis has shaped SCOR, turning it around in an outstanding way and subsequently establishing it as the world's fourth largest reinsurer, with a rating of AA-. He has created a culture of expertise and integrity that will be carried on by the teams he has built.
The succession planning was complicated. Initially, political insider Benoît Ribadeau-Dumas was chosen to succeed Kessler, but the Board ultimately concluded the conditions weren't met for someone without reinsurance experience to take the helm. Laurent Rousseau, a SCOR veteran, was appointed CEO instead—but his tenure would prove brief.
Denis Kessler's Passing (June 2023)
He died on 9 June 2023, at the age of 71.
An economist and an iconic figure of the insurance and reinsurance world, and more widely of the French business world, Denis Kessler devoted his entire life to business, first within employer and trade organizations, and then at SCOR, which he joined as Chairman and Chief Executive Officer on November 4, 2002. With his cutting-edge vision, his outstanding commitment and his leadership, Denis Kessler turned the Group around in spectacular fashion over a period of more than two decades, enabling it to become a leading global reinsurer.
The SCOR directors comment: "We are deeply saddened by the passing of Denis Kessler, with whom we have been fortunate enough to work for many years. He was an exceptional individual, with visionary leadership and incredible intelligence. We have lost a friend. We salute the memory of a great man and an extraordinary leader, who was passionate about the insurance and reinsurance industries, their techniques, their values and their philosophy. Denis has made a tremendous contribution to SCOR's development over the past 21 years, and more widely to public debate on major contemporary economic and social policy issues. He has left a profound imprint on the Group, with the double hallmark of high standards and excellence, which the teams he built will perpetuate. To his family and friends, our company expresses its deepest sympathy, gratitude and support."
New Leadership Under Thierry LĂ©ger
Before Kessler's death, SCOR had already begun a new leadership transition. In January 2023, the company announced that Thierry LĂ©ger would become CEO.
Thierry LĂ©ger, who has served as the Group Chief Underwriting Officer (CUO) of global reinsurer Swiss Re since 2020, has been named as the new Chief Executive Officer (CEO) of French reinsurer SCOR, effective May 1st, 2023.
Thierry LĂ©ger has 25 years of experience in the reinsurance sector, holding key positions. His expertise covers life reinsurance, P&C reinsurance and alternative reinsurance.
He began his career in the civil construction industry before joining Swiss Re as an engineering underwriter in 1997. In 2001 he moved to Swiss Re New Markets, providing nontraditional (or alternative) risk transfer solutions to insurance clients. Between 2003 and 2005 he was a member of the executive team in France as leader of the sales team. From 2006, Thierry LĂ©ger assumed increasing responsibility for Swiss Re's largest clients, ultimately becoming the Head of the newly created Globals Division in 2010 and a member of the then existing Group Management Board. In 2013, Thierry LĂ©ger became Head of Life & Health Products Reinsurance. As of January 2016, he was appointed Chief Executive Officer Life Capital and member of the Swiss Re Executive Committee. In September 2020, he assumed the role of Group Chief Underwriting Officer. Mr LĂ©ger became Chief Executive Officer of SCOR in May 2023.
LĂ©ger brought exactly the credentials SCOR needed: 25 years at Swiss Re, experience across all major reinsurance lines, and a reputation for operational excellence. The hiring signaled that SCOR was serious about technical performance.
The Forward 2026 Strategic Plan
In September 2023, SCOR launched "Forward 2026," the Group's eighth strategic plan and our renewed promise to combine the Art & Science of Risk to protect societies, safeguard our planet, and foster resilience. Forward 2026 is a testament to more than half a century of strong foundations.
At its 2023 Investor Day in Paris, SCOR presents its new strategic plan for 2024-2026, Forward 2026. SCOR takes a step forward to fully benefit from the most supportive market environment in the past two decades. As the world continues to undergo fundamental changes, risks are multiplying, and intensifying, creating unprecedented challenges for societies. This rapidly evolving risk landscape has led to a growing demand for protection, and to favorable market conditions for reinsurers. At the same time, the increase in both P&C reinsurance rates and interest rates is expected to support reinsurers' margins. In such an environment, SCOR is well placed to seize market opportunities, benefiting from its leading global franchise, strong balance sheet, and differentiating in-house expertise. Forward 2026 will combine the art and science of risk to protect societies, while firmly maintaining sustainability at the heart of the Group's raison d'ĂŞtre.
Core Group financial and solvency targets reconfirmed for 2025-2026: Economic Value growth rate of 9% p.a. and a solvency ratio in the optimal 185%-220% range. The Group maintains an ROE assumption above 12% p.a. over 2025-2026. Group reserve adequacy confirmed by external independent reviewers: Both P&C and L&H reserve adequacy have been externally confirmed allowing SCOR to move forward from a position of strength. P&C strategy confirmed: Capitalize on Tier 1 franchise and hard market to expand in selected attractive lines to build a balanced and resilient portfolio; P&C net combined ratio assumption of < 87% unchanged.
VIII. The 2024-2025 Reality Check
Recent Financial Performance
French reinsurer SCOR generated net income of €233 million in the fourth quarter of 2024, up 43.2% on the comparable prior year quarter, as gross written premiums (GWP) across the Group increased by 2.5% to €5.1 billion, driven by growth in property and casualty (P&C). SCOR's solid Q4 2024 performance has helped offset the net loss reported in the previous quarter, although net income for the full year is still down by 99.5% on 2023's figure to €4 million.
For full year 2024, SCOR has reported Group insurance revenue of €16.1 billion, a rise of 1.3% on 2023, and GWP of €20.1 billion, an increase of 3.6% year on year. The 2024 insurance service result declined by 71% year on year to €432 million, as the annualised ROE fell significantly from 18.1% in 2023 to 0.1% in 2024. Net income excluding the mark to market impact of the option on own shares decreased by 98.6% to €11 million, as the contractual service margin fell 8.9% to €4.1 billion. The decline in net income for the year reflects the impacts of the outcome of the 2024 L&H assumption review accounting for €-700 million in insurance service result and €-900 million in contractual service margin.
Figures as at December 31, 2024: 3,621 employees, 65 nationalities, 37 offices worldwide, 5,000 clients. Standard & Poor's A+ stable outlook. Moody's A1 stable outlook. Fitch Ratings A+ stable outlook. AM Best A stable outlook. €20.1 billion gross written premiums, €4 million net income, 210% year-end solvency ratio, €37.3 billion balance sheet, €4.5 billion shareholders' equity, 86.3% net combined ratio, €-348 million L&H insurance service result, €8.6 billion economic value, 3.5% return on invested assets.
The 2024 results revealed a significant challenge in the Life & Health business. While P&C performed strongly with an 86.3% combined ratio, the L&H assumption review resulted in substantial writedowns. Management moved decisively to address the issues.
In response to the underperformance, SCOR announced the departure of Frieder KnĂĽpling, CEO of SCOR L&H, in July 2024. CEO Thierry LĂ©ger temporarily assumed leadership of the L&H division to oversee its strategic realignment. "In L&H, we took decisive actions to restore profitability," LĂ©ger said.
2025 Performance Improvement
French reinsurer SCOR has announced its financial results for the second quarter of 2025, reporting a rise in net income to EUR 226 million, reversing the loss of EUR 308 million recorded in the second quarter of 2024.
French carrier SCOR, one of Europe's big four reinsurance companies, has reported net income of €217 million for the third quarter of 2025, reversing the loss for the same period last year, as the property and casualty (P&C) combined ratio strengthened by 7.5 percentage points to 80.9%.
Europe's four largest reinsurers recorded their strongest ever first-half profitability, but Fitch Ratings has warned that revenue growth is faltering as the reinsurance cycle turns. Munich Re, Swiss Re, Hannover Re and SCOR reported a combined average return on equity of 21.1% in the first six months of 2025, surpassing the 20.5% peak set two years earlier. The uplift from 15.5% in the prior-year period was driven by SCOR's recovery, alongside consistently strong underwriting and investment returns. Property and casualty results were particularly robust.
IX. Competitive Landscape & Industry Analysis
The "Big Four" European Reinsurers
Swiss Re tops the list of the world's 40 largest reinsurers in 2025, followed by Munich Re and Hannover Re, according to S&P Global Ratings. Berkshire Hathaway Insurance Group comes in at number four, while Lloyd's is ranked at number five and SCOR is number six.
The top third to sixth spots remained unchanged, with Hannover Re taking third with $37.7 billion, followed by Berkshire Hathaway Insurance Group ($26.9 billion), Lloyd's ($23.5 billion), and SCOR ($20.8 billion).
Improved underwriting results have driven strong earnings and improved resilience at the four biggest continental European reinsurers, according to rating agency Moody's. The four largest European reinsurers reported combined earnings of €10.2bn for their 2023 financial year, more than double the previous year's total, helped by higher prices and better investment returns, according to Moody's Investors' Service. The rating agency noted similar trends for Munich Re, Swiss Re, Hannover Re and SCOR, as the environment remains supportive and should allow the peer group to further strengthen operating performance in 2024, assuming no major catastrophes spoil the party. Stronger underwriting results support building of reserve resilience, Moody's emphasised, with all four reinsurers reporting profitable combined ratios.
Munich Re, Swiss Re, Hannover Re and SCOR have raised their earnings targets after strong performance and €11bn of combined earnings in 2024, according to a paper from rating agency Moody's. The four largest European reinsurers – Munich Re, Swiss Re, Hannover Re and SCOR – posted record combined earnings of €11 billion for 2024, according to a report published by Moody's Ratings. The figure marks an 8% rise on 2023, driven by strong property and casualty (P&C) underwriting and improved investment returns, despite a surge in catastrophe losses.
SCOR's Relative Position
Performance across the group varied. Munich Re and Hannover Re exceeded expectations with year-on-year net income increases of 23% and 28%, respectively. Swiss Re's profits were flat, while SCOR's fell sharply to just €4m, compared with €800m in 2023. SCOR's results were weighed down by a €348m loss from its life and health segment, driven by assumption changes in its long-term care book in Israel and adverse experience in Canada and South Korea. However, the firm estimated that without these changes, its 2024 net income would have reached €728m.
Fitch pointed out that SCOR's sharp improvement followed prior reserving hits, though its margins continue to trail peers.
Porter's Five Forces Analysis
Threat of New Entrants: Low Reinsurance requires massive capital reserves, deep actuarial expertise, and decades-long client relationships. The barriers to entry are formidable. New ILS (Insurance-Linked Securities) capital provides some competitive pressure, but it typically operates in different risk layers than traditional reinsurers.
Bargaining Power of Suppliers: Moderate Reinsurers' primary "suppliers" are retrocession providers and capital markets. In hard markets, retrocession capacity becomes expensive and scarce. SCOR has developed alternative capital solutions to reduce this dependency.
Bargaining Power of Buyers: Moderate to High Primary insurers have significant bargaining power, especially large global carriers that can distribute business among multiple reinsurers. However, the recent hard market has shifted some power back to reinsurers.
Threat of Substitutes: Moderate Alternative risk transfer mechanisms, self-insurance, and capital market solutions (cat bonds, ILS) provide substitutes for traditional reinsurance. SCOR has addressed this by developing its own alternative solutions capabilities.
Industry Rivalry: High Competition among the major reinsurers is intense but disciplined. The industry has learned painful lessons from past soft markets, and all four European majors have demonstrated willingness to walk away from underpriced business.
Hamilton Helmer's 7 Powers Framework
Scale Economies: SCOR benefits from scale in its global platform, actuarial capabilities, and client relationships. However, scale advantages in reinsurance are less pronounced than in some industries—smaller specialists can compete effectively in niches.
Network Effects: Limited direct network effects, but SCOR's global presence creates information advantages as it sees risk data across markets.
Counter-Positioning: SCOR's "Art & Science of Risk" positioning emphasizes technical expertise and long-term client relationships over aggressive pricing. This is difficult for more financially-driven competitors to replicate.
Switching Costs: Moderate switching costs—reinsurance relationships tend to be sticky but not locked in. Multi-year contracts and relationship-specific knowledge create some friction.
Branding: The SCOR brand carries weight among sophisticated insurance buyers who value technical expertise and financial strength. The A+ ratings from major agencies are essential brand markers.
Cornered Resource: SCOR's actuarial talent pool and proprietary risk models represent cornered resources, though competitors invest heavily in these areas as well.
Process Power: SCOR has invested in process improvements through its transformation program, targeting €150 million in cost savings by 2026. However, process advantages are replicable over time.
X. Investment Considerations
Bull Case
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Tier 1 Franchise Value: SCOR's global platform, client relationships, and technical expertise represent durable competitive advantages. The company serves approximately 5,000 clients across 150+ countries.
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Hard Market Tailwinds: SCOR takes a step forward to fully benefit from the most supportive market environment in the past two decades. As the world continues to undergo fundamental changes, risks are multiplying, and intensifying, creating unprecedented challenges for societies. This rapidly evolving risk landscape has led to a growing demand for protection, and to favorable market conditions for reinsurers.
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Strong Solvency Position: Estimated Group solvency ratio of 210% as of 31 December 2024, in the upper part of the optimal range of 185%-220%, fully absorbing the impact of the 2024 L&H assumption review.
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New Leadership with Fresh Mandate: Thierry LĂ©ger brings deep operational expertise and a mandate to restore profitability. His track record at Swiss Re suggests capability for execution.
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Attractive Valuation Relative to Peers: Following the 2024 challenges, SCOR trades at a discount to European peers, creating potential upside if L&H remediation succeeds.
Bear Case
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L&H Uncertainty Remains: SCOR, however, faced losses due to changes in reserving assumptions, highlighting earnings volatility in this segment. The assumption review may not be the last, and L&H profitability remains uncertain.
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Smaller Scale Than Peers: Among the European Big Four, SCOR has the smallest premium base, limiting diversification benefits and potentially making it a consolidation target.
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Execution Risk on Transformation: Cost savings targets of €150 million by 2026 require sustained execution while maintaining underwriting quality.
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Softening Market Environment: Yet behind the record profits, signs of a slowdown are emerging. Fitch said revenue growth "slowed year on year in 1H25 and at mid-year renewals on price and volume reductions as reinsurers focused on diversification and profitability over growth". June and July reinsurance renewals brought further price softening and lower volumes, particularly in US casualty and property, where reinsurers judged rates inadequate.
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Climate Risk Exposure: Natural catastrophe exposure remains significant, and climate change is increasing the frequency and severity of events.
Key KPIs to Monitor
1. P&C Combined Ratio: The single most important indicator of underwriting profitability. SCOR targets <87% net combined ratio. The Q3 2025 figure of 80.9% suggests strong execution, but sustainability through soft market conditions will be the test.
2. L&H Insurance Service Result: Given the 2024 writedowns, this metric will indicate whether management's remediation efforts are succeeding. The target is approximately €400 million annually—any sustained shortfall raises concerns about reserve adequacy.
3. Solvency Ratio: SCOR's 210% year-end 2024 solvency ratio provides substantial buffer, but monitoring is essential as it indicates capital flexibility for dividends, buybacks, and opportunistic growth.
XI. Conclusion: The Art & Science of Resilience
SCOR's story is one of institutional resilience. Twice brought to the brink of collapse—first by underwriting failures and catastrophe losses in the early 2000s, then by a hostile takeover attempt that tested its corporate governance to the limit—the company emerged stronger each time.
The Denis Kessler era transformed SCOR from a troubled French reinsurer into a global Tier 1 player. Through disciplined acquisitions (Converium, Transamerica Re, Generali US), rigorous strategic planning, and fierce defense of independence, Kessler built a franchise that now ranks among the world's largest reinsurers.
The new era under Thierry LĂ©ger faces different challenges: remediating the L&H business, navigating a potentially softening reinsurance cycle, and maintaining the strategic coherence that has characterized SCOR since 2002. Early results suggest competent execution, but the true test lies ahead.
For long-term investors, SCOR represents a case study in how specialized financial services companies can build durable competitive positions. The "Art & Science of Risk" is more than a marketing slogan—it captures the fundamental nature of reinsurance as a business that combines quantitative precision with experienced judgment.
The reinsurance industry is about combining technical expertise and experience with the developments of science. However many tools we use to conduct our activities (models, databases, pricing tools, reserving tools, and so on), we also need expert judgments and human experience to correctly underwrite. This is what we call the art of underwriting. Reinsurance is a knowledge industry. Expertise is an accumulation variable. The most advanced tool will never replace the intuition of a seasoned underwriter facing a complex risk.
In an industry where catastrophes can eliminate years of profits overnight, and where the true cost of today's underwriting may not be known for decades, SCOR has demonstrated the institutional capacity to survive and adapt. Whether the next chapter matches the drama of the Kessler era remains to be seen—but the foundation for continued success appears solid.
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