Body
Acquisition of Revios: strong strategic coherence
- With an estimated premium volume of EUR 2,250 million in 2006, SCOR Global Life should reach the position of fourth largest Life reinsurer in the world
- The combination of SCOR and Revios is based on the significant geographic complementarity of the two entities
- The SCOR group is positioning itself on a Life reinsurance market with secular growth trends
- SCOR Global Life will have a worldwide base with strong expertise in the technical and actuarial fields. SCOR Global Life will provide services in more than 80 countries via offices in 19 countries throughout the world
- SCOR Global Life will have recognised skills in mortality, longevity, long-term care, critical illness, substandard risks and financing
- SCOR Global Life will be organized around three Business Units based in Cologne, in Paris and in the United States
A financially attractive transaction
- Total purchase price for 100% of the equity capital of Revios: EUR 605 million
- Reimbursement of Revios’ outstanding subordinated debt to GLOBALE Rückversicherungs-AG: EUR 50 million
- Acquisition retroactive with effect from 1 January 2006
- Cost synergies estimated at EUR 12 million from 2008
- Positive impact on Earnings Per Share and Return On Equity from 2007
Financial Structure
- Rights issue: around EUR 300 million
- Subordinated debt issue: up to EUR 350 million
Post-transaction profile of the SCOR group
- Estimated gross written premiums in 2006: EUR 4 billion
- A portfolio rebalanced between Life business (60%) and Property & Casualty business (40%)
- An improved risk profile
- A reinforcement of solvency and financial strength
Consummation of the transaction subject to obtaining the required regulatory and antitrust approvals, which are expected to be obtained by the Fourth Quarter of 2006
Denis Kessler, SCOR Chairman and Chief Executive Officer, said:
"The friendly combination of SCOR Vie and Revios to form SCOR Global Life is a major project. The creation of a top-tier player in the Life reinsurance field, through the combination of two companies well known for their dynamism and know-how, creates prospects for growth throughout the world. It is remarkable for two companies to complement each other so well with regard to their office locations, to be so similar to each other in terms of underwriting practices and to be equally demanding over their level of service. This combination will benefit the Group’s clients, who will see more value added services and increased capacity and solvency. It will also benefit the Group’s shareholders, who will see an increased profitability in the capital allocated to Life reinsurance”.
Volker D. Weisbrodt, President of the Executive Board of Revios Rückversicherung AG, said:
"The Executive Board of Revios is - in every respect - firmly convinced that this decision is optimal for our company and our employees. Our combined position in international markets will be significantly strengthened. Together, we will be able to pursue business opportunities to which Revios previously had only limited access due to the unsettled shareholder question."
Denis Kessler, SCOR Chairman and Chief Executive Officer, said:
"The friendly combination of SCOR Vie and Revios to form SCOR Global Life is a major project. The creation of a top-tier player in the Life reinsurance field, through the combination of two companies well known for their dynamism and know-how, creates prospects for growth throughout the world. It is remarkable for two companies to complement each other so well with regard to their office locations, to be so similar to each other in terms of underwriting practices and to be equally demanding over their level of service. This combination will benefit the Group’s clients, who will see more value added services and increased capacity and solvency. It will also benefit the Group’s shareholders, who will see an increased profitability in the capital allocated to Life reinsurance”.
Volker D. Weisbrodt, President of the Executive Board of Revios Rückversicherung AG, said:
"The Executive Board of Revios is - in every respect - firmly convinced that this decision is optimal for our company and our employees. Our combined position in international markets will be significantly strengthened. Together, we will be able to pursue business opportunities to which Revios previously had only limited access due to the unsettled shareholder question."
