SMABTP and MACSF Acquire a Majority Shareholding of CCR RE, in the Course of Its Privatisation

Regulatory News:

With exclusive negotiations with CCR beginning on 8th February of this year, the consortium made up by the SMABTP group and the MACSF group today acquired the majority shareholding of the second main French reinsurer, CCR RE (Paris:CCRAA), following relevant approvals being granted by the regulatory bodies.

This represents a strategic diversification project for the two mutual insurance groups while reinsurance offers a strong development potential.

The transaction price for 100% of the equity between the consortium made up of the two mutual insurers and CCR was set at 947 million euros before capital increase. CCR RE is now valued at 968 million euros following the sale of the IT system by CCR.

The two majority shareholders SMABTP and MACSF simultaneously subscribed to the capital increase equal to 200 million euros, resulting in a holding of 75% of CCR RE’s capital; with CCR holding a share of 25%.

The acquisition and capital increase, financed by their own resources, becomes effective as of today following on from authorisation from the regulatory bodies and strengthens CCR RE’s capacity to meet the capacity needs of their clients and make the most of the current buoyant market.

CCR RE’s new board met today following on from the acquisition. The board is made up of 12 members including representatives from the SMABTP group, the MACSF group, CCR, two independent administrators: Ms. Monica Cramer and Ms. Sylvie Van Viet, as well as one CCR RE’s employee administrator. Mr Patrick Bernasconi has been elected President for a duration of three years.

The CCR RE board has confirmed Bertrand Labilloy and Laurent Montador as Chief Executive Officer and Deputy Chief Executive Officer respectively. The board commended the work that has been carried out since 2016, along with CCR, in developing and modernising CCR RE and the board expressed their confidence in further building on this success.

CCR RE will be operationally autonomous and will continue with its development strategy which has successfully been in place since 2017 serving insurers situated in over 80 countries, in line with its values of stability and sustainability.

Pierre Esparbes, Chief Executive Officer of the SMABTP group stated: “SMABTP is delighted to have seized this strategic opportunity which allows us to diversify our sources of revenue whilst maintaining the soul of our profession. With regards to CCR RE, this operation will allow them in time to reach both the size and critical profitability required to self-finance their growth at the same speed as the market. This is will also strengthen their financial solidity.”