Sompo Japan Nipponkoa Holdings has announced it won't be increasing its stake in reinsurer Scor.
The firm had announced on March 6, 2015 its plan to apply the equity method of accounting to Scor SE. This plan included the acquisition of 8.1 percent of voting rights in Scor, and an intention to increase its holding to 15 percent and apply the equity accounting method to its Scor.
Sompo said the change in plan has been determined based on an overall assessment of the economic rationality of the investment, subsequent changes to the environment and other factors. The firm said this determination will not have any impact on its financial results this period.
Scor has acknowledged the decision taken by Sompo and said it values Sompo as “an important client and also values the longstanding business relationship between the two companies.”