CCR sells majority stake in ~€1bn CCR Re to consortium of mutual insurers
CCR, the French government backed reinsurer writing business in international markets, has increased its capital by €200 million by selling a majority stake in reinsurance arm CCR Re to a consortium of mutual insurers SMABTP and MACSF. The deal follows exclusive negotiations between the companies that commenced in February of this year.
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 before capital increase. CCR Re is now valued at €968 million 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, resulting in a holding of 75% of CCR RE’s capital; with CCR holding a share of 25%.
The transaction has obtained relevant approvals from the regulatory bodies, and represents a strategic diversification into reinsurance for the two mutual insurance groups.
The acquisition and capital increase strengthens CCR Re’s capacity to meet the capacity needs of their clients and make the most of the current buoyant market, the company said.
CCR Re’s new board is now made up of 12 members including representatives from the SMABTP group, the MACSF group, CCR, two independent administrators: Monica Cramer and Sylvie Van Viet, as well as one CCR Re’s employee administrator. 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.
Following the deal, CCR Re will be operationally autonomous and will continue with its growth strategy.
Labilloy said: “I would like to give special thanks to Jacques Le Pape, the administrators and the CCR teams for their confidence and their contribution to the success of CCR RE since its inception. Today we embark upon a new chapter in our development, one which the support of SMABTP and MACSF under the care of Patrick Bernasconi will be essential. I would like to thank them for their confidence, and I am convinced that our shared values, on both a human and entrepreneurial level, will allow CCR Re to achieve its ambitions.”
Pierre Esparbes, CEO of the SMABTP group, said: “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 asthe market. This is will also strengthen their financial solidity.”
Stéphane Dessirier, CEO of the MACSF group, added: “MACSF is delighted to complete this operation alongside SMABTP, which brings promising development opportunities for CCR RE in a buoyant reinsurance market. We have complete confidence in the CCR Re teams in their ability to carry out the company’s new ambitions.”
Jacques Le Pape, president of CCR, commented: “The CCR board is extremely satisfied that the process which commenced a few months ago amongst the SMABTP and MACSF consortium concluded today. The success of this operation validates the strategy pursued for several years with the support of Bruno Le Maire and the Treasury Directorate General. In just a few years, CCR has created and grown a unicorn within the financial sector. Today, we hand over the means to further advance its development and become the second international reinsurance hub in Paris over the coming years.”
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