CCR Re ratings under review as sale talks progress
The credit ratings of French reinsurer CCR Re have been placed under review following the news that its parent, Caisse Centrale de Réassurance (CCR), has agreed to sell a majority stake in CCR Re to a consortium of mutual insurers.
AM Best has placed “under review with developing implications” the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of CCR RE (France).
The ratings are expected to remain under review until the transaction closes and AM Best has completed its evaluation of the impact of the new ownership structure on CCR RE’s credit rating fundamentals.
CCR entered into exclusive agreement with SMABTP and MACSF to sell approximately 70% of its interest in CCR Re. The deal values the reinsurer, based on economic share equity, at close to €1 billion before the capital increase.
Under the proposed transaction, SMA-BTP and MACSF are expected to contribute an additional €200 million to CCR Re’s capital base, reducing CCR’s stake in the company to approximately 25%. SMA-BTP is expected to be CCR Re’s majority shareholder when the transaction is completed.
The transaction is expected to close by the end of the first half of 2023 and is subject to regulatory approvals and workers council consultations. The proposed transaction includes further mechanisms for SMA-BTP and MACSF to acquire CCR’s remaining interest in CCR Re in 2026.
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