CIAM slams SCOR’s Quantum Leap strategy in renewed criticism
Activist investor CIAM has criticised SCOR’s Quantum Leap strategy, launched in early September, as “nothing innovative”, claiming it “mainly relies on new accounting standards (IFRS17) to revalue the reinsurer by 2021, without significant intrinsic value creation”.
The claims were made in an open letter to lead director SCOR SE Augustin de Romanet from signatory CIAM president Catherine Berjal.
CIAM, which said it owns 1.34 percent of the company, has been critical of the reinsurer since the failure of an unsolicited bid from Covéa in 2018. The resulting war of words between SCOR chief executive Denis Kessler, Covéa’s board and other investors, culminated in accusations that SCOR’s rejection of the offer amounted to “gross management negligence”.
CIAM has been very vocal in its demands for SCOR to reconsider the offer from Covéa, arguing that its offer was well above the share price. At the time, Kessler rejected these claims saying he had proof the shares were worth more.
But in the most recent salvo, a letter dated September 26, 2019, Berjal said the conciliation between SCOR and Covéa had “collapsed" after Kessler made unreasonable demands around share buy-back. She said this condition was "inadmissible for [Covéa], a shareholder of a listed company," adding that the requirement was “contrary to the interests of the shareholders of SCOR”.
She said the request showed that Kessler “behaves as owner of SCOR, disregarding the interests of its shareholders” and the opposition appeared to be “motivated by personal motives that are incompatible with sound corporate governance”.
SCOR was contacted about the claims but declined to comment.
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