SCOR speeds housecleaning ahead of May arrival of new chief Léger
Global reinsurer SCOR remains full-steam ahead on the one-year rescue plan that ousted CEO Laurent Rousseau put in place after a massive Q3 2022 loss as the embattled group rushes its housecleaning prior to the May 1 arrival of successor Thierry Léger (pictured) from Swiss Re.
“The group is not put on hold,” interim CEO François de Varenne told investors of the state of affairs between the Rousseau and Léger eras. “We accelerate.”
The one-year rescue plan is the core of current efforts. “Execution of the one-year plan to restore group profitability and maximise the benefit from supportive market tailwinds,” took top billing in de Verenne’s list of interim priorities until the arrival of a new CEO in May.
Being “fully mobilised to support the CEO” likewise made the list, along with unending works to shift into IFRS17 accounting.
The gap between Rousseau’s departure late January and the May 1 arrival of Léger trimmed the scope of the Q4 investor call as markets await presentation of a fresh strategy for the struggling group from Léger at the May 25 GM.
Investors spent the Q&A chiefly complaining about the announced cut in the dividend from 2022 given the high solvency levels and universal promises that the outlook remains bright. De Varenne concurred on solvency and outlook, but added “we cannot pretend nothing happened in 2022.” Efforts to regain a AA credit rating after recent downgrades may also play a role in the decision, CFO Ian Kelly suggested.
SCOR ousted its CEO of less than two years in a move heralding a major revision of strategy for the loss-strapped reinsurer.
Strategy had clearly been a matter of contention within the group: SCOR’s last official strategy expired at the end-2021. A March 2022 date had been set for an unveiling, then delayed with reference to rising uncertainties. By mid-year, delays were justified with reference to rising uncertainties. After the Q3 loss management shifted into the short-term one-year rescue plan.
Strategy concerns rang clear in the SCOR announcement. Former CEO and board of directors’ chair Denis Kessler said Léger has been asked to “forge a new strategic vision for the company, while pursuing an underwriting policy based entirely on technical profitability.”
To read more on SCOR, click on the following links:
SCOR pins hopes on new CEO and hard market after ‘very disappointing’ 2022 loss
SCOR warned of ‘high level of scrutiny’ with downgrade on ‘weakening profitability’
Rousseau vs Léger: why their stance on nat cat could be the difference
SCOR cut P&C treaty 20% at 1.1 in accelerated slash of cat risks
SCOR can leverage hard market in ’23 renewals for better book
SCOR hands reins to top Swiss Re leader after ‘difficult’ period; CEO exits
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