(Reuters) – The French insurance company Covea Mutual Insurance Group Co., which in January released plans to buy reinsurance company Scor SE, said on Tuesday that it was still interested to diversify into reinsurance through acquisitions.
Covea, which holds a 8.17% stake in Scor, has said it does not plan to increase its share after it abandoned its attempt to buy Scor.
"Developing such a business from scratch takes decades, so external growth is more credible," Covea Chief Executive Thierry Derez said on Tuesday at a press conference on Covea's 2018 performance.
Mr. Derez refused to comment on whether Covea would sell its Scor share if the company were to buy a reinsurer.
Mr. Derez said he wanted Covea to come to reinsurance for exposure to less common but more serious risks. Currently, Covea's main accident and property insurance has exposure primarily for small but recurrent risks such as car accidents and household accidents.
Reinsurance would also allow Covea to diversify outside its main market in France, where it accounts for nearly 90% of Its $ 1
Mr. Derez said he expects new entrants, such as tools and automakers, to increase competition in the real estate business.
Covea abandoned his bid to buy Scor after the Scor valuation offer of EUR 8.2 billion was declined by the board, led by veteran chairman and Denis Kessler.
Scor has brought an action against Covea and its CEO for lack of confidence.
Since then, the activist fund CIAM submitted a proposal to Scor's shareholders that they should refrain from Kessler from the board at the annual general meeting held on Friday.
Thierry Francq, Derez's chief executives, said that Covea will attend the general meeting, even though he refrained from saying whether it would vote for Kessler.