SCOR in Discussions To Acquire Sorema

Paris-based SCOR Group, France’s largest reinsurer, confirmed that it was holding talks with mutual insurer Groupama SA to acquire its unprofitable reinsurance subsidiaries Sorema SA and Sorema NA, the country’s fifth largest reinsurer.”If these discussions are brought to a successful conclusion, they could lead to an agreement within the next few weeks,” the company said.

Sorema’s results have suffered over the last two years as a result of claims following natural disasters – first the year end windstorms of 1999, and then the floods which struck France last year. It posted a net loss of € 71.4 million ($63.5 million) last year.

While SCOR was hit by the same problems, it managed to post a net profit of €111 ($98.8 million) for the year 2000.