SCOR Completes Purchase of Sorema

SCOR, France’s largest reinsurer, announced that it had completed the purchase of Sorema S.A. and Sorema North American Reinsurance Co. from their parent company, French mutual insurer Groupama.

Groupama will receive 6.37 million shares of SCOR, valued at € 54 ($46.33), a total of € 344 million ($295.2 million), and will become the SCOR’s largest shareholder with 17.4 percent of its outstanding stock.

SCOR is slowly recovering from the losses caused by the end of the year storms in 1999. Groupama decided to sell its two reinsurance entities after also suffering losses, but will retain some limited units, principally Broadgate, its Lloyd’s syndicate.

SCOR acquired the U.S. life reinsurance operations of Partner Re last year, and will increase its U.S. presence with the acquisition of Sorema N.A.