SCOR says CIAM's claims 'unfounded, misleading'; backs CEO Kessler

French reinsurer  SCOR has called on its shareholders to reject the  draft resolution of its activist investor CIAM that suggested its CEO Denis Kessler be removed from the company's board of directors.

Investment management firm CIAM, which holds 0.94 percent stake in SCOR, on Monday (March 25) had recommended that shareholders oust Kessler from his chairman role at the Paris-based reinsurer, saying that his combined role as both CEO and chair "results in too much power".

SCOR, however, has backed its chief executive, alleging the investor's claims as "seriously unfounded, inaccurate and misleading".

The reinsurer said that the dismissal of Kessler, who has run the company since 2002, as director would also entail the termination of his tenure as CEO, with all the foreseeable consequences on the stability and management of the group.

"SCOR deeply regrets that CIAM has made public its draft resolution as well as its call for a vote, and has sought that press articles be published on this topic, prior to any discussion with SCOR thereby leaving no room for a fair, contradictory debate," the reinsurer said in a statement. "CIAM puts forward once again seriously unfounded, inaccurate and misleading statements with the purpose of destabilising SCOR."

It added, "the board of directors of SCOR has unanimously decided to reiterate its full support to Denis Kessler and Augustin de Romanet and, accordingly, to recommend the shareholders of SCOR to vote against the draft resolution presented by CIAM."

CIAM had also opposed Kessler’s pay package, which SCOR claims is in line with its global remuneration policy and had been approved by shareholders in April 2018 with 87.92 percent of favourable votes.

Additionally, CIAM had noted that the way SCOR handled the bid received from Covéa highlighted the company’s oversight practices.

SCOR said: "Contrary to what CIAM alleges, the board of directors of SCOR exercised the utmost diligence and reviewed in detail all the terms and conditions of Covéa’s unsolicited proposal."

SCOR also questioned the motive behind CIAM's repeated attacks, noting that the activist fund invested in the company immediately after Covéa disclosed its proposal to takeover the SCOR Group.

"This demonstrates that CIAM's investment in SCOR is speculative and short-term," it said.

"SCOR regrets the repeated attacks of CIAM, to which the group has always responded, and whose motivations are against the corporate interest of SCOR."

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

More of today's news Hamilton at Lloyd's CEO resigns to seek out new challenges

AXA-backed Israeli cyber risk insurtech Sayata Labs attracts $6.5m funding Activist investor urges SCOR to oust CEO Denis Kessler as chairman

Download our whitepaper: 'Why Automation & AI Matters For Commercial Lines'