Paris-based reinsurer SCOR has offered to buy rival Converium Holding AG in a deal that values the Swiss company at $2.6 billion. The offer resembles one made in February that has been resisted by the Converium board.
The board said it will make a recommendation to Converium shareholders on the offer by April 27.
SCOR recently purchased a 33 percent stake in the Swiss reinsurer based in Zug, and has set a May 22 deadline to acquire controlling interest.
The carrier said its underlying profit rose 92 percent last year to $337 million.
After the so-called “bad will” linked to the acquisition of Revios was taken into account, profits rose 134 percent, SCOR reported. (Cologne-based life reinsurer Revios turned out to have a value greater than its agreed acquisition price, thus resulting in the bad will figure.)
SCOR gross written premium rose 22 percent, while premium income rose 27 percent.
The combined ratio for non-life business was 96.4, compared with 106 for 2005.
Chairman Denis Kessler said the group had an excellent year, as evidenced by the return on equity of 16.9 percent.
SCOR's favorable earnings report could boost the share price and help it in its takeover attempt, analysts said.
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