Reinsurance News

CCR RE gets €200m capital injection as SMABTP & MACSF take control

3rd July 2023 - Author: Jack Willard

A consortium comprised of SMABTP and MACSF have completed the acquisition of a majority shareholding in French reinsurer CCR RE, and also injected an additional €200 million of capital into the reinsurer, following relevant approvals being granted by the regulatory bodies.

ccr-re-logoThe acquisition represents a “strategic diversification project” for the two mutual insurance groups with reinsurance also offering a “strong development potential.”

Talks of the sale between the companies first emerged in February of this year.

According to the announcement, the transaction price for 100% of the equity between the consortium and CCR was set at €947 million before any capital increase.

However, following the sale of the IT system by CCR, French reinsurer CCR RE is now valued at €968 million.

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SMABTP and MACSF – the two majority shareholders – simultaneously subscribed to the capital increase equal to €200 million, resulting in a holding of 75% of CCR RE’s capital; with CCR holding a share of 25%.

Both the acquisition and capital increase, financed by their own resources, becomes effective as of today following on from authorisation from the regulatory bodies. Therefore, this strengthens CCR RE’s capacity to meet the needs of their clients and make the most of the current buoyant reinsurance market environment.

CCR RE’s new board met earlier today following on from completion of the acquisition.

CCR RE’s new board is made up of 12 members, which includes representatives from the SMABTP group, the MACSF group, CCR, two independent administrators: Monica Cramer and Sylvie Van Viet, as well as one CCR RE employee administrator.

In addition, Patrick Bernasconi has been elected President for a duration of three years.

Elsewhere, the CCR RE board also confirmed that both Bertrand Labilloy and Laurent Montador will remain as Chief Executive Officer (CEO) and Deputy Chief Executive Officer, respectively.

Following the acquisition, CCR RE will be operationally autonomous and will continue with its development strategy which has been in place since 2017 serving insurers situated in over 80 countries, in line with its values of stability and sustainability.

Pierre Esparbes, CEO of the SMABTP group, said: “SMABTP is delighted to have seized this strategic opportunity which allows us to diversify our sources of revenue whilst maintaining the soul of our profession. With regards to CCR RE, this operation will allow them in time to reach both the size and critical profitability required to self-finance their growth at the same speed as the market. This is will also strengthen their financial solidity.”

Stéphane Dessirier, CEO of the MACSF group, commented: “MACSF is delighted to complete this operation alongside SMABTP, which brings promising development opportunities for CCR RE in a buoyant reinsurance market. We have complete confidence in the CCR RE teams in their ability to carry out the company’s new ambitions.”

The President of CCR, Jacques Le Pape, added: “The CCR board is extremely satisfied that the process which commenced a few months ago amongst the SMABTP and MACSF consortium concluded today. The success of this operation validates the strategy pursued for several years with the support of Bruno Le Maire and the Treasury Directorate General. In just a few years, CCR has created and grown a unicorn within the financial sector. Today, we hand over the means to further advance its development and become the second international reinsurance hub in Paris over the coming years.”

Previously, global rating agency AM Best placed the ratings of CCR RE under review after negotiations surrounding the sale began taking place.

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