French reinsurance major SCOR has established SCOR Europe SE, a new Paris-based P&C specialty insurance company which the firm says will ensure continuity for its clients after Brexit.
SCOR Europe SE has been approved by the French supervisory authority, the ACPR (Autorité de Contrôle Prudentiel et de Résolution), gaining a license that will allow it to operate within the European Economic Area (EEA) as of January 1st 2019.
“This enables the Group to ensure the continuity of the services offered to its insured clients in view of Brexit,” the company said.
The plan had been to establish a continental European P&C insurance subsidiary to serve clients in Europe, while leaving the remaining business to its UK subsidiary.
That suggests a lessening of the influence of SCOR UK within the global group and a loss for the London market, as more of the re/insurance giants European business will now flow through this new Paris arm.
As of January 1st 2019, the new Paris unit SCOR Europe SE will underwrite all new and renewed business relating to EEA risks that can no longer be underwritten by the SCOR UK Company Ltd. after Brexit has occurred.
SCOR Europe SE will also become responsible for commitments on policies previously issued by SCOR UK, if the UK branch is no longer able to honour these following Brexit. Here, SCOR noted uncertainty over exactly how this will play out, reflecting continued uncertainty over the Brexit deal.
The new Paris-based P&C insurance unit will benefit from SCOR’s group financial strength, the firm said. SCOR UK will continue to serve all its clients across other territories as before.
Laurent Rousseau, Deputy CEO of SCOR Global P&C, commented, “The creation of SCOR Europe SE enables us to provide continuity to our clients in light of Brexit. It will also help us to develop the infrastructure of our specialty insurance business, in line with the “Vision in Action” plan. SCOR Europe SE will leverage SCOR’s underwriting track record and expertise”.
