Scor and Covéa retrocession arbitration decision expected in 2026

By Michael Jones

Aug 14 - (The Insurer) - An arbitration tribunal has decided it will not stay its proceedings in relation to a dispute over retrocession treaties between Scor and Covéa, with a final decision expected in 2026, Scor said on Wednesday.

The arbitration, filed in November 2022, relates to a settlement agreed on June 10, 2021, under which Covéa agreed to take on 30% of all future premiums, commissions, claims and expenses related to Scor’s Irish life entities for a purchase price of $1.01 billion.

At the end of July 2025, Covéa requested the tribunal in charge of the dispute stay proceedings until a new request for arbitration in relation to the 2021 settlement was resolved. Scor opposed this request.

Scor said that the arbitration tribunal has decided to maintain the original timeline of these proceedings, with a final decision expected next year.

The separate arbitration related to Covéa requesting to contest the validity of the settlement agreed on June 10, 2021.

The settlement resulted in the parties agreeing on an orderly exit by Covéa from Scor’s share capital. The agreement followed a public dispute between former Scor CEO Denis Kessler and Covéa and its chairman and CEO Thierry Derez following the French mutual’s failed attempt to acquire Scor in 2018.

It granted Scor a call option on the shares owned by Covéa and prevented the latter from purchasing further Scor shares, either directly or indirectly, for a period of seven years unless requested to by Scor's board.

Covéa also agreed to exercise the voting rights attached to its Scor shares in favour of all draft resolutions submitted by the Scor board and to renounce any submission of an offer related to a takeover of Scor, both for a period of seven years.

Scor's share price fell by as much as 7% on July 31, 2025, after it disclosed this new arbitration request in its second-quarter results.