Board reaffirms unanimous support for Covéa CEO amid ongoing lawsuits

Board reaffirms unanimous support for Covéa CEO amid ongoing lawsuits | Insurance Business

Board reaffirms unanimous support for Covéa CEO amid ongoing lawsuits

Image credit: Stéphanie Têtu

Covéa chair and chief executive Thierry Derez continues to enjoy the backing of the French insurance group’s board of directors amid multiple proceedings initiated against him and the company by global reinsurer SCOR.

Earlier this week we gave you the lowdown on the ongoing battle between SCOR and its largest shareholder, which currently holds 8.17% of share capital, and now we bring you more following Covéa’s board meeting. You can read both camps’ previous statements here

In a new release, Covéa said it will take all action towards defending its interests “in view of the serious reputational harm resulting from SCOR’s unacceptable accusations, which are undoubtedly part of a strategy to manipulate the judicial process.”

In addition to strongly rejecting what it called “groundless” allegations, Covéa’s board also reaffirmed its “unanimous support” to Derez, who is accused of serious breach of his legal and fiduciary duties and obligations as a SCOR director in his personal capacity as well as breaching the reinsurer’s trade secrets.

Covéa, meanwhile, has its own accusations of sorts. 

It asserted: “The schemes and procedures which have been engaged by SCOR are unprecedentedly aggressive and detrimental to the Paris marketplace, not only to major shareholders who are represented in corporate bodies but also to financial investors who have been deprived of the possibility of an attractive value proposal, in a friendly context.”

The continuing tussle stemmed from a rejected €43-per-share takeover offer.

SCOR has not released further statements after revealing its criminal and civil actions against Derez and Covéa.