FINANCIALS: Scor: Covea Renewed Interest Reported. Should Be Spread Positive.

Scor (SCOR: /A-/BBB+) equity is strong this morning on reported takeover interest. Covea is the reported buyer and, with Scor’s spreads having underperformed €IG insurers over the last month (and YTD), this should be a credit positive, if seen as having a good chance of turning into a formal bid, we feel.

• BBG is reporting the trade journal, Insurance Insider, is citing takeover interest in French insurer Scor. II indicates French mutual Covea is looking at a further bid, having already tried in 2018.
• Scor appointed a new CEO with a turnaround mandate in 2023 and, whilst the results in March were only a small miss, the company was forced to issue a profit warning in July. The equity is down 26% YTD and that includes a 16% bounce in the last month, so rumours clearly abounding, we feel. Spreads are 21bp tighter YTD, around 10bp less positive than the €IG insurance peers, so there is some potential for catch up, if these reports are seen as having a good basis.