SCOR renews its contingent capital program

Core Viewpoint - SCOR has renewed its contingent capital program for three years, allowing for additional capital of up to EUR 300 million in response to extreme events or significant declines in share price, aimed at protecting equity and solvency [7][12]. Group 1: Contingent Capital Program Details - The contingent capital program will be in effect from January 1, 2026, to December 31, 2028, with the potential to issue share subscription warrants to J.P. Morgan SE [9][10]. - The maximum amount of capital that can be raised through the program is EUR 300 million, with a dilution cap of 10% of the share capital at the time of issuance [10][18]. - The program is designed to be triggered by specific events, including natural disasters or significant drops in share price, which could impact the Group's profitability or solvency [12][28]. Group 2: Share Subscription Warrants - SCOR will issue 8,971,220 share subscription warrants to J.P. Morgan SE, each warrant allowing the subscription of two new ordinary shares [11]. - The subscription price for each warrant is set at EUR 0.001, totaling EUR 8,971.22 for all warrants [11][30]. - J.P. Morgan SE is expected to sell the shares acquired through the warrants shortly after exercise, which may exert downward pressure on SCOR's share price [3][20]. Group 3: Financial Implications and Conditions - The program allows for drawdowns in one or more tranches, contingent upon the occurrence of predefined triggering events [12][13]. - If the volume-weighted average price of SCOR shares falls below EUR 10 during the coverage period, a maximum of EUR 150 million may be drawn to ensure financial cover [14]. - The issuance of new shares will not require a prospectus, as the total potential dilution is capped at 10% of the share capital [24][45]. Group 4: Economic Rationale - The management believes that this contingent capital solution offers significant net economic benefits compared to traditional financing methods, enhancing the resilience of the balance sheet while optimizing risk protection costs [29]. - The program is seen as a strategic financial hedge that can be activated under specific adverse conditions, thereby providing a safety net for the Group [28].