A consortium of two mutual insurance companies, SMABTP and MACSF, has purchased a majority shareholding in reinsurer CCR RE from French public sector company CCR.

The deal, the negotiations for which began in February, was completed after receiving necessary approvals from the regulatory agencies.

It marks a strategic diversification effort for SMABTP and MACSF amid the reinsurance sector’s potential for growth.

The latest deal was valued at €947 ($1bn) before capital increase.

Following the divestment of the IT system by CCR, CCR RE is now valued at €968m.

In addition, both SMABTP and MACSF have subscribed to the capital increase equal to €200m.

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As the two companies are majority shareholders in CCR RE, they will hold 75% of the French insurer’s capital, with CCR holding the remaining 25% share in the reinsurer.

SMABTP and MACSF have used their own resources to fund the acquisition and capital increase.

CCR RE’s new board comprises 12 members featuring representatives from SMABTP, MACSF, CCR, two independent administrators, and one CCR RE employee administrator.

The members have elected Patrick Bernasconi as president of the board for three years.

They have also confirmed Bertrand Labilloy and Laurent Montador to respectively serve as CCR RE’s CEO and deputy chief executive officer.

CCR RE will be operationally autonomous and continue to implement its existing development strategy to serve insurers in more than 80 countries worldwide.

SMABTP group CEO Pierre Esparbes said: “SMABTP is delighted to have seized this strategic opportunity, which allows us to diversify our sources of revenue whilst maintaining the soul of our profession.

“With regards to CCR RE, this operation will allow them in time to reach both the size and critical profitability required to self-finance their growth at the same speed as the market.

“This will also strengthen their financial solidity.”