IFSC-based reinsurance group Irish Reinsurance Partners has been valued at €392.5 million under the terms after French group Scor, its majority owner, said it would buy the 46.65 per cent stake it does not own for €183.1 million.

The valuation on the company, whose pretax profits fell €7 million to €57.12 million last year, was at the lower end of expectations.

The company's Dublin-registered parent IRP Holdings was formed in 2001 by Scor and Boston private equity group Highfields Capital Management to reinsure 25 per cent of non-life contracts at Scor, the biggest reinsurer in France.

Scor and Highfields Capital fell out over Scor's plan to take 100 per cent ownership of the company.

Highfields threatened last month to block the transfer of share under a December 2001 deal over Scor's alleged failure to provide the financial information to it.

While neither company made anyone available to comment yesterday, there were indicatations in the market that they had put their difficulties behind them.

Scor raised €202.8 million yesterday to complete the deal in a transaction that is ultimately designed to boost its credit rating.

"It's a good thing that Highfields chose not to delay things by another year as they could have done, because in that case one could fear the slow death of a group that vitally needs the higher rating," said a Paris-based analyst.

Scor lost a vital "A" financial strength rating from Standard & Poor's in 2003, hurting its business.

Reinsurers assume insurer's risks and need high ratings to convince clients of their ability to pay out on long-term claims.

The buy-out of the IFSC company is designed to strengthen its financial position regain an "A" rating.

Additional reporting by Reuters