(Updated with stock prices, analyst comments)
The French reinsurer SCOR SCOR.PA suffered the biggest drop in the SBF 120 index on the Paris Stock Exchange on Friday, weighed down by a net result below expectations and by the performance of its life and health branch (L&H).
The group’s shares fell 9.2% to 29.22 euros at 07:54 GMT while the SBF 120 .SBF120 lost 0.4% at the same time.
SCOR published a net result of 196 million euros for its first quarter on Friday, against a consensus of 209 million, due in particular to the weak performance of its L&H branch.
“With respect to the L&H business, mortality in the United States and claims reporting effects led to a negative experience,” JPMorgan wrote in a note.
L&H recorded a result from insurance activities of 72 million euros in the January-March period, compared to 139 million expected by consensus and down 200 million compared to the same period of 2023.
JPMorgan says these businesses may experience lagging trends in claims reporting but SCOR’s dynamic in this area still seems “slightly concerning.”
“This is all the more disappointing as Munich Re MUVGn.DE recently stated that mortality trends in the United States were improving for the first time since the COVID-19 pandemic,” Jefferies said.
The broker further notes that the group’s estimated solvency ratio of 215% as of March 31 is below the consensus of 216%.
SCOR also reported an annualized return on equity (RoE) of 17.3%.
(Writing by Diana Mandiá, with Lina Golovnya, editing by Kate Entringer and Bertrand Boucey)