(Boursier.com) — score stumbles 7.2% to 25.9 euros on the Paris market, victim of the war in Ukraine. The reinsurer said it expects to record a double-digit charge in millions of euros in the first quarter of 2022 for potential claims related to the conflict for reinsurance treaties and for specialty insurance. Moreover, this estimated cost of the conflict was added at the beginning of the year to a series of natural disasters (notably floods in Australia, storms in Europe and a drought in Brazil) as well as the continuation of the pandemic in the United States. These developments will have an unfavorable impact on the combined ratio of SCOR P&C as well as on the technical margin of SCOR L&H, and should result in a quarterly loss.
The company nevertheless recalled that it remains very well capitalized, with a solvency ratio which would be at March 31, 2022 at a level significantly higher than the ratio of 226% published at the end of the fourth quarter of 2021.
Oddo BHF maintains its ‘outperformance’ recommendation on the stock with an adjusted target of 39 to 38 euros. The loss in Q1 is disappointing but, as indicated, it results from one-time items. The analysis still estimates that the earnings outlook remains favorable, particularly given the strong growth in property and casualty premiums in a context of rising prices, and with a gradual positive impact resulting from the rise in interest rates. The group also maintains a very solid balance sheet (solvency margin of 238% estimated at the end of March).
©2022 Boursier.com