(AOF) – For the period from July to September, director Scor made a net profit of 147 million euros, compared to a net loss of 752 million euros recorded a year earlier. Analysts were counting on around 170 million euros, according to the consensus established by Bloomberg. Gross written premiums, synonymous with turnover, amounted to 4.87 billion euros in the third quarter, compared to 5.14 billion euros a year earlier, down 5.3%.
The group’s estimated solvency ratio stood at 206% as of September 30, 2023, being at the top of the optimal solvency zone defined in Scor’s “Forward 2026” plan, i.e. between 185% and 220%.
Shareholders’ equity amounted to 4.46 billion euros as of September 30, 2023, compared to 4.80 billion euros, i.e. book net assets per share of 24.68 euros, up 2.4% compared to at the end of 2022.
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Key points
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Fifth global reinsurer born in 1970, leader in Europe
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– Very safe risk profile: the most geographically diversified reinsurer and equitable distribution between life reinsurance under the Scor Global Life brand (more than half of the premiums) and non-life reinsurance under the Scor PC brand;
– Gross premiums amounting to €17.6 billion and successful diversification in asset management with a portfolio of €20.3 billion, 8/10ths invested in bonds;
– Business model organized into 3 autonomous management “hubs” (the Americas, Asia-Pacific and EMEA), with underwriting and claims management depending on the life and non-life divisions;
– Open capital, the first shareholders being Covea (8.78%) ahead of ACM (5.21%) and employees (3.79%), Augustin Romanet assuming, after the death of Denis Kessler, the interim presidency of the board of directors of 16 members and Thierry Léger the general management;
– Solid financial situation with, at the end of March, equity of €5 billion and an improvement in debt ratios, to 20.1%, and solvency ratios, to 219%.
Challenges
– Before the launch of a new strategic plan, three priorities for the current financial year:
– return to profitability and reduction of volatility: streamlining of the organization with €125 million in cost savings expected by 2025,
– reshuffling of the insurance portfolio at the expense of the natural disaster sector,
– maintaining a resilient balance sheet, via European leadership positions and in “global lines” reinsurance;
– Innovation strategy aimed at designing the reinsurance of the future:
– new solutions: parametric reinsurance, exploitation and analysis of data for clients via the DASP platform, for clients,
– launch of the hELIOS platform and partnership with start-ups and Insurtech,
– cybersecurity internally and for customers,
– SCOR Foundation for the promotion of scientific research
– 250 ME of investments in technologies;
– Environmental strategy at the heart of the strategy, reinsurers being very exposed to climate risks: CO2 neutral investment portfolio in 2050 / support for research on climate risks / creation of specific offers -FEEL, BAM or VITAE- in life reinsurance / use of carbon credits and launch of a “green” credit facility;
– Reduction in the level of probable maximum loss to 21% for the year 2022, carried out during renewals in damage and liability reinsurance on June 1 and July 1 and increase in the reinvestment rate to 4.1% at the end of June.
Challenges
– Sensitivity to natural disasters and industrial, financial and cybersecurity losses in developed countries and to the € vs. $ and £ parity, the currencies in which most revenues are denominated;
– Evolution of the economic value, of €54 per share;
– 3 supporting elements: the increase in property and casualty reinsurance rates, the end of the impact of Covid and the increase in interest rates;
– After a 4.2% decline in revenues and a return to profitability of €311 million at the end of March, 2023 objectives of growth in economic value and a solvency ratio at the top of the 186- range 220%;
– 2022 dividend of €1.40.
A great dynamic of development for French life insurance
The progression of life insurance continues over the months. Over the first four months of the year, contributions reached 53.7 billion euros, a level not seen in more than ten years. At 10.5 billion euros, net collection also returned to its highest level since 2011 over a similar period. Ultimately, at the end of April 2022, outstanding life insurance contracts reached 1,847 billion euros, up 1.1% year-on-year. These good performances are partly linked to the growing success of the PER (Retirement Savings Plan). Since the start of 2022, the PERs marketed by an insurer have shown 592,000 additional policyholders and 9.3 billion euros in payments. At the end of April 2022, 3.2 million policyholders held a PER, which represented an outstanding amount of 39 billion euros. Without taking transfers into account, 87% of new PER holders (at the end of December 2021) had taken it out with an insurer.