Scor widens its losses in the third quarter, lead by natural disasters

The reinsurer Scor saw its losses multiplied by 6.5 in the third quarter compared to the same period in 2021, to – 270 million, weighed down mainly by the cost of natural disasters.

The company, whose activity consists of insuring insurers to compensate them in the event of excessive claims, recorded this loss despite an increase in its turnover of 11.6% over one year, 5.14 billion euros .

This result is worse than that expected by analysts who expected a loss of between 175.4 million and 182 million, according to the consensus established respectively by Bloomberg and Factset.

According to Laurent Rousseau, CEO of Scor, who spoke to AFP, this differential is mainly explained by the company’s decision to defer the use of certain tax credits, up to 94 million euros. euros in the third quarter, to wait for the return of profits, targeted for 2023.

A loss of 509 million euros over nine months

The group has suffered from natural disasters, including a cost of 279 million euros from Hurricane Ian at the end of September, and 166 million euros for the storms at the end of June in France.

Anticipating a continued rise in inflation and the cost of claims, Scor decided to strengthen its balance sheet by adding 485 million euros to the reserves of its non-life reinsurance branch.

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Its combined ratio was 117.2%, excluding the provision (and 141.4% including it). This indicator, crucial for the sector, measures the profitability of the activity. When it is above 100, it means it is losing money.

To return to the green, the group plans to reduce its volatility by less exposing itself to natural disasters, to increase its prices, to benefit from the rise in interest rates and to reduce its costs, in particular by accelerating its policy of non-replacement of certain departures, explained Mr. Rousseau.

source site-96