SCOR reports Q1’24 net income of €196m amid solid P&C performance

French reinsurer SCOR has announced net income of €196 million for the first quarter of 2024 and a P&C re/insurance combined ratio of 87.1%, which includes a nat cat ratio of 7.2%, mainly impacted by the update of the market loss related to the Q3 2023 Italian hailstorm.

Within P&C, SCOR notes a strong underlying performance in Q1 2024, with P&C insurance revenue of €1.837 billion, up 2.6% on Q1 2023. New business CSM in Q1 2024 hit €651 million, supported by growth from business renewed in January while Q1 2023 new business CSM was negatively impacted by a multiyear retrocession contract, amounting to €435 million.

The P&C insurance service result fell by almost 12% year-on-year to €181 million, driven by a CSM amortization of €316 million, a risk adjustment release of €27 million, a negative experience variance of -€152 million and an onerous contract impact of -€9 million.

The segment’s combined ratio actually increased by 1.9 percentage points to the 87.1%, which includes the aforementioned nat cat ratio, and an attritional loss and commission ratio of 78.8%, a discount effect of -6.3%, and an attributable expense ratio of 7.6% of net insurance revenue.

At the April 1 reinsurance renewals, SCOR continued to grow in its preferred lines, maintaining terms and
conditions as well as the improved profitability level of its P&C reinsurance book achieved during the January 2024 treaty renewals. Premiums renewed in April represent around 12% of the P&C reinsurance premiums, and estimated gross premium income increased by 17% on the business up for renewal in April, with significant growth of the Alternative Solutions book. Additionally, Specialty Lines increase by 22.8%, notably in Engineering, Marine and Credit & Surety.

Ultimately, explains SCOR, it was able to maintain the pricing trend seen in January, with a 3.2% price change overall and a year-to-date improvement on the net expected technical profitability of -1.5pts of underwriting ratio.

“In this very positive environment, SCOR anticipates continued underwriting discipline for the upcoming June and July renewals,” says the firm.

In its Life and Health business, Q1 2024 insurance revenue amounts to €2.276 billion, up 6.6% on last year’s €2.135 billion. SCOR states that it continues to build its L&H CSM via new business generation, mostly from protection across all regions and with no large transactions booked in Q1 2024. The L&H new business CSM came down by 41.5% to €112 million in Q1 2024.

The L&H insurance service result hit €72 million in Q1 2024, down from €272 million in Q1 2023. SCOR notes that this was negatively impacted by an experience variance of -€71 million which reflects volatility in US mortality claims and claims reporting effects, partly offset by a positive contribution from onerous contracts of €20 million.

Group-wide, insurance revenue increased by almost 5% to €4.113 billion, as gross written premiums rose by 4.4% to €4.953 billion, and the insurance service result fell by more than 47% to €253 million.

On the asset side of the balance sheet, SCOR has today reported total invested assets of €23 billion, with total investment income on invested assets of €193 million in the quarter. The return on invested assets stands at 3.4%, and the regular income yield at 3.5%.

“For the first quarter of the Forward 2026 strategic plan, SCOR publishes a strong net income of EUR 196 million. In P&C, we are reaping the benefits of the very attractive market conditions with a combined ratio of 87.1% and we remain determined on building reserve buffers. In L&H, we are impacted by an adverse experience variance, mainly driven by US mortality and claims reporting effects. In Investments, SCOR benefits from elevated regular income yield and reinvestment rates. Overall, we are starting the year with a high ROE of 17.3% and an improved solvency ratio of 215% supported by strong operating capital generation driven by P&C January renewals,” said Thierry Léger, Chief Executive Officer of SCOR.

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.