SCOR – Fourth quarter 2025 Results – EUR 208 million net income in Q4 2025, contributing to a strong full year net income of EUR 851 million – Proposed regular dividend of EUR 1.9 per share
Group net income of EUR 208 million in Q4 2025 driven by all business activities(EUR 214 million adjusted1):
P&C combined ratio of 80.9% with excellent attritional loss performance, allowing for buffer building
L&H insurance service result2 of EUR 115 million, with an experience variance in line with expectations over the course of 2025
Investments regular income yield of 3.8%, with continued attractive reinvestment rates
Q4 annualized Return on Equity of 20.4% (21.1% adjusted1), implying full year 2025 Return on Equity of 19.2% (19.1% adjusted1)
IFRS 17 Group Economic Value3 of EUR 8.5 billion as at 31 December 2025, up 13.7%4 at constant economics5 (down 1.1% on a reported basis) compared with 31 December 2024, implying an Economic Value per share of EUR 48
Group solvency ratio of 215%6 as at 31 December 2025, in the upper part of the optimal solvency range of 185%-220%
Proposed regular dividend of EUR 1.9 per share for 2025
SCOR SE’s Board of Directors met on 3 March 2026, under the chairmanship of Fabrice Brégier, to approve the Group’s Q4 2025 financial statements.
Thierry Léger, Chief Executive Officer of SCOR, comments: “Driven by the disciplined execution of our Forward 2026 strategic plan and the exceptional commitment of our teams, SCOR demonstrated the robustness of its leading franchise and diversified business model. We delivered, quarter after quarter, very solid results across all our activities. P&C maintained excellent underlying performance and continued to build prudence at a pace faster than planned. L&H benefited from the decisive actions taken in 2024 and a rigorous focus on execution throughout the year reporting an insurance result above guidance and a satisfactory experience variance. Supported by strong operating capital generation, our solvency ratio stands at 215%, at the upper end of the optimal range. Our proposed dividend of EUR 1.9 per share, up 5.6% from last year, offers an attractive dividend yield and demonstrates our ability to create sustainable value for our shareholders. At the 1.1 renewals, in a more competitive environment, SCOR achieved a positive outcome, combining growth with an adequate level of profitability. SCOR starts the year in a position of strength, and I am confident in our ability to achieve attractive returns for our shareholders and to deliver on our Forward 2026 objectives.”
Group performance and context
SCOR records EUR 208 million net income (EUR 214 million adjusted1) in Q4 2025, driven by all business activities:
In P&C, the combined ratio stands at 80.9%, including a natural catastrophe ratio of 7.6%, reflecting a quarter of moderate natural catastrophe activity. Over the full year of 2025, the natural catastrophe ratio of 6.8% remains below budget despite the LA wildfires and hurricane Melissa impacts. The attritional loss and commission ratio stands at 74.7% in Q4 2025, reflecting an excellent underlying performance allowing for continued reserving discipline. The completion of the annual P&C year-end reserve review confirms all lines are at best estimate and our reserve resilience has increased.
In L&H, the insurance service result2 stands at EUR 115 million, driven by a strong CSM amortization and risk adjustment release. On a full year basis, the insurance service result is above the updated Forward 2026 guidance. The portfolio is developing as expected: Q4 and FY 2025 experience variances are positive, and the volatility on underperforming contracts remains manageable.
In Investments, SCOR records a regular income yield of 3.8% while continuing to benefit from still-elevated reinvestment rates.
The effective tax rate stands at 31.1%.
Over the full year 2025, SCOR reports a net income of EUR 851 million (EUR 846 million adjusted1), implying an annualized Return on Equity of 19.2% (19.1% adjusted1).
The Group solvency ratio stands at 215% as at 31 December 2025, in the upper part of the optimal range of 185%-220%, and up 5 percentage points compared to FY 2024 and 9M 2025. Over FY 2025, the Group solvency ratio mainly reflects the strong net capital generation, the accrual of the FY dividend, and negative market variances.
The Group Economic Value3 under IFRS 17 stands at EUR 8.5 billion as at 31 December 2025, up 13.7%4 at constant economics compared to 31 December 2024.
Proposed regular dividend of EUR 1.9 per share
SCOR proposes a regular dividend of EUR 1.9 per share for the fiscal year 2025, up 5.6% compared to the fiscal year 2024.
This dividend will be submitted for shareholders’ approval at the 2026 Annual General Meeting, to be held on 28 April 2026. The Board proposes to set the ex-dividend date at 4 May 2026, and the payment date at 6 May 2026.
Strong P&C underlying performance
In Q4 2025, P&C insurance revenue stands at EUR 1,795 million, down 1.6% at constant exchange rates (down 7.0% at current exchange rates) compared to Q4 2024, impacted by SBS’s past portfolio actions, as well as increased competition in Property.
New business CSM in Q4 2025 stands at EUR 11 million, mainly driven by the low number of renewals and early recognition of some retrocession contracts renewed at 1.1.2026.P&C (re)insurance key figures:
In EUR million(at current exchange rates)
Q4 2025
Q4 2024
Variation
FY 2025
FY 2024
Variation
P&C insurance revenue
1,795
1,929
-7.0%
7,299
7,639
-4.4%
P&C insurance service result
256
238
7.6%
957
779
22.8%
Combined ratio
80.9%
83.1%
-2.2pts
82.3%
86.3%
-4.0pts
P&C new business CSM
11
-43
n.a.
1,115
1,024
8.9%
The P&C combined ratio stands at 80.9% in Q4 2025, compared to 83.1% in Q4 2024. It includes:
A Nat Cat ratio of 7.6%, reflecting a quarter with moderate Cat activity;
An attritional loss and commission ratio of 74.7%, including additional buffer building;
A discount effect of -7.9%;
An attributable expense ratio of 6.0%.
The P&C insurance service result of EUR 256 million is driven by a CSM amortization ofEUR 281 million, a risk adjustment release of EUR 28 million, a negative experience variance ofEUR -40 million, and an onerous contracts impact of EUR -14 million. The negative experience variance mainly reflects additional buffer building.
L&H Q4 and FY 2025 insurance service result and new business CSM above guidance
In Q4 2025, L&H insurance revenue amounts to EUR 1,988 million, up 2.9% at constant exchange rates (-3.3% at current exchange rates) compared to Q4 2024. SCOR continues to increase its L&H CSM through new business generation (EUR 170 million new business CSM7 in Q4 2025), notably from Protection and Longevity.
L&H reinsurance key figures:
In EUR million(at current exchange rates)
Q4 2025
Q4 2024
Variation
FY 2025
FY 2024
Variation
L&H insurance revenue
1,988
2,055
-3.3%
8,079
8,487
-4.8%
L&H insurance service result
115
119
-3.1%
450
-348
n.a.
L&H new business CSM
170
113
51.2%
464
485
-4.3%
The L&H insurance service result amounts to EUR 115 million in Q4 2025. It includes:
A CSM amortization of EUR 89 million;
A Risk Adjustment release of EUR 38 million;
An experience variance of EUR 28 million, bringing the experience variance over the course of 2025 to EUR 17 million;
A negative onerous contracts impact of EUR -42 million.
Investments delivering a solid regular income yield
As at 31 December 2025, total invested assets amount to EUR 23.5 billion. SCOR’s asset mix is optimized, with 79% of the portfolio invested in fixed income. SCOR has a high-quality fixed income portfolio with an average rating of A+ and a duration of 4.0 years.
Investments key figures:
In EUR million(at current exchange rates)
Q4 2025
Q4 2024
Variation
FY 2025
FY 2024
Variation
Total invested assets
23,515
24,155
-2.7%
23,515
24,155
-2.7%
Regular income yield
3.8%
3.6%
0.2pts
3.5%
3.5%
0pt
Return on invested assets*
3.6%
3.3%
0.3pts
3.5%
3.5%
0pt
(*) Fair value through income on invested assets excludes EUR -8 million in Q4 2025 and EUR 6 million in FY 2025 related to the pre-tax mark to market impact of the fair value of the option on own shares granted to SCOR.
Total investment income on invested assets stands at EUR 2098 million in Q4 2025. The return on invested assets stands at 3.6%8 (vs. 3.3% in Q4 2024) and the regular income yield stands at 3.8% (vs. 3.6% in Q4 2024).
The reinvestment rate stands at 4.0%9 as at 31 December 2025, stable compared to 30 September 2025. The invested assets portfolio remains highly liquid and financial cash flows of EUR 8.5 billion are expected over the next 24 months10, enabling SCOR to benefit from still-elevated reinvestment rates.APPENDIX
1 – SCOR Group Q4 2025 key financial details
In EUR million(at current exchange rates)
Q4 2025
Q4 2024
Variation
FY 2025
FY 2024
Variation
Insurance revenue
3,783
3,984
-5.1%
15,378
16,126
-4.6%
Gross written premiums1
4,564
5,049
-9.6%
18,704
20,064
-6.8%
Insurance Service Result2
371
357
4.0%
1,407
432
n.a.
Management expenses
-304
-347
12.3%
-1,225
-1,250
2.0%
Annualized ROE3
20.4%
22.8%
-2.4pts
19.2%
0.1%
n.a.
Annualized ROE excluding the mark to market impact of the option on own shares from Q4 2025
21.1%
23.0%
-1.9pts
19.1%
0.2%
n.a.
Net income3,4
208
233
-10.5%
851
4
n.a.
Net income4 excluding the mark to market impact of the option on own shares from Q4 2025
214
235
-8.7%
846
11
n.a.
Economic value5,6
8,522
8,615
-1.1%
8,522
8,615
-1.1%
Shareholders’ equity
4,427
4,524
-2.2%
4,427
4,524
-2.2%
Contractual Service Margin (CSM)6
4,095
4,091
0.1%
4,095
4,091
0.1%
1: GWP is not a metric defined under the IFRS 17 accounting framework (non-GAAP metric); 2: Includes revenues on financial contracts reported under IFRS 9; 3: Taking into account the mark to market impact of the option on own shares. Q4 2025 impact of EUR -8 million before tax, FY 2025 impact of EUR 6 million before tax; 4: Consolidated net income, Group share; 5. Defined as the sum of the shareholder’s equity and the Contractual Service Margin (CSM); 6: Net of tax. A notional tax rate of 25% is applied to the CSM
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Arta Nasradini is appointed Head of Aviation at SCOR P&C
SCOR is pleased to announce the appointment of Arta Nasradini as Head of Aviation at SCOR P&C, with effect from 1 February 2025. Arta will be based in Zurich and will be part of the Reinsurance Specialty Lines management team, reporting to Head of Specialty Lines Eric Jenck.
Arta brings a wealth of experience in underwriting aviation risks. Most recently, she led the DACH Aerospace portfolio team at AIG. Prior to that, she held various positions in aerospace underwriting with Swiss Re Corporate Solutions, including roles in underwriting, client management, product development, and portfolio steering across Munich, Paris, and London. Arta holds a dual degree in International Management and Finance from Hochschule Augsburg in Germany (HSA) and Ecole Supérieure de Commerce Extérieur (ESCE) in France.
Eric Jenck, Head of Specialty Lines, commented: “With her extensive industry experience, Arta is well-positioned to maximize the value of SCOR’s Aviation reinsurance portfolio, leveraging our existing team and our Tier 1 global franchise. I look forward to working with Arta and wish her every success in her new role.
I would also like to thank Adrian Poxon, who led our Aviation, Engineering, and Marine Specialty Lines underwriting teams for the past few years before retiring at the end of 2024. Adrian’s remarkable contributions to SCOR have had a significant impact on our portfolio, clients, and colleagues. I wish him the very best in his well-deserved retirement.”
SCOR finalized the sale of its stake in the Humensis group
SCOR announced that it has finalized the sale of its stake in the capital of Humensis to Huyghens de Participations, the holding company of the Albin Michel group.
Humensis was founded in 2016 with the aim of spreading knowledge. SCOR supported its development, making it the ninth largest generalist and educational publishing group in France.
Initially structured around Presses Universitaires de France (PUF) and Editions Belin, Humensis is now a diversified company made up of strong, recognized brands (Belin, PUF, Que sais-je ?, Editions de l’Observatoire, Editions des Equateurs, and more).
By selling its stake to Albin Michel, SCOR is entrusting a key player in the publishing industry with the preservation and future development of the Humensis group publishing houses, while maintaining their influence in the French intellectual ecosystem.
Scor’s third quarter 2024 results
Good Group underlying performance in Q3 2024, driven by:
Very strong performance of P&C, with a combined ratio of 88.3% in Q3 2024 and allowing for ongoing reserving discipline
Positive underlying trend in L&H performance, with an insurance service result1 of EUR 81 million in Q3 2024 adjusted for one-offs2, or EUR -210 million on a reported basis
Strong investments regular income yield of 3.5% in Q3 2024
Estimated Group solvency ratio of 203%3 as of 30 September 2024, comfortably within the optimal range of 185%-220%, considering the full impact of the 2024 L&H assumption review as well as the implementation of an efficient third-party capital solution this quarter
Group net loss of EUR -117 million in Q3 2024 (EUR -117 million adjusted4) impacted by the 2024 L&H assumption review. Adjusted for one-offs, the Group net income would stand at EUR 150 million
Annualized Return on Equity of -10.2% (-10.3% adjusted4) in Q3 2024 implying an annualized Return on Equity of -6.7% in 9M 2024 (-6.6% adjusted4); adjusted for one-offs2, the annualized Return on Equity would stand at 14.0% for the first nine months of 2024
Economic Value per share of EUR 47 (vs. EUR 51 as of 31 December 2023) and IFRS 17 Group Economic Value5 of EUR 8.4 billion as of 30 September 2024, down -7.0%6 at constant economics7, compared with 31 December 2023
SCOR SE’s Board of Directors met on 13 November 2024, under the chair of Fabrice Brégier, to approve the Group’s Q3 2024 financial statements.
Thierry Léger, Chief Executive Officer of SCOR, comments: “We are pleased to announce today the completion of the 2024 L&H assumptions review, with an outcome close to our best estimate view of H1 2024. The very comprehensive review allows us to draw a line and move forward with confidence. The underlying L&H performance shows a positive trend, and we have made significant progress in the implementation of our 3-step L&H remedial strategy which will be presented in full at our Investor Day on 12 December 2024, in London. P&C is doing very well, and we are taking strides towards our strategic journey of diversified and profitable growth while continuing to build reserve buffers. We expect the P&C reinsurance market conditions to remain attractive in 2025 and look ahead with confidence. Investments continue to benefit from high reinvestment rates, with a higher regular income yield in line with our long-term targets. Last but not least, the 203% Group solvency ratio at Q3 2024 demonstrates the resilience of our balance sheet and the effectiveness of our management actions.”.
Group performance and context
Q3 2024 net income is EUR -117 million (EUR -117 million adjusted4), driven by a negative insurance service result (ISR) in L&H reinsurance, partially offset by very strong P&C and Investments performances:
In P&C (re)insurance, the Q3 2024 combined ratio stands at 88.3% in Q3 2024 including a natural catastrophe claims ratio of 13.2%, in an active period with several mid to large sized events. Over the first nine months of 2024, the natural catastrophe ratio of 10.1% remains in line with the budget. The attritional loss and commission ratio stands at 76.5% in Q3 2024, reflecting a very satisfactory underlying performance allowing for continued reserving discipline.
In L&H reinsurance, the insurance service result1 stands at EUR -210 million in Q3 2024, mainly impacted by the completion of the L&H assumption review8 (EUR -163 million), and by a one-off negative true up adjustment on identified arbitration positions (EUR -128 million). Adjusted for those one-offs, the Q3 2024 L&H insurance service result stands at EUR 81 million.
In Investments, SCOR benefits from elevated reinvestment rates in Q3 2024 and records a strong regular income yield of 3.5% (+0.1pt vs. Q3 2023).
The annualized Return on Equity stands at -10.2% (-10.3% adjusted4) in Q3 2024 and the Group Economic Value over the first nine months of 2024 decreases by -7.0%6 at constant economics7, impacted by the outcome of the 2024 L&H assumption review accounting for EUR -0.7 billion (pre-tax) in insurance service result and EUR -0.8 billion (pre-tax) in contractual service margin (CSM). Over the first nine months of 2024, SCOR reports a net loss of EUR -229 million (EUR -224 million adjusted4), implying an annualized Return on Equity of -6.7% (-6.6% adjusted4).
Group solvency ratio is estimated at 203% at the end of Q3 2024, within the optimal range of 185%-220%, compared to 209% at year-end 2023 and to 201% as of 30 June 2024. In line with its current approach, SCOR continued to accrue a portion of the FY dividend during the quarter.
Group Economic Value5 under IFRS 17 stands at EUR 8.4 billion as of Q3 2024, down -7.0%6 at constant economics7 compared with 31 December 2023, driven by the 2024 L&H assumption review with a EUR -1.1 billion (post-tax) impact. As a result, the Group Economic Value growth target at 9% per annum at constant economics is unlikely to be met in FY 2024.
1 Including revenues on financial contracts reported under IFRS 9.
2 Excluding the mark to market impact of the option on own shares, the impact of the 2024 L&H assumption review and the impact of the Q3 true-up on identified arbitration positions.
3 Solvency ratio estimated after taking into account the dividend accrual for the first nine months based on the dividend paid for the fiscal year 2023 (EUR1.80 per share).
4 Adjusted by excluding the mark to market impact of the option on own shares.
5 Defined as the sum of the shareholders’ equity and the Contractual Service Margin (CSM), net of tax. 25% notional tax rate applied on CSM.
6 Not annualized. The starting point is adjusted for the dividend of EUR 1.8 per share (EUR 324 million in total) for the fiscal year 2023, paid in 2024.
7 Growth at constant economic assumptions as of 31 December 2023, and excluding the mark to market impact of the option on own shares.
8 There are a few non-material open items that can only be processed with our normal annual close.
Innovation win for SCOR Smart Credit at the Hong Kong Insurance Awards
At the 10th Hong Kong Insurance Awards, held on October 24th, SCOR P&C won the Most Innovative Product/Service Award – General Insurance for its data-driven underwriting engine, SCOR Smart Credit.
This award recognizes a “company who has developed a new product/service or created new revenue opportunities and market share by revamping an existing product/service.”
Group photo SCOR with HKECIC and Fundpark at the HKI Awards 2024
From left: Steven Tang, Head of Construction APAC, SCOR Business Solutions, Terence Chiu, Commissioner of HKECIC, George Leung, Chief Executive Officer of SCOR Reinsurance Co. (Asia) Ltd., Leona Woo, Senior Underwriter Credit & Surety, SCOR, Anson Suen, CEO & Co-founder of FundPark, Desiree Kee, Senior Underwriter Casualty, SCOR
SCOR Smart Credit is an applied data-driven underwriting engine that takes an innovative approach to digital underwriting by analyzing data from various sources, using an underwriting algorithm developed by SCOR. This makes risk assessment much faster than with traditional, manual underwriting methods, and enhances overall portfolio quality by creating efficiency, effectiveness, and consistency for the insurer.
SCOR Smart Credit formed the basis for the launch in May 2024 of the first trade credit insurance cover offered by Hong Kong Export Credit Insurance Corporation (HKECIC), as part of a collaboration between SCOR, HKECIC and Hong Kong fintech company FundPark designed to support cross-border e-commerce trade.
Group photo of all winners at the HKI Awards 2024
George Leung, Chief Executive Officer of SCOR Reinsurance Co. (Asia) Ltd., commented: “Over the past 50 years, SCOR has been working with our clients and partners in Hong Kong on projects and initiatives with innovative ideas that deliver positive impacts to society. We believe in collaboration and ensure that all valuable insights and expertise are actively pursued. We encourage and support colleagues in taking calculated risks to drive innovation and overcome difficult challenges. This award confirms that our long-term commitment is recognized and bearing fruit. Building on this solid base and SCOR’s strong client relationships, we will continue to participate in building innovative solutions to meet future needs and achieve profitable growth in the coming years. Taking this opportunity, I would like to thank our two partners in this project (HKECIC and FundPark) as well as my colleagues in Asia Pacific and at Head Office for their efforts, hard work, and understanding.”
From left: Terence Chiu, Commissioner of HKECIC, George Leung, Chief Executive Officer of SCOR Reinsurance Co. (Asia) Ltd., and Anson Suen, CEO & Co-founder of FundPark
SCOR’s Second quarter 2024 results
Continued very strong performance of P&C, with a combined ratio of 86.9% in Q2 2024 (-1.6pts compared to Q2 2023) allowing for continued reserving discipline
L&H insurance service result1 of EUR -329 million in Q2 2024 (EUR -469 million compared to Q2 2023), driven by the best estimate view of the annual L&H assumptions review for EUR -509 million, partly offset by EUR +146 million impact mainly from portfolio actions
High Investments regular income yield of 3.6% in Q2 2024 (+0.5pts compared to Q2 2023) supported by elevated reinvestment rates
Group net loss of EUR -308 million in Q2 2024 (EUR -283 million adjusted2) resulting from the L&H assumptions review
Group Economic Value3 under IFRS 17 of EUR 8.4 billion as of 30 June 2024, down -5.2%4 (-7.3%4 at constant economics3,5) compared with 31 December 2023, implying an Economic Value per share of EUR 47 (vs. EUR 51 as of 31 December 2023)
Estimated Group solvency ratio of 201%6 as of 30 June 2024, within the optimal solvency range, impacted by the L&H assumptions review for -20 points
Annualized Return on Equity of -23.7% (-21.9% adjusted1) in Q2 2024 implying an annualized Return on Equity of -4.7% in H1 2024 (-4.5% adjusted1)
SCOR SE’s Board of Directors met on 29 July 2024, under the chairmanship of Fabrice Brégier, to approve the Group’s Q2 2024 financial statements.
Thierry Léger, Chief Executive Officer of SCOR, comments: “I am disappointed by the L&H H1 results. In response, we have launched an ambitious 3-step plan resulting in a series of determined actions aiming at restoring the profitability of the L&H business in a sustainable way. The still ongoing 2024 L&H assumption review, which will be completed by year-end, has led to a significant negative impact on our results in Q2 2024. We will present full details of an updated L&H business strategy and Forward 2026 assumptions and targets on 12 December 2024. In P&C, with a combined ratio of 86.9%, we delivered very strong results while continuing our strategy of building reserve buffers. We are very satisfied with the latest round of renewals with a +24% premium growth at unchanged attractive margins in June and July, supported by diversified growth in our preferred lines, and market conditions which remain attractive. Investments continue to produce stable and elevated positive results, with a higher regular income yield in line with our longer-term targets. SCOR actively manages its solvency position and is confident that its solvency ratio will remain in the optimal range of 185%-220% at year-end 2024. Frieder Knüpling, CEO of SCOR L&H since 2021, has decided to pursue new professional opportunities and will leave the Group. Until further notice, I will take over the management of L&H. I would like to wish him every success in the next stage of his career.”
Group performance and context
Q2 2024 net income is EUR -308 million (EUR -283 million adjusted2), driven notably by a negative insurance service result (ISR) in L&H reinsurance, partially offset by very strong P&C and Investments performances:
In P&C (re)insurance, the combined ratio stands at 86.9% in Q2 2024 including a natural catastrophe claims ratio of 9.9%, in an active period with several mid-sized events. Over the first six months of 2024, the natural catastrophe ratio of 8.6% remains below the budget. The attritional loss and commission ratio stands at 77.6% in Q2 2024, reflecting a satisfactory underlying performance allowing for continued reserving discipline.
In L&H reinsurance, the insurance service result1 stands at EUR -329 million in Q2 2024, mainly impacted by the best estimate view of the 2024 L&H assumption review (EUR -509 million), partly offset by a positive effect (EUR 143 million) mainly driven by portfolio actions. Therefore, the L&H ISR in 2024 is expected to be significantly less than the EUR 500m indicated during the Q1 2024 results presentation.
In Investments, SCOR benefits from still-elevated reinvestment rates in Q2 2024 and records a strong regular income yield of 3.6% (+0.5pts vs. Q2 2023).
The annualized Return on Equity stands at -23.7% (-21.9% adjusted2) in Q2 2024 and the Group Economic Value over the first half of 2024 decreases by -7.3%4 at constant economics5, both impacted by the best estimate view of the 2024 L&H assumption review accounting for EUR -0.5 billion (pre-tax) in insurance service result and EUR -1.0 billion (pre-tax) in contractual service margin (CSM). Over the first half of 2024, SCOR reports a net loss of EUR -112 million (EUR -107 million adjusted2), implying an annualized Return on Equity of -4.7% (-4.5% adjusted2).
Group solvency ratio is estimated at 201% at the end of Q2 2024, within the optimal range of 185%-220%, and compared to 209% at year-end 2023. This is supported by strong operating capital generation from the P&C and Investments activities and negatively impacted by the 2024 L&H assumption review (-20 points).
Group Economic Value3 under IFRS 17 stands at EUR 8.4 billion as of Q2 2024, down -5.2%4 (-7.3%4 at constant economics5) driven by the 2024 L&H assumption review with a EUR -1.0 billion (post-tax) negative impact. As a result, the Group Economic Vale growth target at 9% per annum at constant economics is unlikely to be met in FY 2024.
Footnotes:
1 Includes revenues on financial contracts reported under IFRS 9.
2 Adjusted by excluding the mark to market impact of the option on own shares.
3 Defined as the sum of the shareholders’ equity and the Contractual Service Margin (CSM), net of tax. 25% notional tax rate applied on CSM.
4 Not annualized. The starting point is adjusted for the future payment of dividend of EUR 1.8 per share (EUR 324 million in total) for the fiscal year 2023, paid in 2024.
5 Growth at constant economic assumptions as of 31 December 2023, and excluding the mark to market impact of the option on own shares.
6 Solvency ratio estimated after taking into account the dividend accrual for the first six months based on the dividend paid for the fiscal year 2023 (EUR1.8/share).
SCOR provides an update on its Q2 2024 and FY 2024 results
Following the negative experience variance in the first quarter of 2024, SCOR has decided to accelerate the annual L&H reserving assumptions review, and to include a best estimate view in the Q2 2024 results. Consequently:
– The Q2 2024 L&H insurance service result (ISR) is expected at c. EUR -0.4 billion, driven notably by updates on reserves, and continued negative experience variance, partly offset by the positive effect of portfolio actions. Final assumption updates in H2 2024 could potentially lead to additional negative adjustments to the L&H ISR of up to EUR -0.1 billion by year-end 2024. As a result, the L&H ISR in 2024 is expected to be significantly less than the EUR 500 million indicated during the Q1 2024 results presentation.
– The Q2 2024 pre-tax L&H contractual service margin (CSM) at current yield curves1 is adjusted by c. EUR -0.9 billion2, driven mainly by reserving assumption changes in anticipation of the year-end review. Final updates in H2 2024 could potentially lead to additional negative adjustments to the pre-tax CSM at current yield curves1 of up to EUR -0.4 billion by year-end 2024.
– The Q2 2024 Group Economic Value (EV) is expected at c. EUR 8.3 – 8.5 billion or at c. EUR 46 – EUR 47 per share. As a result, the Group EV growth target of 9% per annum at constant economics is unlikely to be met in FY 2024.
– All these adjustments have no impact on the Group liquidity position at year-end 2024.
– The Group Solvency II ratio is expected to be above 200% at Q2 2024, considering the above-mentioned impacts. SCOR actively manages its solvency position and remains confident that it will maintain the solvency ratio in the optimal range of 185%-220% at year-end 2024. SCOR’s capital management framework, including the dividend policy, is unchanged.
– These adjustments aim to strengthen the robustness of cash flow projections and reduce the risk of future earnings volatility.
– Q2 2024 results will be published on 30 July 2024. Further details will be provided at the Q3 results on 14 November 2024, and a detailed presentation of the L&H business strategy and the update of the Forward 2026 plan will be presented on 12 December 2024.
– All the figures above are provided net of retrocession.
Thierry Léger, Chief Executive Officer of SCOR, comments: “Today’s communication is consistent with SCOR’s proactive and transparent communication policy. Following the accelerated L&H reserving assumptions review, we have decided to launch the first of a series of determined actions aimed at restoring the profitability of our L&H business in a sustainable way. We will update the Forward 2026 plan to improve the margins and mix of our products with a strong focus on diversification. The new L&H business strategy and the Forward 2026 KPIs will be presented on 12 December 2024. Our P&C and Investment activities continue to deliver a very strong performance. We have full confidence in our L&H franchise and in our ability to produce higher quality and more stable results going forward”.
SCOR & DGTAL: Αξιολόγηση ζημιών με τεχνητή νοημοσύνη
Το Γερμανικό γραφείο του παγκόσμιου αντασφαλιστή SCOR θα διερευνήσει τον τρόπο με τον οποίο μπορεί να επωφεληθεί από την πλατφόρμα Τεχνητής Νοημοσύνης DRILLER της DGTAL και τις δυνατότητες αξιολόγησης ζημιών που προσφέρει. Η πρώτη πιλοτική εφαρμογή θα ξεκινήσει με την αξιολόγηση απαιτήσεων αναπηρίας, από τον Απρίλιο του 2024. Το DRILLER είναι ένα εργαλείο ανάλυσης χαρτοφυλακίων με Τεχνητή Νοημοσύνη που έχει σχεδιαστεί για να κατανοεί ένα ευρύ φάσμα υποθέσεων και εγγράφων. Το DRILLER επιτρέπει στους χρήστες να ελέγχουν τεράστιο όγκο δεδομένων και να εντοπίζουν μοτίβα, τάσεις και πληροφορίες, προσφέροντας μια πιο ολοκληρωμένη ανάλυση στους υπεύθυνους λήψης αποφάσεων. Είναι η εμβληματική λύση της DGTAL και η μοναδική του είδους της στον ασφαλιστικό κλάδο.
Η SCOR θα είναι ο πρώτος αντασφαλιστής που θα δοκιμάσει πιλοτικά την επόμενη έκδοση του DRILLER, η οποία παρέχει πλήρη κατανόηση των βασικών εγγράφων και των φακέλων αποζημιώσεων με τη φιλοδοξία να μειώσει σημαντικά το χρόνο και να βελτιώσει την ποιότητα της αξιολόγησης. Σε συνδυασμό με τις ήδη υπάρχουσες λειτουργίες του DRILLER, οι εισερχόμενες υποθέσεις θα εμφανίζονται “έτοιμες για ανθρώπινη απόφαση” και με συμπεράσματα που θα εκπορεύονται από το συνολικό χαρτοφυλάκιο. Με την εφαρμογή του DRILLER, η SCOR αναμένει σημαντική επιτάχυνση της αξιολόγησης των φακέλων ζημιών, καθώς και αυξημένη ακρίβεια.
Η SCOR είναι μία από τις κορυφαίες αντασφαλιστικές εταιρείες στον κόσμο, προσφέροντας στους πελάτες της ένα πλήρες φάσμα λύσεων και ολοκληρωμένων υπηρεσιών σε όλες τις πτυχές της διαχείρισης κινδύνου.
Η συνεργασία με την DGTAL και η αξιοποίηση του DRILLER, έρχεται ως αποτέλεσμα της αναγνώρισης των μεγάλων δυνατοτήτων που παρέχει η Τεχνητή Νοημοσύνη στη διαχείριση ζημιών. Το DRILLER αλλάζει τα δεδομένα στον έλεγχο και την επεξεργασία ασφαλιστικών εγγράφων, συνδυάζοντας την αυτοματοποίηση με την ανθρώπινη εμπειρία, ώστε να ξεπεραστούν εμπόδια και να διεκπεραιωθεί ένα πλήθος απλούστερων εργασιών. Αυτό διασφαλίζει ότι οι άνθρωποι, το πολυτιμότερο περιουσιακό στοιχείο μιας εταιρείας, μπορούν να επικεντρωθούν σε πιο ουσιαστικές δραστηριότητες.
H Βάντα Γιανναρά, Γενική Διευθύντρια και CCO της DGTAL, ανέφερε: «Οι ασφαλιστικές εταιρείες διαχειρίζονται τεράστιο όγκο εγγράφων και, ως εκ τούτου, θα ωφεληθούν τρομερά από την Τεχνητή Νοημοσύνη. Είμαι εντυπωσιασμένη από τη δέσμευση της SCOR να βρίσκεται μεταξύ εκείνων που θα επιδιώξουν να επωφεληθούν το γρηγορότερο δυνατό. Ανυπομονώ να συνεργαστώ με την ομάδα της SCOR για να το πετύχουμε».
Ο Thomas Trompetter, SCOR Head of Client Services Central Europe, σχολίασε: «Η διαχείριση ζημιών είναι πολύ περίπλοκη στην ασφάλιση αναπηρίας και οι λύσεις Τεχνητής Νοημοσύνης έχουν σίγουρα τη δυνατότητα να διαδραματίσουν σημαντικό ρόλο στη μακροπρόθεσμη κερδοφορία των ασφαλιστικών χαρτοφυλακίων τα επόμενα χρόνια. Η ψηφιοποίηση των διαδικασιών και η αύξηση της αποτελεσματικότητας στην αξιολόγηση ζημιών είναι ουσιαστικής σημασίας. Στο μέλλον, θα θέλαμε να είμαστε σε θέση να αξιοποιούμε καλύτερα τους διαθέσιμους πόρους με την υποστήριξη της Τεχνητής Νοημοσύνης».
Scor’s January 2024 P&C Renewal Results
In line with its Forward 2026 strategic plan announced in September 2023, SCOR grows its P&C business in preferred lines while building a balanced and resilient portfolio, in a continued hard market.
During the January 2024 P&C renewals, SCOR achieves EGPI1 growth of 13.6%2, above the average Forward 2026 strategic plan assumptions:
Increasing EGPI by 13.3%2 for Engineering, Marine, IDI and International Casualty and enhancing portfolio diversification;
Accelerating the development of Alternative Solutions (more than doubling EGPI2) from strong new business, meeting client demand for customized solutions;
Maintaining a prudent approach to business exposed to climate change while meeting the increased Property Cat capacity needs of clients;
Keeping a limited appetite for US Casualty with slightly decreasing EGPI.
Overall, SCOR further enhances its expected technical profitability with an improvement of 1.5 points on the net underwriting ratio (excluding Alternative Solutions), driven by a +3.1% price change, including +6.6% on non-proportional business.
Jean-Paul Conoscente, CEO for P&C at SCOR, comments: “Following very strong renewals throughout 2023 marked by the hardest market seen in the last 20 years, SCOR continues to improve the quality and profitability of its P&C portfolio, maintaining disciplined pricing and terms & conditions for the 1.1.2024 renewals. In this favorable market, we are seizing attractive opportunities, as illustrated by the 13.6% growth delivered this January. I expect the attractive market conditions to continue over the remainder of the year, fuelled by the demand from cedants and continued discipline by reinsurers. SCOR’s teams continue to lean into the hard market to generate value and successfully deliver on the Forward 2026 plan.”
1 Estimated Gross Premium Income (EGPI).
2 vs 1 January 2023 EGPI. Excludes one large structured transaction.
Scor’s third quarter 2023 results
Insurance revenue of EUR 4,235 million in Q3 2023, up +10.2%1 compared to Q3 2022
P&C combined ratio of 90.2% in Q3 2023 (-57.8 pts compared to Q3 2022)
L&H insurance service result2 of EUR 113 million in Q3 2023, compared to EUR 47 million in Q3 2022
Investments regular income yield of 3.4% in Q3 2023 (+0.8 pts compared to Q3 2022)
P&C new business CSM of EUR 169 million and L&H new business CSM3 of EUR 89 million in Q3 2023
Group net income of EUR 147 million QTD (EUR 135 million assuming a constant valuation of the option on own shares), implying an annualized Return on Equity of 13.7% (12.5% adjusted4). For the first nine months of 2023, the net income stands at EUR 650 million (EUR 602 million adjusted4), implying an annualized Return on Equity of 20.2% (18.8% adjusted4)
Group Economic Value5 under IFRS 17 of EUR 9.2 billion as of 30 September 2023, up +5.3%6 (+7.1%6 at constant economics7) compared with 31 December 2022, implying an Economic Value per share of EUR 51 (vs. EUR 50 as of 31 December 2022)
Estimated Group solvency ratio of 206%8 as of 30 September 2023
SCOR SE’s Board of Directors met on 9 November 2023 under the chairmanship of Fabrice Brégier, to approve the Group’s financial statements for the first nine months of 2023.
Thierry Léger, Chief Executive Officer of SCOR, comments: “The results over nine months confirm SCOR’s focus on delivering its targets. On the P&C side, we are below our Cat budget over the first nine months of 2023, but continued attention is required on the attritional loss ratio. Our objective as we prepare the 1.1 renewals is to continue to take advantage of the hard market with new business generation at very attractive margins. In L&H and Investments, we deliver stable and positive results. With a EUR 602 million9 nine-month result, I see us well placed to deliver on our Forward 2026 plan.”
Group performance and context
SCOR records positive results in Q3 2023, a quarter historically marked by a strong claims activity:
In P&C (re)insurance, the combined ratio of 90.2% in Q3 2023 is driven by natural catastrophe losses above budget (including claims related to the Hawaii fires) and large man-made claims. Over the first nine months of 2023, the natural catastrophe ratio is below the budget. Overall, in Q3 2023, while the attritional loss ratio is satisfactory, the level of man-made claims is too high. SCOR continues its efforts to improve the core performance of its P&C business.
In L&H reinsurance, the business pursues its profitable growth and generates a consistent insurance service result of EUR 113 million2 in Q3 2023.
In Investments, SCOR benefits from high reinvestment rates and reports a noticeable increase in the regular income yield, which reaches 3.4% in Q3 2023 (vs. 3.1% in Q2 2023).
Over the first nine months of 2023, and assuming a constant valuation of the option on own shares, SCOR delivers a strong performance with a net income of EUR 602 million9, implying an annualized Return on Equity of 18.8%9, and grows its Economic Value by 7.1%10.
Footnotes:
1. At constant exchange rates. Includes L&H insurance revenue growth of 13.5%, capturing the impact of a reclassification. Adjusted for this, the L&H insurance revenue growth would be broadly similar to the GWP growth (+2.0% at constant exchange rates).
2. Includes revenues on financial contracts reported under IFRS 9.
3. Includes the CSM on new treaties and change in CSM on existing treaties due to new business (i.e. new business on existing contracts).
4. Assuming a constant valuation of the option on own shares.
5. Defined as the sum of the shareholders’ equity and the Contractual Service Margin (CSM), net of tax. A notional tax rate of 25% is applied to the CSM to calculate Economic Value.
6. Not annualized. +5.3% Economic Value growth stands at +7.1% when annualized; +7.1% Economic Value growth at constant economics stands at +9.6% when annualized. The starting point is adjusted for the payment of a EUR 1.40 dividend per share (EUR 254 million in total) in 2023 for the fiscal year 2022.
7. At constant economic assumptions of interest rates and exchange rates, and assuming a constant valuation of the option on own shares, as at 31 December 2022.
8. Solvency ratio estimated after taking into account a EUR 1.80 annual dividend per share, accrued for the first nine months of 2023.
9. Assuming a constant valuation of the option on own shares. Amounts taking into account the impact of the variation of the fair value of the option on own shares: net income of EUR 147 million and ROE of 13.7% in Q3 2023; net income of EUR 650 million and ROE of 20.2% in the first nine months of 2023.
10.Not annualized. Growth at constant economic assumptions of interest rates and exchange rates, and assuming a constant valuation of the option on own shares as at 31 December 2022. Economic Value defined as the sum of the shareholders’ equity and the Contractual Service Margin (CSM), net of tax. The starting point is adjusted for the payment of a EUR 1.40 dividend per share (EUR 254 million in total) in 2023 for the fiscal year 2022. Annualized Economic Value growth stands at +9.6% at constant economic assumptions of interest rates and exchange rates, and assuming a constant valuation of the option on own shares, as at 31 December 2022.