Ετικέτα: SCOR

Scor: First quarter 2023 results under IFRS 17

SCOR SE’s Board of Directors met on 11 May 2023, under the chairmanship of Denis Kessler, to approve the Group’s Q1 2023 financial statements. These results are published under the new IFRS 17 accounting standard.
Key highlights 
In Q1 2023, the reinsurance industry continues to be driven by three favorable developments that have emerged and accelerated in recent quarters on both the asset and liability sides: 

First, the positive phase of the P&C reinsurance cycle, marked by a strong improvement in pricing conditions, is ongoing. SCOR records a 7% average rate increase for its renewed P&C portfolio on 1 April 2023, which should lead to a significant improvement in technical profitability. These favorable market conditions are expected to remain in place at the June and July 2023 renewals. This is against a backdrop of continued high natural catastrophe losses, including a major earthquake in Turkey, tornadoes in the U.S. and floods in New Zealand in Q1 2023.
Second, in L&H reinsurance, the excess mortality linked to the Covid-19 pandemic has been greatly reduced, meaning that, as expected, the number of related claims continues to fall.
Finally, on the asset side, the rise in interest rates and consequently in reinvestment rates will significantly increase the financial contribution of investments to reinsurer results in general, and will particularly increase those of the Group, which is taking full advantage of the short duration of its investment portfolio.

In this context, SCOR records a very strong performance, exceeding its value creation target and achieving its solvency target presented on 12 April 20235, with: 

An Economic Value growth rate measured under IFRS 17 between 31 December 2022 and 31 March 2023 of 9.4% (+6.3% on a constant interest and exchange rate basis). The net income generated by the Group in Q1 2023 stands at EUR 311 million, corresponding to an annualized RoE of 29.7%;
An estimated solvency ratio of 219% as of 31 March 2023, at the top end of the optimal solvency range of 185% – 220%.

This excellent performance is driven by the Group’s business units (P&C, L&H and Investments), all of which are reporting a strong profitability level. 

Group insurance revenue stands at EUR 3,926 million in Q1 2023, down 4.2% at constant exchange rates (down 2.0% at current exchange rates) compared with Q1 2022. Gross written premiums6stand at EUR 4,744 million, down 0.7% at constant exchange rates (up 0.6% at current exchange rates) compared with Q1 2022. 
SCOR P&C (Property and Casualty) insurance revenue is up 5.4% at constant exchange rates (up 7.7% at current exchange rates) compared with Q1 2022. Gross written premiums6 are down 3.1% at constant exchange rates (down 1.8% at current exchange rates). The combined ratio stands at 85.2%. It includes a Nat Cat ratio of 9.9%, in line with the 10% budget announced on 12 April 2023. New business CSM stands at EUR 588 million in Q1 2023. 
SCOR L&H (Life and Health) insurance revenue is down 11.0% at constant exchange rates (down 9.0% at current exchange rates) compared with Q1 2022. Gross written premiums6 are up 1.6% at constant exchange rates (up 2.9% at current exchange rates). The insurance service result7stands at EUR 272 million and new business CSM stands at EUR 192 million in Q1 2023.
SCOR Investments delivers a return on invested assets of 2.9%8and a regular income yield of 2.8%9in Q1 2023.
The management expense ratio stands at 6.7% of insurance revenue in Q1 2023, better than the assumption of 7.1% – 7.3% presented on 12 April 2023. 
The Group net income stands at EUR 311 million for Q1 2023, implying an annualized return on equity of 29.7%. 
The Group generates operating cash flows of EUR 281 million in Q1 2023, with a positive operating cash flow of EUR 316 million from SCOR P&C and a negative operating cash flow of EUR 35 million from SCOR L&H. 
The Group’s Economic Value10under IFRS 17 stands at 9,784 million as of 31 March 2023 (up 6.3% on a constant interest and exchange rate basis compared with 31 December 2022), representing an Economic Value per share of EUR 54. It can be broken down into EUR 4,966 million of shareholders’ equity (up 14.1% compared to 31 December 2022) and EUR 4,818 million of CSM (net of tax) (up 4.8% compared to 31 December 2022). 
The Group financial leverage, which stands at 20.1% as of 31 March 2023, is down 1.5 points compared to 31 December 2022 (when it stood at 21.6%). 
The Group solvency ratio as of 31 March 2023 is estimated at 219%11, at the upper end of the optimal solvency range of 185% to 220%. 

As announced on 2 March 2023, SCOR is proposing a dividend of EUR 1.40 per share for the fiscal year 2022. This dividend will be submitted for shareholders’ approval at the 2023 Annual General Meeting, to be held on 25 May 2023.
Other information disclosed under IFRS 17 
SCOR has refined its estimate of its Economic Value as of 31 December 2022 measured under IFRS 17: it stands at EUR 8,947 million, consisting of EUR 6,128 million of CSM (EUR 4,596 million of CSM net of tax12) and EUR 4,351 million of shareholders’ equity, which represents an Economic Value per share of EUR 50 as of 31 December 2022.
Preparation of the new strategic plan  
The outline of the new strategic plan will be presented at the Annual General Meeting on 25 May 2023. The Group’s strategic orientations will be presented in detail at SCOR’s Investor Day on 7 September 2023.
Denis Kessler, Chairman of SCOR, comments: “SCOR has generated excellent results in Q1 2023. The Group is taking full advantage of the current favorable environment. Our new CEO, Thierry Léger, is in charge of drawing up a new three-year strategic plan under IFRS 17. This plan will define the best ways and means for the Group to consolidate its position as a leading global reinsurer, taking advantage of its Tier 1 global underwriting platform and technical know-how. The Board of Directors is confident in the Group’s ability to actively pursue its growth, with the twofold objective of solvency and value creation.” 
Thierry Léger, Chief Executive Officer of SCOR, comments: “The Q1 results are very satisfactory. All business units – P&C, L&H and Investments – have generated positive results, and the Group’s Economic Value has increased significantly. In parallel, our Finance teams have successfully managed the transition to the new IFRS 17 framework: we would like to thank them for this achievement. I am now looking to the future: the current market is very supportive, and all the teams are mobilized to take advantage of this favorable environment. I look forward to presenting the outline of the new strategic plan at the Annual General Meeting.” 

Inherent Defects Insurance in China

How to manage special risks and innovative materials is becoming more relevant in fast growing Inherent Defects Insurance (IDI) market in China. SCOR China held a very successful 5th IDI Day in Beijing, under the theme of “Managing Special IDI Risks”, and it has provided much constructive feedback to the Chinese insurance industry, for a more effective risk management in this evolving risk landscape. More than 130 participants across industry associations, primary insurance companies, Technical Inspection Services (TIS) companies and universities attended this SCOR Campus on the 19th April 2023.
“China remains an important market for SCOR’s Global Lines as we are committed to the Chinese market to support the industry with the identification, assessment and mitigation of specialized risks, such as IDI, that are more than relevant for a more sustainable economic development,” says Eric Jenck, CUO and Head of Global Lines of SCOR.
The demand for IDI globally has grown significantly in recent years. Given the recent explosion of the global population which topped 8 billion people for the first time in November 2022, demand for housing, infrastructure and industrial plants has ballooned. At the same time, the land area naturally suited to building has shrunk. On top of this, as the general standard of living has risen in many parts of the world, people have come to expect higher standards of comfort.
As a result, builders have had to come up with imaginative solutions to new technical problems and new materials have been employed to meet the new demands. It follows that the more complex a construction project is, the more complex any potential associated problems could be, and the owners of such constructions sometimes find themselves in dire straits when their property has to undergo radical repairs or rebuilding work. A growing awareness of such risks has led to increasing demand for IDI in markets around the world.

SCOR IDI Day Beijing 2023
China is the country with the largest annual construction volume in the world, but its penetration rate of IDI in new residential buildings remains low. The first IDI policy in China was issued in Shanghai in 2014 with SCOR as a sole reinsurer. Since then, the development of IDI in China has accelerated, particularly in large cities such as Shanghai and Guangzhou where IDI has become mandatory. The Chinese government intends to increase the construction quality throughout the country, so IDI will play an essential role to achieve this goal as new residential buildings will then be the focus.While IDI is gaining traction, new risks are emerging such as high-rise residential buildings, constructions built on special geotechnical areas, or projects using innovative materials.
“Starting in France more than 40 years ago, IDI has been widely recognized and promoted as an effective insurance mechanism to increase building quality throughout Europe,” Jaume Avella Fluvia, CUO of IDI of SCOR, comments. “China’s IDI market is still nascent and SCOR’s global expertise supported by our local presence will be essential to ensure a sustainable development of this product aimed to protect the population.”
The fifth IDI day of SCOR China has created once again a great platform to exchange views in the management of this risk ecosystem.
“SCOR China has been always at the forefront of the industry in innovation of product development and technology in IDI insurance, providing strong and professional technical support for IDI legislation, preparation of relevant standards and regulations, and research on various topics,” commented Sven Liu, CEO of SCOR Beijing branch.
Those special risks in IDI require a strong risk management expertise. Looking ahead, SCOR will continue to transfer its IDI expertise and provide high-quality reinsurance services to the industry and its primary insurance partners.

SCOR’s 2022 Annual Results

Gross written premiums of EUR 19,732 million in 2022, up 4.9%1 compared with 2021
Net loss of EUR -301 million in 2022, compared with EUR 456 million net income in 2021
Shareholders’ equity of EUR 5,133 million at the end of 2022, implying a book value per share of EUR 28.48, down -19.2% from December 2021 (EUR 35.26)
Estimated Group solvency ratio of 213%2  at the end of 2022, in the upper part of SCOR’s optimal range
Attractive dividend policy pursued, with a dividend of EUR 1.40 per share proposed for 2022

SCOR SE’s Board of Directors met on March 1, 2023, under the chairmanship of Denis Kessler, to approve the Group’s 2022 financial statements.
Key highlights:
2022 was the sixth consecutive year marked by a high frequency of natural catastrophes and other weather-related events, including floods in Australia, Hurricane Ian in the U.S., hailstorms in France and one of the worst droughts in Brazilian history. The beginning of the year was also marked by the continuation of the global pandemic as well as the start of the war in Ukraine, the largest military conflict Europe has seen in decades. On the macroeconomic front, strong inflationary pressures in Europe and the United States led central banks to raise interest rates, resulting in a sharp paradigm shift for investors and borrowers. These various developments have had a significant impact on reinsurers’ earnings in 2022 but have also resulted in a combination of higher prices and higher investment returns, both of which are expected to strongly support reinsurers’ performance in 2023.
In this challenging environment, SCOR continues to pursue its missions, once again demonstrating its ability to absorb the shocks of all kinds which the Group could be facing. The release of excess reserve margins in SCOR L&H enabled the Group to finance the increase in P&C technical reserves, to anticipate the impact of social and economic inflation. While the Group experienced significant claims from weather events and the Covid-19 pandemic, it remains very well capitalized with a Solvency ratio of 213%. SCOR ends 2022 with an accounting loss of EUR 301 million, which has been significantly reduced by the strong results in the fourth quarter. In Q4 2022, the Group generates a net income of EUR 208 million (equivalent to an annualized RoE of 16.8%), with each of the three business units delivering a positive result. 
The Q4 2022 results, along with the January 1, 2023 renewal results (published by SCOR on February 7, 2023), show the tailwinds from which the Group is now benefiting:

In P&C reinsurance, the market continues to harden and SCOR records a 9% rate increase at the January 1, 2023 renewals, which should lead to a significant improvement in expected profitability.
In L&H reinsurance, the combination of a strong underlying performance and a now reduced number of Covid claims enables SCOR to generate a technical margin of 13.3% over the quarter, without releasing excess technical reserves.
The regular income yield on SCOR’s investment portfolio continues to increase, driven by the rapid reinvestment of SCOR’s portfolio, which benefits from a short duration and high reinvestment rates (4.9% at December 31, 2022).

The 2022 results reflect both the highly volatile operating environment and the Group’s strong performance in the fourth quarter. 

Gross written premiums stand at EUR 19,732 million in 2022, up 4.9% at constant exchange rates compared with 2021 (up 12.1% at current exchange rates).
SCOR P&C (Property and Casualty) gross written premiums are up 13.5% at constant exchange rates compared with 2021 (up 21.7% at current exchange rates). The net combined ratio stands at 113.2%, marked by several exceptional developments. It includes a Nat Cat ratio of 12.4%, claims relating to the impact of the drought in Brazil accounting for 2.6%, and the reserve increase announced in Q3 2022 to anticipate the impact of the social and economic inflation accounting for 6.2%.
SCOR L&H (Life and Health) gross written premiums decline by 2.7% at constant exchange rates compared with 2021 (up 3.7% at current exchange rates). In 2022, SCOR L&H delivers a technical margin of 14.5%, benefiting from a strong underlying performance, active in-force management and the release of excess reserve margins (corresponding to EUR 460 million above an 8.3% normalized level of technical margin in the third quarter of 2022). 
SCOR Investments delivers a return on invested assets of 2.1% for 20223 with a regular income yield at 2.4% (3.1%4 in Q4 2022).
The Group cost ratio stands at 4.5% of gross written premiums in 2022. 
The Group net loss stands at EUR -301 million for 2022. It reflects the combined impact of Nat Cat claims and drought claims in Brazil (EUR -204 million) and the non-recognition of DTAs (EUR -164 million total annual amount), while the impact of the P&C reserve increase is broadly offset by the release of L&H excess margins in Q3 2022. This net loss is reduced compared to Q3 2022 thanks to the Group’s strong performance and net income of EUR 208 million in Q4 2022. 
The Group generates operating cash flows of EUR 500 million in 2022, driven by a positive operating cash flow of EUR 1,232 million from SCOR P&C, while operating cash flow from SCOR L&H is negative at EUR -732 million. In Q4 2022, both P&C and L&H generated positive operating cash flows.
The Group shareholders’ equity stands at EUR 5,133 million as of December 31, 2022, down from EUR 6,402 million at the end of 2021, resulting in a book value per share of EUR 28.48 compared to EUR 35.26 as of December 31, 2021. The largest driver for this change is the revaluation reserves (assets measured at fair value through OCI) which vary by EUR -955 million over 2022. The current unrealized losses on the fixed income portfolio (EUR 1.4 billion as of December 31, 2022) will not materialize and will quickly and significantly decrease as the securities on the portfolio reach maturity (expected recapture of EUR 0.9 billion in shareholders’ equity over the next three years).
The Group financial leverage stands at 32.4% as of December 31, 2022, up 4.6 points compared to December 31, 2021 (27.8%), due to the decrease in shareholders’ equity. Adjusted for the negative impact of the revaluation reserves (assets measured at fair value through OCI) on the fixed income portfolio, the leverage ratio stands at 28.6% as of December 31, 2022.
The Group solvency ratio is estimated at 213%5 on December 31, 2022, in the upper part of the optimal solvency range of 185% – 220% defined in the last strategic plan. This solid capital base notably takes into account an impact of -26 points related to (i) the increase in P&C reserves in Q3 2022, and (ii) further resilience built within L&H assumptions in advance of IFRS17. 

Attractive dividend policy pursued, with a dividend of EUR 1.40 per share proposed for 2022
The dividend policy remains unchanged: SCOR continues to favor dividends as a way to remunerate its shareholders and pursues the attractive dividend policy that it has implemented over the past years.Despite the significant accounting loss recorded in 2022, the Group’s capital position remains solid, its solvency ratio is in the upper part of the optimal range and SCOR is confident in its prospects. SCOR therefore proposes a dividend of EUR 1.40 per share for the fiscal year 2022. This dividend will be submitted for shareholders’ approval at the 2023 Annual General Meeting, to be held on May 25, 2023. The Board proposes to set the ex-dividend date at May 30, 2023, and the payment date at June 1, 2023.At the end of 2022, the Group’s solvency ratio is 219%. After taking the dividend into account, it stands at 213%, in the upper part of the optimal solvency range of 185% – 220%. 
Acceleration of the one-year plan and preparation of the next Strategic Plan
As of Q1 2023, the Group will publish its financial results under the new IFRS 17 accounting standard. This transition will allow SCOR to disclose the full value of its portfolio through the introduction of the Contractual Service Margin (CSM), which reflects the present value of expected future profits based on strict rules. Together with the Group’s shareholders’ equity, the CSM is one of the two components of the Group’s Economic Value. At January 1, 2022, this Economic Value was at a point estimate of EUR 10.8 billion, within a range of EUR 10.5-11.1 billion6 (of which EUR 6.7-7.0 billion for shareholders’ equity and EUR 5.1-5.4 billion for CSM gross of tax).During a session dedicated to IFRS 17 on April 12, 2023, SCOR will publish its objectives and performance assumptions for 2023 under IFRS 17, along with an update of the Economic Value (and its main components) as at January 1, 2023.SCOR’s new Chief Executive Officer will take up his post on May 1, 2023, and the Board of Directors has asked him to develop a strategic plan under IFRS 17 that will enable the Group to take full advantage of the favorable market conditions. The outline of this strategic plan will be presented at the Annual General Meeting on May 25, 2023. SCOR’s Investor Day will be held on September 7, 2023, at which time details of the Group’s strategic direction, financial performance assumptions and new targets will be presented. The Group will continue to leverage its global underwriting platform and know-how to seize market opportunities, building on its status as a Tier 1 reinsurer, a recognized leading market position, a high-quality franchise, a very strong financial profile and recognized technical expertise.
Denis Kessler, Chairman of SCOR, comments: “The Group’s annual results are very disappointing despite a solid performance in the fourth quarter. A sustainable return to profitability is imperative. A new, highly experienced Chief Executive Officer, Mr Thierry Léger, will join the Group on May 1, 2023. He will present the broad outlines of his strategic plan at the Annual General Meeting on May 25, 2023, and will implement it without delay and with great determination after presenting it to the investors in September 2023. This will enable the Group to take full advantage of its global underwriting platform and technical expertise to seize the opportunities available in the L&H and P&C reinsurance markets, building on its status as a Tier 1 reinsurer. The Board of Directors is confident in the Group’s ability to return to growth, restore profitability, and reinforce its solvency. Consequently, it proposes a dividend of EUR 1.40 per share for 2022, which will be submitted for shareholders’ approval at the Annual General Meeting.” 
François de Varenne, interim Chief Executive Officer of SCOR, comments: “2022 has been a difficult year for SCOR, even if the fourth quarter was better than the previous quarters. With the normalization of the pandemic, the L&H reinsurance business performed very well in 2022. The release of L&H excess reserve margins enabled the Group to finance the increase in P&C technical reserves. Along with P&C reinsurance, L&H is generating significant diversification benefits, and IFRS 17 will reveal the full value of its portfolio. The P&C renewals at January 1, 2023, confirm the continued hardening of the market. Reinvestment rates are expected to remain high, increasing the financial contribution of the investment portfolio. The teams are fully mobilized to accelerate the execution of the one-year plan to restore the Group’s profitability and to ensure the transition to the new IFRS 17 standard. We are ready to support the new CEO in the preparation and execution of a new, ambitious strategic plan.” 
1  At constant exchange rates.2  Solvency ratio estimated after taking into account the proposed dividend of EUR 1.40 per share for the fiscal year 20223  In 2022, fair value through income on invested assets excludes EUR (22) million related to the option on own shares granted to SCOR. The 2022 RoIA at 2.1% is calculated based on IFRS 9 and includes the impact of expected credit losses (ECL) and change in fair value of invested assets measured at fair value through profit and loss. Excluding those impacts (which would not have been recorded under IAS39), the RoIA would have been at 2.2%.4  Regular income yield and RoIA include one-off positive impacts of 20bps mainly resulting from a change in scope in Q4 2022. Excluding the one-off impacts, the Q4 2022 QTD regular income yield and the RoIA stand at 2.9% and 2.7% respectively.5  Solvency ratio estimated after taking into account the proposed dividend of EUR 1.40 per share for the fiscal year 2022.6 Net of tax. A notional tax rate of 25% was applied to the CSM to calculate Economic Value.

SCOR: Alexandre Garcia is appointed Group Head of Communications and Public Affairs

Alexandre Garcia, previously Head of PR and Corporate Communications, is appointed Group Head of Communications and Public Affairs. In his new position, his responsibilities will include fostering reflection on the role of risk in society, and highlighting SCOR’s expertise in this field.
François de Varenne, Interim CEO of SCOR, comments: “Alexandre’s extensive experience and recognized skills in corporate communications, media relations and thought leadership will ensure the continuity of dialogue with all our stakeholders, help us to share to Group’s new roadmap, and make sure that SCOR’s voice is heard within its ecosystem and beyond.”
Alexandre is based in Paris and reports to Claire Le Gall-Robinson, SCOR’s General Secretary and Group Chief Sustainability Officer.
Nathalie Mikaeloff, previously Director of Communications and Marketing at SCOR, is leaving the Group to pursue new professional opportunities.
BiographyBefore joining SCOR in 2022, Alexandre was a Director at Taddeo, a strategic communications consulting firm that he joined in 2017. There, he supported the leaders of large, listed companies with their corporate communications strategies, notably in the (re)insurance sector. Prior to Taddeo, Alexandre successively held various positions at L’Oréal, working first as a Business Analyst in the Financial Communication and Strategic Prospective department, and then from 2015 onwards as Marketing Project Manager for Brazil and Asia.  Alexandre Garcia is a graduate of Sciences Po Paris and HEC.

Thierry Léger is appointed Chief Executive Officer of SCOR

The Board of Directors, acting on the proposal of the Nomination Committee, has unanimously decided to appoint Thierry Léger Chief Executive Officer of SCOR. Thierry Léger will take up his post as CEO of SCOR with effect from May 1, 2023. 
Thierry Léger has 25 years of experience in the reinsurance sector, holding key positions. His expertise covers life reinsurance, P&C reinsurance and alternative reinsurance. The Board of Directors is convinced that Thierry Léger has all the professional skills and managerial qualities required to succeed as CEO of SCOR. The Board of Directors will propose that Thierry Léger join the Board at the 2023 General Meeting. 
François de Varenne, Executive Committee member in charge of Investments, Technology, Transformation and Group Corporate Finance, is appointed Interim CEO of SCOR with immediate effect until Thierry Léger takes up his post. The Board of Directors has asked its Chairman Denis Kessler to lend his support to François de Varenne and then Thierry Léger, to ensure the smooth running of this change in executive management. 
Laurent Rousseau, who succeeded Denis Kessler as CEO on June 30, 2021, has resigned from his position as CEO and from his position on the Board. He is leaving the Group to pursue other professional opportunities. 
Thierry Léger will be responsible for drawing up a new attractive and ambitious strategic plan for SCOR, and will outline the orientations and main themes of this plan at the 2023 General Meeting. His mission will be to help SCOR further consolidate its position as a leading global reinsurer. 
The January 1, 2023 P&C renewals, which took place in a favorable environment for property & casualty reinsurance, will be presented on February 7, 2023. The Q4 and full-year 2022 results will be released as scheduled on March 2, 2023.
Denis Kessler, Chairman of SCOR, comments: “Acting on the proposal of the Nomination Committee, the Board of Directors has unanimously decided to entrust the executive management of the Group to Thierry Léger, an experienced and skilled reinsurer who is an expert in both life and non-life reinsurance. Having held key positions at a major global reinsurance company, he has all the skills required to lead the SCOR group and forge a new strategic vision for the company, while pursuing an underwriting policy based entirely on technical profitability. By giving high priority to capital allocation and returns, and by practicing very strict risk management, Thierry Léger will restore the Group’s profitability and maintain its high level of solvency, to the benefit of all stakeholders: clients, shareholders and employees. SCOR is embarking on a new chapter in its history. On behalf of the Board of Directors, I would like to thank Laurent Rousseau for the contribution he has made to the Group during a particularly difficult period.” 
Fabrice Brégier, Chairman of the Nomination Committee, comments: “In line with its mandate, and in strict compliance with the principles of corporate governance, the Nomination Committee sought to pinpoint the qualities needed to lead a global reinsurance company in an increasingly complex environment. The profile it drew up was of a leader capable of managing a risk universe that is changing rapidly, in both life and P&C (re)insurance. Thierry Léger fits this profile perfectly, which is what led the committee to propose his appointment as CEO to the Board. The committee also recommended that the interim period be overseen by François de Varenne, building on his 17 years of experience in various roles at SCOR.”
Thierry Léger comments: “I am very happy to be joining SCOR and am honored by the confidence the Board of Directors has placed in me by appointing me CEO. I look forward to meeting the Group’s employees, clients and shareholders. I plan to actively pursue the growth of the company by continuing to develop its products and its structure. The reinsurance sector offers many opportunities, both on the liability side with the increased demand for cover and the improvement of terms and conditions, and on the asset side with the rise in interest rates. I am convinced that SCOR is well placed to take full advantage of this favorable environment. I know that I can count on highly skilled and experienced teams, and on excellent client relations. Let’s all make this journey together. I will focus all my energy on giving fresh impetus to SCOR.” 

SCOR: First nine months 2022 results

Gross written premiums of EUR 14,827 million in the first nine months of 2022, up 6.2%(1)  compared with 9M 2021
Net loss of EUR -509 million in the first nine months of 2022, compared with EUR 339 million net income in 9M 2021
Shareholders’ equity of EUR 5,430 million at the end of September 2022, implying a book value per share of EUR 30.39, down -13.8% from December 2021 (EUR 35.26) 
Estimated solvency ratio of 217% at the end of September 2022, at the high end of SCOR’s optimal range 

SCOR SE’s Board of Directors met on November 8, 2022, under the chairmanship of Denis Kessler, to approve the Group’s first nine months 2022 financial statements(2).
Key highlights: 
In the third quarter of 2022, the reinsurance industry continues to face a challenging environment. The large and numerous natural catastrophes such as Hurricane Ian in Florida, Typhoon Nanmadol in Japan and Hurricane Fiona in Canada are further fueling an already hardening reinsurance market where capacity is scarce. The macro-economic environment is also volatile, with central banks hiking interest rates to fight against inflation. 
SCOR’s challenging P&L performance reflects the highly volatile environment:

SCOR P&C’s results reflect heavy Nat Cat claims (EUR 517 million in Q3 2022 contributing to a total of EUR 907 million for the first nine months of the year). Most notably, in Q3 2022, SCOR incurred EUR 279 million claims on Hurricane Ian. The cost of convective storms and hailstorms in France in June increases to EUR 166 million (EUR 113 million on top of the cost booked in Q2 2022). Man-made claims activity has been increasing as well in Q3 2022. 
SCOR L&H’s results benefit from positive underlying trends (including decreasing Covid-19 deaths in Q3 2022).
Investment return benefits from the increase in interest rates with a 1.9% Return on Invested Assets for the first nine months of 2022 (2.3% Return on Invested Assets in Q3 2022) and will continue to see an uplift as interest rates continue to increase: reinvestment yield stands at 5.1% as of 30th September 2022, versus 2.1% as of 31st December 2021.

SCOR has also taken meaningful actions on its balance sheet:

SCOR strengthens its P&C reserves by EUR 485 million (representing 2.3% of the EUR 21.5bn net P&C reserves) to take a prudent stance in a claims environment marked by high economic and social inflation.
The release of IFRS 4 excess L&H reserves margin results in a technical profit EUR 460 million higher than the 8.3% normalized technical margin level in Q3 2022.
SCOR takes a prudent stance on the tax assumptions on its balance sheet, through provision and non-recognition of Deferred Tax Assets (“DTAs”) leading to an additional EUR 94 million charge in Q3 2022, resulting in a EUR 139 million charge YTD. The losses not recognized for DTA purposes can be fully activated at a future date if appropriate. Going forward, SCOR expects to be able to absorb the DTA utilization and reduction in recoverability period. 

SCOR’s solvency position remains very strong, at 217%, in the upper part of its optimal solvency range. This strong capital base will enable SCOR to take advantage of the acceleration of the hardening of the P&C market.
The combined effect of these developments results in a net loss of EUR -509 million for the first nine months of 2022 (EUR -270 million in Q3). The Group is currently focused on short-term remediation actions. Longer term commitments and targets will be unveiled to the market in 2023, under the new IFRS 17 accounting framework taking into account both the new macroeconomic context and the 2022 financial year results.

Gross written premiums stand at EUR 14,827 million in the first nine months of 2022, up 6.2% at constant exchange rates compared with the first nine months of 2021 (up 13.6% at current exchange rates).
SCOR P&C (Property and Casualty) gross written premiums are up 15.8% at constant exchange rates compared with the first nine months of 2021 (up 24.1% at current exchange rates). SCOR is adopting a more selective approach in Treaty P&C Lines(3), and continues to grow its Treaty Global Lines(4) and its Specialty insurance portfolios where market conditions are seen as attractive. The net combined ratio stands at 111.0%, including a 15.9% Nat Cat ratio. On top of this, SCOR P&C strengthens its reserves by EUR 485 million, equivalent to 8.5% of the net earned premium for the first nine months of 2022, implying a total combined ratio of 119.5% for the first nine months 2022.
SCOR L&H (Life and Health) gross written premiums decline by 2.0% at constant exchange rates, compared with the first nine months of 2021 (up 4.7% at current exchange rates) as the Group rebalances the portfolio towards more health and longevity products and services in a post-Covid world. Over the period, SCOR L&H delivers a technical result of EUR 863 million, benefitting from a release of excess prudent margin in L&H reserves (delivering most notably EUR 460m above an 8.3% normalized level of technical margin for the sole third quarter). Following the release of excess margin, L&H reserves are adequate. 
SCOR Investments delivers a return on invested assets of 1.9% for the first nine months of 2022(5) and an investment income of EUR 305 million, with the regular income yield at 2.2% for the first nine months of 2022. 
The Group cost ratio accounts for 4.5% of gross written premiums in the first nine months of 2022. 
The Group net loss stands at EUR -509 million for the first nine months of 2022, reflecting mainly the impacts of Nat Cat claims (EUR -907 million) and the non-recognition of DTAs (EUR -139 million), while the impact of the P&C reserves strengthening is broadly offset by the release of L&H excess margin in the third quarter.
The Group generates positive operating cash flows of EUR 54 million for the first nine months of 2022, driven by a positive EUR 867 million operating cash flow from SCOR P&C, while SCOR L&H operating cash flows are negative at EUR -813 million, notably impacted by the payment of Covid-19 claims (including from prior years), even though Covid-19 deaths are now declining. The Group’s total liquidity is strong, standing at EUR 2.3 billion as at September 30, 2022.
The Group shareholders’ equity stands at EUR 5,430 million as of September 30, 2022, down from EUR 6,402 million at the end of 2021, resulting in a book value per share of EUR 30.39, compared to EUR 35.26 as of December 31, 2021. The largest driver for the change is the revaluation (assets measured at fair value through OCI) of EUR -1,117 million over the first nine months of 2022. The current unrealized losses on the fixed income portfolio (EUR 1,595 million as of 30th September 2022) will not materialize and will quickly and significantly decrease as the securities that are part of it reach maturity (expected recapture of EUR 1,128 million in shareholders’ equity over the next 3 years).
The Group financial leverage stands at 31.0% as at September 30, 2022, up 3.2 points compared to December 31, 2021 (27.8%), as a consequence of the decrease in shareholders’ equity. Adjusted for the negative impact of revaluation (assets measured at fair value through OCI) on the fixed income portfolio, the leverage ratio stands at 27.0% as of September 30, 2022.
The Group solvency ratio is estimated at 217% on September 30, 2022, at the high end of the optimal solvency range of 185% – 220% as defined in the “Quantum Leap” strategic plan.

Update on SCOR’s strategy: focusing on a 1-year plan
SCOR is currently operating in a fast-changing environment driven by a number of paradigm shifts: the combination of higher interest rates and a return of inflation, together with heavy natural catastrophes activity and the pandemic have profound impacts on the reinsurance industry. SCOR has therefore been adapting its strategy to this new environment by building its resilience, focusing on a 1-year action plan to best position the Group in the new regime, and deliver a sustainable performance.
SCOR remains focused on restoring profitability and reducing volatility
The Group has already taken meaningful remediation actions in 2022: 

In the course of 2022, SCOR reduced its peak exposures (Nat Cat and US mortality). These actions have already started showing benefits.
SCOR tightened P&C underwriting discipline and exposures. The Group reviewed its pricing assumptions ahead of 2023 renewals to reflect notably the new inflationary environment.
SCOR took a prudent approach to its balance sheet resilience, by reviewing thoroughly its P&C reserves and building prudence in a highly inflationary environment. 

The Group will stay the course in 2023 and has identified three strategic priorities: 

Restore profitability: the Group manages proactively its underwriting portfolios to increase profitability and reduce volatility. In parallel to ongoing underwriting and pricing actions, the Group acts to contain the impact of inflation on its cost base, building a nimble and lean organization will enable to deliver EUR 125 million yearly efficiency gains by 2025.
Maximize the benefits of market tailwinds: thanks to its strong balance sheet, SCOR is poised to benefit from the favorable market trends both in P&C, through the positive development of the reinsurance cycle, and in L&H, by capturing post-pandemic market opportunities. SCOR’s investment portfolio will benefit quickly from the higher reinvestment rates thanks to a short invested assets’ duration.
Build on a resilient balance sheet: SCOR will maintain a resilient balance sheet to deliver the right level of security to its clients and stakeholders. SCOR offers a AA-level of capital security to its clients. 

SCOR sees appealing strategic orientations for both its businesses. 
In L&H, SCOR will build on strategic continuity to reveal the full value of its leading franchise. The Group will leverage further its US mortality leadership position, while diversifying its portfolio 

geographically in APAC and Europe
by deepening its longevity franchise

In P&C, SCOR will strengthen its reinsurance franchise. To deliver a sustainable performance across the cycle, SCOR will make the most of the hardening reinsurance market, after the successful build-up of its Specialty Insurance platform. To absorb shocks in an increasingly volatile environment, SCOR will build a resilient portfolio by leveraging its Tier 1 position in Europe and in Treaty Global lines.
One strategic imperative for reinsurers will be to offer a differentiated value proposition across both L&H and P&C businesses. SCOR will prepare for the future by accelerating the development of data and knowledge-driven solutions with clients and by fostering technological partnerships and investments to access chosen risks and clients of tomorrow.
SCOR will complete its IFRS 17-based economic performance framework in 2023.
SCOR is on track for the implementation of IFRS 17. SCOR strongly believes it will be a net beneficiary of IFRS 17, as the value of its L&H portfolio will be better reflected in the future accounting framework. Q1 2023 results will be presented under IFRS 17. Key performance indicators under IFRS 17 have been identified and need to be further calibrated and stabilized considering the current market volatility. The translation of SCOR’s strategy into IFRS17 targets will therefore be presented in 2023.
This proactive stance to business management will help SCOR deliver a sustainable performance for the benefit of all stakeholders, creating long-term economic value for its shareholders, bringing value to clients by offering a differentiated and sustainable value proposition. 
Denis Kessler, Chairman of SCOR, comments: “In light of the Group’s disappointing results, the Board of Directors asked the management team to accelerate the implementation of strong measures to strengthen SCOR’s technical profitability and improve its operational performance. The Board will ensure that these measures are implemented with determination. This will enable the Group to take full advantage of the positive development in the P&C reinsurance market in terms of rate increases and tightening of terms and conditions.” 
Laurent Rousseau, Chief Executive Officer of SCOR, comments: “The quarter has been difficult, and the results are significantly below the Group’s expectations. Our short-term priority is the restoration of our financial performance. The Group has already taken meaningful actions to improve its performance, reduce its exposure to Natural Catastrophes, and prudently reserve the combined effects of social and economic inflation. But these Q3 results demonstrate the need to go further and continue taking strong actions to remediate the Group’s underwriting performance and restore its profitability. 
The hardening of the P&C market, the increasing demand for life reinsurance products and the increase in interest rates are drivers that should favor positive developments for reinsurers. I am confident that we are building from a sound base to navigate in the new environment and take advantage of market tailwinds.
We will communicate in 2023 the KPIs under the upcoming IFRS 17 norm, which will reveal SCOR’s economic value”.  
(1)  At constant exchange rates.(2)  The first nine months of 2022 financial information is not audited by the Company’s statutory auditors.  (3) Treaty P&C Lines include: Property, Property Cat, Casualty, Motor, and other related lines (Personal Insurance, Nuclear, Terrorism, Special Risks, Motor Extended Warranty, and Inwards Retrocession).(4) Treaty Global Lines include: Agriculture, Aviation, Credit & Surety, Inherent Defects Insurance, Engineering, Marine and Offshore, Space, and Cyber.  (5) In 9M 2022, fair value through income on invested assets excludes EUR (38) million related to the option on own shares granted to SCOR. The 9M 2022 RoIA at 1.9% is calculated based on IFRS 9 and includes the impact of expected credit losses (ECL) and change in fair value of invested assets measured at fair value through profit and loss. Excluding those impacts (which would not have been recorded under IAS39), the RoIA would have been at 2.1%.

SCOR partners with Bowtie and Take2 on innovative cancer screening solution

SCOR has partnered with Bowtie, Hong Kong’s first virtual insurer, and Take2, a healthcare and biotech company, to develop an innovative cancer screening solution. Bowtie will fully sponsor 1,300 of its selected life insurance customers within the age group of 40 – 60 to conduct a Take2 Prophecy™ Test for Nasopharyngeal Cancer (NPC).
Nearly 85% of the world’s NPC patients come from Asia, and the incidence rate of NPC among Hong Kongers is as high as 5 to 6 times the global average(1). In Hong Kong, NPC is one of the five most common cancers among men aged 45 to 64(2), the age group with the highest median employment income(3). Family finances are likely to be severely stressed if members of this age group fall ill. 
Statistics from the Hong Kong Hospital Authority highlight that 70 – 80% of the city’s NPC patients were diagnosed at stages 3 & 4 (which are classified as late stages)(4), showing that effective NPC screening solutions are lacking. In comparison, according to a clinical study conducted by a top local university, utilising Next-generation Sequencing and state-of-the-art technologies for the early detection of NPC could enable patients to be diagnosed at earlier stages (stages 1 & 2), which was the case for 70% of the NPC patients identified in the study. If an individual is diagnosed with NPC at an early stage, the survival rate in the next 5 years can reach 90%, which is almost 30% higher than a diagnosis at later stages(5). 
SCOR, Bowtie and Take2 aim to help the public learn about the potential risks of NPC, in order to conduct early NPC detection. Selected Bowtie insureds can enjoy a Take2 Prophecy™ NPC detection Test at Bowtie’s medical clinic, Bowtie & JP Health, for the service fee only(6). The test result will not affect their current coverage, underwriting results or claim eligibility with Bowtie. For positive test results, a free follow-up medical consultation will be provided by Bowtie & JP Health. 
The application process is simple. Users can:

Access the “Health Services” page after logging into their Bowtie account;
Obtain the QR code for a Take2 Prophecy™ NPC detection, and save the screenshot on their mobile;
Make an appointment on the Bowtie & JP Health website, or call 3169 2269
Present the QR code on their visit to Bowtie & JP Health and conduct the test.

“It has come to our concern that the risk of NPC in men between the ages of 40 and 60 is extremely high. Imagine if these people who are at the peak of their careers, who are also the breadwinner of their families, are diagnosed with serious illnesses, not only are they leaving their family worried, their family expenses might also become unaffordable. Our partnership enables more people to realise the importance of physical examinations as a way to prevent diseases,” says Dr. Jacky Lio, Chief Medical Officer, Bowtie.
“Take2 has entered into a definitive licence agreement with GRAIL for the exclusive worldwide rights to an intellectual property portfolio for the early detection of NPC. Adopting the Next-generation Sequencing (NGS) technology in NPC screening, it allows clients to receive highly accurate tests in a convenient and efficient manner. We are grateful to Take2 and SCOR for supporting this project,” Dr. Lio adds.
“One mission of Take2 is to provide individuals a second chance in health through the early detection of disease. NPC is most prevalent in China and the ASEAN countries, and is a deadly cancer as the majority of cases are diagnosed at late stages. As the pioneer who brings disruptive innovation to the healthcare industry, Take2 aims at marking the advent of a new era across Asia,” says Professor Dennis Lo, Founder of Take2.
“We are delighted to collaborate with Bowtie and SCOR to promote cancer awareness and the importance of early detection of NPC. Leveraging the fast-growing customer base of Bowtie, we will make our early detection technology for NPC widely accessible to those who need it most,” Carmen Lee, Vice President of Take2, adds.
“As one of the largest reinsurers in the world, SCOR has a responsibility to society to help transform traditional insurance into a health-improving journey which produces better outcomes for our clients and policyholders. With this partnership, we help to bridge the gap between medical advancements and their impact on life insurance by bringing innovative solutions to our clients. SCOR is incredibly proud to embark on this journey with Bowtie and Take2,” says Tony Ho, Head of South Asia, SCOR Life & Health.

SCOR appoints David Guest as Head of Crisis Management

SCOR is pleased to announce the appointment of David Guest as Head of Crisis Management for SCOR UK and the SCOR Syndicate. His remit includes Terrorism and Political Violence and is effective 24 October 2022. Based in London, David will report to Marie Biggas, Chief Underwriting Officer of SCOR UK and Active Underwriter of the SCOR Syndicate.
David brings with him more than 26 years of industry experience, having led underwriting teams across the UK and Asia-Pacific (re)insurance markets. He joins SCOR from his most recent position as Global Specialty Regional Leader, APAC & Middle East at AXA XL.
Marie Biggas commented: “David has a highly diverse range of experience and technical capabilities, making him perfectly placed to head up our crisis management team. His understanding of the market, combined with his ability to build long-lasting relationships, will be a great asset to us and our clients.”
Chris Beazley, CEO of SCOR UK and the SCOR Syndicate, added: “We are continuing to build on the momentum of our strong results from the past couple of years. Our aim is to grow sustainably, while at the same time offering our clients a broad array of risk management solutions designed to best service their needs. David is a well-regarded industry professional with an impressive track record, and his expertise in crisis management, terrorism, and political violence insurance further enhances our underwriting capabilities. It is an absolute delight to welcome him to the team.”

SCOR welcomes Chris Beazley as CEO of SCOR UK and the SCOR Syndicate

SCOR is pleased to announce the arrival of Chris Beazley as CEO of SCOR UK and the SCOR Syndicate, effective 20th September 2022, subject to regulatory approval. Chris takes over the role from Stuart McMurdo, who was appointed as CEO of Reinsurance following the announcement in June that Michel Blanc will retire with effect from January 2023. Based in London, Chris will report to Catherine Fassi, Regional CEO of EMEA and Canada for P&C business.
Chris brings more than 20 years of experience to his new role, having worked for underwriting and broking firms in the UK, Switzerland, Singapore and the US.
Catherine Fassi comments: “It is with great pleasure that we welcome Chris on board. He is a highly experienced insurance and reinsurance professional with an in-depth knowledge of our market, which makes him the ideal person for the role.”
Romain Launay, CEO Specialty Insurance and Deputy CEO SCOR P&C, comments: “Our UK platform has historically been and will continue to be at the heart of SCOR Specialty Insurance. With SCOR UK and the SCOR Syndicate, our teams can deploy their proven underwriting skills, both on the company market and at Lloyd’s, to optimally serve our clients. I would like to extend my thanks to them and to Stuart McMurdo for their success during his tenure. Chris is a recognized leader, and we all look forward to writing a new chapter with him.”

SCOR’s CUO of IDI Jean Tuccella announces his retirement – Jaume Avella Fluvia to take over

After 27 years of service, Jean Tuccella has decided to retire. Effective July 1st, the Inherent Defects Insurance (IDI) team will be led by Jaume Avella Fluvia who will be taking over as Chief Underwriting Officer. Jean will stay part-time at SCOR until the end of January 2023 to ensure a smooth transition.
Jean started with SCOR in 1995 as an underwriter for construction insurance and has been at the head of SCOR’s IDI team since 2001. As Global Line CUO of IDI, he has been instrumental in extending SCOR’s IDI business worldwide with strong positions already established in key developing markets. He has built and led an international team of underwriters to produce a portfolio that has provided a substantial contribution to the company’s overall performance and visibility.
Tucella Fluvia
SCOR’s P&C CEO Jean-Paul Conoscente comments: “Jean Tuccella has decided to retire so it is with a heavy heart that, after all these years of service with SCOR, we bid farewell and wish him a healthy, happy and long retirement. I’m fully confident that Jaume, who has worked for the past eight years with Jean and the team, will continue to develop the IDI line of business of SCOR P&C”.
Committed to a consistent underwriting approach over the past 40 years, SCOR’s dedicated IDI team offers clients a global market vision on both established and emerging markets. IDI protects construction owners against damage caused by defects in design, workmanship, or materials affecting structure, external walls and roofs, and against any consequential damage to non-structural works and equipment. Claims may be raised if the defect was unidentified at the date of practical completion, and if the damage occurs during the 10-year coverage period.