COVID-19 dents SCOR’s profits in first nine months

French reinsurer SCOR has enjoyed some growth in the third quarter and first nine months of the year. But its profitability has been dented by COVID-19 and a number of catastrophes.

The reinsurer’s gross written premiums reached €12.2 billion in the first nine months of 2020, a 2.3 percent increase on the same period the year before. The reinsurer’s net income was €135 million for same period, Q3 2020 YTD, a 66 percent decrease on 2019 when it posted a profit of €401 million.

Its Global P&C gross written premiums increased by 2.9 in the period. Its technical profitability has impacted by COVID-19 and a series of natural catastrophes with a net combined ratio of 100.7 percent in Q3 year to date.

SCOR’s Global Life gross written premiums increased by 1.9 percent while the unit posted a technical margin of 5.8 percent in Q3 2020 YTD, including the impact of the COVID-19 pandemic.

The reinsurer’s estimated cost of the COVID-19 pandemic booked in Q3 2020 YTD is now €256 million (net of retrocession, reinstatement premiums and before tax) on the P&C side and €251 million (net of retrocession and before tax) on the Life side, of which €233 million relates to claims from the US mortality portfolio and €18 million for claims received in all other markets.

Denis Kessler, chairman & chief executive, said: “SCOR continues to demonstrate the relevance of its strategy and the resilience of its business model in the first 9 months of 2020. The Group continues to expand its franchise and delivers positive results despite major shocks the industry has had to face since the beginning of the year, which include the Covid-19 pandemic as well as a series of natural catastrophes and very large scale man-made events.

“The Group continues to enjoy a very strong capital position, which has been recently recognized by all four major rating agencies - A.M. Best, Fitch, Moody’s and Standard & Poor’s - confirming SCOR’s AA- financial strength credit rating. Leveraging its optimal solvency position and its Tier 1 franchise, the Group enters the renewal season in a very strong position to reap the benefits of the hardening pricing environment and the improvement of terms and conditions in the P&C market.”