SCOR bullish on P&C rate hardening as it absorbs COVID-19 shock

French reinsurer SCOR Denis Kessler is bullish on the property/casualty (P&C) market outlook with "faster than expected profitable growth prospect" as COVID-19 drives higher demand and solid pricing dynamics. The company said that it is "very positive" on the new and supportive P&C reinsurance market conditions as it absorbs the impact of the COVID-19 crisis. SCOR Global P&C expects to deliver stronger growth than expected for 2021, translating to an estimated gross written premium growth of +11 percent at constant exchange rates, and its combined ratio trending down to 95 percent and below. On the life side, the company expects strong growth from the Asia Pacific region. The carrier is anticipating COVID-19 and the persisting low yield environment to act as additional catalysts to...

...an already hardening market on the P&C side. It believes that COVID-19 is contributing to creating conditions for stronger growth with positive pricing dynamics by driving higher demand for risk covers globally.

The reinsurer said that it is well positioned to take advantage of the current market environment, supported by a "strong balance sheet, with superior credit ratings and an optimal solvency."

Kessler, chairman and chief executive officer of SCOR, said: “With the COVID-19 pandemic, SCOR has once again demonstrated its capacity to absorb major shocks combined with the resilience of its business model. Regarding the assessment of our exposure to the COVID-19 pandemic that we provided at the end of July 2020, on the P&C side, claims are developing as expected. On the Life side, at this stage, claims experience is emerging better than expected.

"In addition, the pandemic has also exacerbated society’s growing aversion to risk, creating the conditions to drive stronger growth for the reinsurance industry.

"SCOR is uniquely positioned to benefit from the hardening of the pricing environment and improved terms and conditions. SCOR is well on track with the execution of its strategic plan 'Quantum Leap' with a faster than expected profitable growth prospect on the P&C side, and reaffirms its strategy based on consistency and transformation to enhance value creation.”