SCOR profits halve in 2017 while business expands

French reinsurer SCOR has seen its net profit halve in 2017 compared to 2016 as it absorbs significant nat cat losses while at the same time expanding the business.

Group net income fell to €286 million in 2017 from €603 million in 2016. The net combined ratio in the Global P&C unit deteriorated to 103.7 percent from 93.1 percent over the period.

The combined ratio deterioration includes 14.9 points from natural catastrophes; 1.7 points on fourth quarter 2017 losses from wildfires in California (net impact of € 91 million), and 11.3 pts on the Harvey, Irma, Maria hurricanes and Mexican earthquakes (with a total net of retrocession pre-tax impact at year end marginally reduced from third quarter 2017 at €591 million).

"2017 was marked by an exceptional series of major natural catastrophes,” said SCOR CEO Denis Kessler (picture left).

“SCOR successfully passed this real-life stress test, once again demonstrating the resilience of its business model and its shock-absorbing capacity. This confirms the relevance of our strategy based on a controlled risk appetite, an optimized risk composition, a balanced business model between Life and P&C reinsurance, and a robust capital shield through retrocession and ILS,” Kessler added.

Overall, the group grew gross written premiums 8.6 percent year on year at constant exchange rates to €14.79 billion in 2017.

SCOR Global P&C grew gross written premiums 6.9 percent year on year to €6.03 billion in 2017.

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