SCOR taking ‘proactive actions’ to improve performance as nat cat hits results

Global reinsurer  SCOR has said it is taking a number of “proactive actions” to improve its performance and re-balance its exposure towards property/casualty business after its first nine months 2021 results were heavily impacted by a series of large natural catastrophes.

SCOR’s results were negatively impacted by nat cat losses of €708 million, net of retrocession and pre-tax, in particular driven by European floods and Hurricane Ida.

Overall, the company generated a net profit of €339 million in the first nine months of 2021, up 151.1 percent compared with the first nine months of 2020.

The reinsurer’s gross written premiums  rose 10.1 percent to €13.05 billion during the period.

In SCOR Global P&C, gross written premiums were up 16.7 percent at constant exchange rates as the reinsurer benefited from a strong market environment both in both reinsurance and insurance markets.

The P&C net combined ratio for the first nine months came in at 102.7 percent, including 14.8 percent of natural catastrophes and 2.3 percent of Covid-19 related claims.

SCOR’s chief executive officer Laurent Rousseau (pictured) praised the company’s ability to absorb the shocks, and revealed a €200 million share buyback programme starting October 28 to deploy capital and create long-term value for its shareholders.

Rousseau further noted that the company is looking to seize profitable growth opportunities in the continuously hardening P&C market, and re-balance its exposure towards P&C business, while shifting its portfolio mix away from natural catastrophes business volatility, and leveraging retrocession to protect earnings.

Additionally, SCOR is actively pursuing diversification of its investment portfolio and deploying its excess liquidity into corporate bond.

Rousseau commented: “ SCOR absorbs shocks and continues to manage growth, improve profitability and reduce earnings volatility. In this context, SCOR deploys its capital proactively to create long term value to its shareholders.

“The share buy-back program that we are announcing today is a demonstration of the confidence we have in our solvency position and our ability to continue to grow profitably. In the wake of its capital management actions, SCOR retains its robust capital shield in a market environment that remains volatile, and where financial strength is a key differentiator.

“ SCOR is poised to reap the benefits of its strong franchise, and to seize the attractive long-term growth opportunities emerging from the rapidly changing risk environment.”

Denis Kessler, chairman of SCOR, added: “Given the recent lift of the regulatory constraints against capital distribution, the Board of Directors has decided to launch a €200 million share buy-back program, considering on the one hand the very strong solvency position of the Group after taking account of the level of capital required by the company to pursue its profitable growth in 2022, and on the other the high net asset value per share, which makes such an operation highly beneficial to SCOR shareholders. Furthermore, the Board has reaffirmed the attractive dividend policy actively pursued by the Group over the past few years.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.