SCOR Q1 income plunges amid COVID and nat cat hits

In Q1 2021,  SCOR’s financial results have been significantly impacted by the unique combination of known and modelled COVID-19 claims development and a series of large natural catastrophes, driven by a polar vortex causing Texas Winter Storm Uri.

SCOR said COVID-19 claims are manageable, developing as expected and tracking closely in line with what was previously communicated. In Q1 2021, COVID-19 impact stands on the life side at €162 million, of which €145 million comes from the US mortality portfolio, and overall has been stable on the P&C side since December 31, 2020.

SCOR records a net income of €45 million in Q1 2021, down 72.2 percent on the 2020 Q1 figure of €162 million. Group gross written premiums were €4.12 billion in Q1 2021, up 5.6 percent at constant exchange rates compared with Q1 2020 (down -0.8 percent at current exchange rates). The figure for Q1 2020 was €4.16 billion.

Denis Kessler, chairman and chief executive officer of SCOR, said: “More than a year into the COVID-19 crisis, with its deep human, economic and financial impact, SCOR once again demonstrates the strength of its business model and the relevance of its strategy. SCOR relies on its expertise in risk and epidemiological modelling capabilities to predict and monitor the Covid-19 development and to estimate its foreseeable impacts on the Group.

“As expected, SCOR’s Q1 2021 results are significantly impacted by COVID-19, in particular on the life side. In addition, on the P&C side, SCOR had to face in Q1 2021 a series of natural catastrophes driven by a polar vortex causing Winter Storm Uri in Texas, a remote tail risk event in this region of the United States. The probability of a polar vortex and a pandemic occurring in the same quarter is extremely low but is nonetheless one of the extreme scenarios within our risk appetite.

“On the investment side, SCOR was able to successfully seize opportunities in the fixed income market on the back of a reflation dynamic to crystallize value. SCOR is profitable in Q1 2021, delivers a very high level of liquidity and records a solvency level above its optimal range. As demonstrated by the successful January and April renewals, SCOR is very well positioned to benefit from improvements in pricing and terms and conditions in particular on the P&C re/insurance market which should continue.”

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