SCOR’s profit dips despite growth

Global reinsurance firm SCOR has posted a slight decrease in its net income for the first quarter of 2016 – down to €170 million ($192.2 million), compared with €175 million at the same time last year.  Despite this fall, the firm’s gross written premiums (GWP) grew to €3.3 billion in the first quarter of the year, compared to €3.1 billion in the first quarter of 2015. This included a 10.5 percent increase in its SCOR Global Life business, partially offset by a 1.6 percent decrease in GWP in the firm’s property and casualty (P&C) business.   SCOR’s return on invested assets was down to 3.3 percent however in Q1 2016, compared with 3.5 percent at the same time period in 2015 and its combined ratio grew to 89.7 percent, compared with 89.1 percent in the first quarter of 2015.  Denis Kessler, chairman and chief executive officer of SCOR, remained extremely positive about the results.  He said: "In the first quarter of 2016, SCOR continues to post excellent results, along the same lines as those recorded by the Group in 2015, benefiting from the full deployment of the initiatives launched under the 'Optimal Dynamics' plan SCOR's footprint continues to expand in the first quarter, and both the life and P&C divisions deliver strong technical profitability.  “SCOR Global Investments records a strong return on invested assets, demonstrating its capacity to actively manage the asset portfolio while remaining prudent in the current volatile environment. The reinsurance industry is facing economic, social and political uncertainties in 2016 in an increasingly competitive environment.” Kessler concluded: “Our teams are taking this fully into account in the preparation of the Group's new strategic plan, which is due to be unveiled in September. Using our know-how, experience and expertise, SCOR is getting ready to meet the challenges of the future".