Scor P&C cuts COR 12.6 points as underlying performance improves
The reinsurer booked a combined ratio of 82.5%, some 12.6 points better than the first quarter of 2022
Paris-based carrier books a 'high-quality' first-quarter performance in its property and casualty business as profits surge to €207m
Scor reported a better-than-expected result in its property and casualty (P&C) business for the first quarter of the year.
The Paris-based reinsurer’s P&C insurance services result climbed to €207m ($225.7m) in the quarter from €31m a year earlier, under new IFRS 17 accounting rules. This was 7.8% ahead of analysts’ consensus expectations.
Scor booked a combined ratio of 82.5%, some 12.6 points better than the first quarter of 2022, and 1.8 points more favourable than analysts expected.
Catastrophe losses added 9.9 points to the combined ratio, which was within budget, meaning the “underlying [combined ratio] beat to consensus is of relatively high quality,” analysts at Jefferies said.
P&C gross written premiums were down 3.1% to €2.45bn in the first quarter on the back of lower volumes written at the January 1 renewals.
The weight of specialty insurance within Scor's P&C’s business mix “continues to grow”, the company said.
Scor recorded a 7% average rate increase for its renewed P&C portfolio on April 1, 2023, which the company said should lead to a “significant improvement” in technical profitability.
The company added the favourable market conditions are expected to remain in place at the June and July 2023 renewals.
Scor chairman, Denis Kessler, said the first-quarter results were “excellent”, adding: “The group is taking full advantage of the current favourable environment.”
The company’s new chief executive, Thierry Léger, is currently preparing a three-year strategic plans, which will be presented at the annual general meeting on May 25.
