Stockwatch: Scor surges 9% on Q1 turnaround
Scor's combined ratio improved 12.6 points to 82.5% to beat analyst expectations
Paris-based reinsurer's stock leads European rivals in 2023, as RenRe tumbles 10% and SiriusPoint stutters
Shares in beleaguered French giant Scor leaped 9.3% in the week to Wednesday, May 17, as the firm posted hugely improved first-quarter results.
Scor’s profit jumped from €31m ($33.4m) to €207m and its combined ratio improved 12.6 points to 82.5% to beat analyst expectations, giving investors hope the reinsurer is turning a corner after a chaotic 2022. The company is now the top performer of Insurance Day’s selected Europe stocks this year, having risen 9.3%.
Meanwhile, Bermuda’s RenRe went the other way, sinking 10%. Despite being one of the best-performing Bermuda reinsurance stocks in 2022 and seeing profits soar in the first quarter, RenRe is only up 2.9% for the year-to-date against a Bermudian average of +17.8%.
Bermuda’s SiriusPoint remains the top performer of 2023 among Insurance Day’s selected stocks at +56.4% for the year so far. However, its run came to a halt this week as the firm ended talks with key shareholder and hedge fund veteran Daniel Loeb about a takeover.
This means Lancashire Holdings (+4%) is now not far behind at +55.2%, having continued its strong performance on the back of record first-quarter profits.
Lloyd’s rival Beazley (+3.3%), also had a good week as it reported solid growth in its first-quarter trading statement. After a chastening start to 2023, Berenberg rates Beazley’s stock as the best pick in the London market. It was on Wednesday down 11.5% for the year-to-date.
It was a poor week for Bermudians, with Arch Capital (-5.4%), Everest Re (-4.3%) and SiriusPoint (-4.7%) all seeing falls.
In Europe, Talanx (+4.5%) did well as the European sub-group (+1.2%) beat the Stoxx Europe 600 (+0.1%).