SCOR enjoys solid growth; posts record results

SCOR’s acquisition of Generali US last year combined its rapidly growing status as a truly global and highly rated reinsurer – at a time when many big cedants are rationalising their reinsurance panels – helped the reinsurer post a record profit in 2013 while also enjoying substantial growth.

The French reinsurer made a net profit of €549 million in 2013, a 31 percent increase compared with 2012. Its return on equity for the year was 11.5 percent and its combined ratio was 93.9 percent compared with 94.1 percent the year before.

Its gross written premiums for the year hit €10.2 billion, a 7.8 percent increase on the year before. The company said this was driven by substantial new contracts signed by SCOR Global Life and the contribution of Generali US combined with a healthy renewal of its global property/casualty book.

Broken down, its global life business grew to €5.4 billion, up by 14.5 percent at constant exchange rates, with the Generali US acquisition contributing 4.5 percentage points and strong underlying growth of 10.2 percent.

Its global property/casualty book posted gross written premiums of €4.8 billion, an 8.3 percent growth at constant exchange rates.

The company noted that the final quarter of 2013 was a very active one for the business. It included the closing and integration of the Generali US business, the signing of an innovative longevity transaction, and the renewal and improvement of its contingent capital facility.

It said these developments, combined with its high levels of profitability and solvency, also led to rating agency Standard & Poor’s awarding a positive outlook to the group’s A+ rating.

It also noted that so far in 2014 the company has already launched its first sidecar facility and enjoyed a strong performance in the January renewals.

“Dynamic is the word that best describes the group throughout 2013, in all our business areas,” said Denis Kessler, chairman and chief executive of SCOR. “Thanks to the implementation of major projects, to successful organic as well as external growth, to a disciplined and innovative solvency policy and to the strengthening of our presence on the international market, SCOR has improved its positioning, its image and its reputation as a major reinsurance player.

“This positioning was reinforced by S&P awarding a positive outlook to our A+ rating. A record level of net earnings and strong ROE, while respecting a strong solvency position, are also a gratifying reflection of our efforts. Finally, 2013 was marked by the conclusion of the Group’s fourth strategic plan, Strong Momentum, for which all of the objectives were achieved, and by the launch of our new three-year plan, Optimal Dynamics. SCOR is well positioned for the current financial environment and reinsurance market developments.”