SCOR posts solid 2014 results despite tough market conditions

Despite its CEO highlighting just how tough the market remains, SCOR posted an impressive set of results for 2014 with its profits increasing by 40 percent and its gross written premiums by more than 10 percent – largely boosted by the first full year contribution of Generali US.

SCOR made a 2014 net profit of €512 million, a slight drop on the €549 it made in 2013 but, if an exceptional gain on purchase of €183 million linked to Generali US in 2013 is excluded, it represents a 40 percent increase compared with 2013, the company stressed.

Its gross written premiums hit €11.3 million, up 10.4 percent compared with 2013. It said the growth was driven by the Generali US contribution following its acquisition by the group in October 2013, and by the growth of both SCOR Global Life in Asia and Financial Solutions & Longevity, and SCOR Global P&C.

The GWP of SCOR Global P&C increased by 2.7 percent at constant exchange rates to €4.9 million; the GWP of SCOR Global Life reached €6.3 million, up by 5.5 percent.

“The group delivers high quality results in 2014. It has continued to grow and expand its franchise,” said Denis Kessler, chief executive of SCOR.

“The technical profitability of SCOR Global P&C – which delivers a combined ratio of 91.4 percent – and that of SCOR Global Life – which records a technical margin of 7.1 percent – are highly satisfactory. Despite the weakness of interest rates, SCOR Global Investments records a return on assets of 2.9 percent.

“SCOR once again delivers solid profitability, and achieves a solvency level in line with its strategic targets. Having invested in new underwriting and risk modelling tools, the SCOR group has prepared for the new prudential regime, Solvency II, which will come into force on 1 January 2016. It is confident in its ability to meet the challenges of a difficult financial environment, a heightened competitive situation and a demanding new prudential regime.”