22 February 2017Insurance

Life drives growth in 2016 results for SCOR

Profits dipped at SCOR in 2016 in what was an otherwise solid set of results for the French reinsurer, which continued to grow largely thanks to contributions from its Global Life unit while its Global P&C business also expanded its footprint in the US.

The company made a net profit of €603 million in 2016, a 6.1 percent decline on the €642 million it made a year earlier. Its combined ratio increased slightly to 93.1 percent compared with 91.1 percent the year before. The technical margin posted by its life business also declined to 7 percent from 7.2 percent a year earlier.

The company's gross written premiums (GWP) increased by 3 percent to €13.8 billion in 2016. Within this, its Global P&C business's GWP shrunk by 1.5 percent at current exchange rates but grew by 1.2 percent at constant exchange rates. Its Global Life unit grew by 6.4 percent to reach €8.1 billion at current exchange rates and was up 8.3 percent at constant exchange rates.

The company said the P&C side benefited from a strong fourth quarter in which it grew by 2.8 percent at constant exchange rates and the "progressive strengthening of its positions in the US, which is fully consistent with its 'Vision in Action' strategic plan."

Its Global Life unit benefited from what SCOR called a continued new business flow across all product lines in EMEA and the Americas; the expansion of its franchise in Asia-Pacific; and the successful execution of new longevity deals.

Denis Kessler, chairman and chief executive of SCOR, said: "In 2016, SCOR delivers a strong set of results, in line with the profitability and solvency targets of its new plan 'Vision in Action'.

"SCOR has also enhanced its franchise, notably with the expansion of its Life footprint in Asia and the gain of additional market shares on the P&C side in the United States. In the meantime, the Group is pursuing innovative initiatives and developing new tools to improve its underwriting and management. SCOR is well on track to reach its strategic targets for 'Vision in Action'."

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