SCOR grows 7% at mid-year renewals, sees margin boost in renewed book

Global reinsurance group  SCOR grew by 7% at the mid-year treaty renewals on the back of a 9% rate gain, helping to put a major contraction at 1/1 in the rear-view mirror, but is still sporting a decline in the old-school measure of P&C GWP for Q2 and the first half.

SCOR claimed a 9% average rate increase at the June/July renewals for comparable contract renewals, up from 7% at April when it had grown its book by 5%. January’s 9% rate gain had gone up against a major pullback that saw the total renewals down 12%.

“The growth was particularly strong in Latin America & Middle East as well as in Europe & Canada, where the increase in gross premium10 exceeds +14%,” management said.

SCOR cited “significant improvement of the expected technical profitability at the 2023 P&C renewals year to date.” On the portfolio renewed at June/July, the net underwriting ratio is expected to improve by 2.5 to 3 points, SCOR said.

But by the cut-off date for the H1 profit and loss statement, SCOR had a 3.7% year on year decline in gross written premium. H1 GWP is down a milder 3.4% year on year.

Translated to the IFRS17 margin-inclusive top line measure of ‘insurance revenues,’ SCOR could claim 7.9% annual growth at constant FX, including on €271 million in new business packed into the portfolio.

Revenues earned through from growth in 2022 continue to more than offset lower written premium in Q1 2023 following the 2023 January renewals, SCOR said to explain the discord between the IFRS4 and IFRS17 read.

SCOR cut its P&C combined ratio to 88.5% in Q2 from 113.1% in the prior year period. That pulled the H1 reading up slightly towards 86.9%, within a fraction of the 87% mark called the assumption for 2023.

Amongst “some challenges” facing P&C earnings, SCOR cited a “high level” of man-made activity including from French riots and “additional prudence” put into the group reserves.

Nat cats put only 4.2 percentage points into loss ratios, chiefly from Italian floods and US convective storms.

Following a doubling of insurance service results in life and health to €140 million and a 2.5x increase in investment income, SCOR swung to an attributable net gain of €192 million versus its €240 million prior year period loss.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.