SCOR swings to loss in Q2, profits fall 91% in H1 due to COVID-19 hit
SCOR, the world's fourth largest reinsurer, swung to a €136 million loss in the second quarter of 2020 due to the impact of COVID-19 pandemic, despite underlining its "capacity to absorb major shocks and the resilience of its business model".
The French reinsurer reported a net loss of €136 million in Q2 2020, compared with a profit of €155 million a year earlier. For H1 2020, the group's net income stood at €26 million, representing a 90.9 percent decline from €286 million in H1 2019.
The total estimated cost of the COVID-19 pandemic booked in Q2 reached €456 million, including €248 million on the property and casualty (P&C) side, €194 million in the life segment, and €14 million on the investment side.
Gross written premiums totalled €8.19 billion in H1 2020 and €4.04 billion in Q2 2020, compared with €8.01 billion in H1 2019 and €4.02 billion in Q2 2019.
In H1 2020, SCOR’s Global P&C unit saw a combined ratio of 102.3 percent.
Denis Kessler, chairman and chief executive officer of SCOR, said: “In the face of the COVID-19 pandemic, SCOR has once again demonstrated both its capacity to absorb major shocks and the resilience of its business model.
"With its AA- credit rating, which matches that of other Tier 1 reinsurers and has been recently confirmed by Moody’s, Standard & Poor’s and Fitch, the Group is in a very strong position to benefit from the hardening of the pricing environment and improved terms and conditions in the P&C market."
Kessler added: "SCOR continues to execute its strategic plan 'Quantum Leap' combining growth, profitability and solvency, with no change in risk appetite, capital shield policy or capital management policy.”
SCOR stated that it considers the pandemic to be a "fully manageable earnings event for the Group, impacting its annual results without eroding its capital position".