SCOR benefits from below average nat cat losses in H1
Below average natural catastrophe losses at 2.3 percent of premium has helped SCOR to deliver an improved underwriting performance in the first half of 2018.
The net combined ratio in the first six months was 91.4 percent compared to 93.5 percent in the same period a year ago.
SCOR Global P&C gross written premiums were up 4.9 percent year on year at €3.03 billion at constant exchange rates, driven by the US market. At current exchange rates, however, they fell 3 percent year on year.
Overall, gross written premium stagnated at €7.54 billion in the first six months at current exchange rates after €7.52 in the same period of 2017.
Net income fell 10.3 percent year on year to €262 million, which includes a €62 million impact from the US tax reform.
"SCOR delivers strong results in the first six months of 2018, outperforming both its profitability and solvency targets,” said SCOR CEO Denis Kessler. “The group continues to deliver disciplined and profitable growth, with both the life and P&C divisions expanding their footprints in targeted territories and business lines and delivering robust technical profitability,” Kessler added.
At the June-July renewals, SCOR Global P&C grew its book with renewed premiums up 7.8 percent year to date on “moderately” improved pricing conditions. SCOR observed year-to-date price improvement of 2.9 percent, and June-July pricing was up 2.3 percent.
The June-July renewal represents approximately 10 percent of SCOR Global P&C's book, roughly 95 percent of which is now renewed for 2018.
Renewed premiums in June-July are up by 22.7 percent at €605 million at constant exchange rates. This growth was partially driven by winning increased shares in US treaty and credit & surety reinsurance, the company explained. SCOR Global P&C continues to be underweight on Florida specialist accounts, where pricing has been particularly weak for several consecutive years and did not materially improve following the 2017 hurricane season.
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