SCOR makes loss in Q3 due to nat cat hit
French reinsurer SCOR said on Oct. 26 that it posted a net loss of €267 million in the third quarter of 2017 due to the impact of natural catastrophes.
Earlier in October, SCOR had said that hurricanes Harvey, Irma and Maria and earthquakes in Mexico had led to losses of €430 million net of retrocession and tax in the third quarter. Before taxes, the losses were expected at €598 million net of retrocession.
For the first nine months of 2017 the natural catastrophe losses have resulted in a net income of €25 million.
"SCOR once again demonstrates its capacity to absorb shocks,” said Denis Kessler, SCOR CEO.
“The natural catastrophe events that occurred in the third quarter of 2017 are a serious wake-up call for the reinsurance industry and the Group is in a very good position to benefit from the new market environment.”
Reinsurers are expecting rates to rise significantly in the areas affected by the natural catastrophes in North America.
SCOR added that the in-force retrocession programs have responded as expected, bearing witness to the group's efficient capital shield policy. After the nat cat events, SCOR still benefits from most of its retrocession capacities, according to the statement. The likelihood of the contingent capital facility being triggered in 2017 is extremely remote, the company added.
The estimated solvency ratio stands at approximately 213 percent as at Sept. 30, 2017, in the upper half of the optimal range of 185 percent – 220 percent, SCOR said.
The net combined ratio of SCOR Global P&C deteriorated significantly in the third quarter to 136.7 percent after 91.4 percent in the same period a year ago. For the first nine months of the year the net combined ratio was 107.5 percent, up from 93.0 percent in the same period of 2016.
Gross written premiums we up 9.3 percent year on year at constant exchange rates at €11.12 billion in the first nine months of 2017. At current exchange rates, gross written premiums were up 8.9 percent year on year. This growth comes from both Life (+8.7 percent at constant exchange rates) across all product lines, particularly in the Americas and Asia-Pacific, and from P&C (+10.0 percent at constant exchange rates), leveraging on successful January, April and June renewals, SCOR noted. In the third quarter, gross written premiums were up 3.4 percent year on year at € 3.6 billion.
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