SCOR CEO praises its ‘capacity to absorb shocks’ as profits soar in 2019

Global reinsurer SCOR has reported an increase in group income for 2019, along with a steady combined ratio and a modest increase in gross written premiums. Its chairman and CEO praised the company’s ability to absorb the shocks caused by high levels of natural catastrophes and man-made claims.

The company posted a net profit of €422 million for 2019, up 31.1 percent compared to 2018 when it made a profit of €322 million.

SCOR’s gross written premiums totalled €16.3 billion in 2019, up 4.1 percent at constant exchange rates compared with 2018. It enjoyed strong growth in its global P&C business, GWP in this segment increasing by €1 billion or more than 12 percent to reach €7.1 billion compared with the year before. Its P&C combined ratio was 99 percent, compared with 99.4 percent in 2018.

In contrast, its life book contracted. This segment posted GWP of €9.1 billion, slightly down 1.8 percent at constant exchange rates compared to 2018. The renewal of certain Financial Solutions transactions as fee business (rather than premium business) in 2019 has mechanically reduced the gross written premiums growth, with no impact on profitability, the company said.

Denis Kessler, chairman and chief executive officer of SCOR, said: “In 2019, the third consecutive year marked by a high level of natural catastrophes and man-made claims, as well as the persistence of a low interest rate environment, SCOR demonstrates once again its capacity to absorb shocks. The group continues its development and its strong value creation, recording sustainable growth, an increase in profitability, and further strengthening of solvency. Our shareholder return is attractive with a proposed dividend of €1.80 for 2019 subject to the approval of the Annual General Assembly. SCOR as an independent global tier one reinsurance company is fully mobilised to reach the targets of its Quantum Leap strategic plan.”