SCOR's Channel Syndicate sees return to profit after strategy reboot
Lloyd's Channel Syndicate, part of SCOR’s Specialty Insurance platform, returned to a profit of £9.4 million in 2020, despite the challenges arising from COVID-19 and significant catastrophe activity. The result was driven by profitability across its business lines, with a strong performance from its property portfolio and specialty lines.
Channel said it began to reset its strategy in late 2018 and took corrective actions, such as increasing integration across syndicate and SCOR Specialty Insurance platform, in order to make the business stronger and more robust.
For the financial year 2020, the syndicate reported a combined ratio of 96 percent, a marked improvement on the 113 percent CR seen in 2019. But its gross premium written slightly decreased from £252 million in 2019 to £233 million in 2020. Channel made a profit of £9.4 million last year, compared with a loss of £19 million in the prior year period.
Stuart McMurdo, chief executive of SCOR Specialty Insurance EMEA, said: “Despite difficult market circumstances, we are thrilled that Channel has delivered a healthy profit for 2020. The Channel executive reset the strategy of the business in Q4 of 2018, identifying the need to put returning to profit ahead of all else. Our management and staff have given an incredible effort, along with the support and assistance of SCOR, to make this turnaround strategy a reality.
“Channel and SCOR have worked hard through 2019 and 2020 to secure stronger integration opportunities to build our portfolio. We will continue to look for good growth opportunities going forward.”
Nick Forti, active underwriter and deputy chief underwriting officer of SCOR Specialty Insurance, commented: “This return to profitable growth fits well with our investment in key lines, such as PCR and EIL while more recently building out into Terror, Legal Expense and Specie. As we build the business with SCOR Specialty Insurance we will consider complementary classes, particularly where we can use the broader resources of the SCOR Group to provide business solutions to our clients.”
Laurent Rousseau, deputy CEO of SCOR Global P&C, added: “Channel’s return to profitability was a key objective and we are really pleased at the tremendous effort from the team in delivering on this. Going forward, we will continue to focus on truly differentiating our proposition to our clients and brokers. Channel is core to SCOR, and will continue leveraging the SCOR Group’s strengths, as part of an integrated Specialty Insurance platform.”
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