SCOR’s Kessler praises ‘strong Q1 results’ but warns of increased COVID-19 claims

Global reinsurer SCOR delivered "strong results" in the first quarter of 2020 driven by limited nat cat activity and no material impact related to the COVID-19 pandemic, according to  Denis Kessler, company chairman and CEO.

Kessler, however, noted that SCOR may see an "increased level of claims" in its life and P&C businesses and an increased level of asset impairments during the rest of 2020.

Total gross written premiums rose 2.2 percent to €4.2 billion for Q1, versus €3.9 billion in the same quarter in 2019.

The group net income stood at €162 million for the quarter, up 23.7 percent compared with €131 million in Q1 2019, which translates into a return on equity of 10.7 percent and is above the ‘Quantum Leap’ target unveiled last year.

SCOR Global P&C delivered a combined ratio of 94.5 percent in Q1 2020 driven by a limited nat cat activity.

The French reisurer credited its "disciplined growth, strong profitability and robust solvency" for the "strong set of results" in the first quarter, which it highlighted were not materially affected by the pandemic and related economic and financial crisis.

Kessler stated that SCOR Global P&C has received no material claims related to COVID-19 so far, adding that the company has "limited exposure" to lines of business impacted by the economic downturn.

“The Covid-19 pandemic is a shock of historic severity. It has become a multifaceted crisis which is profoundly impacting the lives of billions of people worldwide," said Kessler. "In this context, SCOR has been proactive in taking immediate actions to help stop the spread of the pandemic and to contribute more generally to the wellbeing and resilience of society, for the benefit of all its stakeholders.

"Our top priority has been to actively protect the health and safety of our employees, to continue operating efficiently and supporting our clients through this disruptive period, to share our knowledge on the evolution of the pandemic and to emphasize the importance of preventative and protective actions to help contain the virus. The current crisis is an ordeal for all of us."

Kessler concluded: "The Group is fully mobilized to anticipate, measure and manage the impacts of this major shock, just as it has done for other disasters in the past. We wish each and every one of you the best of health and safety during this very difficult period.”