06Nov20

Press Release

Group

SCOR delivers solid results in the first nine months of 2020

First Nine Months 2020 results

PUBLISHED AT 7:30 AM CEST

 

SCOR continues to demonstrate its ability to absorb shocks, delivering positive results in the first nine months of 2020. On the P&C side, there has been no material change in the claims assessment of the Group’s exposure to the Covid-19 pandemic since the H1 2020 results presentation on July 23, 2020. On the Life side, Covid-19 claims received by the Group are emerging better than expected for the U.S. reinsured portfolio.

 

  • Gross written premiums total EUR 12,283 million in Q3 2020 YTD, up 2.3% at constant exchange rates compared with Q3 2019 YTD (up 1.9% at current exchange rates).
  • SCOR Global P&C gross written premiums are up 2.9% at constant exchange rates compared with Q3 2019 YTD (up 1.9% at current exchange rates). SCOR Global P&C’s Q3 2020 YTD technical profitability is impacted by Covid-19 and a series of natural catastrophes with a net combined ratio of 100.7%.
  • SCOR Global Life gross written premiums are up 1.9% at constant exchange rates compared with Q3 2019 YTD (up 1.9% at current exchange rates). SCOR Global Life records a technical margin of 5.8% in Q3 2020 YTD, including the impact of the Covid-19 pandemic.
  • SCOR Global Investments delivers a return on invested assets of 2.6% in Q3 2020 YTD
  • The Group cost ratio, which stands at 4.4% of gross written premiums, is better than the “Quantum Leap” assumption of ~5.0%.
  • The Group net income stands at EUR 135 million for Q3 2020 YTD. The annualized return on equity (ROE) stands at 2.9%, 235 bps above the risk-free rate[1]. The normalized[2] return on equity stands at 10.6%, 1 004 bps above the risk-free rate[3].
  • The Group generates high cash flows with operating cash flows standing at EUR 661 million in Q3 2020 YTD. The Group’s total liquidity is very strong, standing at EUR 2.4 billion at September 30, 2020.
  • The Group shareholders’ equity stands at EUR 6,249 million at September 30, 2020, down by EUR 125 million compared with December 31, 2019 mainly due to the weakening of the USD. This results in a strong book value per share of EUR 33.51, compared to EUR 34.06 at December 31, 2019.
  • The Group financial leverage stands at 29.0% on September 30, 2020, +2.6% points compared to December 31, 2019. Allowing for the subordinated debt[4] called on October 20, 2020, the adjusted financial leverage ratio stands at 28.0%.
  • The estimated Group solvency ratio stands at 215% on September 30, 2020, in the upper part of the optimal solvency range of 185% - 220% defined in “Quantum Leap”. The increase compared to June 30, 2020 when it stood at 205%, is mainly related to strong operating capital generation in the third quarter of 2020 and the successful placement of a Tier 2 subordinated note in the amount of EUR 300 million[5].

Denis Kessler, Chairman & Chief Executive Officer of SCOR, comments: “SCOR continues to demonstrate the relevance of its strategy and the resilience of its business model in the first 9 months of 2020. The Group continues to expand its franchise and delivers positive results despite major shocks the industry has had to face since the beginning of the year, which include the Covid-19 pandemic as well as a series of natural catastrophes and very large scale man-made events. The Group continues to enjoy a very strong capital position, which has been recently recognized by all four major rating agencies - A.M. Best, Fitch, Moody’s and Standard & Poor’s - confirming SCOR’s AA- financial strength credit rating. Leveraging its optimal solvency position and its Tier 1 franchise, the Group enters the renewal season in a very strong position to reap the benefits of the hardening pricing environment and the improvement of terms and conditions in the P&C market.”




[1] Based on a 5-year rolling average of 5-year risk-free rates (54 bps in the third quarter of 2020)

[2] Normalized for natural catastrophes (7% budget cat ratio) and the cost of Covid-19 (excluding equity impairments)

[3] Based on a 5-year rolling average of 5-year risk-free rates (54 bps in the third quarter of 2020)

[4] CHF 125 million undated subordinated note lines, issued on October 20, 2014, and called in October 2020

[5] Press release of September 10, 2020

 

Contact

Media Relations

Media

+33 (0)1 58 44 76 62

media@scor.com

Investor Relations

Olivier Armengaud

+33 1 58 44 86 12

oarmengaud@scor.com