SCOR delivers a strong performance in H1 2017 with a net income of EUR 292 million and launches a share buy-back program
Half-Year 2017 Results
- Excellent profitable growth on gross written premiums of 10.1% at constant exchange rates compared to the same period in 2016 (+11.7% at current exchange rates), coming from both divisions: Life (+9.7% at constant exchange rates) across all product lines, particularly in the Americas and Asia-Pacific, and P&C (+10.6% at constant exchange rates), leveraging on successful January, April and June renewals;
- Strong technical results, as demonstrated by the strong 7.1% Life technical margin, the robust 93.5% P&C net combined ratio and the 2.7% return on invested assets;
- Net income of EUR 292 million recorded in H1 2017, up 6.2% compared to H1 2016, with an annualized return on equity of 9.1%, outperforming the “Vision in Action” profitability target of 800 bps above the 5-year risk-free rate over the cycle1. Excluding the Ogden rate and reserve release impacts fully accounted for in the first quarter of 2017, the net income would stand at EUR 350 million (+27.3% compared to H1 2016) and the ROE at 10.9%, demonstrating the strong core earnings of the Group;
- Robust estimated solvency ratio of 226% at 30 June 2017, marginally above the optimal range of 185% - 220% as defined in the “Vision in Action” plan;
- Share buy-back program to commence on 27 July 2017, for an amount of up to EUR 200 million over the next 24 months2.
Denis Kessler, Chairman & Chief Executive Officer of SCOR, comments: “SCOR delivers strong results in the first six months of 2017, outperforming both its profitability and solvency targets from the “Vision in Action” plan. At the same time, the Group continues to expand its footprint in targeted territories and business lines. In addition, by launching this share buy-back program, the Group reaffirms its confidence in the strength of its underlying fundamentals, excellent ratings and optimal debt leverage.”
1 Based on a 5-year rolling average of 5-year risk-free rates.
2 Please refer to Press Release No. 18 published on 27 July 2017 at www.scor.com.
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