SCOR records 1st quarter 2009 net income of EUR 93 million, strong 15% volume growth and shareholders’ equity reaches EUR 3.6 billion
SCOR's first quarter of 2009 results.
SCOR generates solid results for the first three months of 2009, demonstrating the strength of its business model and solidity of its balance sheet despite the deepening financial crisis and high natural catastrophe costs in the quarter. The key events of the quarter are as follows:
- Net income for the first three months stands at EUR 93 million, with return on equity (ROE) of 11.1% and earnings per share (EPS) of EUR 0.52;
- Gross written premiums reach EUR 1,561 million, representing a strong increase of 15.4% against the same period in 2008;
- SCOR Global P&C reports a combined ratio of 99.4%, with natural catastrophe claims accounting for 9.2 percentage points, mainly relating to storm Klaus. Strong April renewals with prices up 4.1% (vs. 3.3% at 1 January) demonstrate SCOR’s capacity to benefit from improving reinsurance market conditions;
- SCOR Global Life delivers an operating margin of 4.5% (or 6.4% excluding net investment losses), demonstrating the resilience of the Life reinsurance business in the current economic environment. The 2008 European Embedded Value of EUR 1.7 billion is 4% higher than in 2007, demonstrating long-term value creation capacity;
- SCOR Global Investments continues to apply a very prudent asset management strategy, with liquidity reaching EUR 4.6 billion, representing 24% of the total investment portfolio;
- Shareholders’ equity increases by EUR 185 million to EUR 3,601 million; book value per share stands at EUR 20.07, up by 5.6%;
- The application of unchanged accounting rules leads to the recognition in the P&L of EUR 156 million in asset impairments and write-downs, with a limited impact on book value;
- The successful turnaround of SCOR Global P&C’s US operations leads to the reactivation of EUR 100 million in deferred tax assets;
- The Group provided liquidity to its hybrid issue (TSSDI EUR 350 million), resulting in the acquisition of own debt of EUR 70 million at an average price of 40.5%.
Denis Kessler, Chairman and Chief Executive Officer of SCOR, comments: “The first quarter 2009 demonstrates SCOR’s very solid and proven strategy, as the Group has been able to consistently create shareholder value during the financial market crisis. In a deteriorating economic and financial environment we will keep SCOR in a state of ‘full alert’, encompassing conservative asset management along with a strong focus on cash management and especially on traditional, well diversified reinsurance underwriting. The successful April renewals demonstrate that SCOR’s fully mobilized underwriting teams are capable of seizing attractive business opportunities in an upward trending reinsurance industry.”
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