SCOR records net income of EUR 438 million for the first nine months of 2016, confirming the strength of its business
First nine months 2016 results.
- Gross written premiums reach EUR 10,216 million at the end of the first nine months of 2016, up 4.4% at constant exchange rates compared to the first nine months of 2015 (+2.2% at current exchange rates), with:
- a strong contribution from SCOR Global Life, with gross written premiums reaching EUR 5,982 million over the period (+7.8% at constant exchange rates and +6.1% at current exchange rates);
- stable SCOR Global P&C gross written premiums at constant exchange rates (-0.1% at constant exchange rates, -2.8% at current exchange rates), standing at EUR 4,234 million in the first nine months of 2016.
- SCOR Global P&C records strong technical profitability in the first nine months of 2016 with a net combined ratio of 93.0%.
- SCOR Global Life records a robust technical margin of 7.1% in the first nine months of 2016.
- SCOR Global Investments achieves a solid return on invested assets of 2.9% in the first nine months of 2016, while implementing the normalization of the asset management policy.
- Group net income reaches EUR 438 million in the first nine months of 2016, down 11.0% compared to the first nine months of 2015 due to a higher number of natural catastrophes and a challenging macroeconomic environment. The annualized return on equity (ROE) stands at 9.3% in the first nine months of 2016, or 855 basis points above the risk-free rate1.
- The business model delivers a robust operating cash flow of EUR 1.3 billion as at 30 September 2016, compared to EUR 558 million for the same period in 2015. This results from the generation of strong recurring cash flows in 2016 and two exceptional items: SCOR Global P&C received a non-recurring fund withheld payment of around EUR 300 million, and SCOR Global Life benefitted from a timing difference in claims payments, which is expected to normalize by the end of 2016.
- Shareholders’ equity stands at EUR 6,436 million at 30 September 2016, compared to EUR 6,363 million at 31 December 2015 after the payment of EUR 278 million of dividends for the year 2015. This translates into a book value per share of EUR 34.65 at 30 September 2016.
- SCOR’s financial leverage stands at 25.1% at 30 September 2016.
- SCOR’s estimated solvency ratio at 30 September 2016 stands at 212%, within the optimal solvency range of 185%-220% as defined in the “Vision in Action” plan.
1 Based on a 5-year rolling average of 5-year risk-free rates over the cycle, according to the new methodology disclosed with the “Vision in Action” strategic plan.
2 See the press release distributed on 7 September 2016.
3 See the press release distributed on 23 September 2016.
4 SCOR is rated AA- by Standard & Poor’s and Fitch, and Aa3 by Moody’s with a stable outlook. SCOR is rated A by AM Best, with a positive outlook.
5 See the press release distributed on 6 October 2016.
6 See the press release distributed on 17 October 2016.