Q1 2017 Highlights
- Excellent profitable growth of +12.1% at constant exchange rates compared to the same period in 2016 (+13.9% at current exchange rates) coming from both divisions: Life (+12.0% at constant exchange rates) across all product lines, particularly in the Americas and Asia-Pacific, and P&C (+12.3% at constant exchange rates), leveraging on successful January and April renewals;
- Strong technical results, as demonstrated by the strong 7.2% Life technical margin, the robust 94.5% P&C combined ratio and the 2.6% return on invested assets;
- Absorption of the external shock of EUR 116 million pre-tax caused by the UK Ministry of Justice’s recent decision to reduce the discount rate used to calculate lump sum awards in UK bodily injury cases (the Ogden Rate), thanks to the low level of natural catastrophes in Q1 and reserve releases of EUR 45 million pre-tax;
- Net income of EUR 140 million recorded in Q1 2017 with a return on equity of 8.6%. Excluding the Ogden rate and reserve release impacts, the net income would stand at EUR 197 million (+15.9% compared to Q1 2016) and the ROE would stand at 12.2%, demonstrating the strong core earnings of the Group;
- Robust estimated solvency ratio of 224% at 31 March 2017, above the optimal range of 185% - 220% as defined in the “Vision in Action” plan. SCOR reaffirms its ambition for share buybacks, as disclosed in the full-year 2016 results1.
Denis Kessler, Chairman & Chief Executive Officer of SCOR, comments: “In the first quarter of 2017, our teams have continued to implement successfully the strategic plan “Vision in Action”. SCOR’s core earnings level bears witness to the quality of the Group’s technical fundamentals. At the same time, the Group is gaining market shares in targeted territories and business lines, as demonstrated by the successful P&C January and April renewals and the strong expansion of the Life footprint.”