Thomas
Fossard
Investor Relations
Body
- Insurance revenue of EUR 3,930 million in Q2 2023, up +4.3%1 compared to Q2 2022
- P&C combined ratio of 88.5% (-24.6 pts compared to Q2 2022)
- L&H insurance service result of EUR 140 million, up +103.7% compared to Q2 2022
- Investments regular income yield of 3.1% (+0.9 pts compared to Q2 2022)
- P&C new business CSM of EUR 271 million and L&H new business CSM2 of EUR 96 million in Q2 2023
- Group net income of EUR 192 million, implying an annualized Return on Equity of 16.9% in Q2 2023 and contributing to a net income of EUR 502 million for the first 6 months of 2023, implying an annualized Return on Equity of 23.2%
- Group Economic Value3 under IFRS 17 of EUR 9,374 million as of 30 June 2023, up 7.8%4 (+8.7%4 on a constant interest and exchange rate basis5) compared with 31 December 2022, implying an Economic Value per share of EUR 52 (vs. EUR 50 as of 31 December 2022)
- Estimated Group solvency ratio of 213%6 as of 30 June 2023, towards the upper end of the optimal solvency range
SCOR SE’s Board of Directors met on 26 July 2023, under the chairmanship of Fabrice Brégier, to approve the Group’s financial statements for the first half of 2023.
Thierry Léger, Chief Executive Officer of SCOR, comments: “The Q2 results are testimony to both the strength of SCOR’s business model and the complementarity of our core activities. Our efforts continue to pay off and I am confident in the Group’s ability to take full advantage of the current market conditions. We are now finalizing the new Strategic Plan, which will be presented on 7 September 2023.”
Group performance and context
SCOR reports a strong performance in Q2 2023 across its three business lines, with strong P&C renewals and an increasing return on invested assets:
- In P&C, market conditions remain favorable for reinsurers, regarding both pricing and terms and conditions. The portfolio actions initiated in 2022 have now been completed and SCOR was able to tackle the June / July renewals with the objective of optimizing value creation and technical returns, recording a +9%7 price increase and a +7% gross premium growth for its renewed portfolio. Q2 2023 was marked by limited natural catastrophe activity and a higher level of man-made activity, notably including the series of riots that started in France at the end of June.
- In L&H reinsurance, the business continues to grow profitably and generates a strong insurance result.
- In Investments, SCOR continues to benefit from high reinvestment rates and reports a strong increase in the regular income yield.
These strong quarterly results add to the already strong Q1 2023 results: over the first half of 2023, SCOR generated EUR 502 million net income, implying an annualized Return on Equity of 23.2%, and grew its Economic Value by 7.8%8.
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Footnotes:
1At constant exchange rates.
2Includes the CSM on new treaties and change in CSM on existing treaties due to new business (i.e. new business on existing contracts).
3Defined as the sum of the shareholders’ equity and the Contractual Service Margin (CSM), net of tax. A notional tax rate of 25% is applied to the CSM to calculate Economic Value.
4Not annualized. Annualized Economic Value growth stands at +16.2% (+18.2% on a constant interest and exchange rate basis and assuming a constant valuation of the option on own shares as at 31 December 2022). The starting point is adjusted for the payment of a EUR 1.40 dividend per share (EUR 254 million in total) for the fiscal year 2022, paid in 2023.
5Assuming a constant valuation of the option on own shares, as at 31 December 2022.
6Solvency ratio estimated after taking into account a EUR 1.80 annual dividend per share, accrued for the first six months of 2023.
7SCOR price change is based on a sample of contracts for which price evolution can be computed per unit of exposure (e.g. notably excludes new contracts, contracts renewing with change in structure, multi-year non-proportional accounts).
8Not annualized. Annualized Economic Value growth stands at +16.2% (+18.2% on a constant interest and exchange rate basis and assuming a constant valuation of the option on own shares as at 31 December). The starting point is adjusted for the payment of a EUR 1.40 dividend per share (EUR 254 million in total) for the fiscal year 2022, paid in 2023.
