SOLVENCY RELIEF TRANSACTIONS Solvency relief transactions are designed to manage our clients’ solvency ratios, helping them to optimize their regulatory capital requirement or financial strength rating. By engaging in detailed discussions with brokers and clients, the AS team has been able to provide tailored solutions that address specific financial challenges faced by each client. Structured reinsurance solutions can address concerns like optimizing capital allocation to subsidiaries, enhancing capital fungibility, facilitating flow of dividends, recognition of de-risked portfolios, contingent reinsurance, or optimization of diversification benefits. As an example, in 2024 a client came to SCOR to address their needs arising from their ORSA (Own Risk and Solvency Assessment) report, a key component of Solvency II regulations. This type of conversation involves going beyond current knowledge and the limits we usually set for ourselves. It leads to the implementation of tailormade solutions, which must take into consideration the accounting standards the client is using (such as Solvency II or IFRS 17) and ensure long-term benefits. SCOR’s ability to engage in detailed CFO-type discussions with brokers and clients to manage balance sheets and P&L beyond just risktransfer is a significant differentiator in building custom solutions like these. BESPOKE SOLUTIONS FOR CAPTIVES Captives are in-house (re)insurance entities owned by industrial and commercial companies, allowing them to better manage their own risks. These entities are particularly beneficial for companies that face challenges in obtaining adequate insurance coverage from the traditional market or that are looking to mutualize their risk retentions, such as deductibles, across their operating entities. PIONEERING GROWTH IN ALTERNATIVE SOLUTIONS A decade of expertise and excellence The Alternative Solutions (AS) practice has been a cornerstone of SCOR P&C’s strategy since its launch ten years ago. In 2024, the AS team achieved remarkable growth, with premiums exceeding EUR 1 billion and significant expansion across key global locations, speaking to the important role they play in offering tailored solutions to meet clients’ capital management needs. In 2024, solvency relief transactions continued to be a main area of focus on the reinsurance side. While in SCOR Business Solutions, in light of new regulations for (re)insurance captives, the team has deployed a wider range of solutions to support various initiatives. 64 ACTIVITY REPORT 2024
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