STRENGTHENING SOLVENCY THROUGH INVESTMENTS In 2024, one of the Investment team’s key accomplishments was the strategic adjustment of the investment portfolio, extending the average duration of the portfolio from three to almost four years. The decision to increase the investment duration was driven by several strategic considerations. In particular, this approach allows our teams to better align the assets with SCOR’s updated long-term liabilities, thereby improving the Group’s overall solvency and sensitivity to various economic indicators. With this reinforced financial stability, the Group is better positioned to uphold our promise to protect people and societies. Extending the duration when interest rates were relatively high, the team was able to lock in higher yields for a longer period. THE ROAD AHEAD Looking ahead, the investment team is poised to build on their 2024 successes with a more refined approach to solvency and leveraging the implementation of IFRS 17. In addition to these refinements, the team is also focused on anticipating and mitigating various risks that could impact the Group’s financial health. For example, geopolitical risks, changes in the international landscape, or increasing governmental deficits can have implications for the investment portfolio. Similarly, the impact of tariffs and trade barriers on global markets is another area of concern. By proactively identifying and addressing these risks, the team can better navigate the complexities of the investment environment. The forward-looking strategy emphasizes a comprehensive risk management approach, ensuring that the investment portfolio remains resilient in the face of potential challenges. . BUILDING A SOUND FINANCIAL FUTURE SCOR’s Investment teams are driving growth and resilience SCOR’s Investment teams play a crucial role in managing and optimizing the premiums collected from our reinsurance activities. Their primary responsibility is to ensure that these premiums are invested wisely to maintain the liquidity needed to pay claims as they arise, while generating returns, thereby contributing to the overall financial health of the organization. This approach is a common practice among reinsurers, as it allows them to make the premiums work harder and yield additional income. In 2024, SCOR underwent a Group-wide restructuring to enhance efficiency and promote further collaboration among different areas of the business. As a result, the Group Investment Office is now part of a wider Group Treasury team, which is also in charge of the Asset Liability Management (ALM). This new organization enables the whole team to work more closely with each other and with other departments within the Group. 88 ACTIVITY REPORT 2024
RkJQdWJsaXNoZXIy NTkwMzk=