SCOR SE’s board of directors has approved the group’s financial results for Q3 2024, showing a net loss of €117 million.
This performance was driven by a negative insurance service result (ISR) in life and health (L&H) reinsurance, partly offset by strong performance in property and casualty (P&C) reinsurance and investments.
For P&C reinsurance, the combined ratio for Q3 2024 stood at 88.3%, including a natural catastrophe claims ratio of 13.2%. The first nine months of 2024 saw a natural catastrophe ratio of 10.1%, in line with the company’s budget.
The attritional loss and commission ratio was 76.5% for the quarter, reflecting steady underlying performance and allowing for continued reserve management.
In L&H reinsurance, the insurance service result was negative €210 million in Q3 2024, impacted by the completion of an L&H assumption review, contributing to a €163 million loss, and a one-off adjustment of €128 million related to arbitration positions. Excluding these one-off items, the L&H insurance service result for Q3 2024 would stand at €81 million.
SCOR’s investments segment reported gains from higher reinvestment rates in Q3 2024, achieving a regular income yield of 3.5%, up from the prior year’s Q3 yield of 3.4%.
The group’s annualized return on equity was -10.2% for Q3 2024. Over the first nine months, the group's economic value decreased by 7.0% at constant economics, impacted by the L&H assumption review. The company recorded a net loss of €229 million for the first nine months, translating to an annualized return on equity of -6.7%.
SCOR’s solvency ratio was estimated at 203% at the end of Q3 2024, within its targeted range of 185%-220%. This ratio compares with 209% at year-end 2023 and 201% as of 30 June 2024. SCOR continues to accrue a portion of the fiscal year dividend in line with its approach.
Under IFRS 17, the group’s economic value stood at €8.4 billion at the end of Q3 2024, a 7.0% decline at constant economics since 31 December 2023, largely due to the impact of the L&H assumption review with a post-tax reduction of €1.1 billion. As a result, SCOR has indicated that its annual economic value growth target of 9% may not be achieved for 2024.
CEO Thierry Léger (pictured) commented on the completion of the 2024 L&H assumption review, noting that the outcome aligns with expectations from the first half of the year.
“The very comprehensive review allows us to draw a line and move forward with confidence. The underlying L&H performance shows a positive trend, and we have made significant progress in the implementation of our 3-step L&H remedial strategy which will be presented in full at our Investor Day on December 12, 2024, in London.
Despite the results, Léger noted the strength of SCOR’s P&C operations, citing favorable market conditions expected to continue into 2025. The company also continues to benefit from elevated reinvestment rates in its investment portfolio, supporting a regular income yield aligned with long-term targets.
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