SCOR has announced its strategic priorities and financial targets for 2025-2026, confirming its commitment to achieving an annual economic value growth rate of 9% and maintaining a solvency ratio within the optimal range of 185%-220%.
The reinsurer also reaffirmed its assumption of a return on equity (ROE) above 12% for the period, underlining its aim to balance growth, profitability, and sustainability.
The company disclosed these updates during its 2024 Investor Day in London, where it also presented its revised Life and Health (L&H) strategy and Forward 2026 plan. The updates were approved by SCOR’s Board of Directors on December 11, 2024.
CEO Thierry Léger (pictured above) emphasized SCOR’s dedication to enhancing economic value while leveraging its Tier 1 franchise and advancing sustainability efforts.
“Since the start of Forward 2026, SCOR has made significant progress in fulfilling its ambition: we have simplified the organization and fostered a new culture for faster decision-making processes; we have reserves at adequate levels, as confirmed by external reviews, with some buffers; and we have accelerated the L&H business transformation. With a clear roadmap and dedicated effort, we are on track to deliver significant value to our shareholders, clients, employees, and society as a whole,” he said.
SCOR’s Forward 2026 plan focuses on equally weighted financial and solvency targets. The group aims for a 9% annual economic value growth rate at constant economic conditions and a solvency ratio within the 185%-220% range, supporting its goal of maintaining a AA-level security rating.
The reinsurer reiterated its disciplined underwriting approach and commitment to seizing growth opportunities in life and health (L&H) and property and casualty (P&C) markets.
SCOR has outlined specific strategies for its P&C and L&H segments. In P&C, the company plans to leverage its Tier 1 franchise and capitalize on favorable market conditions by expanding into targeted lines to build a balanced and resilient portfolio. The company’s P&C net combined ratio target remains below 87%.
In L&H, SCOR will focus on enhancing new business margins, shifting its business mix, and strengthening in-force management. SCOR projects annual insurance service results and new business Contractual Service Margin (CSM) of approximately €0.4 billion each for L&H.
The company’s investment strategy remains unchanged, with a focus on prudent and sustainable investments. SCOR expects its regular income yield to be between 3.4% and 3.8% by 2026.
Milliman assessed SCOR’s life and health reserves, including the present value of future cash flows (PVFCF), risk adjustment (RA), and contractual service margin (CSM), concluding that the valuation was reliable and within a reasonable range.
SCOR also highlighted its ambition to create value for shareholders, clients, employees, and society through disciplined risk management and sustainable practices. Forward 2026 reflects SCOR’s focus on using innovative risk solutions to address societal challenges while contributing to resilience and sustainable development.
The company plans to continue leveraging data analytics and refined capital allocation strategies to support its objectives. SCOR’s reaffirmed targets and strategies reflect its commitment to maintaining its market position while adapting to evolving risks and opportunities.
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