SCOR reported a net income of €233 million for the fourth quarter of 2024, with all business segments contributing to the result. The adjusted net income for the quarter stood at €235 million.
The property and casualty (P&C) division recorded a combined ratio of 83.1% for the quarter. The result reflects a natural catastrophe ratio of 6.4%, below the full-year natural catastrophe ratio of 9.4%, which came in under the 10% budgeted level.
The attritional loss and commission ratio reached 75.9% in the fourth quarter, which the company said reflects continued reserving discipline and solid underlying performance.
Following the year-end reserve review, SCOR said that all P&C lines are at best estimate and that reserve resilience has strengthened.
The life and health (L&H) segment reported an insurance service result of €119 million in the fourth quarter. The result reflects CSM amortization and risk adjustment release, which was partially offset by adverse experience variance from the US.
The result also represents a major rebound for the SCOR unit. In Q2 2024, SCOR reported a net loss of €308 million, primarily due to a €509 million charge following a review of L&H reserves. This led to an insurance service result of -€329 million for the L&H segment in the quarter.
In response to the underperformance, SCOR announced the departure of Frieder Knüpling, CEO of SCOR L&H, in July 2024. CEO Thierry Léger (pictured above) temporarily assumed leadership of the L&H division to oversee its strategic realignment.
“In L&H, we took decisive actions to restore profitability,” Léger said.
SCOR’s investment portfolio delivered a regular income yield of 3.6% in the fourth quarter, supported by high reinvestment rates. The group’s effective tax rate for the quarter stood at 8%, driven mainly by the release of deferred tax asset provisions booked in the second and third quarters.
The annualized return on equity for the fourth quarter was 22.8%, or 23% on an adjusted basis. For full-year 2024, SCOR reported net income of €4 million, or €11 million adjusted, with an annualized return on equity of 0.1%, or 0.2% adjusted.
The company attributed the result primarily to the impact of the 2024 L&H assumption review, which resulted in a pre-tax reduction of €700 million in the insurance service result and €900 million in the contractual service margin.
Group economic value at year-end 2024 stood at €8.6 billion, representing a decrease of 6.3% at constant economics. Adjusted for one-off impacts, Economic value increased by 9.8% at constant economics. Economic value per share declined to €48, down from €51 at the end of 2023.
SCOR’s solvency ratio at year-end 2024 stood at 210%, placing it within the upper range of the company’s target range of 185% to 220%. The solvency ratio fully reflects the impact of the L&H assumption review.
SCOR’s board has proposed a regular dividend of €1.8 per share for 2024.
What are your thoughts on this story? Please feel free to share your comments below.
