SCOR's board of directors has approved of the company's financial statements for the second quarter.
The group reported a net loss of €308 million, with an adjusted figure of €283 million, largely due to negative performance in life and health (L&H) reinsurance, partially offset by strong results in property and casualty (P&C) reinsurance and investments.
As a result, the global re/insurer announced that Frieder Knüpling (pictured above), CEO of SCOR L&H since 2021, will be leaving the group to pursue new opportunities. Until further notice, CEO Thierry Léger will assume the management of the L&H division.
In the P&C segment, the combined ratio for Q2 2024 was 86.9%, including a 9.9% natural catastrophe claims ratio amid several mid-sized events. The first half of 2024 saw a natural catastrophe ratio of 8.6%, below budget expectations. The attritional loss and commission ratio was 77.6%, indicating stable performance and disciplined reserving.
L&H reinsurance recorded an insurance service result of -€329 million in Q2, influenced mainly by a negative impact of -€509 million from the 2024 L&H assumption review, offset partially by €143 million from portfolio actions. The expected L&H insurance service result for 2024 is anticipated to be significantly less than the previously indicated €500 million.
SCOR's investments yielded a regular income of 3.6% in Q2, an increase of 0.5 percentage points from Q2 2023. The group's annualized return on equity was -23.7% (-21.9% adjusted), impacted by the L&H assumption review, which accounted for -€0.5 billion in insurance service result and -€1.0 billion in contractual service margin (CSM).
The first half of 2024 concluded with a net loss of €112 million, with an adjusted net loss of €107 million, and an annualized return on equity of -4.7%.
SCOR's solvency ratio was estimated at 201% at the end of Q2 2024, within the optimal range of 185%-220%, compared to 209% at the end of 2023. This ratio was supported by strong capital generation from P&C and investments but was adversely affected by the L&H assumption review, which resulted in a 20-point reduction.
Under IFRS 17, the group economic value stood at €8.4 billion as of Q2 2024, a decrease of 5.2%, or 7.3% at constant economics, largely due to the L&H assumption review's €1.0 billion post-tax negative impact. As a result, the group's target for economic value growth of 9% per annum is unlikely to be met for the full year 2024.
Léger said that he was “disappointed” with the L&H results for the first half of the year and outlined plans to address the division’s performance.
“We have launched an ambitious 3-step plan resulting in a series of determined actions aiming at restoring the profitability of the L&H business in a sustainable way. The still ongoing 2024 L&H assumption review, which will be completed by year-end, has led to a significant negative impact on our results in Q2 2024. We will present full details of an updated L&H business strategy and Forward 2026 assumptions and targets on December 12, 2024,” Léger said.
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