31st July 2022

The combination of the war in Ukraine, Natural Catastrophe events and the severe drought in Brazil affect SCOR’s profitability in H1 2022

High;ights are:
-Gross written premiums of E9,686m in H1 2022, up 8.3% compared with H1 2021
-Net loss of E-239m in H1 2022, compared with E380m net income in H1 2021
-Shareholders’ equity of E5,581m at the end of June 2022, implying a book value per share of E31.21 down-11.5% from 31st December 2021(E35.26)
-Estimated solvency ratio of 240% at the end of June 2022 (up from 226% at the end of 2021)
Denis Kessler, chairman of SCOR, comments “The recent past has been a stark demonstration that uncertainties and instabilities of all kinds are multiplying: the COVID-19 scourge continues, entropic forces are running riot on the international geopolitical stage, inflation is reaching multi-decade highs, the economy is slowing down, the fear of a global recession is growing, the frequency and severity of natural catastrophes are on the rise–a change that is most likely linked to global warming. In this volatile environment, risk aversion, and the need for protection, will continue to soar. The multiplication of uncertainties and risks demonstrates more than ever the crucial role of the reinsurance industry to act as a cornerstone and guarantor of the resilience of the global economy. I am convinced that SCOR, as a Tier 1 global reinsurer, is perfectly equipped to meet these challenges and pursue its value-creating development, building on its global franchise, its recognized technical expertise, its financial strength, the talent of its teams and its command of new technologies.”
Laurent Rousseau, ceo of SCOR, comments “H1 2022 has been marked by a series of exceptional events both in L&H and in P&C, which have negatively impacted our financial performance. Most notably, a number of events driven by climate change (natural catastrophes, droughts, etc.) have affected the profitability of our P&C business, confirming that our strategy to decrease our exposure to these events is the right one. Despite an accounting loss, SCOR’s solvency position remains stable and robust with a solvency ratio of 240%.
The current changing environment comes with challenges and opportunities and our objectives are unchanged: to reduce earnings volatility, increase profitability, grow the franchise, optimally allocate capital and accelerate the Group’s transformation. We are fully focused on the preparation of the new strategic plan that will be unveiled in November together with our Q3 results. In a stochastic world, we are taking remediation actions proactively, while taking advantage of an environment where demand for protection is increasing, with strong pricing discipline. SCOR is building on its strengths to adapt and seize opportunities arising from the current risk environment.”

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