French reinsurer SCOR has confirmed its core targets over 2025-2026, maintaining a return on equity (ROE) assumption above 12% for the period, while its Group reserve adequacy has been confirmed by external independent reviewers.
SCOR presented its new Life & Health (L&H) strategy and updated Forward 2026 strategic plan at its 2024 Investor Day in London, both of which were approved by its Board of Directors at the December 11th meeting.
The core Group financial and solvency targets have been reconfirmed for 2025-2026, including Economic Value growth rate of 9% p.a., a solvency ratio in the optimal 185% to 220% range, and an ROE assumption of more than 12% p.a. over the period.
Importantly, SCOR has confirmed today that both property & casualty (P&C) and L&H reserve adequacy have been externally confirmed allowing the reinsurer “to move forward from a position of strength.”
Global broker WTW’s review covered 100% of SCOR’s Global P&C reserves, and the firm concluded that, “The redundancy has increased from that in our prior review as at 30 September 2023.”
This year, SCOR conducted its L&H internal assumption review, and following this, for the first time, the reinsurer appointed Milliman to form an opinion of the gross of retrocession Present Value of Future Cash Flows, Risk Adjustment, and also Contractual Service Margin for the L&H segment of as of 30th September, 2024. Milliman found that, “in aggregate at the Group level the valuation of the PVFCF, RA and CSM gross of retrocession is materially reliable and in a range of reasonableness.”
SCOR has also confirmed its P&C strategy for 2025-2026, stating that it aims to make the most of hard market conditions to grow in selected, attractive lines in order to build a balanced and resilient book. The P&C net combined ratio assumption of <87% is unchanged.
In L&H, SCOR says that it’s acting decisively to deliver profit in the segment, increase new business margins, accelerate business mix shift, and strengthen in-force management. The firm has confirmed assumptions of L&H insurance service results of ~€0.4 billion p.a. and new business CSM of ~€0.4 billion p.a.
The investment strategy remains unchanged, with investment regular income yield assumption of 3.4% to 3.8% in 2026.
Thierry Léger, Chief Executive Officer of SCOR, commented: “We are committed to creating significant value over 2025-2026 and shaping the reinsurer of tomorrow. Our updated strategic plan, Forward 2026, reaffirms our ambition to enhance economic value through strategic initiatives in P&C and L&H, while maintaining sustainability at the core of our ‘raison d’être’. We are leveraging our Tier 1 franchise, refining our capital allocation, and adopting advanced data analytics to ensure a profitable and resilient future.
“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.”
