In spite of hurricanes Harvey, Irma, and Maria, global French reinsurer, SCOR, remains on track to meet its “Vision in Action” targets, and the company doesn’t expect to experience any financial ratings impact.
The impacts of hurricanes Harvey and Irma is expected to be an earnings event for the global reinsurer, rather than a capital event, during the third-quarter of 2017.
The third-quarter of this year has experienced a high level of severe natural catastrophe events, leading a number of insurers and reinsurers to issue profit warnings and announce increased catastrophe losses.
SCOR remains confident that in spite of recent events, which includes the impacts of hurricane Maria, it will continue to pursue its “Vision in Action” targets.
Currently, says SCOR, its Group’s solvency position is strong and falls within its optimal solvency range. At the same time, SCOR’s dividend policy remains unchanged, and the firm is to maintain its share buyback program.
“The impact of hurricane Maria is currently under assessment, but is not expected to change these perspectives,” explains SCOR.
SCOR explains that its capital shield strategy is expected to protect the Group, which boasts ample capacity and no breach of the upper limits. Furthermore, it will remain effective to protect SCOR throughout 2017.
The insurer and reinsurer also states that it is extremely unlikely its Contingent Capital facility will be triggered in 2017.
Chief Executive Officer (CEO) of SCOR Global P&C, Victor Peignet, commented; “SCOR is supportive of all those who have suffered as a result of these hurricanes. The associated economic disruption and protection gap raise important sustainability issues and challenges to societies throughout the world. SCOR is actively engaged in all actions to bridge the protection gap, to the benefit of all populations exposed to natural catastrophe.”
