French reinsurer SCOR has reported a 1.7% rise in net income to €200 million for the first quarter of 2025 with a solid performance in both its Life & Health (L&H) and Property & Casualty (P&C) segments, despite the impacts of the Los Angeles wildfires.
Group-wide, SCOR has reported Q1’25 insurance revenue of €4.06 billion, a slight decrease on the prior year’s €4.11 billion, as gross written premiums (GWP) increased by almost 1% to €4.9 billion, and the insurance service result rose 27.9% to €324 million.
P&C insurance revenue rose 1.2% year-on-year to €1.86 billion, but was offset by a 3.1% decrease of L&H revenue to €2.2 billion. Similarly, P&C GWP increased 3.4% to €2.5 billion, but was more than offset by a 3.4% decrease in L&H premiums to €2.4 billion.
Within P&C, the combined ratio strengthened by 2.1 percentage points year-on-year to 85% in Q1 2025, and includes a nat cat ratio of 12.5%, mainly impacted by losses from the January California wildfires. The strong combined ratio also reflects an attritional loss and commission ratio of 74.7%, reflecting a very satisfactory underlying performance and continued buffer building, a discount effect of -9.3%, and an attributable expense ratio of 7.8%.
The P&C insurance service result increased to €205 million in Q1’25 compared with €181 million in Q1’24, driven by a CSM amortization of €255 million, a risk adjustment release of €40 million, a negative experience variance of
-€95 million, and an onerous contract impact of €6 million, reports the firm.
In P&C during the quarter, SCOR highlights strong growth in reinsurance from preferred lines, mostly offset by reduced business in US casualty reinsurance and in SCOR Business Solutions.
The new business CSM in Q1’25 increased 9% year-on-year to €710 million, supported by growth from business renewed at the January 1st renewals.
During the April reinsurance renewals, SCOR notes that it continued to grow strategically in its preferred lines, “maintaining its underwriting discipline in a softening market context.”
SCOR reveals that EGPI increased by 1.5% on the business up for renewal in April, with significant growth of the
Alternative Solutions book (EGPI +33%) as Specialty Lines increased by 3.8%, driven by Marine. SCOR also took steps to further reduce its US casualty exposure. It’s worth highlighting that just 12% of SCOR’s total P&C reinsurance premiums renewed in April 2025.
“In a more competitive environment for the April renewals, net technical profitability on the renewed business is expected to deteriorate by 1 point. On a year-to-date basis, the net technical profitability is expected to deteriorate by less than 0.5 point. SCOR is successfully weathering a softening market thanks to its strategy of growing in a profitable and diversified way.
“For the upcoming renewals in 2025, SCOR expects pricing to be competitive on loss-free programs. Nevertheless, the overall profitability of SCOR’s business mix should remain very attractive,” says the firm.
Turning to SCOR’s L&H business, the insurance service result increased 64.9% year-on-year to €118 million in Q1’25. The L&H new business CSM decreased 32.5% to €76 million, which SCOR says reflects the updated L&H new business strategy and the implementation of higher return thresholds.
As of March 31st, 2025, SCOR’s total invested assets totalled €24.3 billion, which is 6% higher than at the end of March 2024. SCOR explains that it benefits from an elevated regular income yield of 3.5% in Q1’25 along with continued attractive reinvestment rates.
“I am satisfied with the first quarter results. All business activities contribute to a strong consolidated Group net income. The P&C performance continues to be excellent with a combined ratio of 85%, after absorbing elevated Nat Cat events during the quarter and allowing for an additional level of prudence building. L&H improves its insurance service results with a neutral experience variance. In Investments, SCOR benefits from an elevated return on invested assets. Overall, we are starting the year with a high ROE of 18.7% and an improved solvency ratio of 212%, supported by positive net operating capital generation,” said Thierry Léger, Chief Executive Officer of SCOR.
