French reinsurer SCOR has reported an improved Q2 P&C combined ratio of 88.5%, down from 113.1% in the same quarter last year, while net income generated was up at €192 million.
The net income figure implied an annualised ROE of 16.9% in Q2 2023, and contributed to a net income of €502 million for the first 6 months of 2023, implying an annualised ROE of 23.2%.
Meanwhile, SCOR attributed the combined ratio improvement to a low Nat Cat ratio of 4.2% of net insurance revenue, below the 10% budget announced on 12 April 2023, and an attritional loss and commission ratio of 78.7%, mainly impacted by a high level of man-made activity including claims on French riots, and by additional prudence brought to selected P&C reserves.
the French reinsurers’ total insurance revenue in Q2 2023 was €3,930 million, up +4.3%1 compared to the same quarter last year. Gross written premiums for the quarter are down only marginally at €4,830 million.
SCOR’s P&C insurance revenue in Q2 2023 stood at €1,869 million, up +7.9% at constant exchange rates (up +4.5% at current exchange rates) compared to Q2 2022.
According to the firm, there has been a strong increase in insurance revenue for Specialty insurance (+18.0% at constant exchange rates), which now represents 33% of P&C overall insurance revenue.
New business CSM in Q2 2023 was €271 million, benefiting from strong pricing at the April and June 2023 renewals.
Elsewhere, L&H insurance revenue in Q2 was €2,061 million, up +1.2% at constant exchange rates (down -1.1% at current exchange rates) compared to the same quarter last year.
“This notably reflects the significant decrease in expected claims related to the Covid-19 pandemic between Q2 2022 and Q2 2023,” SCOR explained.
The firm asserted it continues to build its L&H CSM through new business generation, mostly from Protection (€96 million new business CSM2 in Q2 2023).
Finally, total investment income on invested assets stood at €162 million in Q2 2023.
The return on invested assets stood at 3.0% (vs. 2.9% in Q1 2023 QTD) and the regular income yield at 3.1% (vs. 2.8% in Q1 2023 QTD).
Thierry Léger, Chief Executive Officer of SCOR, commented, “The Q2 results are testimony to both the strength of SCOR’s business model and the complementarity of our core activities.
“Our efforts continue to pay off and I am confident in the Group’s ability to take full advantage of the current market conditions.
“We are now finalizing the new Strategic Plan, which will be presented on 7 September 2023.”
