Global Paris-headquartered reinsurance company SCOR is eager to expand its North America (NA) natural catastrophe (nat cat) portfolio so long as pricing remains adequate, Thierry Léger, Chief Executive Officer, said on the firm’s media call earlier this week.
SCOR delivered a strong performance in the fourth quarter and full year 2025, producing net income of €208 million and $851 million, respectively, with a robust underlying property and casualty (P&C) result.
In 2025, SCOR’s Group gross written premiums (GWP) fell by 6.8% year-on-year, with a retraction in both P&C and the life and health (L&H) reinsurance division.
Regarding the 1.1 2026 renewals, the reinsurer said that it was able to achieve broadly stable terms and conditions including attachment points as it targeted selective growth.
In light of the current softening property market landscape, CEO Léger was questioned on SCOR’s appetite for North America catastrophe risk ahead of the mid-year reinsurance renewals, to which the executive emphasised SCOR’s “pretty stark underweight position”, which is why in the past, including at 1.1 2026, it has been a growth area for the firm.
“While the prices have been declining, the demand has been up. It’s always healthy to be in a more competitive environment, but the demand is still up. So, it does actually help the price adequacy and the price quality. So, we still see nat cat in North America as adequately priced, and if that remains so, we will cautiously try to expand,” said Léger.
The CEO went on to stress that when SCOR looks to expand in any market, it does so with targeted clients where the company has long discussions to ascertain how growth will be achieved.
“So, what we’re not doing, we’re not just putting more capacity into the market, flooding the market with more competitive capacity. We are really trying to have a very targeted discussion with some core clients. And again, if the rate adequacy remains more or less where it is now, we would have a bit more appetite,” he said.
Léger continued: “I just want to make sure that everyone understands we are totally preparing for markets that might become even more competitive, and we are very clear where our hurdle rates are, and when prices fall, in any line of business, below those hurdle rates, we start to take action.
“I’ve been long enough in this industry to learn that in a soft cycle, it’s really first about avoiding mistakes, and secondly, you have to look at those hurdle rates and take action if needed. But, personally, I expect for us, North America cat to be above firm rates on some of the businesses, and I still believe there will be opportunities for us to expand.”
While the question focused on the North America catastrophe space, Léger also offered his thoughts on the US casualty market, which he described as the biggest risk pool in the world for re/insurers, and one which SCOR applies a very cautious approach.
Léger said, “We have now seen market data for the years ’22, ’23, and actually, they show the conservative approach that SCOR applied has proven right. And I have been very clear three years ago, four years ago, I don’t have a crystal ball, but I am not sure we are in a hard market, like many said. So, I’m much more cautious still.”
He continued, “I think that the price increases we see only partially and only sometimes cover loss trends. Definitely, more so on the direct side. On the reinsurance side, given where the commission levels are, I find it overall still not an attractive market.
“And now new retro capacities are being built in that space, alternative retro capacity, and they do not help the price evolution. If at all, they will actually block further price increases. And so, the use of those vehicles will just delay the necessary reaction of the market, but it will happen one day, when people will just be tired of pouring money into this area.”
