Global reinsurer SCOR has reported net income of €380 million for the first-half of 2021 and gross written premiums (GWP) of €8.44 billion, representing growth of more than 9% at constant exchange rates.
Net income of €380 million is a huge improvement from the income of €26 million posted for the same period last year.
In Q2 2020 alone, SCOR booked COVID-19 related losses of €456 million of which €248 million hit the P&C side of the business, and €194 million impacted the life segment.
For H1 2021, SCOR says that the pandemic continues to be proactively managed. On the P&C side, COVID-19 had an impact of €109 million in H1 2021, mainly as a result of property business interruption lines.
At the end of Q1, SCOR said that its COVID-19 impact on the P&C side of the business was stable from the end of 2020, so it seems the reinsurer has added all of its H1 P&C COVID-19 losses in Q2.
On the life side of the business, SCOR says COVID-19 had an impact of €268 million in H1 2021, of which €222 million relates to its U.S. mortality portfolio.
With growth in net income, a lesser impact from the pandemic, and a very strong solvency position of 245%, SCOR notes that the underlying performance of its business remains strong, reflecting the successful recent P&C renewals in 2020 and 2021.
In H1 2021, SCOR Global P&C recorded GWP growth of 14.3% at constant exchange rates as SCOR took advantage of the favourable market environment.
The segment’s combined ratio strengthened from 102.3% in H1 2020 to 97.2% this year, and includes 9.4% of natural catastrophe losses and 3.6% of pandemic-related impacts.
In SCOR Global Life, premiums increased by more than 5% at constant exchange rates when compared with H1 2020, as the segment produced a technical margin of 13.1%, driven by the Covéa retrocession agreements.
On the asset side of the balance sheet, SCOR Global Investments produced a return on invested assets of 2.5% in H1 2021, driven by realised gains of €98 million.
Denis Kessler, Non-Executive Chairman of SCOR, commented: “The agreement reached with Covéa marks an important milestone for the Group. It enables SCOR to rebuild a working relationship with this leading insurer. It unlocks the value of SCOR’s Life reinsurance portfolio, while giving the Group additional degrees of freedom to manage its capital and pursue its development. All the conditions are in place to pursue profitable and solvent growth.”
Laurent Rousseau, Chief Executive Officer (CEO) of SCOR, said: “In the first six months of 2021, SCOR once again demonstrates the strength of its business model and the relevance of its strategy. The Group continues to expand its franchise, in both Life and P&C, and delivers a robust underlying performance despite natural catastrophes, the on-going Covid-19 pandemic and the low-yield environment. SCOR is very well positioned to capture profitable growth opportunities, in particular in the P&C (re)insurance market where pricing and terms & conditions are increasingly attractive.”