An increase in the frequency and severity of extremely hot and dry events has been experienced over the past few decades. This has been witnessed both in North and South America, and particularly in Brazil, mostly due to climate change.

An industry that is among the most impacted is agriculture. The need for sustainable agriculture to provide sufficient resources to people is one of the biggest challenges for our society, where insurers and reinsurers have a key role to play. SCOR is active in agricultural insurance, working hand in hand with governments. SCOR has a leading position in Brazilian agriculture.

As mentioned in the Group’s Q1 2022 disclosure, SCOR was affected by the consequences of the severe drought on the harvest in the southern part of Brazil. The impact on SCOR’s net technical results should be just below EUR 200m for the half year 2022, and this is the Group’s best estimate of the full cost of the event.