Key highlights
- The third quarter of 2017 is marked by an exceptional series of large natural catastrophes, with hurricanes Harvey, Irma and Maria and earthquakes in Mexico leading to a cost of EUR 430 million net of retrocession and tax for the third quarter (EUR 598 million net of retrocession and pre-tax), as announced on 9 October 2017. Consequently, SCOR registers a net loss of EUR 267 million in the third quarter of 2017 and a net income of EUR 25 million for the first nine months of 2017.
- The estimated solvency ratio stands at approximately 213% as at 30 September 2017, in the upper half of the optimal range of 185% - 220% as defined in the “Vision in Action” plan. This validates SCOR’s strategy and business model, which is notably based on underwriting discipline, a controlled risk appetite, balanced development between Life and P&C reinsurance, significant geographic and business line diversifications, a robust capital shield policy and prudent asset management. This strategy demonstrates once again the Group’s ability to absorb major shocks.
- The in-force retrocession programs have responded as expected, bearing witness to the Group’s efficient capital shield policy. After these events, SCOR still benefits from most of its retrocession capacities. The likelihood of the Contingent Capital facility being triggered in 2017 is extremely remote.
- SCOR confirms the “Vision in Action” targets. At this stage, the Group is pursuing its dividend policy and its share buyback program, which expires mid-2019, as planned.
- SCOR continues to execute its strategic plan “Vision in Action”, achieving strong gross written premium growth of 9.3% at constant exchange rates in the first nine months of 2017, compared to the same period in 2016 (+8.9% at current exchange rates). This profitable growth comes from both divisions: Life (+8.7% at constant exchange rates) across all product lines, particularly in the Americas and Asia-Pacific, and P&C (+10.0% at constant exchange rates), leveraging on successful January, April and June renewals, notably in the US
Denis Kessler, Chairman & Chief Executive Officer of SCOR, comments : « SCOR once again demonstrates its capacity to absorb shocks. The natural catastrophe events that occurred in the third quarter of 2017 are a serious wake-up call for the reinsurance industry and the Group is in a very good position to benefit from the new market environment. SCOR’s teams will ensure smooth and swift claims payment, while continuing to stand alongside SCOR’s clients to support and assist them with future risks. SCOR confirms the consistency of its strategy and continues to execute its strategic plan “Vision in Action” combining growth, profitability and solvency, with no change in risk appetite, underwriting policy, capital shield policy or capital management policy.»
