Following the negative experience variance in the first quarter of 2024, SCOR has decided to accelerate the annual L&H reserving assumptions review, and to include a best estimate view in the Q2 2024 results. Consequently:

• The Q2 2024 L&H insurance service result (ISR) is expected at c. EUR -0.4 billion, driven notably by updates on reserves, and continued negative experience variance, partly offset by the positive effect of portfolio actions. Final assumption updates in H2 2024 could potentially lead to additional negative adjustments to the L&H ISR of up to EUR -0.1 billion by year-end 2024. As a result, the L&H ISR in 2024 is expected to be significantly less than the EUR 500 million indicated during the Q1 2024 results presentation.
• The Q2 2024 pre-tax L&H contractual service margin (CSM) at current yield curves¹ is adjusted by c. EUR -0.9 billion², driven mainly by reserving assumption changes in anticipation of the year-end review. Final updates in H2 2024 could potentially lead to additional negative adjustments to the pre-tax CSM at current yield curves¹ of up to EUR -0.4 billion by year-end 2024.
• The Q2 2024 Group Economic Value (EV) is expected at c. EUR 8.3 - 8.5 billion or at c. EUR 46 - EUR 47 per share. As a result, the Group EV growth target of 9% per annum at constant economics is unlikely to be met in FY 2024.
• All these adjustments have no impact on the Group liquidity position at year-end 2024.
• The Group Solvency II ratio is expected to be above 200% at Q2 2024, considering the above-mentioned impacts. SCOR actively manages its solvency position and remains confident that it will maintain the solvency ratio in the optimal range of 185%-220% at year-end 2024. SCOR’s capital management framework, including the dividend policy, is unchanged.
• These adjustments aim to strengthen the robustness of cash flow projections and reduce the risk of future earnings volatility.
• Q2 2024 results will be published on 30 July 2024. Further details will be provided at the Q3 results on 14 November 2024, and a detailed presentation of the L&H business strategy and the update of the Forward 2026 plan will be presented on 12 December 2024.
• All the figures above are provided net of retrocession.

Thierry Léger, Chief Executive Officer of SCOR, comments: “Today’s communication is consistent with SCOR’s proactive and transparent communication policy. Following the accelerated L&H reserving assumptions review, we have decided to launch the first of a series of determined actions aimed at restoring the profitability of our L&H business in a sustainable way. We will update the Forward 2026 plan to improve the margins and mix of our products with a strong focus on diversification. The new L&H business strategy and the Forward 2026 KPIs will be presented on 12 December 2024. Our P&C and Investment activities continue to deliver a very strong performance. We have full confidence in our L&H franchise and in our ability to produce higher quality and more stable results going forward”.

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Footnotes:

¹ CSM is booked at locked-in yield curves, with the difference to current yield curves (as of 30 June, 2024) recorded in OCI

² Currently estimated at EUR -1.1 billion at locked-in yield curves