SCOR SE’s Board of Directors met on July 27, 2021, under the chairmanship of Denis Kessler, to approve the Group’s H1 2021 financial statements. 

The key highlights are:

In H1 2021, SCOR records a strong growth with gross premiums up 9.1%², strong profitability with a net income of EUR 380 million and a very strong solvency position of 245%, demonstrating its ability to create value and its resilience.

The underlying performance of the business continues to be strong, reflecting the successful recent P&C renewals in 2020 and 2021, on the back of a disciplined (re)insurance market environment, with attractive growth prospects. 

In H1 2021, the consequences of the Covid-19 pandemic continue to be proactively managed. The impact of Covid-19 on the Life side stands at EUR 268 million³, of which EUR 222 million comes from the U.S. mortality portfolio. In P&C, the impact stands at EUR 109 million⁴ in H1 2021, stemming mainly from Property Business Interruption lines. 

The conclusion of the settlement agreement with Covéa⁵ demonstrates the value of SCOR’s in-force Life book and provides strong optionality – with a strengthened solvency position and EUR 860 million⁶ of cash to be reinvested – enabling greater flexibility to fuel growth. 

• Gross written premiums of EUR 8,441 million in H1 2021, are up 9.1% at constant exchange rates compared with H1 2020 (up 3.0% at current exchange rates).
• SCOR Global P&C gross written premiums are up 14.3% at constant exchange rates compared with H1 2020 (up 7.1% at current exchange rates), benefiting from a strong market environment. The net combined ratio stands at 97.2%, including 9.4% of natural catastrophes and 3.6% of Covid-19 related claims. Normalized for natural catastrophes and excluding Covid-19, the net combined ratio stands at an excellent 91.2%, materially outperforming the “Quantum Leap” assumption.
• SCOR Global Life gross written premiums are up 5.2% at constant exchange rates compared with H1 2020 (down 0.1% at current exchange rates). SCOR Global Life delivers a technical margin of 13.1% driven by the Covéa retrocession agreements demonstrating the value of the Group’s Life business, and the reduced impact of Covid-19 mortality.
• SCOR Global Investments delivers a return on invested assets of 2.5% in H1 2021 driven notably by EUR 98 million of realized gains.
• The Group cost ratio, which stands at 4.4% of gross written premiums, is more favorable than the “Quantum Leap” assumption of ~5.0%. 
• The Group net income stands at EUR 380 million in H1 2021. The annualized return on equity (ROE) stands at 12.2%, 1,177 bps above the risk-free rate⁷.
• The Group generates high operating cash flows of EUR 531 million in H1 2021. The Group’s total liquidity is very strong, standing at EUR 3.5 billion at June 30, 2021.
• The Group shareholders’ equity stands at EUR 6,338 million as at June 30, 2021, following the payment of a dividend of EUR 335 million distributed on July 6, 2021. This results in a book value per share of EUR 33.96, compared to EUR 33.01 as at December 31, 2020.
• The Group financial leverage stands at 28.0% as at June 30, 2021, lower by 0.5% points compared to December 31, 2020. 
• The estimated Group solvency ratio stands at 245% on June 30, 2021. This very strong solvency, above the optimal solvency range of 185% - 220% as defined in the “Quantum Leap” strategic plan, was driven by +27% points positive impact as of January 1, 2021 from the retrocession agreement with Covéa. The solvency ratio’s sensitivity to interest rate changes is reduced by the retrocession agreement. The positive impact from operating capital generation and market movements, was partially offset by model changes and Covid-19 impacts.

Denis Kessler, Non-Executive Chairman of SCOR, comments: “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 of SCOR, comments: “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.”

^{1   Based on a 5-year rolling average of 5-year risk-free rates (44 bps in H1 2021)
2  At constant exchange rates
3  Net of reduced flu claims in the U.S., net of retrocession and before tax, including IBNR
4  Net of retrocession and reinstatement premiums, and before tax
5  Please refer to the press releases from June 10, 2021 and July 1, 2021
6  Of which EUR 840 million received on July 1, 2021
7  Based on a 5-year rolling average of 5-year risk-free rates (44 bps in H1 2021)}