The French reinsurance major SCOR  has delivered a strong start to 2018 by combining profitable franchise expansion, robust earnings and a strong solvency position in the first quarter 2018.


The group's net income reached EUR 166 million in Q1 2018, an increase of 18.6 per cent  compared to net income of EUR 140 million in Q1 2017. The annualized return of the company on equity (ROE) stood at 11.2 per cent or 1,049 bps above the risk-free rate. 


SCOR Global P&C improved the combined ratio in the first quarter of 2018 to 91.8 percent from 94.5 percent in the same period a year ago.The better combined ratio was driven by “a very robust net attritional and commission ratio, resulting from low man-made activity”, of 80.3 percent, 1 point below the 86.7 percent of the first quarter of 2017 once normalized for the 5.4 percent impact of Ogden net of reserve releases, according to a statement.


SCOR Global P&C gross written premiums stood at EUR 1,480 million, up 3.9% at constant exchange rates compared to the same period last year (-5.0% at current exchange rates). The growth comes from P&C treaties in the U.S. and SCOR Business Solutions.

At the April 1, 2018, renewals, SCOR Global P&C grew gross written premiums by 13.5% at constant exchange rates to EUR 505 million, while improving risk adjusted pricing by 2.9% and maintaining stable terms and conditions. Growth was achieved in both Treaty (especially in India and the U.S.) and in Specialty Treaties (including in Agriculture, Credit and Surety and U.S. Cat). Overall, these renewals position SCOR Global P&C growth in line with "Vision in Action" assumptions.


The reinsurer’s  gross written premiums reached  EUR 3,771 million, up 10.2 per cent  at constant exchange rates (up 0.9 per cent  at current exchange rates), resulting from growth in both Life (up 14.7 per cent at constant exchange rates), and P&C (up 3.9 per cent at constant exchange rates) in the first quarter 2018.


Denis Kessler, Chairman & Chief Executive Officer of SCOR, comments: "SCOR is off to a strong start for 2018: successful P&C renewals, the continued expansion of the Life business in key markets, notably Asia-Pacific, and a well-received debt issuance. The Group holds firmly to its "Vision in Action" plan and is on track to deliver on its targets. SCOR is strategically positioned for growth across its businesses and in targeted geographies."


The company had posted a strong technical results,with a superior 91.8 per cent  P&C net combined ratio, a 6.8 pr cent Life technical margin impacted by portfolio mix and foreign exchange rates, and a return on invested assets of 2.3 per cent.


The reinsurer’s strong estimated solvency ratio of 222 per cent at March 31, 2018, marginally above the optimal range of 185% – 220% defined in the "Vision in Action"] plan following robust capital generation and a favorable interest rate environment.