``SCOR well positioned to capture profitable growth opportunities'':Kessler

Kessler commented: “With the Covid-19 pandemic, SCOR has once again demonstrated its capacity to absorb major shocks combined with the resilience of its business model. Regarding the assessment of our exposure to the Covid-19 pandemic that we provided at the end of July 2020, on the P&C side, claims are developing as expected. On the life side, at this stage, claims experience is emerging better than expected. In addition, the pandemic has also exacerbated society’s growing aversion to risk, creating the conditions to drive stronger growth for the reinsurance industry.

Denis Kessler,Chairman & Chief Executive Officer SCOR, 

Paris:

SCOR has three key positive messages for its Investor Day.

At its annual Investor Day, Denis Kessler,Chairman & Chief Executive Officer SCOR, presented an overview of the first year of the “Quantum Leap” strategic plan and said the company is absorbing the impact of the Covid-19 crisis, both operationally and financially.

There are clear profitable growth opportunities ahead, he said.

Firstly, SCOR is absorbing the impact of the Covid-19 crisis. Based on data currently available, information received from cedants to date and the results of the models used, life claims are emerging better than expected and better than booked at H1 2020. P&C claims are developing as expected.

Secondly, even though there are challenges placed on the industry from the very low yield environment, SCOR’s prudent asset management has safeguarded the value of its investment portfolio since the beginning of the Covid-19 crisis. SCOR has resumed its reinvestment strategy on credit markets and value creation assets. More importantly SCOR extracts value first and foremost from its underwriting activities.

Thirdly, SCOR is very positive on the new P&C market conditions and is expecting strong growth with positive pricing dynamics. SCOR is well positioned to benefit from this improving environment thanks to its optimal solvency and the depth of its global franchise.

Kessler commented: “With the Covid-19 pandemic, SCOR has once again demonstrated its capacity to absorb major shocks combined with the resilience of its business model. Regarding the assessment of our exposure to the Covid-19 pandemic that we provided at the end of July 2020, on the P&C side, claims are developing as expected. On the life side, at this stage, claims experience is emerging better than expected. In addition, the pandemic has also exacerbated society’s growing aversion to risk, creating the conditions to drive stronger growth for the reinsurance industry. SCOR is uniquely positioned to benefit from the hardening of the pricing environment and improved terms and conditions. SCOR is well on track with the execution of its strategic plan “Quantum Leap” with a faster than expected profitable growth prospect on the P&C side, and reaffirms its strategy based on consistency and transformation to enhance value creation.”

On the Life side, SCOR said the Covid-19 claims are emerging better than expected on the U.S. reinsured portfolio, with EUR 85 million paid as of August 31, 2020, translating into an actual over expected claims ratio of 62%.

On the P&C side, the company said the Covid-19 claims are developing as expected, with unchanged assessment compared to H1 2020 and EUR 3 million claims paid as of August 28, 2020.

Covid-19 is contributing to create the conditions for stronger growth with positive pricing dynamics. The exacerbation by Covid-19 of the increase in risk aversion lato sensu will drive higher demand for risk covers globally and therefore stronger growth for the reinsurance industry, on both the Life side and the P&C side.

Furthermore, Covid-19 and the persisting low yield environment are expected to be acting as additional catalysts to an already hardening market on the P&C side.

Out of the EUR 250 million investments in technology planned over “Quantum Leap”, EUR 113 million has already been deployed since the start of the plan.

 

 


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