SCOR Reports 14.8% Premium Growth in Jan Renewals

SCOR SE Achieves 14.8% Premium Growth in January Renewals

SCOR SE reported a significant 14.8% increase in Estimated Gross Premium Income EGPI during the January 1 renewal period. The growth was primarily fueled by exceptional performance in its Alternative Solutions division, which saw premiums surge by 80.5%.

Detailed Performance Overview

The reinsurer's traditional premiums grew by a solid 4.7% to reach €4,493 million. Within this segment, P&C Lines expanded by 7.4% to €2,848 million, largely driven by business in the Asia-Pacific and North American regions. Notably, Natural Catastrophe lines increased by 12.5%.

In contrast, the Alternative Solutions segment was the standout performer, with premiums rocketing 80.5% to €1,185 million. This division now constitutes 21% of the company’s total book. Specialty Lines exhibited more modest growth at 0.3%, amounting to €1,645 million.

Pricing Trends and Market Outlook

Pricing across SCOR’s portfolio presented a mixed picture. While proportional prices saw an unexpected minor increase of 0.1%, non-proportional prices fell by 7.8%. This resulted in an overall price reduction of 1.9%.

Looking ahead, SCOR anticipates its net underwriting ratio, excluding Alternative Solutions, to increase by 2 percentage points. This is attributed to margin erosion in inward business, although partially offset by more favorable conditions in the retrocession market.

Summary

SCOR has demonstrated strong top-line growth in its January renewals, overwhelmingly driven by high demand for structured solutions. However, the company faces a mixed pricing environment and anticipates a slight increase in its underwriting ratio, indicating a focus on balancing growth with profitability in the coming period.

FAQ

Q: What was the main driver of SCOR's premium growth?

A: The primary driver was an 80.5% surge in premiums from its Alternative Solutions division, reflecting increased market demand for structured solutions.

Q: How did overall pricing change for SCOR during the renewals?

A: Overall prices experienced a net decrease of 1.9%, resulting from a 7.8% drop in non-proportional prices despite a slight 0.1% rise in proportional prices.

Q: What is SCOR's outlook on its underwriting performance?

A: The company expects its net underwriting ratio, excluding the Alternative Solutions segment, to increase by 2 percentage points due to margin pressures.

Source: Investing.com