SCOR buys new retro in Q3, expects mid to high double-digit million Milton hit
France-headquartered global reinsurance company SCOR published its third-quarter results today, revealing that the company purchased new retrocession for its property and casualty business in Q3 2024, while also forecasting a hurricane Milton impact in the mid to high double-digit million euro range.
SCOR reported a strong performance for its P&C business, with a combined ratio of 88.3%.
Life and health adjustments continue to impact the group result, but the company seems on a strong footing on an underlying basis.
Thierry Léger, Chief Executive Officer of SCOR, commented today, “We are pleased to announce today the completion of the 2024 L&H assumptions review, with an outcome close to our best estimate view of H1 2024. The very comprehensive review allows us to draw a line and move forward with confidence. The underlying L&H performance shows a positive trend, and we have made significant progress in the implementation of our 3-step L&H remedial strategy which will be presented in full at our Investor Day on 12 December 2024, in London.
“P&C is doing very well, and we are taking strides towards our strategic journey of diversified and profitable growth while continuing to build reserve buffers. We expect the P&C reinsurance market conditions to remain attractive in 2025 and look ahead with confidence.
“Investments continue to benefit from high reinvestment rates, with a higher regular income yield in line with our long- term targets. Last but not least, the 203% Group solvency ratio at Q3 2024 demonstrates the resilience of our balance sheet and the effectiveness of our management actions.”
The P&C insurance and reinsurance combined ratio of 88.3% for Q3 2024 includes a natural catastrophe claims ratio of 13.2%, SCOR reported, saying that it was “an active period with several mid to large sized events.”
Of those third-quarter nat cat losses, SCOR revealed that European flooding drove 4.0 pts, Hurricanes Helene 3.6 pts, Debby 3.4 pts and Beryl 2.2 pts.
For the first nine months of the year, a catastrophe ratio of 10.1% remains in line with the reinsurance firms budget, while the attritional loss and commission ratio of 76.5% for Q3 2024 means “a very satisfactory underlying performance allowing for continued reserving discipline,” SCOR said on its P&C re/insurance division.
Looking ahead, SCOR also reported an initial estimate for the fourth-quarter event hurricane Milton, saying that it is “currently expected to be in the mid to high double-digit million euro range in Q4 2024, pre- tax and net of retrocession.”
SCOR also revealed this morning that the company has purchased new retrocessional protection in the third-quarter of 2024.
The reinsurer reported that its new business contract service margin for Q3 was up year-on-year, but this result was “partly offset by additional reinsurance retrocession incepted in Q3 2024.”
No further details have been provided, but SCOR has been in the retro market a number of times during the third-quarter of the year, sometimes with transactions that have included third-party retro capital backing. It’s not possible at this stage to say what the new retrocession that has been purchased includes at this time.
SCOR’s reinsurance result, on ceded insurance service, was strongly negative for the P&C division in Q3, which suggests more risk shared but less recoveries being made, which could also reflect this addition of new retro.
Read more on SCOR’s group results over at Reinsurance News.
