French reinsurer SCOR SE has reported a P&C combined ratio of 94.5% and a net income of 140 million euros for the first quarter of 2017 ending March 31.
SCOR released its financial results on Thursday. Its 94.5% P&C combined ratio was up 4.8 points from the first quarter of 2016, while its net income was down 17.6% from 170 million euros in Q1 2016.
The reinsurer said in a statement that the Q1 2017 combined ratio was negatively impacted by 8.9 points due to the change in the Ogden discount rate (116 million euro charge pre-tax), mainly coming from United Kingdom non-proportional motor reserves reinforcement (83 million euros). The 94.5% combined ratio was also more than balanced by a “low level” of natural catastrophe losses, which amount to one point of net combined ratio, with Cyclone Debbie in Australia being the main event as well as 3.5 points of reserve releases.
SCOR’s Group gross written premiums (GWPs) totalled 3.73 billion euros, up from 3.3 billion euros in the first quarter of 2016, while P&C GWP were up to 1.56 billion euros from 1.38 billion euros in Q1 2016, SCOR said. Group net earned premiums were 3.33 billion euros in the most recent quarter, up from 2.95 billion euros in Q1 2016.
The reinsurer also reported “excellent profitable growth” up 12.1% at constant exchange rates compared to the same period in 2016 (+13.9% at current exchange rates) coming from both divisions: Life (+12.0% at constant exchange rates) across all product lines, particularly in the Americas and Asia-Pacific, and P&C (+12.3% at constant exchange rates), leveraging on successful January and April renewals.
Denis Kessler, chairman and chief executive officer of SCOR, said in the release that “SCOR’s core earnings level bears witness to the quality of the Group’s technical fundamentals. At the same time, the Group is gaining market shares in targeted territories and business lines, as demonstrated by the successful P&C January and April renewals and the strong expansion of the Life footprint.”