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SCOR reports loss ratio improvement, P&C premium increase for first half of 2014


August 13, 2014   by Canadian Underwriter


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Reinsurance company SCOR SE recently released its financial results for the six months ending June 30, reporting a 50% drop in catastrophe losses and a 3.4-point improvement in its property and casualty combined ratio.

In its global P&C operations, Paris-based SCOR reported gross written premiums of 2.4 billion euros for the first half of 2014, up 0.9% (and up 4.7% on a constant exchange rate basis) from 2.378 billion euros during the same period in 2013.

The net combined ratio in P&C, for the first six months, improved 3.4 points year-over year, from 94.3% in 2013 to 90.9% this year. On Tuesday the euro closed at $1.46. The loss ratio in p&c improved by four points, from 64.4% during the first half of 2013 to 60.4% for the first six months of this year.

For the three months ending June 30, the P&C combined ratio improved by 5.2 points, from 98% in 2013 to 92.8% in 2014.

“The decrease of the net combined ratio as of 30 June 2014 is mainly attributable to the higher impact of natural catastrophes in the second quarter of 2013,” SCOR stated in a report for investors released July 31.

Total catastrophe losses during the first half of 2014 were 73 million euros, compared to 147 euros during the first six months of 2013. Last year, the company noted, SCOR recorded 42 million euros in cat losses from the floods in southern Alberta, as well as 80 million euros from flooding in early June, which affected areas in Germany, the Czech Republic, Austria, Poland, Hungary and Switzerland along several rivers, including the Elbe and Danube.

Other catastrophes that had affected SCOR P&C in 2013 included a May 20 tornado that touched down in Moore, Okla. killing at least 24 and causing at least $2 billion in insured losses to the industry.

“During the six months ended 30 June 2014, SCOR Global P&C has been impacted by the earthquake in Chile, the snowstorm in Japan and the early June European hail storms (the latter estimated at EUR 45 million),” SCOR noted. “The first half-year 2014 was also impacted by additional estimated costs on the 2013 last quarter hail storms in South Africa and the summer 2013 Germany hail storms.”

The European Ela storm, which hit areas including northwestern Germany in June, accounted by 45 million euros in losses, pre tax and net of retrocession.

In global P&C, SCOR reported gross written premiums in the Americas of 631 million euros in the first six months of this year, up 2.77% from 614 million euros during the same period in 2013. SCOR group reported P&C gross benefits and claims paid of 1.325 billion euros for the first six months of 2013, down from 1.458 billion euros in 2013. Investment income in p&c rose, from 110 million euros in the first half of 2013, to 163 million euros in the first six months of this year.

For the second quarter, SCOR Group reported gross written premiums of 2.758 billion euros, up 6.2% from 2.596 billion euros in Q2 2013. On a constant foreign exchange basis, the increased was actually 10.4% year over year.

For the first half, SCOR Group reported gross written premiums of 5.427 billion euros (of which 3.027 billion euros was from life reinsurance), up 8.9% from 4.984 billion euros for the same period in 2013.

“The premium growth in 2014 was adversely affected by foreign exchange movements, particularly in the EUR/USD; thus the growth at constant exchange rates is 12.5%,” SCOR said in a release.

The United States Federal Reserve reported the euro was trading at US$1.28 at the end of March, 2013 and had risen to $1.38 a year later.

SCOR Group’s net income was 256 million euros in the first half of 2014, up from 189 million euros in the first half of 2013.


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