SCOR’s net income for first half of 2015 up 28% to 327 million euros over same period in 2014

SCOR is on track to achieve targets in its “Optimal Dynamics” strategic plan, announcing Wednesday that its net income for the first half of 2015 was 327 million euros, 27.7% higher than it was for the first six months of 2014.

The 327 million euros compares to 256 million euros for the first half of 2014, notes a statement from SCOR. “The annualized return on equity (ROE) stands at 11.1% (this takes into account material foreign exchange rate movement that did not occur evenly through the reporting period) or 1,112 bps (basis point) above the (three-month) risk-free rate,” the statement notes. [click image below to enlarge]

With regard to 2015 Q2 net income, it was 152 million euros compared to 121 million euros in the same quarter of 2014, an increase of 25.6%.

The results are thanks to the rigorous implementation of the company’s strategic plan “and the profitable development of its franchise driven by both its Life and P&C business engines,” notes the company statement.

Gross written premiums (GWP), for their part, increased to 6,493 million euros for the first six months of 2015, a 19.6% increase at current exchange rates over the first half of 2014. For 2015 Q2, GWP was 3,369 million euros, up 22.2% from 2,758 million euros in the second quarter of 2014.

SCOR reports that the significant growth is driven by the contribution of the two business engines: SCOR Global P&C and SCOR Global Life. Global Life was up 20.1% to 3,634 million euros, at current exchange rates, for the first half of 2015.

As for Global P&C, GWPs increased 19.1% at current exchange rates to 2,859 million euros from 2,400 million euros in the first half of 2014. For the second quarter of the year, GWPs were 1,461 million euros in 2015 compared to 1,198 million euros in 2014, an increase of 22.0%.

Global P&C had “a net combined ratio of 90.9%, stable compared to HI 2014, in an environment of low natural catastrophe losses (1.8% in the first six months of 2015), but with an unusually high number of major industrial losses (notably an offshore claim),” SCOR reports.

“The normalized net combined ratio (with a natural catastrophe budget of 7%) stands at 96.1% for the first half of 2015, impacted by the offshore claim mentioned above. The 94% normalized combined ratio assumption for 2015 remains within reach,” the statement adds.

For Global P&C renewals, the line achieved “premium growth of 23.6% at constant exchange rates with regard to the 418 million euros of premium up for renewal in June and July 2015,” SCOR notes. “The premiums up for renewal represent around 10% of the total annual volume of SCOR Global P&C premiums.”

Citing the strategic plan, “the Group was able to deepen the franchise by leveraging on its diversified portfolio and to enlarge its global presence, notably with the planned opening of a branch in India and a representative office in Kenya,” the SCOR statement notes.

“In H1 2015, SCOR continues to deploy its strategy based on the diversification of risks and deepening of the franchise and to deliver high-quality results,” adds Denis Kessler, the company’s chairman and CEO.

Other SCOR results for the first half of 2015 include the following:

• net investment income of 365 million euros, up 29.9% from the first six months of 2014;

• earnings per share are 1.77 euros, up 27.9% from the first half of 2014;

• operating cash flow of 130 million euros, up from 2 million euros in the first six months of 2014; and

• ROE of 11.1%, up 0.8 points from the same period in 2014.