SCOR: Ukraine and nat cat losses dent Q1 results

SCOR has reported a net loss of €80m for the first quarter of 2022, compared with €45m net income in Q1 2021. The reinsurer’s P&C net combined ratio stands at 103.7%, including 10.1% of natural catastrophes, above the cat budget of 8%.

Q1 2022 was marked by a combination of exceptional events that have impacted the global economy in general and the reinsurance industry in particular, noted SCOR in its earnings update.

Russia’s invation of Ukraine and wide ranging macroeconomic consequences, a high level of natural catastropehs and ongoing challenges presented by the global pandemic are among the headwinds.

The combination of these “challenging events” led to the quarterly loss, driven by the €85m set aside to pay for losses from the conflict in Ukraine.

We are in a riskier, less predictable world, says Kessler

Denis Kessler, chairman of SCOR, commented: “Uncertainties and instabilities are multiplying: the pandemic is ongoing, global refragmentation is accelerating, inflation is back, economic growth is slowing down and the world is being hit by natural catastrophes.

”Our environment seems increasingly stochastic and random, and global predictability seems to be shrinking. Indeed, the (re)insurance industry appears to be facing increasingly frequent shocks and multifaceted and widespread threats.

“In this respect, we are living in a time of ‘great change’. In this environment of major transformation, where risks are multiplying, reinsurance is increasingly necessary to provide security to all economic agents.

”To accomplish their fundamental mission, reinsurers need to transform themselves and adapt all aspects of their risk management policies. As ultimate risk carriers, their Solvency is critically important.”

Robust solvency ratio

Laurent Rousseau, chief executive of SCOR, added: “Q1 2022 has been marked by a series of exceptional events both in L&H and in P&C, which have negatively impacted our financial performance.

”Amongst these, we have been especially focused on managing the impact of the conflict in Ukraine - from a financial, operational and human standpoint.

”We are also continuously focused on our main objectives: reducing volatility, increasing profitability, growing the franchise, optimally allocating capital and embarking on the transformation of the Group. 

”Our January 1 and April 1 P&C treaty reinsurance renewals have been strong, and we have a clear action plan in place across the entire organisation to improve the Group’s financial performance in 2022. 

”Despite an accounting loss, SCOR’s solvency position remains robust, with a solvency ratio of 240%.”