SCOR Achieves Strong Q4 2024 Net Income
SCOR has announced a net income of €233 million for the fourth quarter of 2024, showcasing contributions from all its business segments. The adjusted net income for this period was slightly higher at €235 million. The property and casualty (P&C) division reported an impressive combined ratio of 83.1% during the quarter. This performance is highlighted by a natural catastrophe ratio of 6.4%, which is notably below the full-year natural catastrophe ratio of 9.4%, falling under the budgeted level of 10%.
The attritional loss and commission ratio for the fourth quarter settled at 75.9%, reflecting SCOR’s ongoing commitment to reserving discipline and robust underlying performance. Stay updated with the latest reinsurance news delivered directly to your inbox twice a week. Sign up here.
Resilience in SCOR’s P&C Lines
Following a comprehensive year-end reserve review, SCOR confirmed that all P&C lines are at best estimate, with strengthened reserve resilience.
Life and Health Segment Rebounds
The life and health (L&H) segment reported an insurance service result of €119 million for the fourth quarter. This outcome includes CSM amortization and risk adjustment release, albeit partially offset by unfavorable experience variance from the US.
This result marks a significant recovery for SCOR’s L&H unit. Earlier, in Q2 2024, SCOR encountered a net loss of €308 million, primarily driven by a €509 million charge following an L&H reserves review, culminating in an insurance service result of -€329 million for the segment.
In light of this underperformance, SCOR announced the departure of Frieder Knüpling, the CEO of SCOR L&H, in July 2024. CEO Thierry Léger assumed temporary leadership of the L&H division to oversee its strategic realignment. Léger stated, “In L&H, we took decisive actions to restore profitability.”
Investment Portfolio and Tax Rate
SCOR’s investment portfolio yielded a regular income yield of 3.6% in the fourth quarter, bolstered by high reinvestment rates. The group’s effective tax rate for this period was 8%, mainly due to the release of deferred tax asset provisions recorded in the second and third quarters.
Annualized Return and Full-Year Results
The annualized return on equity for the fourth quarter was 22.8%, or 23% on an adjusted basis. For the whole of 2024, SCOR reported a net income of €4 million, with an adjusted figure of €11 million, leading to an annualized return on equity of 0.1%, or 0.2% when adjusted.
The primary factor affecting the annual result was the 2024 L&H assumption review, which led to a pre-tax reduction of €700 million in the insurance service result and €900 million in the contractual service margin.
Group Economic Value and Solvency
As of year-end 2024, SCOR’s Group economic value stood at €8.6 billion, representing a 6.3% decrease at constant economics. However, when adjusted for one-off impacts, economic value increased by 9.8% at constant economics. Economic value per share declined to €48, down from €51 at the close of 2023.
SCOR’s solvency ratio at year-end 2024 was 210%, positioning it within the upper range of the company’s target of 185% to 220%. This solvency ratio fully reflects the ramifications of the L&H assumption review.
The board of SCOR has proposed a regular dividend of €1.8 per share for 2024.
