April 2020 P&C Renewal Results - SCOR Global P&C successfully renews its portfolio at April 1, 2020

Press Release

April 22, 2020 - N° 8

April 2020 P&C Renewal Results

SCOR Global P&C successfully renews its portfolio

at April 1, 2020

At the April 1, 2020 reinsurance renewals, SCOR Global P&C grew gross premiums up for renewal by 5.7%¹ at constant exchange rates² to EUR 504 million, while benefitting from broadly improving market conditions as evidenced by a 6.6% overall increase in pricing¹.

Asia-Pacific represents 57%¹ of the portfolio up for renewal at April 1, 2020, with two key markets renewing:

• In Japan, SCOR Global P&C generated a 5.4% growth, achieving its objective to secure price increases and incremental profitable cessions, while partially redeploying its capacity from lower to higher layers following two years characterized by major Cat impacts.  The Japanese market demonstrated its long-term approach to reinsurance buying, and commitment to balanced partnerships with their reinsurers, enabling a significant payback of the 2018 and 2019 Cat losses;
• In India, SCOR Global P&C leveraged its local infrastructure to grow its portfolio and benefit from local market conditions which started to improve in 2019, resulting in circa 30% premium increase. The agriculture renewals where SCOR builds on strong fundamentals are still underway.

In the United States, SCOR Global P&C follows a very disciplined underwriting approach along the lines of its January renewals, with a special focus on profitability improvements thanks to price adjustments. This disciplined approach led to a slight premium decrease as SCOR Global P&C did not renew or decreased its shares on treaties which did not meet its profitability targets.

These successful reinsurance renewals demonstrate that SCOR Global P&C is fully operational. The business continuity plan is completely implemented. This testifies to the resilience of SCOR’s operating model, its ability to conduct business, to keep up its close client relationships and to generate cash flow in this challenging environment.

In Specialty Insurance, SCOR Global P&C continues its development while improving conditions, both in terms of rates and Terms & Conditions. The continuation of market correction is materializing across most lines of business and geographies with rates trending significantly upwards.

Jean-Paul Conoscente, CEO of SCOR Global P&C, comments: “During the April 1, 2020, renewals, SCOR Global P&C continues to demonstrate discipline in its underwriting approach, with a focus on both rate adequacy and prudent management of our exposures. We achieved very positive results overall, recording strong growth in markets and segments where rates and Terms & Conditions were in line with our targets, and foregoing incremental business opportunities where we felt conditions for profitable growth were not met. Japan is a good illustration of our strategic approach: we managed to achieve a 5.4% growth in this market, as the evolution in Property Cat premium linked to the remodeling of our portfolio with reduced exposure to lower frequency events was more than compensated through growth in other lines of business.”

*

*         *

Contact details

Media

Anette Rey

+33 (0)1 58 44 82 82

Investor Relations

Ian Kelly

+44 (0)203 207 8561

LinkedIn:    | Twitter:

Forward-looking statements

SCOR does not communicate "profit forecasts" in the sense of Article 2 of (EC) Regulation n°809/2004 of the European Commission. Thus, any forward-looking statements contained in this communication should not be held as corresponding to such profit forecasts. Information in this communication may include "forward-looking statements", including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions and include any statement which does not directly relate to a historical fact or current fact. Forward-looking statements are typically identified by words or phrases such as, without limitation, "anticipate", "assume", "believe", "continue", "estimate", "expect", "foresee", "intend", "may increase" and "may fluctuate" and similar expressions or by future or conditional verbs such as, without limitations, "will", "should", "would" and "could." Undue reliance should not be placed on such statements, because, by their nature, they are subject to known and unknown risks, uncertainties and other factors, which may cause actual results, on the one hand, to differ from any results expressed or implied by the present communication, on the other hand.

Please refer to the 2019 Universal Registration Document filed on March 13, 2020, under number D.20-0127 with the French Autorité des marchés financiers (AMF) posted on SCOR’s website (the “Document d’enregistrement universel”), for a description of certain important factors, risks and uncertainties that may affect the business of the SCOR Group. As a result of the extreme and unprecedented volatility and disruption of the current global financial crisis, SCOR is exposed to significant financial, capital market and other risks, including movements in interest rates, credit spreads, equity prices, and currency movements, changes in rating agency policies or practices, and the lowering or loss of financial strength or other ratings.

The Group’s financial information is prepared on the basis of IFRS and interpretations issued and approved by the European Union. This financial information does not constitute a set of financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting”.

¹ Excluding Agriculture for which renewals are delayed due to market specificities, and which represent circa EUR 90 million of premium up for renewal in total across geographies

² Exchange rates at December 31st, 2019

Attachment