SCOR’s earnings were affected by the Covid-19 pandemic, where it paid €456m in net retrocession, net of reinstatement premiums and before tax for the first half of this year
French reinsurer SCOR has announced a net income of €26m for the first half of this year, compared to €286m for last year’s corresponding period, due to the impact of Covid-19.
SCOR stated that the company saw a total cost of the pandemic at €456m in net retrocession, net of reinstatement premiums and before tax.
SCOR’s gross written premiums for the period amounted to €8.2bn, which was a 2.3% increase compared to €8.01 for last year’s same period.
The overall increase in gross written premiums of €185m for the period was attributed to its Global P&C of €72m, €113m for its Global Life.
For the period, the net earned premiums amounted to €7.4bn, a 5.1% increase compared to €7.02bn for last year’s corresponding period.
An overall increase of €359m including €344m in net earned premiums of its Global P&C and €15m of its Global Life was noted.
Return on equity had fallen from 9.8% to 0.8% compared to last year
The return on equity for the period had also fallen significantly from 9.8% for the last year to 0.8% for the current year period. The basic earnings per share were €0.14 for the period, compared to €1.54 for last year period.
SCOR also stated that the total shareholders’ equity has remained stable from €6.37bn as of last December, to €6.39bn at June end.
Gross written premiums of the company’s SCOR Global Life’s stood at €4.67bn and its SCOR Global P&C stood at €3.51bn. While, the gross benefits and claims paid for the period for Global Life stood at €3.87bn, for Global P&C it was €2.47bn.
In a statement, the company said: “In the face of the Covid-19 pandemic, SCOR has once again demonstrated the strength and resilience of its business model as well as its ability to absorb major shocks.
“The Group consistently continues to execute its strategic plan “Quantum Leap” combining growth, profitability and solvency, with no change in risk appetite, capital shield policy or capital management policy.”