Investor Day 2020

SCOR is well positioned to capture profitable growth opportunities from the new supportive market environment

Press Release

September 9, 2020 - N° 18

Investor Day 2020

SCOR is well positioned to capture profitable growth opportunities
from the new supportive market environment

At its annual Investor Day, SCOR’s Executive Management team, led by Denis Kessler, presents an overview of the first year of the “Quantum Leap” strategic plan. SCOR has three key positive messages for its Investor Day.

Firstly, SCOR is absorbing the impact of the Covid-19 crisis. Based on data currently available, information received from cedants to date and the results of the models used, Life claims are emerging better than expected and better than booked at H1 2020. P&C claims are developing as expected.

Secondly, even though there are challenges placed on the industry from the very low yield environment, SCOR’s prudent asset management has safeguarded the value of its investment portfolio since the beginning of the Covid-19 crisis. SCOR has resumed its reinvestment strategy on credit markets and value creation assets. More importantly SCOR extracts value first and foremost from its underwriting activities.

Thirdly, SCOR is very positive on the new P&C market conditions and is expecting strong growth with positive pricing dynamics. SCOR is well positioned to benefit from this improving environment thanks to its optimal solvency and the depth of its global franchise.

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SCOR absorbs the shock of the Covid-19 pandemic and confirms the assessment communicated on July 23, 2020 within the Group’s H1 2020 results:

• On the Life side, the Covid-19 claims are emerging better than expected on the U.S. reinsured portfolio, with EUR 85 million paid as of August 31, 2020, translating into an actual over expected claims ratio of 62%;
• On the P&C side, the Covid-19 claims are developing as expected, with unchanged assessment compared to H1 2020 and EUR 3 million claims paid as of August 28, 2020.

Covid-19 is contributing to create the conditions for stronger growth with positive pricing dynamics. The exacerbation by Covid-19 of the increase in risk aversion lato sensu will drive higher demand for risk covers globally and therefore stronger growth for the reinsurance industry, on both the Life side and the P&C side. Furthermore, Covid-19 and the persisting low yield environment are expected to be acting as additional catalysts to an already hardening market on the P&C side.