France’s SCOR Group posted an impressive first half of 2006 with net income up 42 percent to €102 million ($131 million) compared to the €72 million ($92.5 million) it earned in the same period of 2005.
Other earnings highlights include the following:
• Gross written premiums: €1.372 billion ($1.764 billion), up 16 percent compared €1.184 billion ($1.522 billion) in the first half of 2005, of which Non-Life business was €844 million [$1.085 billion] up 28 percent.
• Operating income: €188 million ($241.6 million), up 34 percent compared to €140 million ($$180 million) in the first half of 2005.
• Net income per share: 11 €-cents (14.1 cents), up 22 percent compared to the first half of 2005.
• Shareholders’ equity at 30 June 2006: €1.672 billion ($2.15 billion), compared to €1.719 billion ($2.2 billion) at 31 December 2005.
• Combined ratio for Non-Life reinsurance: 98.2 percent at 30 June 2006 compared to 99.7 percent at 30 June 2005.
• Margin on net earned premiums in Life reinsurance: 7.2 percent compared to 5.8 percent in the first half of 2005.
• Operating income for Life reinsurance increases by 25 percent.
• Gross investment income: €239 million ($307 million), up 12 percent compared to the first half of 2005.
The earnings report also cited the following “Significant events:”
• Confirmation of commercial dynamism in a satisfactory pricing environment. Renewal of Non-Life treaties as of July 1 up 21 percent.
• Net cost of retrocession up by 3.7 combined ratio points compared to the first half of 2005.
• Planned acquisition of Revios announced on July 5, 2006.
• Successful €350 million [$450 million] subordinated debt issue as part of the associated financing.
CEO Denis Kessler commented: “The First Half Results confirm the pertinence of the strategy that we have been following for the past four years: solvency and profitability have been fully restored. The return to controlled business expansion has been confirmed by the renewals and the increase in premium income. All of the Group’s centers of activity – life and non-life reinsurance and investment activity – have contributed to the results.
“The emphasis within the SCOR Group is now on the deepening and widening of risk management in all areas. Whether in underwriting policy, retrocession, investment management, capital allocation and capital structure, or the monitoring of major natural, technological, social and medical risks, the SCOR Group is doing everything in its power to control its exposures, optimize the diversification of its portfolio and fine tune its hedging in order to strengthen its solvency.”
The full report and additional information may be obtained on the Group’s Website in French and English at: www.scor.com.
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