French reinsurer SCOR had a very satisfactory second quarter with net income of €120 million ($156.75 million), compared to €91 million ($119 million) in the second quarter 2009, a 32 percent rise.
The increase offset a difficult first quarter, with SCOR posting net income for the first six months of 2010 of €156 million ($203.8 million), compared to €184 million ($240.4 million) in the first half of 2009.
The Group’s report also listed the following earnings highlights:
— premium income of €3.258 billion ($4.257 billion). This corresponds to a rise of 8 percent compared to the first half 2009 (+5 percent at constant exchange rates) excluding equity-indexed annuity business in the USA and after normalizing the level of Non-Life business in the first half of 2009 to the annual growth rate of 2009;
— half-year net combined ratio of 102.8 percent for SCOR Global P&C thanks to a combined ratio of 97.0 percent in the second quarter of 2010;
— operating margin of 6.0 percent for SCOR Global Life;
— return on invested assets (excluding funds withheld by cedants) of 4.0 percent;
— annualized ROE of 7.7 percent;
— shareholders’ equity of €4.2 billion ($5.49 billion), up 8.1 percent compared to 31 December 2009, i.e. €23.2 ($30.33) book value per share;
— operating cash flow of €208 million ($272 million).
SCOR indicated that its recovery from the difficult first quarter, which was marked by “an abnormally high concentration of natural catastrophes,” notably earthquakes in Chile and Haiti, and windstorm Xynthia in France, demonstrated the Group’s ability to absorb to sustain such losses without causing financial disruption.
Chairman and CEO Denis Kessler commented: “The first half 2010 results once again illustrate the Group’s capacity to combine growth, profitability and solvency, whilst maintaining a medium risk appetite. SGPC’s renewals reflect the Group’s favorable positioning, the first half results confirm our continued profitability and the increase in our shareholders’ equity further strengthens the Group’s financial situation and solvency.”
The complete report, as well as subsidiary reports from SCOR’s affiliated companies Converium and Revios, are available of the reinsurer’s web site at: www.scor.com .
Source: SCOR Group
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