French reinsurer SCOR Group continued to strengthen its financial position in 2010, posting net income of €418 million [$582.5 million] up 13 percent from 2009, and premium income of €6.7 billion [$9.34 billion], up 5 percent from 2009. As a result SCOR announced a 10 percent dividend increase to €1.10 [$1.533] per share, up 10 percent from the previous year.
The earnings report also gave further details, as follows:
— Gross written premiums in 2010 total €6,694 million, up 4.9 percent compared with 2009 (stable at constant exchange rates). Excluding the US annuity business, the reduction of which was planned and deliberate (SCOR announced the disposal of this business on 16 February 2011), gross written premiums total €6.662 billion [$9.286 billion], up 11.2 percent compared with 2009 (5.9 percent at constant exchange rates).
— Shareholders’ equity reached €4.352 billion [$6.067 billion] at the end of 2010, after the payment of €179 million [$250 million] in dividends on 2009 earnings, up 11.6 percent compared to the previous year; net book value per share stands at €23.96 [$33.40] (up 9.9 percent compared with 2009). SCOR has also strengthened its capital protection mechanisms during the year, particularly with its innovative contingent capital solution. All of the rating agencies improved their assessment of SCOR’s financial strength in 2010 by upgrading either their rating or their outlook.
SCOR’s report noted that the “results confirm SCOR’s strategy, centered on strong technical performance in Life and Non-Life reinsurance, with significant business and geographical diversification;” further detailed as follows:
— Non-Life reinsurance net combined ratio of 98.9 percent in 2010, in spite of major loss events during the year such as storm Xynthia in Europe, earthquakes in Chile, Haiti and New Zealand, and floods in Australia. The net combined ratio would have been 95.3 percent if losses due to natural catastrophes were at the 6 percent level budgeted for the year;
— Life reinsurance operating margin of 7.0 percent in 2010 (up 1.2 points compared with 2009);
— 2010 operating cash flow of €656 million [$914.5 million].
SCOR also indicated that its “position in the various reinsurance markets was steadily strengthened in 2010, with a reinforced or new presence in certain countries or lines of business. For example, SCOR obtained a license to write Life reinsurance business in China, adding to the Group’s Non-Life license in this strategic market.”
The report also listed the following highlights for the fourth quarter of 2010:
— net income of €151 million [$210.5 million] (up 64 percent compared to Q4 2009);
— gross written premiums of €1.674 billion [$2.334 billion] (up 11.9 percent compared to Q4 2009, up 5 percent at constant exchange rates); excluding the US annuity business, the increase is 17.5 percent compared to Q4 2009 (up 10.2 percent at constant exchange rates);
— Non-Life net combined ratio of 95.8 percent (down 7.5 points compared with Q4 2009);
— Life operating margin of 8.2 percent (up 0.4 points compared with Q4 2009);
— net return on invested assets of 4.1 percent (excl. funds withheld by cedants).
Chairman and CEO Denis Kessler commented: “SCOR records very good performances in 2010 across all lines of business. The record net income of €418 million enables the Group’s management to propose a dividend of €1.10 per share, representing an increase of 10 percent compared to the previous year and an unchanged payout ratio. SCOR’s strategy, based on a controlled risk appetite, strengthening the franchise, balanced development between Life and Non-Life business, and significant geographic and business diversification, has been crowned with success.
“After the conclusion of our plan “Dynamic Lift V2”, last September we launched a new strategic plan, “Strong Momentum”, for the period from 2010-2013. We will achieve the ambitious profitability and solvency objectives set out in this plan through the mobilization of all our teams, the support of our clients and the confidence of our shareholders.”
Source: SCOR Group
Topics Profit Loss Reinsurance
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