SCOR’s ‘Optimal Dynamics’ Plan Producing Results

September 9, 2015

French reinsurer SCOR Group held its annual Investor Day in Paris that included an overview of the implementation of the company’s strategic plan “Optimal Dynamics” in its first two years.

SCOR’s Chairman & CEO Denis Kessler said SCOR is consistently delivering on its strategy. The Group has also been upgraded very recently to AA- both by Fitch and S&P, and has filed its application model for Solvency II with the regulators in May 2015.

“The Group is well positioned to meet the current challenges of the reinsurance market, on both the P&C and Life sides,” said Kessler.

He said that the Group is “firmly on track” in terms of its strategic targets, with an ROE exceeding 1,000 basis points above the three-month risk-free rate in the first half of 2015, an estimated 2015 solvency ratio of ~204 percent after changes made for the purposes of Solvency II, and a “robust” 2014 dividend, paid in May 2015, representing a payout ratio of 51 percent.

SCOR also reaffirmed its consistent shareholder remuneration policy.

The long-delayed implementation of Solvency II would appear to offer opportunities for the larger European insures and reinsurers. SCOR said it “is ready to enter the Solvency II framework and to seize the new business opportunities that will emerge from the new regulatory system.”

The reinsurer also confirmed that it is confident that its two strategic targets, as defined in the “Optimal Dynamics” plan are within reach, namely:
— A profitability target defined as an ROE of 1,000 basis points above the three-month risk-free rate over the cycle;
— A solvency target characterized as a solvency ratio in the 185-220 percent range (percentage of solvency capital requirements, according to the Group Internal Model).

Source: SCOR Group

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