The annualized return on equity (ROE) stands at 3.8%, 327 bps above the risk-free rate 3. The Group net income stands at EUR 234 million for 2020. The Group cost ratio, which stands at 4.5% of gross written premiums, is more favorable than the “Quantum Leap” assumption of ~5.0%. SCOR Global Investments delivers a solid return on invested assets of 2.8%. SCOR Global Life maintains a robust performance, recording a technical margin of 5.8%, with Covid-19 claims accounting for 3.7% points. SCOR Global Life absorbs the shock of Covid-19 and demonstrates the resilience of its business model. SCOR Global Life gross written premiums are up 1.4% at constant exchange rates compared with 2019 (up 0.2% at current exchange rates). Excluding Covid-19 costs, the net combined ratio stands at 95.5%, in line with “Quantum Leap” assumptions. SCOR Global P&C absorbs the impact of Covid-19 with a net combined ratio of 100.2%. SCOR Global P&C gross written premiums are up 2.4% at constant exchange rates compared with 2019 (up 0.2% at current exchange rates). Gross written premiums of EUR 16,368 million in 2020, are up 1.8% at constant exchange rates compared with 2019 (up 0.2% at current exchange rates). The Group will continue to scale its global platform and expertise to seize market opportunities, leveraging its strong Tier 1 credentials based upon the consistent execution of a clear and proven strategy, a recognized market leading position with a high-quality franchise, a very strong financial profile, a recognized technical expertise and no legacy issues. SCOR is well-placed in this beneficial reinsurance industry environment. Covid-19 is also creating the conditions for an epochal transformation of Life reinsurance based not only on higher awareness of the importance of Life & Health coverage, but also upon the acceleration of its use of new technologies, from underwriting to claims management. SCOR took full advantage of these favorable conditions and the depth of its franchise to produce an excellent outcome in the January 2021 renewals. On the P&C side, Covid-19 reinforces the general market hardening observed across all lines and all regions with the low yield environment an additional catalyst. Covid-19 is driving a general increase in risk aversion which in turn is driving higher demand for risk coverage throughout the world. SCOR believes that Covid-19 is helping to create the conditions for stronger reinsurance growth along with a positive pricing dynamic. With this very strong capital position, SCOR is proposing a dividend of EUR 1.80 2 per share for the fiscal year 2020. All four rating agencies have affirmed the Group’s financial rating at a level of “AA-” 1. Furthermore, the Group maintains a very strong level of liquidity standing at almost EUR 2.0 billion. SCOR’s solvency ratio at the end of 2020, which takes into account projected Covid-19 claims across 2021, stands at 220%, at the upper end of the optimal solvency range. The Covid-19 crisis is still ongoing and continues to present significant uncertainties for 2021.
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