SCOR (SCR) Q2 2024 earnings summary

Executive summary

• Net loss of EUR -308 million in Q2 2024 and EUR -112 million in H1 2024, mainly due to a significant negative impact from the Life & Health (L&H) assumption review, while P&C and investment segments performed strongly with a combined ratio of 86.9% and regular income yield of 3.6% in Q2.

• Economic Value under IFRS 17 stood at EUR 8.4 billion as of June 30, 2024, down 7.3% from December 2023, mainly reflecting the L&H review and dividend payment.

• CEO announced a three-step plan to restore L&H profitability, with a new strategy and updated targets to be presented in December 2024.

• Gross written premiums rose 5.4% at constant exchange rates to EUR 10,029 million, with both P&C and L&H segments contributing to growth.

• S&P affirmed A+ rating with stable outlook after capital adequacy assessment.

Financial highlights

• Q2 2024 adjusted net income was EUR -283 million, with an adjusted ROE of -21.9%; H1 2024 adjusted net income was EUR -107 million.

• Insurance revenue increased 4.7% at constant exchange rates to EUR 8,198 million in H1 2024.

• Investment income on invested assets reached EUR 376 million in H1 2024, with a regular income yield of 3.6% in Q2 and a reinvestment rate of 4.8%.

• Economic Value per share declined to EUR 46.89 as of June 30, 2024.

• Financial leverage increased to 22.7% at end-June 2024.

Outlook and guidance

• Full-year L&H insurance service result expected to be significantly below the EUR 500-600 million target range, and the 9% Economic Value growth target is unlikely to be met for 2024.

• Solvency ratio is expected to remain within the optimal range of 185%-220% at year-end 2024.

• The impact of the three-step L&H plan is expected to be visible by early 2025, with updated strategy and Forward 2026 targets to be presented in December 2024.

• Further L&H assumption impacts of up to EUR -0.1 billion (ISR) and EUR -0.4 billion (CSM) possible by year-end 2024.