SCOR (SCR) Q2 2024 earnings summary

Executive summary

• Net loss for Q2 2024 was EUR -308 million and for H1 2024 EUR -112 million, mainly due to a significant negative impact from the Life & Health (L&H) assumption review, while Property & Casualty (P&C) and investments delivered strong growth and profitability.

• Economic value declined by 7.3% to EUR 8.4 billion as of June 30, 2024, primarily reflecting the L&H review and dividend payment.

• Solvency ratio dropped to 201% at end-June 2024, a 20-point decrease from year-end 2023, but remains within the optimal range of 185%-220%.

• P&C delivered strong results with a combined ratio of 86.9% in Q2 2024 and 15.5% growth in mid-year renewals at attractive margins.

• CEO announced a 3-step plan to restore L&H profitability, with a new strategy and updated targets to be presented in December 2024.

Financial highlights

• Adjusted net income for Q2 2024 was EUR -283 million, with an adjusted ROE of -21.9%.

• Insurance revenue for Q2 2024 was EUR 4.1 billion, up 8.4% year-over-year at constant FX; gross written premiums for H1 2024 rose 5.4% to EUR 10,029 million.

• Investment income on invested assets reached EUR 184 million in Q2 2024, with a regular income yield of 3.6% and a reinvestment rate of 4.8%.

• Operating cash flow improved to EUR 286 million in H1 2024.

• Economic value per share at June 30, 2024 was EUR 46.89.

Outlook and guidance

• L&H insurance service result for 2024 is expected to be significantly below the EUR 500-600 million target range.

• Solvency ratio is expected to remain within the optimal range for the rest of 2024 and beyond.

• Economic value growth target of 9% per annum is unlikely to be met in 2024.

• Full details of updated L&H business 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.