SCOR (SCR) Q3 2024 earnings summary

Executive summary

• Q3 2024 featured strong P&C and investment performance, but a significant Life and Health (L&H) assumption review led to one-off impacts, resulting in a group net loss of EUR -117 million and negative ROE; underlying net income would be EUR 150 million excluding these items.

• Group solvency ratio stands robust at 203%, reflecting balance sheet resilience and well above the dividend threshold.

• Adjusted net income for 9M 2024 was EUR 512 million (ROE 14.0%) excluding one-offs; reported net income was EUR -224 million (ROE -6.6%).

• Economic Value decreased by 7.0% in 9M 2024, now at EUR 8.4 billion.

• A three-step remedial plan for L&H is underway, with full details to be presented at the December Investor Day.

Financial highlights

• Q3 2024 insurance revenue was EUR 3,944 million, down 6.9% year-over-year; net income at EUR -117 million; adjusted ROE at -10.3%.

• Gross written premiums rose 2.4% to EUR 4,985 million in Q3 2024.

• P&C combined ratio improved to 88.3% in Q3 2024 (Q3 2023: 90.2%); 87.4% for 9M 2024.

• Investment income reached EUR 229 million in Q3 2024; regular income yield at 3.5%, return on invested assets at 4.0%.

• Operating cash flow for Q3 2024 was EUR 420 million, down 35.8% year-over-year.

Outlook and guidance

• P&C reinsurance market expected to remain attractive in 2025, supporting continued disciplined growth and strong margins.

• L&H remedial strategy aims to restore profitability and reduce volatility under IFRS 17, with updated Forward 2026 targets to be presented in December 2024.

• Group Economic Value growth target of 9% per annum at constant economics is unlikely to be met for FY 2024 due to L&H review impacts.