SCOR has reported a net loss of €509 million for the first nine months of 2022, as natural catastrophe claims increased to €907 million while the firm took a number of meaningful actions on its balance sheet during the period, including strengthening its P&C reserves.
The 9M 2022 P&C nat cat total includes a cost of €279 million in Q3 related to Hurricane Ian, while the cost of convective storms and hailstorms in France in June rose to €166 million, which is €113 million on top of what the firm booked in Q2 2022
SCOR also notes that man-made claims activity has been on the rise in the third quarter.
At the same time, the carrier bolstered its P&C reserves by €485 million to take a prudent stance in a claims environment marked by high economic and social inflation.
Additionally, SCOR booked an additional €94 million charge in Q3 2022, resulting in a 9M 2022 charge of €139 million, for provision of non-recognition of deferred tax assets, as it looks to also take a prudent approach to tax assumptions on its balance sheet.
Somewhat offsetting the above, says SCOR, the carrier’s L&H division produced an impressive technical result in the period as it benefited from a release of excess of prudent margin in reserves.
Together, these developments resulted in the net loss of €509 million for the nine month period and a loss of €270 million in Q3 2022.
Within SCOR P&C, the net combined ratio stands at 111% for 9M 2022, including a 15.9% nat cat ratio, while the the boost in reserves is equivalent to 8.5% of net earned premium for the period, implying a total combined ratio of 119.5% for 9M 2022.
Gross written premiums at SCOR P&C increased by almost 16% at constant exchange rates. The company says that it’s adopting a more selective approach in treaty P&C lines of business and continues to grow its treaty global lines and its specialty insurance portfolios where it sees attractive market conditions.
Throughout 2022, SCOR reduced its peak exposures, nat cat and US mortality, and tightened the overall P&C underwriting discipline and exposure. The firm notes that these actions are already starting to have a benefit. In the future, SCOR says that it will continue to strengthen its P&C business, making the most of the hardening market landscape.
At SCOR L&H, the technical result for 9M 2022 was strong at €863 million on the back of the aforementioned release of excess prudent margin in reserves.
After the release of the excess margin, L&H reserves remain prudent, says the reinsurer.
L&H gross premiums written actually fell by 2% at constant exchange rates as SCOR rebalances the portfolio towards more health and longevity products. Going forward, SCOR explains the it will leverage further its US mortality leadership position, while continuing to diversify its portfolio.