• Solvency Ratio: 203% at the end of Q3 2024.
• Combined Ratio (P&C): 87.4% for the first nine months; 88.3% for Q3.
• Life and Health ISR: Minus EUR467 million for the first nine months; minus EUR210 million for Q3.
• Underlying Life and Health ISR: EUR334 million for the first nine months; EUR81 million for Q3.
• Regular Income Yield (Investments): 3.5% for the first nine months of 2024.
• Net Income: Minus EUR117 million for Q3 2024.
• Return on Equity: Minus 6.6% annualized for the first three quarters; 14% excluding one-offs.
• Economic Value: EUR84.4 billion as of 30 September 2024.
• Economic Value Per Share: EUR47.
• Financial Leverage: 22.7% as of Q3 2024.

• Warning! GuruFocus has detected 3 Warning Sign with SCRYY.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SCOR SE (SCRYY) reported a strong performance in its P&C segment, achieving a combined ratio of 87.4% for the first nine months, reflecting solid underlying performance.
• The company's solvency ratio stands at 203% at the end of Q3, demonstrating the resilience of its balance sheet and effective management actions.
• Investments continue to deliver excellent results with a high-quality fixed income portfolio, achieving a regular income yield of 3.5% for the nine months of 2024.
• SCOR SE (SCRYY) has implemented a three-step plan to restore life and health profitability, with significant progress made and a full strategy to be unveiled at the upcoming Investor Day.
• The company has introduced a third-party capital solution providing solvency relief, enhancing its capital position and supporting future dividend payments.

Negative Points

• SCOR SE (SCRYY) reported a net loss and negative ROE for the quarter and year-to-date, primarily due to the negative impact of the life and health review.
• The life and health segment was negatively impacted by a review, resulting in an insurance service result of minus EUR210 million for the quarter.
• The company faced challenges in offsetting negative results from the life and health review despite strong P&C and investment performance.
• SCOR SE (SCRYY) has been impacted by arbitration adjustments, leading to a one-off adjustment of minus EUR128 million this quarter.
• The annualized return on equity stands at minus 6.6% for the first three quarters of 2024, negatively impacted by the life and health assumption review.

Q & A Highlights

Q: How much of the total life and health reserves have been reviewed this year, and are you satisfied with the level of reserves in the Chinese critical illness market and UK longevity? A: We have completed a 100% review of the portfolio, including an external review by Milliman. We are confident in the strength of our life and health reserves and their translation under IFRS 17. (Francois de Varenne, Deputy CEO and CFO)

Q: Can you elaborate on your FBF cycle management and expected growth in 2025? A: We have stopped writing US casualty business from outside the US, impacting premiums. Despite some cycle management actions, we are growing attractively in P&C, leaning into the hard market. (Thierry Leger, CEO)

Q: What is the impact of the life and health risk adjustment increase from H1? A: The increase is due to the life assumption review, changes in interest rates, and added prudence. The impact is split between interest rate effects and the life review. (Francois de Varenne, Deputy CEO and CFO)

Q: How does the retro structure affect your dividend policy and capital management? A: With a solvency ratio above 185%, we are confident in maintaining our dividend policy, including the floor compared to last year. The retro structure supports our capital position. (Francois de Varenne, Deputy CEO and CFO)

Q: Can you provide more details on the arbitration reserves and their expected timeline? A: We have reviewed all major ongoing arbitrations, which are now at best estimate under IFRS and solvency II. The average period for resolution is around three to four years. (Francois de Varenne, Deputy CEO and CFO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.