22 April 2016 - N° 08
2016 April Renewals:
SCOR Global P&C increases premiums by 4.7% at an overall quasi-stable pricing level, with expected profitability on target
SCOR Global P&C increases gross written premiums by 4.7% at the recent April renewals, based on constant exchange rates, with total premiums rising from EUR 420 million to EUR 440 million.
Premiums renewing on or around 1 April represent 10% of the annual total renewable premiums, with the main renewing markets being Japan, India and the US.
In Japan, renewal premiums increase by 7%, including the effect of normalized business relationships with the major Japanese insurance groups, highlighting the depth of SCOR's 40-plus year franchise in Japan.
Pricing at the April renewals is nearly flat overall for SCOR Global P&C, despite the pressure recorded on non-proportional accounts. The expected profitability of the business booked is in line with the Group's target.
P&C Treaty gross premiums rise by 2% to EUR 317 million at constant exchange rates. US premiums grow by ~13%. The US "client-focused initiative", combined with the high quality of SCOR's balance sheet and strong ratings, continues to provide good opportunities for the development of business relationships with both existing and new clients.
Specialty Treaty gross premiums rise by 13% to EUR 123 million at constant exchange rates. SCOR Global P&C seizes attractive opportunities in Agriculture, Aviation & US Cat Nat, notably thanks to its global approach to clients, which has been extended following the success of the global insurers' initiative.
Victor Peignet, CEO of SCOR Global P&C , comments: "The results of the April renewals are further evidence of the strength of SCOR Global P&C's strategy and business execution. Market conditions remain difficult, but SCOR Global P&C continues to win business from both existing and new clients. We are on track to deliver on the "Optimal Dynamics" strategic plan, and we are actively preparing our new three-year strategic plan, which will be presented in September."
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SCOR does not communicate "profit forecasts" in the sense of Article 2 of (EC) Regulation n°809/2004 of the European Commission. Thus, any forward-.looking statements contained in this communication should not be held as corresponding to such profit forecasts. Information in this communication may include "forward-looking statements", including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions and include any statement which does not directly relate to a historical fact or current fact. Forward-looking statements are typically identified by words or phrases such as, without limitation, "anticipate", "assume", "believe", "continue", "estimate", "expect", "foresee", "intend", "may increase" and "may fluctuate" and similar expressions or by future or conditional verbs such as, without limitations, "will", "should", "would" and "could." Undue reliance should not be placed on such statements, because, by their nature, they are subject to known and unknown risks, uncertainties and other factors, which may cause actual results, on the one hand, to differ from any results expressed or implied by the present communication, on the other hand.
Please refer to the 2015 reference document filed on 4 March 2016 under number D.16-0108 with the French Autorité des marchés financiers (AMF) posted on SCOR's website www.scor.com (the "Document de Référence"), for a description of certain important factors, risks and uncertainties that may affect the business of the SCOR Group. As a result of the extreme and unprecedented volatility and disruption of the current global financial crisis, SCOR is exposed to significant financial, capital market and other risks, including movements in interest rates, credit spreads, equity prices, and currency movements, changes in rating agency policies or practices, and the lowering or loss of financial strength or other ratings.
The Group's financial information is prepared on the basis of IFRS and interpretations issued and approved by the European Union. This financial information does not constitute a set of financial statements for an interim period as defined by IAS 34 "Interim Financial Reporting". The Group's financial information is prepared on the basis of IFRS and interpretations issued and approved by the European Union. This financial information does not constitute a set of financial statements for an interim period as defined by IAS 34 "Interim Financial Reporting".