Scor’s Q1 profits down 30%

Reinsurer Scor announced a net profit fall of 30% in its Q1 results on a collapse in investment income despite strong premium growth and price rises in its property and casualty business.

Highlights (2008 Q1 in brackets)

• Gross written premiums €1,561m (€1,353m) up 15.4%
• Non-Life gross written premiums €868m (€736m) up 18.0%
• Life gross written premiums €693m (€617m) upp 12.2%
• Operating income -€3m (€126m) down 102.2%
• Net income €93m (€133m) down 30.3%
• Investment income -€4m (€161m) down 102.6%
• Investment yield -0.3% (3.0%)
• Non-Life combined ratio 99.4% (98.4%)
• Non-Life technical ratio 92.8% (92.1%)
• Non-Life expense ratio 6.7% (6.3%)
• Life operating margin 4.5% (7.7%)
• Return on Equity (ROE) 11.1% (15.7%)
• Investments (excl. participations) €19,051m (€18,765m) up 1.5%
• Reserves (contract liabilities) €20,627m (€20,240m) up 1.9%
• Shareholders’ equity €3,601m (€3,416m) up 5.4%
• Scor global P&C registered successful April renewals with prices generally up by 4.1%, a slight improvement on the 3.1% January renewals increase.

Denis Kessler, Chairman and Chief Executive Officer of SCOR, comments: “The first quarter 2009 demonstrates SCOR’s very solid and proven strategy, as the Group has been able to consistently create shareholder value during the financial market crisis. In a deteriorating economic and financial environment we will keep SCOR in a state of ‘full alert’, encompassing conservative asset management along with a strong focus on cash management and especially on traditional, well diversified reinsurance underwriting. The successful April renewals demonstrate that SCOR’s fully mobilised underwriting teams are capable of seizing attractive business opportunities in an upward

trending reinsurance industry.”