Scor Swung to 1st Half Net Loss; Covid, Natural-Catastrophe Claims and Ukraine War Took Toll

   By Ed Frankl 
 

Scor SE said Thursday that it swung to a net loss in the first half of the year, as the war in Ukraine, Covid-19 and natural-catastrophe claims, including a severe drought in Brazil, hit profitability.

The French insurer posted a net loss of 239 million euros ($243.7 million), compared with a net profit of EUR380 million a year earlier.

Gross written premiums rose, however, to EUR9.69 billion, up 8.3% on year.

The second quarter was marked by heavy floods in South Africa and storms in France, which followed a first quarter that was affected by severe floods in Australia and one of Brazil's worst-ever droughts, which hit soy crops, Scor said.

The Brazil claims resulted in a EUR193 million impact on Scor's technical result, it said. As a consequence, Scor said it is reviewing its agriculture portfolio, with a 50% exposure reduction targeted for 2023.

Scor said it hadn't changed its planned charge in the "high double-digit euro million range" for potential claims related to the Ukraine conflict taken in the first quarter.

Covid-19 claims came to EUR254 million, of which EUR195 million was incurred in the first quarter, the Paris-based company said.

The company's solvency ratio, a measure of financial strength, improved to 240% as of June 30, up from 226% at the end of 2021, it said.

"In this complex environment, Scor stays the course and expects to navigate the current headwinds and take advantage of upcoming tailwinds in a hardening market," the company said.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

July 28, 2022 03:27 ET (07:27 GMT)

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