This elevated solvency level is driven by strong capital generation and efficient capital management. The estimated Group solvency ratio stands at 220% on December 31, 2020, at the upper end of the optimal solvency range of 185% - 220% defined in “Quantum Leap”. The Group financial leverage stands at 28.5% on December 31, 2020, +2.1% points compared to December 31, 2019, mainly driven by the lower level of shareholders’ equity impacted by changes in exchange rates. This results in a book value per share of EUR 33.01, compared to EUR 34.06 as at December 31, 2019. dollar with a currency translation adjustment of EUR -523 million. The Group shareholders’ equity stands at EUR 6,177 million as at December 31, 2020, downĮUR 197 million compared with December 31, 2019, mainly due to the weakening of the U.S. The Group’s total liquidity is very strong, standing at EUR 1,989 million as at December 31, 2020. The Group generates high operating cash flows of EUR 988 million in 2020. The normalized 4 return on equity for the year stands at 10.6%, 1,014 bps above the risk-free rate 3, exceeding the “Quantum Leap” target. The annualized return on equity (ROE) stands at 3.8%, 327 bps above the risk-free rate 3. The Group net income stands at EUR 234 million for 2020. The Group cost ratio, which stands at 4.5% of gross written premiums, is more favorable than the “Quantum Leap” assumption of ~5.0%. SCOR Global Investments delivers a solid return on invested assets of 2.8%. SCOR Global Life maintains a robust performance, recording a technical margin of 5.8%, with Covid-19 claims accounting for 3.7% points. SCOR Global Life absorbs the shock of Covid-19 and demonstrates the resilience of its business model. SCOR Global Life gross written premiums are up 1.4% at constant exchange rates compared with 2019 (up 0.2% at current exchange rates). Excluding Covid-19 costs, the net combined ratio stands at 95.5%, in line with “Quantum Leap” assumptions. SCOR Global P&C absorbs the impact of Covid-19 with a net combined ratio of 100.2%. SCOR Global P&C gross written premiums are up 2.4% at constant exchange rates compared with 2019 (up 0.2% at current exchange rates). Gross written premiums of EUR 16,368 million in 2020, are up 1.8% at constant exchange rates compared with 2019 (up 0.2% at current exchange rates). The Group will continue to scale its global platform and expertise to seize market opportunities, leveraging its strong Tier 1 credentials based upon the consistent execution of a clear and proven strategy, a recognized market leading position with a high-quality franchise, a very strong financial profile, a recognized technical expertise and no legacy issues. SCOR is well-placed in this beneficial reinsurance industry environment. Covid-19 is also creating the conditions for an epochal transformation of Life reinsurance based not only on higher awareness of the importance of Life & Health coverage, but also upon the acceleration of its use of new technologies, from underwriting to claims management. SCOR took full advantage of these favorable conditions and the depth of its franchise to produce an excellent outcome in the January 2021 renewals. On the P&C side, Covid-19 reinforces the general market hardening observed across all lines and all regions with the low yield environment an additional catalyst. Covid-19 is driving a general increase in risk aversion which in turn is driving higher demand for risk coverage throughout the world. SCOR believes that Covid-19 is helping to create the conditions for stronger reinsurance growth along with a positive pricing dynamic. With this very strong capital position, SCOR is proposing a dividend of EUR 1.80 2 per share for the fiscal year 2020. All four rating agencies have affirmed the Group’s financial rating at a level of “AA-” 1. Furthermore, the Group maintains a very strong level of liquidity standing at almost EUR 2.0 billion. SCOR’s solvency ratio at the end of 2020, which takes into account projected Covid-19 claims across 2021, stands at 220%, at the upper end of the optimal solvency range. The Covid-19 crisis is still ongoing and continues to present significant uncertainties for 2021. SCOR continues to actively implement its strategic plan “Quantum Leap”, focused on the twofold targets of profitability and solvency, accelerating its use of new technologies while continuing its actions in terms of sustainable development and social responsibility.
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