The positive trajectory can be attributed to strengthened Property and Casualty (P&C) combined ratios, bolstered by reduced catastrophe losses.
During the fourth quarter, SCOR reported a net income of €162 million, contributing to the significant annual figure. This robust financial performance underscores the company’s improved underwriting performance and investment outcomes compared to the previous fiscal year.
Across the group, total insurance revenue reached €3.8 billion in Q4 2023 and €15.9 billion for the full fiscal year. Gross written premiums (GWP) amounted to €4.9 billion and €19.4 billion, respectively, reflecting steady growth. Additionally, the insurance service result witnessed a notable uptick, reaching €417 million in the quarter and €1.5 billion for FY23.
In the P&C sector, Q4 revenue surged to €1.9 billion, accompanied by a considerable increase in the insurance service result, which soared to €353 million. The combined ratio demonstrated a significant improvement, dropping from 98.4% to 75.6% during the quarter, mirroring the trend for the full fiscal year. SCOR reported a 1.7% revenue increase to €7.5 billion, coupled with a reduced combined ratio of 85% for FY23.
SCOR attributes the enhanced P&C combined ratio to various factors, including a reduced natural catastrophe ratio and refined underwriting practices. The company highlighted a positive one-off technical income, albeit offset by specific accounting adjustments.
Concerning P&C reserves, SCOR conducted an annual review in Q4 2023, setting all lines at the best estimate. External evaluations by broker WTW confirmed the adequacy of SCOR’s global P&C claim reserves, bolstering confidence in the company’s risk management protocols.
In the Life and Health (L&H) business segment, SCOR reported mixed results. While Q4 revenue demonstrated a year-on-year growth of 5.4%, full-year revenue experienced a slight decline. Nevertheless, the insurance service result showcased a significant improvement, reaching €589 million for FY23.
L&H GWP experienced positive growth, rising over 9% in the quarter and 2% for the full fiscal year. SCOR remains focused on new business generation, particularly in Protection, with promising results reported for both Q4 2023 and the fiscal year.
On the asset section of the balance sheet, the total invested assets by the end of 2023 stood at €22.9 billion, marking a 3.3% increase from the previous year’s €22.2 billion. Throughout the quarter, the regular income yield saw a 0.6 percentage point enhancement, reaching 3.7%, while for the entire year, it rose by 0.8% to 3.2%.
Fabrice Brégier, Chairman of SCOR’s Board of Directors, commented, saying: “In 2023, SCOR delivers record results, achieving its solvency target and exceeding its value creation target. With the launch of its new strategic plan Forward 2026, SCOR intends to fully benefit from the most supportive P&C market environment of the past two decades. The Group’s financial strength and business outlook have led the Board to propose a regular dividend of EUR 1.8 per share for 2023, subject to shareholders’ approval at the General Meeting. I am confident in SCOR’s ability to pursue its profitable growth and achieve the ambitious targets set out in its Forward 2026 strategic plan.”
He added: “Looking ahead, our objective is to continue to grow in selected lines of business, as we did at the 1.1.2024 renewals. Building on this solid base and on SCOR’s strong client relationships globally, we are hitting the ground running for the Forward 2026 plan, with a firm commitment to profitable growth.”
Thierry Léger, Chief Executive Officer of SCOR, also commented on the results. He said: “In 2023, SCOR delivers a strong performance across all business activities, with an Economic Value growth of 8.6% and a Solvency ratio of 209%. SCOR’s balance sheet remains strong in 2023, with an increased confidence level within the best estimate range in P&C reserves. This is confirmed by an external independent review and proves that the prudent reserving strategy we have adopted since the second quarter of 2023 is bearing fruit.
Léger concluded: “Looking ahead, our objective is to continue to grow in selected lines of business, as we did at the 1.1.2024 renewals. Building on this solid base and on SCOR’s strong client relationships globally, we are hitting the ground running for the Forward 2026 plan, with a firm commitment to profitable growth.”
