Scor highlights emerging risks toll as it falls to EUR301 million 2022 loss

French reinsurer Scor has underlined the high cost of continuing natural catastrophe exposures and other key emerging risks for the market as it fell to a EUR301 million loss in 2022 (2021: EUR456 million profit).

According to Scor, 2022 was the sixth consecutive year marked by a high frequency of natural catastrophes and other weather-related events, including floods in Australia, Hurricane Ian in the US, hailstorms in France and one of the worst droughts in Brazilian history. 

The Brazilian droughts alone cost the carrier some EUR204 million.

Scor also highlighted other emerging risks, noting that the beginning of the year was also marked by the continuation of the global pandemic as well as the start of the war in Ukraine, the largest military conflict Europe has seen in decades. 

Gross written premium for the year was EUR19.7 billion, up 4.9% at constant exchange rates compared with 2021 (up 12.1% at current exchange rates).

Meanwhile, Scor P&C (Property and Casualty) gross written premium climbed 13.5% at constant exchange rates compared with 2021 (up 21.7% at current exchange rates).

Unsurprisingly the P&C net combined ratio was a hefty 113.2%, including a nat cat ratio of 12.4%, claims relating to the impact of the drought in Brazil accounting for 2.6%, and a reserve increase announced in Q3 2022 to anticipate the impact of the social and economic inflation accounting for 6.2%.

Denis Kessler, (above) chairman of Scor, commented: “The group’s annual results are very disappointing despite a solid performance in the fourth quarter. A sustainable return to profitability is imperative.”

“A new, highly experienced CEO, Thierry Léger, will join the group on 1 May 2023. He will present the broad outlines of his strategic plan at the AGM on 25 May 2023, and will implement it without delay and with great determination after presenting it to the investors in September 2023.” 

Scor also highlighted other emerging risks, noting that the beginning of the year was also marked by the continuation of the global pandemic as well as the start of the war in Ukraine, the largest military conflict Europe has seen in decades.

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