(News Bulletin 247) – The French leader in reinsurance announced this Wednesday that it was returning to profit by declaring record net profit for 2023.

Scor passes the annual results test with flying colors. The reinsurance group, the insurer of insurers, returned to profit last year in a context supported by price increases and claims that were less costly than expected.

Last year, gross premiums written (in other words the amount of premiums received by Scor from insured companies) reached 19.37 billion euros, down 1.8% compared to 2022.

The combined ratio (amount of claims and costs compared to premiums collected) stands at 85% compared to 114.9% last year at the same time. As a reminder, beyond a combined ratio of 100%, this means that an insurer or reinsurer loses money on the operational part of its business (insurance as such). Below 100%, he wins. But insurers or reinsurers are catching up on how they manage premium money.

A “record” net result

Net profit reaches a “record” level of 812 million euros in 2023, compared to a heavy loss of 1.38 billion euros in 2022. The profits announced by Scor are thus in line with the consensus provided by the company, which also announced a return to profits of 814 million euros.

“In 2023, Scor will deliver record results, achieving its solvency objective and exceeding its value creation objective,” declares Fabrice Brégier, Chairman of the Board of Directors of Scor. “With the implementation of its Forward 2026 strategic plan, Scor will take full advantage of the most favorable market conditions of the last two decades in P&C (property and civil liability) reinsurance,” he continues.

Equity totals 4.723 billion euros. The solvency ratio thus rises to 209% in 2023, in the upper part of the optimal solvency zone of 185% to 220% sought in the Foward 2026 plan. The solvency ratio thus stood at 9 points (percentage) above expectations, notes Royal Bank of Canada, which “should be well received”.

A rising dividend

Building on this year of recovery for the group, Scor will propose to its shareholders on May 17 during the general meeting a dividend of 1.80 euros per share, or 28.5% more than the 1.40 euros paid for the title. of 2022.

“With a net result in line with expectations (-0.2% vs consensus) and a dividend with the median of forecasts (1.80 euros), we do not expect a significant change in the share price” , predicted Jefferies.

Investors do not share the opinion of the financial intermediary and welcome the solid publication of the reinsurance group. On the Paris Stock Exchange, Scor is at the top of the SBF 120 with a jump of 10.6%, around 10:30 a.m., representing for the moment the strongest progression of Scor on the Stock Exchange since October 27, 2021 (+12.22%) .