by Bertrand de Meyer

PARIS (Reuters) – The French reinsurance group Scor reported on Wednesday of a net profit above expectations for the first quarter of 2025, carried by the result of its insurance activities, and climbs strongly on the stock market.

The Scor title took 5.3% at 28.02 euros around 07:25 GMT Wednesday on the Paris Stock Exchange, signing the best performance of the SBF 120 which lost 0.45% at the same time.

“Overall, we are on the right track to achieve our objectives for the whole year,” said Thierry Léger, CEO of Scor, at a conference call with journalists, indicating very closely to follow the American customs policy which could ultimately lead to an increase in inflation in the United States.

SCOR published a net profit increased by 1.7% over one year to 200 million euros for the first three months of 2025 and an annualized capital (ROE) return of 18.7%. Analysts awaited an average of a net profit of 148 million euros for a ROE of 12.2%, according to a consensus compiled by the group.

“In our opinion, SCOR had an excellent start to 2025, with results significantly superior to the consensus throughout the group,” reacted Jefferies analysts in a note, stressing that “the results are all the more impressive if we take into account forest fires in California and proactive measures taken by management to constitute reserves”.

“Apart from a slightly low turnover for damage reassurance (P&C), there is not much to criticize,” summed up Citi analysts in a note.

Combined ratio best than expected

In reinsurance damages, Scor gave an insurance result up 13.3% over one year to 205 million euros, against 165 million euros expected by consensus, for insurance income of 1.86 billion euros, slightly lower than expectations (1.92 billion).

The combined ratio, the ratio between claims and bonuses, emerged at 85%, improving 2.1 points over a year and better than expected (88.3%). The charge linked to natural disasters reached 12.5%, including 10.8 points for fires in California.

In life and health reinsurance, SCOR published a result up 65% over one year to 118 million euros, against 105 million euros expected by consensus and a heavy loss in 2024. Division insurance income decreased by 3.1% to 2.2 billion euros.

The group’s solvency ratio emerged at 212% at the end of March 2025 and the economic value of the group measured according to the IFRS accounting benchmark 17 to 9 billion euros.

SCOR said in the press release that the technical profitability of cases renewed in April, that is to say around 12% of its damage reinsurance premiums, should decrease by around 1 point “in a more competitive environment” after profitability “unchanged” during the renewals of January.

(Written by Bertrand de Meyer, edited by Augustin Turpin)

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