SCOR Results Show Net Loss of 239m Euros

It’s the results season right now and it’s a tricky time for SCOR, here’s the word;

In the first half of 2022, the global macroeconomic environment strongly deteriorated, as tensions driven by the war in Ukraine and the related sanctions grew regarding the supply of natural resources. Many countries are now experiencing levels of inflation that had not been observed in decades. In H1 2022, the impact of climate change also continued to be felt. The second quarter was marked by heavy floods in South Africa and storms in France, which followed a first quarter that had already been impacted by severe floods in Australia and one of the worst droughts experienced in Brazilian history.

In the first half of 2022, the Covid-19 pandemic also continued.

The combination of these events has significantly affected SCOR’s results, leading to a net loss of EUR -239 million for the first half of 2022, of which EUR -159 million was incurred in the second quarter.

CROP FAILURE

The reduced profitability notably reflects the cost of the claims related to the drought that impacted corn and soy crops in southern regions of Brazil. This was the worst drought in Brazil in 91 years and resulted in a USD 9.2 billion economic loss with a EUR -193 million impact on SCOR’s technical result, of which EUR -35 million was incurred in the first quarter. As a consequence, and consistent with its ambitions to reduce its exposure to climate-sensitive events, SCOR has been fully reviewing its agriculture portfolio with a 50% exposure reduction (PML) targeted for 2023.

SCOR was also impacted by the materialization of latent claims related to sexual molestation from the 1980s in the U.S. while the provision related to potential claims consequent to the war in Ukraine which was booked in the first quarter of 2022 is unchanged.

The total cost of Covid-19 claims amounted to EUR 254 million, of which EUR 195 million had been incurred in the first quarter.

Finally, the results of SCOR are significantly impacted by two non-operating items: EUR -45 million tax charges provisioned following negative taxable results in certain jurisdictions and the EUR -30 million pre-tax impact related to the option on own shares granted to SCOR valued at fair value through income.

There’s more detail on the results at SCOR’s pages, here.

About alastair walker 9348 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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