Scor posts 30% drop in profits

by David Masters

Story link: Scor posts 30% drop in profits

Paris-based reinsurer Scor this week posted a 30% fall in first quarter profits.

Net income for the world’s fifth largest reinsurer dropped to €93 million, down from €133 million in the year ago period.

Scor blamed the decrease on the global economic crisis and the impact of natural catastrophe losses.

Investments lost €4 million during the quarter, compared to a profit of €161 million during the first three months of 2008.

Gross written premiums increased 15.4% during the quarter to €1.56 billion, whilst its non-life combined ration worsened from 98.4% to 99.4%.

Despite the fall in profit, the company remained upbeat and said it is well-placed to take advantage of improving prospects in the sector.

Denis Kessler, chairman and CEO, said the results reflect ‘Scor’s very solid and proven strategy’.

He added: “The Group has been able to consistently create shareholder value during the financial market crisis.

“We will keep Scor in a state of ‘full alert’, encompassing conservative asset management along with a strong focus on cash management and especially on traditional, well diversified reinsurance underwriting.”