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Introduction & Market Context
French reinsurance giant SCOR SE (EPA:SCR) reported strong first-quarter 2025 results on May 7, highlighting a net income of EUR 200 million and continued execution of its strategic growth initiatives despite a softening market environment. The company maintained its underwriting discipline while selectively growing in profitable business lines.
The results demonstrate SCOR’s resilience and ability to navigate challenging market conditions, with the company’s diversified business model continuing to deliver solid returns across its property and casualty (P&C), life and health (L&H), and investment portfolios.
Quarterly Performance Highlights
SCOR reported an adjusted net income of EUR 195 million for Q1 2025, translating to an impressive adjusted return on equity (ROE) of 18.3%, significantly outperforming its forward 2026 assumption of greater than 12%.
As shown in the following key performance overview from the company’s presentation:
The company’s P&C segment delivered a combined ratio of 85.0%, improving from 87.1% in Q1 2024, despite impacts from Los Angeles wildfires and buffer building. The L&H segment generated an insurance service result of EUR 118 million with neutral experience variance, while investments delivered a return on invested assets of 3.8%.
SCOR’s economic value increased by 6.8% compared to Q4 2024, reaching EUR 9.0 billion, while the solvency ratio strengthened to 212%, up 2 percentage points from year-end 2024, driven by positive net operating capital generation.
The company’s performance across its three main business activities is illustrated in this chart:
Detailed Financial Analysis
P&C Segment Performance
SCOR’s P&C segment demonstrated excellent underlying performance in Q1 2025, with a combined ratio of 85.0%, improving from 87.1% in the same period last year. This improvement came despite significant natural catastrophe events, including Los Angeles wildfires (EUR 148 million impact) and the Taiwan earthquake (EUR 22 million impact), resulting in a natural catastrophe ratio of 12.5%.
The following chart breaks down the P&C combined ratio components:
The P&C segment generated an insurance service result of EUR 205 million, up from EUR 181 million in Q1 2024. New business Contractual Service Margin (CSM) reached EUR 710 million, showing a 9.0% increase from EUR 651 million in Q1 2024, reflecting SCOR’s strategy to grow in profitable and diversifying lines of business.
L&H Segment Performance
The L&H segment showed significant improvement, with an insurance service result of EUR 118 million in Q1 2025, up from EUR 72 million in Q1 2024. This performance was driven by stable CSM amortization and risk adjustment release, along with neutral experience variances.
As illustrated in the following breakdown of the L&H insurance service result:
New business CSM in the L&H segment was EUR 76 million in Q1 2025, compared to EUR 112 million in Q1 2024, reflecting the company’s updated L&H new business strategy with higher return thresholds.
Investment Portfolio and Returns
SCOR’s investment portfolio delivered solid results in Q1 2025, with a return on invested assets of 3.8%, approximately 40 basis points higher than in Q1 2024. The regular income yield remained stable at 3.5%, while the reinvestment rate stood at an attractive 4.3% as of March 31, 2025.
The company’s investment portfolio allocation is shown in the following chart:
Total (EPA:TTEF) invested assets amounted to EUR 24.3 billion, a slight increase of EUR 0.1 billion compared to Q4 2024. The portfolio maintains a high-quality fixed income component with an A+ average rating and a duration of 3.9 years, up from 3.0 years in Q1 2024.
SCOR’s economic value per share increased to EUR 51 as of March 31, 2025, up from EUR 48 at year-end 2024, while financial leverage improved to 23.6% from 24.5% over the same period.
Strategic Initiatives
At the April 2025 renewals, SCOR achieved a 1.5% growth in Estimated Gross Premium Income (EGPI), while maintaining its underwriting discipline in a softening market environment. The growth was primarily driven by Alternative Solutions (+33.0%) and Specialty Lines (+3.8%), partially offset by a decline in P&C Lines (-6.8%).
The following chart illustrates the company’s strategic growth at the April renewals:
SCOR continues to execute its strategy of growing in profitable and diversifying lines of business while reducing exposure to less attractive segments. The company reported significant growth in Alternative Solutions, driven by strong client demand, particularly in the Asia-Pacific region. Meanwhile, it continued to reduce exposure to US Casualty business (-33% at April renewals), which positively impacted margins.
The company’s evolving business mix is shown in the following chart:
Forward-Looking Statements
SCOR maintains a positive outlook for 2025, with its performance in Q1 already tracking well against its forward 2026 assumptions. The company expects to continue delivering strong results across its three business activities, with the P&C combined ratio targeted to remain below 87%, the L&H insurance service result projected at approximately EUR 0.4 billion per annum, and the regular income yield expected to range between 3.3% and 3.7%.
The company’s economic value growth demonstrates the underlying strength of its business model and strategy. As shown in this waterfall chart illustrating the components of economic value growth:
SCOR’s strong solvency position, with a ratio of 212% within its optimal range of 185% to 220%, provides the company with financial flexibility to pursue strategic opportunities while maintaining resilience against potential market volatility.
The company will report its Q2 2025 results on July 31, 2025, followed by Q3 2025 results on October 31, 2025.
Full presentation:
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