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Investing.com -- Scor SE (EPA:SCOR) on Wednesday reported strong first-quarter 2025 results, posting net income of €195 million, 27% ahead of consensus estimates of €154 million, sending shares up over 4%.
The beat was driven by higher-than-expected insurance service results in both the Property & Casualty (P&C) and Life & Health (L&H) segments, solid investment income, and a robust return on equity (ROE).
Scor’s P&C segment delivered a combined ratio of 85.0%, outperforming the consensus estimate of 88.3%.
The result was driven by a lower attritional loss ratio and a stronger-than-expected discounting effect, contributing 9.3 percentage points to the combined ratio.
While natural catastrophe losses totaled €171 million, they were in line with expectations.
Renewals in April showed a 1.5% volume growth, with nominal rates stable. Net technical profitability on the renewed business is expected to deteriorate by 1 percentage point, with a slight deterioration of less than 0.5 percentage points on a year-to-date basis.
Scor’s L&H segment posted an insurance service result (ISR) of €118 million, exceeding consensus estimates by 12%.
The company’s shift towards a higher return-seeking strategy resulted in weaker new business CSM, but overall L&H performance is tracking ahead of targets.
Experience variances in L&H were positive at €2 million, with favorable flu season results in the U.S.
Investment income for Q1 was €226 million, 5% higher than consensus estimates. The reinvestment yield stood at 4.3%, demonstrating effective asset management despite a challenging market environment.
Scor’s solvency ratio for Q1 stood at 212%, exceeding consensus expectations of 210% and remaining within the company’s target range of 185-220%. The Group CSM net of tax increased to €4.453 billion, surpassing estimates.
Scor maintained its guidance for FY25, targeting a P&C combined ratio of under 87%, about €400 million in L&H insurance service results, and a return on equity (ROE) greater than 12%.