SCOR reports strong Q2 results, exceeds consensus by 12.5%

Investing.com -- SCOR SE delivered second-quarter 2025 results that significantly exceeded analyst expectations, with net income surpassing consensus by 12.5%, according to a Jefferies equity research report released Thursday.

The reinsurance company benefited from a benign catastrophe environment during the quarter, which allowed management to "build an additional level of prudence" while still delivering strong financial performance.

In the Property & Casualty segment, SCOR posted a combined ratio of 82.5%, which was 0.6 percentage points better than expected.

This improvement was primarily driven by a natural catastrophe ratio that came in 1.3 percentage points lower than anticipated, though this was partially offset by a discount rate benefit that was 0.7 percentage points worse than forecast.

Revenue in this segment was 6.5% below consensus estimates.

The Life & Health division showed strong performance with an Insurance Service Result 8.9% ahead of consensus. New business CSM (pre-tax) significantly outperformed expectations, coming in 45.9% above analyst forecasts.

The company reported a Return on Invested Assets of 3.6%, slightly above the consensus estimate of 3.5%. Management expenses were 4.0% higher than expected.

Despite the strong earnings, SCOR’s pre-tax CSM was 2.2% lower than anticipated, while Economic Value came in 4.9% below expectations. Shareholders’ Equity was 8.0% lower than forecast. The Solvency II ratio stood at 210%, just 1 percentage point below consensus.

The report highlighted one negative development: Covéa has filed a new request for arbitration related to the 2021 settlement agreement.

This is separate from an ongoing case concerning retrocession treaties, which is entering its final phase. Covéa has requested that the result of the existing arbitration be delayed until after the new case is resolved.

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