SCOR SE Q1 2025 Results: A Disciplined Play in a Shifting Insurance Landscape

SCOR SE’s first-quarter 2025 results reveal a company adept at balancing growth ambitions with risk management in an increasingly complex insurance environment. With robust financial metrics and strategic pivots, the French reinsurer has set a strong foundation for its Forward 2026 targets. Yet, lingering challenges in U.S. casualty markets and competitive pressures underscore the need for continued vigilance.

Financial Highlights: Resilience Amid Adversity

SCOR delivered EUR 200 million in net income (EUR 195 million adjusted for equity-linked impacts), supported by an 18.7% ROE (18.3% adjusted). The standout performer was the Property & Casualty (P&C) segment, which achieved an 85.0% combined ratio, its lowest in years. Even after absorbing EUR 140 million in losses from the Los Angeles wildfires and adding prudence buffers, the normalized ratio of 84.7% reflects exceptional underwriting discipline. The attritional loss ratio of 74.7%—the lowest since IFRS 17’s implementation—highlights the effectiveness of SCOR’s risk selection.

Meanwhile, the Life & Health (L&H) segment posted an EUR 118 million insurance service result, driven by stable CSM amortization and a strategic shift toward higher-margin longevity and financial solutions. While new business CSM of EUR 76 million fell slightly below annual targets, this reflects a deliberate pivot toward quality over volume, a move CEO Thierry Léger described as “repositioning for sustainable profitability.”

Strategic Shifts: Cutting Losses, Expanding Horizons

SCOR’s Q1 results underscore its strategic prioritization of high-margin, specialty lines. Notably, the company is reducing exposure to U.S. Casualty by 13%, citing inadequate rate adequacy in a market it deems unattractive. This retreat is offset by growth in Asia-Pacific markets and specialty lines like marine, IDI (inland marine), and engineering, which saw 2% year-to-date premium growth in April renewals.

The Economic Value (EV) metric provides a clear barometer of success: SCOR’s EV rose 6.8% at constant economics to EUR 9.0 billion (EUR 51 per share), a figure bolstered by disciplined capital allocation and operational execution. With a solvency ratio of 212%, the company maintains a robust cushion against adverse scenarios.

Risks and Challenges: Navigating the Softening Market

Despite strong results, SCOR faces headwinds. The June-July renewals for U.S. catastrophe programs are expected to bring competitive pricing pressures, particularly for loss-affected portfolios. Additionally, the weakening U.S. dollar could dampen EUR-denominated earnings, while property catastrophe lines face intense pricing competition.

The P&C segment’s opportunistic buffer—though unspecified in size—signals management’s caution. Meanwhile, the L&H division’s reliance on a CEO transition (Philippe Rude’s appointment) and product mix adjustments introduces execution risk.

Forward 2026: Ambitious but Achievable?

SCOR’s 9% annual EV growth target for 2026 appears ambitious yet grounded in current momentum. The company’s focus on specialty lines and Asia-Pacific expansion, paired with a disciplined withdrawal from underperforming markets, aligns with its strategy to boost margins. The low single-digit insurance revenue growth target further emphasizes quality over quantity.

Crucially, the combined ratio goal of <87% for 2026 is well within reach given Q1’s 85% result, provided underwriting discipline persists. The 3.5% investment yield, supported by rising reinvestment rates of 4.3%, also provides a stable base for growth.

Conclusion: A Strong Hand in a Testing Arena

SCOR SE’s Q1 results affirm its position as a high-quality reinsurer capable of navigating market turbulence. With a 212% solvency ratio, a 6.8% EV uplift, and a track record of underwriting excellence, the company is well-equipped to meet its 2026 targets. However, investors must weigh these positives against risks such as U.S. casualty exposure and softening catastrophe markets.

The EUR 51 per share EV growth and 18.3% adjusted ROE provide compelling metrics, while the strategic pivot toward specialty lines and Asia-Pacific markets offers long-term resilience. For investors seeking a disciplined insurer with strong capital metrics, SCOR’s Q1 performance—despite its challenges—suggests a buy, provided they are prepared for short-term volatility in a softening market.

In an industry where margin discipline is king, SCOR’s results are a testament to execution. The question now is whether its strategic bets will pay off in an environment where competitors are equally hungry for growth. For now, the numbers lean in SCOR’s favor.