SCOR’s total investments rise by 4.6%; cautious positioning of fixed income portfolio deployed

Written by Adam Cadle

23/07/2020

SCOR’s total investments reached €28.8bn in H1 2020, up 4.6% on H1 2019 (€27.5bn).

“In the current financial environment, SCOR’s prudent asset allocation reflects a cautious positioning of the fixed income portfolio,” the insurer said.

Returns on invested assets were recorded at 2.6% in H1 2020. Liquidity stands at 13% of total invested assets and corporate bonds account for 41%. The fixed income portfolio has an average rating of A+ and a duration of 3.1 years.

Gross written premiums (GWP) totalled €8,195m in H1 2020, up 1.0% at constant exchange rates compared with H1 2019 (up 2.3% at current exchange rates).

SCOR Global P&C GWP are up 0.9% at constant exchange rates compared with H1 2019 (up 2.1% at current exchange rates). SCOR Global P&C’s H1 2020 technical profitability is impacted by COVID-19 with a combined ratio of 102.3%.

SCOR Global Life GWP were up 1.0% at constant exchange rates compared with H1 2019 (up 2.5% at current exchange rates). SCOR Global Life recorded a technical margin of 5.4% in H1 2020, including the impact of the COVID-19 pandemic.

The group’s estimated solvency ratio stands at 205% on 30 June 2020, well within the optimal solvency range of 185% - 220% as defined in the ‘Quantum Leap’ strategic plan. The fall in this ratio compared to 31 December 2019 was mainly driven by market movements (changes in interest rates, exchange rates and credit spreads), and to a lesser extent by the estimated impact of COVID-19.

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