SCOR Confirms Earnings Targets; Strategic ‘Strong Momentum’ Plan

French reinsurer SCOR confirmed the targets of its strategic plan -‘Strong Momentum’ – at its annual Investors’ Day, held on Wednesday in Paris.

An updated version of the ‘Strong Momentum’ plan, first established in 2010, “has been prepared to take into account the new dimensions of the Group in 2011, following the acquisition of Transamerica Re’s mortality portfolio and the sale of SCOR’s US Annuity business,” said the bulletin.

With these two changes, which “reinforce the focus of SCOR’s Life reinsurance portfolio on biometric risks, the Group now expects to achieve gross written premiums of €10 billion [$14.07 billion] in 2013 (compared to gross written premiums of €6.7 billion [$9.427 billion] in 2010), corresponding to an annual growth rate of 14 percent from 2010 to 2013.”

SCOR also noted the following adaptations in this version V1.1 of its plan ‘Strong Momentum’:
– integration of the latest economic and financial developments;
– adaptation of its internal model in the context of Solvency 2;
– marginal change to its strategic asset allocation;
– new organizational structure of SCOR Global Life;
– increase in the Natural Catastrophe budget.

In addition SCOR said the newest version of the plan “confirms the execution of the four cornerstones of its business model and the targets set last year by its strategic plan ‘Strong Momentum’ for the period 2010-2013,” as follows:
– optimization of the Group’s risk profile;
– ‘AA’ level of security;
– profitability of 1000 basis points above the risk-free rate over the cycle.

Chairman and CEO Denis Kessler commented: “SCOR is fully committed to delivering on its strategic plan ‘Strong Momentum’, which has proven to be appropriately designed and structured, and reaffirms its four cornerstones – strong franchise, controlled risk appetite, high diversification and robust capital shield. The plan’s updated version presented today refines the Group’s perimeter along with a few parameters. Despite the current uncertain and challenging environment, SCOR can confirm all the targets set one year ago.’

Source: SCOR Group

Topics Trends Profit Loss