SCOR reports lower nine-month profits, higher revenues

November 2, 2009 – 10:03 pm

Paris-based SCOR reported profits of €278 million ($409.1 million) for the first nine months of the year, down slightly from the €280 million ($412.1 million) reported for the same period in 2008.

Gross written premiums for the 2009 period increased to €4.88 billion ($7.18 billion), up 12.9% compared with the same period last year. Life reinsurance business saw the biggest increase, with gross written premiums increasing 20.4% to €2.35 billion ($3.46 billion). Nonlife premiums increased 6.7% to €2.53 billion ($3.72 billion).

SCOR’s combined ratio improved to 97.4%, compared with 99.2% for the first nine months of last year.

Investment income fell in the first nine months of 2009 to €325 million ($478.3 million) from €445 million ($654.9 million) last year.

Denis Kessler, chairman and chief executive officer of SCOR, said demand for reinsurance would “remain high” as insurers have seen a greater decrease in capital than reinsurers as a result of the financial crisis.

In addition, cedents are seeking greater diversity of reinsurers, he said. “Cedents are also encouraged to diversify and better balance the placement of their programs and to speed up the process of redistributing shares between their reinsurers.”

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