Revios acquisition sees life premiums rocket by 124%; Converium buyout is complete
For the first half of 2007, Scor has seen a 55% increase in gross written premiums to €2,124m. This includes a 12% increase for non-life GWP to €943m and a massive 124% increase in life GWP to €1,181m.
SCOR’s acquisition of 32.9% of Converium on 26 April 2007 has resulted in the inclusion of a pro rata quota share of the Converium results in SCOR’s results. This only affects the amount of shareholders’ equity, which was up 58% compared with the first half of 2006.
Net income increased 77% in the second half to €181m, while operating income was up 36% to €255m. The net combined ratio for non-life reinsurance was 98.8%, up marginally from 98.2% in 2006.
SCOR has now finalised the Converium acquisition. On 30 August 2007, the EGM of Converium will take place to change the name to SCOR Switzerland and to nominate the new board of directors and the new executive committee.
Following the board of directors’ meeting, Denis Kessler, chairman and chief executive officer, said: “The SCOR Group has seen a sharp increase in its business during the first half of 2007, due to the successful integration of Revios and the strong mobilisation of the underwriting teams in both life and non-life reinsurance.
“The highly satisfactory renewals at 1 April and 1 July confirm this dynamism. The results are increasing very sharply, with each centre of activity – SCOR Global P&C, SCOR Global Life and Asset Management – making a major and growing contribution. The return of the Group’s US entity to profitability in property and casualty reinsurance is demonstrated by the very limited reactivation of tax credits, which bears witness to the success of SCOR’s repositioning across the Atlantic.
“Since 1 January 2007, SCOR has been successfully working on the acquisition of Converium, whose full integration is currently underway. The new combined Group’s 2008 underwriting plan is ready. A new three-year plan, called Dynamic Lift, has been drawn up in order to set out a number of objectives, notably including profitability, which the Group has set itself for the coming years, and in order to indicate the ways and means it will use to achieve these.
“The group dynamics are positive: it is expanding its franchise, it is highly disciplined in its underwriting, it is prudently managing its assets, it is following an acquisition policy that strictly adheres to its strategic objectives and it now has a wider pool of skills and expertise.”