French reinsurer SCOR SE has demonstrated a significant financial recovery in its 2025 results, confirming the group’s resilience and ability to deliver strong capital and earnings performance, according to Fitch Ratings’ credit commentary.
SCOR reported adjusted net profit of 846 million euros in 2025 and a return on equity of 19.1%, a significant improvement from the previous year.
Its strong performance was driven by improvements in its life and health (L&H) business and continued outperformance in its property and casualty (P&C) business.
A comprehensive review of L&H’s provisioning assumptions affects a challenging 2024, which impacted profitability in 2024 and resulted in a negative Insurance Services Result (ISR).
However, Fitch believes the impact on earnings will mainly be felt in 2024. L&H’s revised ISR target is now €400 million per year, which the ratings agency believes is achievable.
SCOR’s 2025 L&H ISR of €450 million exceeded the new target and was a significant improvement from negative €348 million in 2024, confirming this shift.
New business contracted services margin (CSM) was €464 million, down 4.3% due to lower premiums following a review of assumptions.
The property and casualty insurance division continued to deliver strong results, with a combined ratio of 82.3%, an improvement from 86.3% in 2024, achieving below the strategic target assumption of 87%.
This was driven by lower natural catastrophe losses and strong consumption loss rates, partially offset by continued reserve buffer building.
In addition, property and casualty insurance services revenue (ISR) increased by 23% to 957 million euros, while new business contract services margin (CSM) increased by 8.9% to 1.1 billion euros.
Benefiting from asset liability management and a high reinvestment rate, the group’s investment income remained strong at €835 million, with a return on invested assets of 3.5%.
SCOR maintains a very strong capital position, with Solvency II coverage of 215% (2024: 210%), at the top end of the optimal range of 185%-220%, reflecting strong working capital generation and prudent risk management.
Fitch said these indicators support its revision of SCOR’s outlook to positive from stable in October 2025.
While underlying working capital generation amounted to €1.0 billion, this was largely offset by market differences, ALM actions and a proposed dividend of €341 million. Shareholders’ equity at the end of the period was €4.4 billion.
In 2026, growth prospects remain optimistic. SCOR’s January 2026 treaty renewals showed a 4.7% increase in traditional reinsurance gross premiums, driven by targeted expansion in property and casualty, particularly in Asia Pacific and North America, and strong performance from core customers.
Alternative solutions grew by 80.5%, reflecting growing demand for innovative, structured risk transfer. Disciplined underwriting allowed SCOR to maintain generally stable terms and conditions, including points of attachment, and achieve 2% net underwriting growth.
Fitch expects SCOR’s solvency profile to remain very strong and within the group’s 2026 target range.
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