By Mateusz Rabiega and Jakob Van Calster
(Reuters) -Reinsurance company SCOR narrowly avoided a yearly loss in 2024 thanks to a strong beat in its fourth quarter net profit driven by its property and casualty (P&C) business and a low tax rate reflecting a release of some tax provisions.
It posted quarterly net income of 233 million euros ($249 million) on Wednesday, well above analysts’ average estimate of 195 million euros. That brought the annual profit to 4 million euros, while the market had expected a loss.
The French group’s P&C insurance revenue held steady at close to 2 billion euros in the fourth quarter, despite losses related to Hurricane Milton in the U.S., pushing annual turnover from those activities to 7.64 billion euros, slightly higher than in 2023.
Performance in the life and health insurance business also improved in the quarter, but ended the year with a significant loss as new deals in the protection and longevity segments could not offset a negative impact from a review of assumptions on the U.S., Canada, South Korea and Israel markets.
Based on the review, SCOR does not expect the life and health business to grow in the U.S. and has no plans for expansion there, CEO Thierry Léger told journalists.
“We have a lot of U.S. mortality business already on our balance sheet. The business has been performing poorly over 2024,” Léger said.
The company predicted the impact of California wildfires that ravaged U.S. West Coast in January would be around 140 million euros, in line with its budget set out for natural catastrophes.
Reinsurance companies like SCOR provide insurance to other insurers, enabling them to protect themselves from losses at events such as natural disasters or large-scale claims.
SCOR also said it would propose an annual dividend of 1.80 euro per share, matching analysts’ expectations.
“SCOR saw a strong end to 2024 … after a fairly tumultuous year,” J.P.Morgan analysts said in a note to investors.
The company’s shares were flat as of 0938 GMT in volatile trading ranging from a drop of 3.5% to a rise of 1.1%.
($1 = 0.9348 euros)
(Reporting by Mateusz Rabiega and Jakob Van Calster in Gdansk; editing by Milla Nissi)
