Home News Scor Shares Trade Lower After Q3 Results

Scor Shares Trade Lower After Q3 Results

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Shares in Scor, the French reinsurer, experienced a sharp decline following the release of their third-quarter financial report. Although the company reported a return to profitability compared to the same period last year, the results fell short of consensus expectations.

At 08:44 GMT, Scor shares traded at EUR25.65, representing an 8.4% decrease.

For the third quarter, Scor recorded a net profit of 147 million euros ($156.9 million) compared to a loss of EUR752 million during the same period in the previous year. The loss in 2022 was primarily due to significant claims resulting from natural catastrophes, including Hurricane Ian. Gross written premiums also saw a decline of 5.3%, amounting to EUR4.87 billion.

Consensus estimates provided by the company anticipated a net profit of EUR183 million, indicating a lower-than-expected performance.

Scor’s Solvency II ratio, a measure of its financial strength, stood at 206% at the end of September. This signifies a decrease from the 213% ratio recorded at the end of 2022. Analysts predicted a higher metric of 217%, according to the company-provided consensus.

In light of Scor’s third-quarter earnings, Jefferies analysts expressed disappointment with the results. The Group’s net income fell 19.7% below expectations, while the Solvency II ratio performed 11 percentage points lower than anticipated.

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