FIRST-HALF INCOME AT SCOR HIT BY EQUITY IMPAIRMENTS

France-based reinsurer Scor has reported a net income of €189m ($251m) for the first half, down from €206m in the same period last year. Scor noted that the profit was achieved in the face of "high Nat Cat activity, a continued low-yield environment and equity impairments". Without the equity impairment, net income for the half would have been €233m, up from €226m in H1 2012. Gross written premiums for the period came in at €4.99bn, up 7.5% year on year, with Scor Global P&C booking a rise of 5.5% year on year to €2.74bn. The net natural catastrophe loss ratio was 6.9pp in H1 and 12.2pp in Q2. This included €80m linked to floods in Europe, €42m for the Alberta floods, and €6m relating to tornadoes in Oklahoma. Scor reported volume growth of about 8.5% for the June/July renewals, to €436m – which constitutes some 10% of Scor's renewal treaty business. The company said that risk-adjusted pricing was down 2.8% year on year, but that "a concentration of decreases can be observed for non-proportional Nat Cat portfolio covers in the US (more pronounced for Florida risks and averaging minus 14%), and in the UK for considerably lower volumes. Scor said that its P&C division was less impacted by the price reductions because it had a relatively lower exposure in Florida. Away from Nat Cat cover, Scor said that pricing in the P&C division was relatively flat, with a 0.4% average risk-adjusted fall. Non-Proportional Motor lines in the UK, Credit & Surety and Engineering lines benefited from significant price increases, Scor said. Scor Global Life reported GWP up 9.5% year on year to €2.61bn. The combined ratio in the non-life division was 94.3% for the first half. Scor reported "an on-going return on invested assets of 3.4%", but this excluded further equity impairments. Scor said that "this quarter should mark the last significant round of equity impairments impacting the Profit & Loss statement (under current market conditions)". Total investments at the Scor Global Investments division stood at €21.52bn as of June 30, down from €22.25bn at the end of last year.