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SCOR Forward 2026 Strategy Update: SCOR confirms core targets and its ambition to create significant value over 2025-2026
Press release
12 December 2024 - N° 19
SCOR Forward 2026 Strategy Update
SCOR confirms core targets and
its ambition to create significant value over 2025-2026
During its 2024 Investor Day in London, SCOR presents its new L&H strategy and updated Forward 2026 strategic plan which was approved by Group's Board of Directors at a meeting held on 11 December 2024.
Thierry Léger, Chief Executive Officer of SCOR, comments : “ We are committed to creating significant value over 2025-2026 and shaping the reinsurer of tomorrow. Our updated strategic plan, Forward 2026, re affirms our ambition to enhance economic value through strategic initiatives in P&C and L&H, while maintaining sustainability at the core of our 'raison d'être'. We are leveraging our Tier 1 franchise, refining our capital allocation, and adopting advanced data analytics to ensure a profitable and resilient future. Since the start of Forward 2026, SCOR has made significant progress in fulfilling its ambition: we have simplified the organization and fostered a new culture for faster decision-making processes; we have reserves at adequate levels, as confirmed by external reviews, with some buffers; and we have accelerated the L&H business transformation. With a clear roadmap and dedicated effort, we are on track to deliver significant value to our shareholders, clients, employees, and society as a whole .”
Significant value creation over 2025-2026
Today, SCOR confirms the two equally weighted targets of Forward 2026 , for the remainder of the plan:
The Group also maintains an ROE assumption above 12% p.a. over 2025-2026.
SCOR's ambition with Forward 2026 remains unchanged: to drive value creation for its shareholders, clients, employees, and society as a whole. The Group maintains a controlled risk appetite and disciplined underwriting as it captures business opportunities created by the supportive market conditions, fueling growth in its diversified L&H and P&C portfolios.
Forward 2026 combines the art and science of risk to protect societies, while firmly placing sustainability at the heart of the Group's raison d'être. As a solutions provider, SCOR contributes to a more resilient society while enhancing its well-being and sustainable development.
Group reserve adequacy confirmed by external independent reviewers
SCOR has mandated two external reviewers to perform independent reviews on its L&H assumptions and P&C reserves, with both confirming SCOR's reserves at best estimate:
P&C: Excellent performance generating strong profit, capital and reserve resilience
In Property & Casualty (P&C) (re)insurance, the Forward 2026 strategy remains unchanged.
SCOR will continue to capitalize on its Tier 1 franchise and the hard market to expand in selected attractive lines. The first year of the Forward 2026 strategy implementation yielded positive, tangible results, with EGPI growth exceeding initial expectations and contributing to the strategic goal of building a balanced and resilient portfolio.
In Reinsurance, SCOR maintains a cautious approach to business exposed to climate change and US Casualty, while accelerating development in attractive treaty lines and Alternative Solutions.
For SCOR Business Solutions (SBS), the Group is expanding into diversifying lines while considering their respective cycles, leveraging its leading position in Construction and Energy to meet global infrastructure and transition needs, and actively managing volatility through external reinsurance.
SCOR also aims to maintain its engagement with clients and develop solutions that address their needs in an evolving risk landscape, through strategic partnerships and innovation.
As part of the Forward 2026 update, SCOR has increased its ambition for Alternative Solutions, aiming to triple rather than double its premiums by 2026 (compared to full-year 2023).
L&H: acting decisively to deliver profitability
Since Q2 2024, SCOR has made strong progress in its three-step plan to enhance the L&H profitability. Today, SCOR presents its comprehensive L&H strategy, which focuses on four key areas:
Group transformation: EUR 150 million of savings to be delivered a year in advance, additional flexibility for reinvestment in growth areas
SCOR has accelerated its Group Transformation and Simplification initiatives, leading to EUR 150 million savings to be delivered by 2025, almost one year ahead of the Forward 2026 plan.
The additional EUR 30 million savings in L&H will allow for Group savings of more than EUR 150 million, and reinvestment in growth areas and operational excellence.
Overall, SCOR continues to target stable management expenses of EUR 1.2 billion between 2023 and 2026.
Capital management: Forward 2026 framework and dividend policy confirmed
SCOR intends to distribute a significant portion of the Economic Value growth to its shareholders, and to pay a resilient and predictable dividend.
SCOR's capital management framework favors cash dividends and may also include share buybacks or special dividends.
The capital management framework follows an unchanged four-step process:
Overview of the Forward 2026 targets and 2025-2026 assumptions
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This press release does not constitute an offer to purchase or exchange, nor a solicitation of an offer to sell or exchange SCOR's shares or other securities.
This press release should not be transmitted, forwarded or shared by any means in any jurisdiction in which it is unlawful or prohibited to do so.
This press release includes forward-looking statements, assumptions and information about SCOR's financial condition, results, business, strategy, plans and objectives, including in relation to SCOR's current or future projects.
These statements are sometimes identified by the use of the future tense or conditional mode, or terms such as “estimate”, “believe”, “anticipate”, “expect”, “have the objective”, “intend to”, “plan”, “result in”, “should”, and other similar expressions.
It should be noted that the achievement of these objectives, forward-looking statements assumptions and information is dependent on circumstances and facts that may or may not arise in the future.
No guarantee can be given regarding their forward-looking statements, assumptions and information provided in this press release. These forward-looking statements, assumptions and information are not guarantees of future performance. Forward-looking statements, assumptions and information (including on objectives) may be impacted by known or unknown risks, identified or unidentified uncertainties and other factors that may significantly alter the future results, performance and accomplishments planned or expected by SCOR.
In particular, it should be noted that the full impact of the economical and geopolitical risks including, but not limited to, the ongoing conflicts in Ukraine and in middle eastern countries on SCOR's business and results cannot be accurately assessed.
Therefore, any assessments, any assumptions and, more generally, any figures presented in this press release will necessarily be estimates based on evolving analyses, and encompass a wide range of theoretical hypotheses, which are highly evolutive. At this stage, none of these scenarios, assessments, impact analyses or figures can be considered as certain or definitive.
Information regarding risks and uncertainties that may affect SCOR's business is set forth in the 2023 Universal Registration Document filed on March 20, 2024, under number D.24-0142 with the French Autorité des marchés financiers (AMF) posted on SCOR's website www.scor.com .
In addition, such forward-looking statements, assumptions and information are not “profit forecasts” within the meaning of Article 1 of Commission Delegated Regulation (EU) 2019/980.
The forward-looking statements, assumptions, and information provided in this press release are only valid at the date hereof and SCOR has no intention and does not undertake to complete, update, revise or change these forward-looking statements, assumptions and information, whether as a result of new information, future events or otherwise.
This press release may include information on specific transactions that shall be considered as projects only. In particular, any decision relating to the information or projects mentioned in this press release and their terms and conditions will only be made after the ongoing in-depth analysis considering tax, legal, operational, finance, human resources and all other relevant aspects have been completed and will be subject to general market conditions and other customary conditions.
The Group's financial information contained in this document is prepared on the basis of IFRS and interpretations issued and approved by the European Union.
Any financial results subsequent to June 30, 2024 included in this press release have not been audited by, or have not been the subject of a limited review by, SCOR's statutory auditors.
Any figures for a period subsequent to September 30, 2024 should not be taken as a forecast of the expected financials for these periods.
1 Annual growth at constant economics (the starting point of each year being adjusted for the dividend for the preceding year).
2 Assuming a 30% corporate income tax rate over 2025-2026
3 The review consists of an independent review for 77% of claims reserves and peer review for the rest. The claims reserves reviewed of c. EUR 20 billion are gross of retrocession and undiscounted on an earned basis. Further details of WTW's review are set out in the appendices of the presentation of SCOR 2024 Investor Day (see page 61)
4 The details on the review by Milliman are included in the appendices of the SCOR 2024 Investor Day presentation (see page 62).
5 Estimated Gross Premium Income (EGPI)
6 Measured by Estimated Gross Premium Income (EGPI).
7 “Other income and expenses”, “Other operating income and expenses” as well as financing expenses are excluded from the management expenses.
8 Under IFRS 17, there remains an ongoing potential for volatility in L&H resulting from BAU activity, ongoing management actions, lapse and other variances. On management actions, variations may arise from the actual outcome vs the modelled result in the best estimate liability.
9 Compound annual growth rate over 2023-2026
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