Potential shift in weather conditions, implying a pivotal moment for weather developments.
The French reinsurer SCOR is currently in a positive turnaround phase, supported by reduced exposure to natural disasters, a low valuation, and attractive dividends. In Q2 2025, SCOR reported a net income of EUR 226 million, reversing a loss seen in the same quarter of 2024.
This improvement was driven by strong performance in all business segments and a notably low Property & Casualty combined ratio of 82.5%, which included a very benign natural catastrophe ratio of 3.8% for the quarter. The company has also built additional financial buffers due to excellent loss performance.
Over the first half of 2025, SCOR achieved a net income of EUR 425 million with an annualized Return on Equity of over 20%. The company’s expected dividend payout is substantial (EUR 1.8 per share for fiscal 2024, paid in 2025), highlighting an attractive yield for investors.
SCOR has significantly reduced its exposure to natural disasters. The maximum exposure to tropical storms in America is now $500 million, a decrease of 43% for hurricane damages in America, 53% for earthquakes in the US, 62% for storms over Europe, and 21% for earthquakes in Japan. As a result, the reinsurer is expected to be relatively less affected by high burdens.
Despite the positive outlook, the stock of the French reinsurer is trading significantly below book value. However, given the stability in natural catastrophe losses and the company’s strong earnings, SCOR continues to benefit from a healthier underwriting environment, contributing to improved valuation metrics.
In summary, SCOR’s current status is that of a financially improving reinsurer with lower natural catastrophe exposure, strong earnings, and shareholder returns, supporting a positive outlook and turnaround prospects in the reinsurance market.
[1] SCOR Quarterly Report Q2 2025 [2] SCOR Annual Report 2024
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- Although SCOR has made significant progress in reducing its exposure to natural disasters, it still engages in various sectors, such as investing in the potential of environmental-science research for predicting and mitigating the impact of climate change on natural catastrophes.
- Interestingly, despite dedicating resources to the science sector and boasting a strong performance in sports sponsorships, SCOR has managed to maintain a low weather-related losses ratio, further contributing to its positive financial turnaround.
