Building on strong foundations: A letter to the shareholders
This article is adapted from the introduction written for SCOR's 2024 Activity Report by SCOR CEO Thierry Léger and Chairman of the Board Fabrice Brégier. Read the full article and discover the rest of the report here: https://bit.ly/42UtBQO
As we reflect on the past year, we are reminded of the resilience and adaptability that define SCOR. Despite the challenges faced, we have made significant strides toward meeting the goals outlined in the Forward 2026 strategic plan and in providing our clients with innovative and tailor-made solutions. Indeed, our commitment to delivering custom solutions through partnerships and innovation has been an important factor in our continued success and you will see these themes resonate in the stories presented throughout this report.
2024 was once again marked by the impacts of climate change, mounting geopolitical tensions, and a wide and diverse range of evolving and emerging risks. Shifting demographic patterns are rewriting reinsurance needs across markets globally. Many countries face aging populations, placing a strain on healthcare and social security systems. Others see a young population entering the workforce, starting families, and looking to the future with high expectations. Tech and data are also top of mind for reinsurers as new tools and resources promise to revolutionize how we work and create new expectations from clients and policyholders.
"SCOR is well positioned to address and respond to these challenges, enhance societal resilience, and transform complexity into opportunity."
Each of these trends brings their own challenges and opportunities. We are seeing that these trends are driving a higher demand for risk transfer solutions and successful reinsurers will be those who quickly recognize and embrace opportunities, adapt swiftly, and tailor their offering to meet markets’ unique needs. These reinsurers will be flexible and smart in how they handle these issues and adapt their services. Moving forward with a clear roadmap in 2025, SCOR is well positioned to address and respond to these challenges, enhance societal resilience, and transform complexity into opportunity. Our dedicated efforts ensure we are on track to deliver significant value to our shareholders, clients, employees, and society as a whole.
2024: A year of reinforcing foundations and showing resilience
While 2024 was challenging for the L&H business, SCOR P&C and Investments both showed strong and consistent performance throughout the year. P&C’s combined ratio for 2024 is ahead of our Forward 2026 assumption of 87% and we have built significant prudence in our P&C reserves two years ahead of plan. This is a strong demonstration of SCOR’s underwriting discipline in a volatile environment and we are satisfied with this excellent performance. We believe the market offers further opportunities for profitable growth and we will continue to leverage our Tier 1 franchise to this end. Investments achieved an elevated return over the full year through our high-quality, mainly fixed income portfolio, which benefited from ongoing high reinvestment rates.
In December 2024, SCOR’s ambition was reaffirmed with the updated Forward 2026 strategic plan: to drive value creation for shareholders, clients, employees, and society as a whole and to shape the reinsurer of tomorrow. SCOR maintains a controlled risk appetite and disciplined underwriting approach as we take advantage of business opportunities created by the supportive market conditions, fueling growth in diversified L&H and P&C portfolios.
In 2024, the Group made huge strides toward meeting the targets outlined in Forward 2026. We are successfully growing key lines of business as identified in Forward 2026: our P&C Alternative Solutions team is already one year ahead of strategic targets by premium volume and our L&H Longevity team is showing great promise growing into new markets.
Backed by our Forward 2026 ambitions, we will continue to transform SCOR’s organization, ways of working, and the tools available to our teams. Notably, in 2024, we have developed a comprehensive data strategy that will establish a robust data foundation and allow the Group to best harness the opportunities represented by tech and data, setting the stage for future advancements. We also introduced a flex office approach in our Paris headquarters, allowing us to reduce the carbon footprint of our operations while dedicating more space to new ways of working.
The Group underwent an organizational transformation in April 2024, which was driven by the desire to streamline decision making processes, reduce silos and enable greater collaboration, and bring the entire Group closer to our clients by reducing the number of hierarchical levels. SCOR’s modernization is allowing us to enhance our operations and better support clients, while creating new opportunities for our employees.
Solutions, Partnerships, and Innovation
Solutions, partnerships, and innovation are at the heart of SCOR’s mission. They define our approach to serving our clients and contributing to more resilient societies.
Our teams are dedicated to developing tailor-made solutions for each of our client’s unique needs. With experts around the world, we offer crucial local insights while being backed by our global expertise, understanding of big-picture insights, and overarching risk knowledge. This collaborative approach among teams allows us to adapt solutions, share insights and previous learning, and proactively meet clients’ evolving needs.
SCOR’s solutions are powered by a wealth of technical expertise that goes far beyond (re)insurance and risk management expertise. Many of our employees bring decades of experience from various industries – aeronautics, energy, agricultural, medical disciplines, scientific research positions, and more. This deep technical knowledge ensures our proposals are thoroughly researched and technically sound and have the potential to significantly impact our clients and societies.
But these solutions aren’t created in a vacuum: our success is built upon and dependent on strong partnerships. We engage deeply with clients, insurers, brokers, and other stakeholders within and beyond the (re)insurance industry to co-create solutions that deliver mutual value. We align our capabilities with clients’ needs to address the evolving market and societal demands. Finally, innovation is critical to our vision. It’s a mindset where challenges become opportunities and our experts are empowered to push typical approaches a step further. Enabled by data-driven insights, continuous product development, and the integration of cutting-edge technologies, innovation is a cornerstone of our strategy and success.
SCOR is looking forward
Standing on strong foundations and looking to future opportunities, SCOR adopts a forward-looking approach to anticipate and manage emerging and evolving risks. Our commitment to solutions, partnerships, and innovation is not just about staying ahead; it’s about shaping the future of reinsurance and contributing to a more resilient world.
To do this, we are guided by the strategic vision of our leaders. Our Executive Committee and Board of Directors ensure strong governance that strengthens our long-term stability and industry position. Throughout this report, you will hear Comex members discuss trends and developments in their domain and meet several regional leaders who expanded their roles in 2024.
Moving forward, an agile organization will enhance SCOR’s ability to tackle challenges in the coming years. The new organization was the first step and we are now focused on completing our cultural transformation. By fostering an agile mindset and further leaning into cross-functional collaboration, SCOR aims for greater efficiency, accountability, and transparency, while ensuring the success and wellbeing of our employees.
Sustainability remains a priority at SCOR and is closely linked to our Raison d’Être: contributing to the welfare, resilience, and sustainable development of society by bridging the protection gap, increasing insurance accessibility, and helping protect against risks. We firmly believe in our industry’s role in creating a brighter future and SCOR is dedicated to providing solutions that not only protect our shared future but also restore ecosystems and improve our world. Where preventative measures are possible, we will take the necessary steps as preventing risk events is far better than rebuilding or recovering after damage.
SCOR is not just a reinsurer; we are a solutions maker and a co-creator of resilient futures.
Looking ahead to 2025 and beyond, SCOR is ready to manage disruptions, embrace new opportunities, and become the reinsurer of tomorrow. With unwavering commitment to excellence, SCOR is not just a reinsurer; we are a solutions maker and a co-creator of resilient futures.
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