SCOR continues to grow in property cat reinsurance, sees market as competitive

Global reinsurer SCOR has reported starting the year with higher net income and return on equity, while the company continues to prune in certain liability classes, but maintains its stance on price adequacy in property catastrophe risks by growing into what it acknowledges is a competitive marketplace.

SCOR reported EUR 220 million of adjusted group net income for the first-quarter of 2026, resulting in a return on equity of 21.15%, both figures higher than a year ago.

The property and casualty combined ratio came in particularly low, at 80.2%, with a benign catastrophe loss environment the key driver for that. In fact the nat cat ratio was just 4.2% for the period, while the attritional loss ratio has also allowed SCOR to build more buffers in the period.

Prudently, SCOR has strengthened its balance sheet with an additional EUR 300 million buffer having been added to its P&C Best Estimate Liabilities in Q1 2026, while the company also said it has established a mid-double-digit IBNR provision due to uncertainty over potential exposure to the Middle East conflict.

Thierry Léger, CEO of SCOR, commented, “We delivered a solid first-quarter performance, with all business activities contributing to a RoE of 21.7%. P&C continues to perform at an excellent level, with a combined ratio of 80.2%, allowing for additional buffer building and a precautionary IBNR6 provision related to the Middle East conflict. L&H performed in line with expectations. Investments continue to benefit from elevated returns on invested assets.

“We continue to strengthen the resilience of our balance sheet by adding EUR 300 million of buffers to the P&C Best Estimate Liabilities. The Group solvency ratio increases by 5 points to 220%, driven by strong net operating capital generation. I am confident in SCOR’s ability to deliver on its 2026 objectives.”

P&C revenues fell slightly in the quarter to EUR 1.812 billion, but SCOR noted strong renewals and positive retrocession impacts, as helping to drive new business contract service margin (CSM) higher by 1.8% to EUR 722 million in the quarter.

At the April reinsurance treaty renewals, SCOR said it experienced “a more competitive environment”, adding that it “protected margins through continued underwriting discipline.”

The net underwriting ratio only increased by less than 1 point, while year-to-date that is expected to be up by around 2 points at this stage.

Estimated gross premium income (EGPI) fell 8.7% or EUR 66 million at the April renewals, with SCOR saying this mainly reflected “a deliberate reduction in US Casualty volumes and an average price decrease of around 3.5%.
In Alternative Solutions, EGPI decreases by 5.5% (i.e. EUR -9m).”

SCOR said that the price change on non-proportional treaty reinsurance at the April 1 renewals was -7.8%, stating that property cat was the main driver of this, while prices fell -1.4% on proportional business driven by marine and property.

Importantly, terms and conditions “broadly held”, SCOR said, which included attachment points.

EGPI fell by -8.7% at the April renewals, as SCOR wrote less business overall, across P&C and specialty lines, while its Alternative Solutions EGPI fell -5.5%.

SCOR again noted that retrocession buying is helping the firm offset the effects of less margin on inwards business, indicating that it is finding value inn the retrocession market, it seems.

Recall that SCOR is back in the catastrophe bond market with a new Atlas Capital deal right now.

However, one thing is worth noting and that is the fact SCOR clearly still sees rate adequacy and attractive returns as possible in property catastrophe reinsurance business, as that is one area where growth and expansion continues despite the softening market.

Year-to-date, in P&C reinsurance, while EGPI overall is up by 4.5%, SCOR said that property cat rises the fastest being up by 4.6% in 2026 so far.

At the April renewals, SCOR again noted growth in property cat EGPI (premiums), as its property and property cat business grew premiums from 37% of the portfolio up for renewal, to become 41% of the renewed portfolio, while US casualty shrank somewhat as SCOR was more cautious.

It’s clear SCOR maintains a view of adequate value in property catastrophe reinsurance, causing it to continue growing at a time when some others are beginning to pull-back.

The reinsurer has a number of strategic levers available to assist it here, including its retrocession program and its work with third-party capital investors, through sidecars and other insurance-linked securities style risk partnership arrangements.

It is reminiscent of a trend we saw back in the 2010’s, when SCOR was one of the major reinsurers that continued to grow into property cat risks, especially in parts of the US, during a period when the market was going through another softening phase.

SCOR clearly views that it can continue to write property cat reinsurance into the softening market at this time, deeming that sufficient rate adequacy persists, while it has levers available to help in manage cat load and exposures, and the all-important terms, conditions and attachments remain relatively stable.

The key is knowing how to manage margins, using those strategic levers which are available, as well as when to slow that growth or pull-back of course, which the company is now demonstrating on the US casualty side.

Finally, SCOR also cited an expected continuation of the competitive market environment, saying, “For the remaining 2026 renewals, SCOR is preparing for an ongoing competitive market and will continue with the disciplined implementation of its diversified Forward 2026 underwriting strategy.”