SCOR pulls-back on non-cat US property, flat on property cat, at “competitive” renewals

Global reinsurer SCOR said this morning it applied underwriting discipline at the “competitive” mid-year reinsurance renewals this year, growing in diversifying areas of the market, most notably in its alternative solutions business, while decreasing premiums written in non-cat US property lines, but remaining flat in US property catastrophe business.

Announcing its second-quarter 2026 results this morning, SCOR has reported EUR 171 million of net income for the period, down 24% on the prior year, but insurance revenues of EUR 3.624 billion were only 5% down in the quarter and for the half-year an 18.5% return-on-equity is only 0.2 points below H1 of 2025.

Property and casualty insurance revenues came in only 2% down for the quarter and 2.3% down for the half-year, at EUR 1.796 billion and EUR 3.608 billion respectively.

At renewals so far in 2026, premium volumes grew by 3.2% to EUR 6.455 billion, across specialty and P&C lines, but in its Alternative Solutions division SCOR grew 71.7% in the year-to-date and at the mid-year renewals expanded significantly by 133%.

A relatively benign quarter of natural catastrophe loss experience bolstered SCOR’s Q2 2026 result, while the overall P&C combined ratio was just 79.5%, lower than Q2 2025’s 82.5%. For the first-half of the year the P&C combined ratio was 79.9%, again lower than the prior year’s 83.7%.

Thierry Léger, Chief Executive Officer of SCOR, commented, “SCOR achieved another strong set of results this quarter, demonstrating the consistency and resilience of its earnings. This performance reflects the remarkable engagement of our teams, the strength of our client relationships and diversified business model and the disciplined execution of our strategy across all three businesses. In P&C, we continued to combine diversified growth with strict underwriting discipline in an increasingly competitive market. In L&H, we delivered another quarter in line with expectations while our investment portfolio continued to generate attractive and recurring income. The Group solvency ratio stood at 220% at quarter-end, with capital generation in line with our FY 2026 guidance. Overall, these results underscore the robustness of our operating model and our ability to steer performance through changing market conditions. We have entered the second half of 2026 from a position of strength, firmly focused on delivering Forward 2026.”

Commenting on market conditions, SCOR explained that the mid-year reinsurance renewals were competitive.

“During the June-July 2026 renewals, SCOR continues to grow in its diversifying lines, applying underwriting discipline in a competitive environment,” the company explained.

Estimated gross premium income was up 1.3% for traditional insurance and up 19.8% in specialty lines.

But, demonstrating cycle management, SCOR said that P&C renewal business decreased 4.8%, with particular reductions in in non-cat US property business and also US casualty business, while the company remained flat in property catastrophe business at the renewals.

Reflecting the softer market and strong price competition, the gross price change across SCOR’s renewed business came in at -4.4%, declining -9.5% on non-proportional business and only -0.6% on proportional business renewed.

SCOR’s nat cat 100-year PMLs have risen through 2026 so far though, with US wind and quake higher, as well as European windstorm, but a decline in Japanese quake exposure, the company has reported.

SCOR also cited lower retrocession costs as helping the contract service margin on new business underwritten, as the reinsurer also benefited on the other side of its underwriting book from the softer market environment, it seems.

The company said its retrocession buying “partially offset inward business margin erosion.”

“SCOR is successfully weathering a competitive environment thanks to its strategy of growing in a profitable and diversified way,” the reinsurer stated.

For the coming months, SCOR expects the reinsurance market will remain competitive.

Commenting, “Looking ahead, SCOR anticipates a continued competitive environment. In that context, SCOR maintains a sharp focus on accessing attractive business opportunities, and is committed to applying stringent underwriting discipline, prepared to redeploy capital or reduce capacity if necessary to meet its profitability targets.”

During an earnings call this morning, SCOR CEO Thierry Léger noted that there have been many smaller catastrophes which are not touching reinsurance deductibles, and with no major events companies in the market will continue to build capital.

As a result, he said its expected there will be plenty of capital available for the January 2027 reinsurance renewals, at this stage of the year it appears “without any major event, oversupply will remain and we will remain in a very competitive environment.”