- Gross written premiums: EUR 16,341 million (+7.1%), of which:
- P&C GWP: EUR 7,147 million (+15.8%)
- Life GWP: EUR 9,194 million (+1.2%)
- Total investments: EUR 28,854 million (+5.9%)
- Investment income: EUR 671 million (+9.1%)
- Operating results: EUR 713 million (+8.4%)
- Operating cash flow: EUR 841 million (-5.6%)
- Return on investments: 2.4% (+0.1 pp.)
- Life technical margin: 7.5% (+0.5 pp.)
- P&C net combined ratio: 99.0% (-0.4 pp.)
- Group cost ratio: 4.7% (-0.3 pp.)
- Annualized ROE: 7.0% (+1.5 pp.)
- Net income: EUR 422 million (+31.1%)
SCOR Global P&C gross written premiums went up 12.7% at constant exchange rates compared with 2018 (up 15.8% at current exchange rates). Altogether SCOR Global P&C added approximately EUR 1.0 billion of gross written premiums in 2019 whilst absorbing a high level of natural catastrophe and man-made claims, and demonstrating technical profitability with a net combined ratio of 99.0% in 2019.
SCOR Global Life gross written premiums were slightly down 1.8% at constant exchange rates compared with 2018 (up 1.2% at current exchange rates). This variation was largely driven by the renewal of certain Financial Solutions transactions as fee business (rather than as premiums) in 2019. Excluding these transactions, Life gross written premiums have grown by 4.5% at constant exchange rates. SCOR Global Life continued to successfully expand its franchise and delivers a strong level of technical profitability in 2019 by recording a technical margin of 7.5%.
SCOR Global Investments pursued a prudent asset management strategy and delivered a strong return on invested assets of 3.0% in 2019, benefiting from capital gains.
The Group cost ratio which stood at 4.7% of gross written premiums, was better than the "Quantum Leap" assumption of ~5.0%.
The return on equity (ROE) stood at 7.0%, 636 bps above the risk-free rate. The normalized return on equity for the year was 9.0%, exceeding the profitability target of the strategic plan "Quantum Leap".
Group net operating cash flows stood at EUR 841 million in 2019, with robust cash flows from SCOR Global P&C in line with expectations despite significant payments on 2017 and 2018 natural catastrophe events. SCOR Global Life experienced lower cash flow as a result of the volatility on claim payments. 2018 was positively affected by a large one-off transaction. The Group's total liquidity stood at EUR 1.5 billion at December 31, 2019.
Shareholders' equity stood at EUR 6,374 million at December 31, 2019, up by EUR 546 million compared with December 31, 2018, after the net income contribution of EUR 422 million and dividend payment of EUR 325 million in May 2019. This results in a strong book value per share of EUR 34.06, compared to EUR 31.53 at December 31, 2018.
Financial leverage stood at 26.4% on December 31, 2019, improving by 1.1% points compared to December 31, 2018. Allowing for the intended call of the debt callable on October 20, 2020, the adjusted financial leverage ratio would be at 25.5%.
The Group's estimated solvency ratio stood at 226% on December 31, 2019, above the optimal solvency range of 185% - 220% as defined in the "Quantum Leap" strategic plan. This elevated solvency level was driven by strong capital generation and efficient capital management.
"In 2019, the third consecutive year marked by a high level of natural catastrophes and man-made claims, as well as the persistence of a low interest rate environment, SCOR demonstrates once again its capacity to absorb shocks. The Group continues its development and its strong value creation, recording sustainable growth, an increase in profitability, and further strengthening of solvency. Our shareholder return is attractive with a proposed dividend of EUR 1.80 for 2019 subject to the approval of the Annual General Assembly. SCOR as an independent global Tier one reinsurance company is fully mobilized to reach the targets of its "Quantum Leap" strategic plan."
More financial information about SCOR can be found at https://www.scor.com/en/financial-information.