By Mateusz Rabiega and Jakob Van Calster
(Reuters) -French reinsurance company SCOR reported net profit on Wednesday that beat estimates, supported by strong performance across all business segments, it said, and projected healthy growth in its U.S. business in the next two to three years.
SCOR reported a slight yearly rise in net income to 200 million euros ($227.1 million) in the three months to March 31, compared with an average of 148 million euros expected by analysts polled by the company.
Profit in its Life and Health business segment grew by 65% to 118 million euros, supporting overall net profit. Its combined ratio stood at 85.0%. A combined ratio under 100% indicates a company is making a profit from underwriting.
Company shares had jumped 5% to the top of the Paris SBF120 index by 0957 GMT.
Looking ahead, CEO Thierry Leger said he expected the company’s U.S. division to continue to grow, despite the potential inflationary impact of U.S. tariffs.
“If I project myself two… three years ahead, we should have a much healthier, more profitable, better diversified new business mix coming from the U.S.,” he told journalists in a call.
Reinsurers like SCOR provide insurance to other insurance companies, allowing them to manage risk exposure, maintain financial stability, and protect against losses during events such as natural disasters or large-scale claims.
Leger said SCOR had been able to absorb most of the losses from the wildfires in California earlier this year, and that the company historically had low exposure to natural disasters in its global portfolio.
“We are adjusting our pricing, particularly from secondary perils such as wildfires, in a much more dynamic way than we did before,” he said.
($1 = 0.8806 euros)
(Reporting by Mateusz Rabiega and Jakob Van Calster; Editing by Rachna Uppal)
