SCOR's Forward 2026 Strategy: Commitment to Value Creation

SCOR's Vision for 2026: A Comprehensive Strategy Update

SCOR has made significant strides in outlining its ambitions for financial stability and value creation through its Forward 2026 strategy. The company, known as a leading global reinsurer, has reaffirmed its commitment to enhancing economic value while maintaining a focus on sustainability, thereby aligning its business strategies with long term goals.

Strategic Financial Goals for 2025-2026

In its strategic update, SCOR has set ambitious yet attainable financial targets for the coming years. The core financial goals include:

• Economic Value Growth: An annual growth rate of 9%, maintaining momentum within a stable economic environment.
• Solvency Ratios: Aim to keep solvency ratios between 185% and 220%, ensuring client security and trust.
• Return on Equity (ROE): Targeting an ROE above 12% per year through disciplined risk management and effective capital allocation.

Strong Market Positioning

SCOR acknowledges the significance of leveraging its Tier 1 franchise in the competitive insurance landscape. By capitalizing on prevailing market conditions, the company aims to expand into selected areas within Property & Casualty (P&C) and Life & Health (L&H), thus building a robust and diversified portfolio.

Advancements in Business Strategies

During a recent Investor Day, SCOR showcased its improved approaches to L&H, which includes an updated strategic plan approved by the Board of Directors. This plan emphasizes the following:

• New Business Margin Enhancement: Increased margins aiming to improve pricing structures in the L&H sector, with expectations set at approximately EUR 0.4 billion annually.
• Capital Management Framework: Ensuring a transparent dividend policy that reflects a significant portion of economic value growth distributed to shareholders.

Commitment to Sustainability

At the heart of SCOR's strategy lies a deep commitment to sustainability. The company defines its purpose as enhancing the well-being of society through innovative insurance products and solutions that respond effectively to contemporary risks. This involves maintaining a careful balance between profitability and responsibility towards the global community.

Operational Efficiency: A Path to Higher Profitability

Efforts to refine operational efficiencies have also been a focal point for SCOR. The Group anticipates achieving additional cost savings totaling EUR 150 million, enabling reinvestment into high-growth areas while maintaining stable operational expenses during the critical 2023-2026 period.

Strategic Initiatives in the P&C Sector

For its P&C business, SCOR emphasizes cautious engagement with market sectors influenced by significant risks such as climate change. The focus remains on expanding in promising treaty lines and developing alternative solutions that address both current and emerging challenges.

Positive Projections for Future Growth

Looking forward, SCOR expects to maintain a compound annual growth rate for its P&C insurance revenue between 4% to 6%, underpinned by an approach that embraces market dynamics and technological advancements in risk management.

Contact Information:

Media Relations: Alexandre Garcia, media@scor.com

Investor Relations: Thomas Fossard, InvestorRelations@scor.com

Frequently Asked Questions

What is SCOR's core purpose in its Forward 2026 strategy?

SCOR aims to enhance economic value while contributing to society's resilience through sustainable insurance solutions.

What targets has SCOR set for economic value growth?

SCOR targets an annual economic value growth of 9% over the period of 2025 to 2026.

How does SCOR plan to ensure strong solvency ratios?

SCOR aims to maintain solvency ratios within the optimal range of 185% to 220% to ensure client security.

What is SCOR's strategy for increasing profitability in the L&H sector?

SCOR intends to enhance new business margins and strengthen in-force management through a focused and disciplined approach.

How does SCOR incorporate sustainability into its business model?

Sustainability is central to SCOR's approach, aiming to balance profitability with social responsibility and risk mitigation.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.