9 October 2017 - N° 28
SCOR estimates the cost of the Harvey, Irma
and Maria hurricanes and the Mexico earthquakes
at EUR 430 million after retrocession and tax
Based on its own data and modelling tools, SCOR currently estimates that the total private insured market loss for the combined Harvey-Irma-Maria hurricanes and Mexico earthquakes should reach USD 95 billion.
SCOR estimates the cost of these events at EUR 430 million net of retrocession and tax for the third quarter of 2017.
This estimate is based on an analysis of the Group's exposures, the current assumption of total insured losses, and preliminary information received from certain cedants to date. Given the nature, magnitude and very recent occurrence of these events, and the limited claims information received to date, there remains a material degree of uncertaintyregarding this estimate.
As indicated in the press release dated September 26, 2017, at this stage the Group's solvency position remains strong and in the upper half of the optimal solvency range, the dividend policy remains unchanged and the share buyback program is maintained. SCOR confirms the "Vision in Action" targets, and furthermore the Group does not expect its financial ratings to be affected. Moreover, the likelihood of the Contingent Capital facility being triggered in 2017 is extremely remote.
Group Head of Communications
+33 (0)1 58 44 75 43
This publication is an ad hoc disclosure pursuant to article 17 of the Regulation (EU) n°596/2014 of 16 April 2014.
SCOR does not communicate "profit forecasts" in the sense of Article 2 of (EC) Regulation n°809/2004 of the European Commission. Thus, any forward-.looking statements contained in this communication should not be held as corresponding to such profit forecasts. Information in this communication may include "forward-looking statements", including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions and include any statement which does not directly relate to a historical fact or current fact. Forward-looking statements are typically identified by words or phrases such as, without limitation, "anticipate", "assume", "believe", "continue", "estimate", "expect", "foresee", "intend", "may increase" and "may fluctuate" and similar expressions or by future or conditional verbs such as, without limitations, "will", "should", "would" and "could." Undue reliance should not be placed on such statements, because, by their nature, they are subject to known and unknown risks, uncertainties and other factors, which may cause actual results, on the one hand, to differ from any results expressed or implied by the present communication, on the other hand.
Please refer to the 2016 reference document filed on 3 March 2017 under number D.17-0123 with the French Autorité des marchés financiers (AMF) posted on SCOR's website www.scor.com (the "Document de Référence"), for a description of certain important factors, risks and uncertainties that may affect the business of the SCOR Group. As a result of the extreme and unprecedented volatility and disruption of the current global financial crisis, SCOR is exposed to significant financial, capital market and other risks, including movements in interest rates, credit spreads, equity prices, and currency movements, changes in rating agency policies or practices, and the lowering or loss of financial strength or other ratings.
The Group's financial information is prepared on the basis of IFRS and interpretations issued and approved by the European Union. This financial information does not constitute a set of financial statements for an interim period as defined by IAS 34 "Interim Financial Reporting".