Following the switch to IFRS 17, SCOR sets two tough targets for 2023 that are equally weighted:
- A financial target: an Economic Value growth rate under IFRS 17 of 700 basis points above the risk-free rate between December 31, 2022, and December 31, 2023, at constant interest and foreign exchange rate assumptions;
- A solvency target: a solvency ratio in the optimal 185% to 220% range. In 2023, the solvency ratio is expected to stay in the upper part of the optimal range.
The reinsurer will start disclosing its financial results in Q1 2023 using the new IFRS 17 accounting standard.
Both of the above-mentioned goals are predicated on a set of financial forecasts for the Group and each of its three business engines for the year 2023.
These presumptions include:
- For the Group, insurance revenue growth is between 1% and 3%.
- In terms of property and casualty (P&C) reinsurance, SCOR anticipates a 0% to 2% increase in insurance revenue, with gross P&C insurance revenue reaching around €7.4 billion in 2022. A combined ratio of approximately 87% is also anticipated for the year by the reinsurer, of which 10% is related to the budget for natural disasters. Additionally in P&C, SCOR anticipates generating CSM of around €750 million through new business.
- When it comes to L&H reinsurance SCOR anticipates growth of between 2% and 4% for 2023 which was approximately €8.5 billion in 2022, According to the firm’s assumptions, the L&H reinsurance insurance service result will be approximately €450 million, and €450 million will be generated by new business for the CSM. Expected CSM generation of approximately EUR 450 million through new business.
- According to SCOR, L&H reinsurance revenue, which was approximately €8.5 billion in 2022, is expected to expand by between 2% and 4% in 2023. According to the firm’s assumptions, the L&H reinsurance insurance service result would be approximately €450 million, and the estimated CSM generation would be around €450 million from new business.
Regarding its dividend strategy for 2023, the French reinsurer also made a statement, noting that it seeks to provide a robust, foreseeable, and predictable payout.
Thierry Léger, who has been serving as the Group Chief Underwriting Officer (CUO) of Swiss Re since 2020, will become the Chief Executive Officer (CEO) of SCOR effective of May 1st, 2023. His top aim will be creating an IFRS 17 strategy plan that enables the Group to fully capitalize on the opportune market circumstances.