SCOR: Net Income Down 4.8% in the Third Quarter, but EPS Above Consensus
SCOR published its third-quarter accounts on October 30, 2026, with net income down year on year but a strengthened balance sheet. The solvency ratio gained 6 points since the end of 2025, and the group's economic value rose 11.9% year to date at constant economic assumptions.
The quarter was marked by natural catastrophes, notably the earthquake in Colombia. The combined ratio of the property and casualty business thus rose to 84.1%, compared with 80.9% a year earlier. It remains below the 87% target recalled by Chief Executive Officer Thierry Léger.
Quarterly earnings per share of €1.16 came in above the €0.94 expected on average by the analysts surveyed before the publication. The group is entering the final phase of its “Forward 2026” plan, ahead of the presentation of a new strategic plan on December 3.
Net Income of €206 Million, Compared with €217 Million a Year Earlier
In the third quarter of 2026, net income attributable to the group amounted to €206 million, compared with €217 million a year earlier, a decline of 4.8%. Excluding the effect of the valuation of the treasury share option, the decline is limited to 2.3%, from €211 million.
Insurance revenue rose 1.2% to €3,757 million, while the insurance service result fell 4.9% to €336 million. The operating result increased 2.5% to €321 million. The annualized return on equity reached 20.4%, compared with 22.1% a year earlier.
Over the first nine months, net income stood at €603 million, compared with €642 million over the same period of 2025, a decrease of 6.1%. Restated for the treasury share option, it amounted to €615 million. The annualized return on equity came to 18.9% for the period (19.3% on an adjusted basis).
Combined Ratio at 84.1% in Property and Casualty, Life and Health Result Up 21.3%
In property and casualty, insurance revenue rose 3.5% to €1,876 million (up 2.3% at constant exchange rates). The natural catastrophe charge represents 9.1 points of the combined ratio for the quarter, but 5.4% over nine months, a level the group places within its budget of 10%.
The insurance service result in property and casualty fell 15% to €216 million for the quarter, but rose 5.6% to €740 million over nine months. The year-to-date combined ratio stood at 81.3%, compared with 82.8% a year earlier. According to the group, it also includes the building of additional prudential margins.
The contractual service margin (CSM) of new business in property and casualty fell 16.1% to €142 million for the quarter, mainly due to a timing effect related to retrocession. Over nine months, it rose 1.4% to €1,120 million.
In life and health, revenue decreased 1.0% to €1,881 million, but the insurance service result increased 21.3% to €119 million, with a positive experience variance of €12 million.
Over nine months, this result remains down 17.4% at €276 million. At the half-year publication on July 30, 2026, it had shown a decline of 33.5%.
Financial Income Up, Solvency Ratio Estimated at 221%
Investment income increased 11% to €211 million for the quarter. The running yield rose from 3.5% to 4.1%, supported by a larger distribution of private equity funds.
The reinvestment rate reached 5.0% at September 30, compared with 4.3% at June 30, on invested assets of €23.2 billion.
Operating cash flow rose 21.7% to €559 million for the quarter, after having declined 40.5% to €325 million in the first half according to the July 30, 2026 publication. Over nine months, it stood at €883 million, down 12.1%.
On the balance sheet, economic value (the sum of equity and the after-tax CSM) reached €8,864 million, up 4.0% compared with the end of 2025. It represents €49.77 per share, compared with €47.59. The financial debt ratio fell from 25.3% to 22.8%.
According to the consensus of the analysts surveyed, the share trades at approximately 7.8 times expected earnings for the current financial year. The solvency ratio is estimated at 221% at September 30, 2026, as capital generation across the three businesses more than offset growth, deleveraging and the dividend provision.
