Global reinsurance firm SCOR said that the April renewals saw the company growing into a market that is softening and the company anticipates the mid-year renewals being competitive for loss free accounts, but it also anticipates being able to sustain the profitability of its business.SCOR announced its first-quarter 2025 results this morning, reporting group net income of EUR 200 million for the period, with an 85% property and casualty reinsurance combined ratio, despite the impact of the wildfires in California and buffer building of reserves..The P&C attritional loss and commission ratio came out at 74.7% for the period, which gave SCOR room to continue to build its reserves, while a natural catastrophe claims ratio of 12.5% was largely due to losses from the Los Angeles wildfires, the company said.

SCOR noted a “positive retrocession impact” in the first-quarter of 2025 for its P&C business and the results suggest some recoveries were made, likely supporting the firm’s California wildfire reinsurance claims it has been paying.Thierry Léger, CEO of SCOR, commented on the results, “I am satisfied with the first quarter results.All business activities contribute to a strong consolidated Group net income.

The P&C performance continues to be excellent with a combined ratio of 85%, after absorbing elevated Nat Cat events during the quarter and allowing for an additional level of prudence building.L&H improves its insurance service results with a neutral experience variance.In Investments, SCOR benefits from an elevated return on invested assets.

Overall, we are starting the year with a high ROE of 18.7% and an improved solvency ratio of 212%, supported by positive net operating capital generation.” The reinsurance company also commented on the April renewals, citing a softening marketplace in reinsurance, but saying it still grew and believes opportunities remain profitable.The company said it grew strategically in preferred lines and “maintained its underwriting discipline in a softening market context.” Estimated gross premium income was up by +1.5% on the April renewal book, with Alternative Solutions growing by a significant 33%, specialty by 3.8%, but exposure to US casualty further reduced.However, SCOR still demonstrated its appetite for property catastrophe risk underwriting as well, growing at April 1st by 6% in estimated gross premium income terms, and now being up by 2% 2025 year-to-date for property cat renewals.

The reinsurer cited increased pricing pressure, notably in Japan, but felt terms and conditions were generally stable.SCOR noted thought that April renewal prices fell fastest in property cat risks, it appears, saying that non-proportional business saw price decreases of around -4.5%, driven by property cat business.It appears SCOR maintained its property catastrophe reinsurance book at April 1st, just the latest reinsurer to demonstrate that the appetite to continue to absorb premium while rates remain attractive and terms such as attachments largely unchanged persists across the industry, a likely driver of further softening absent major losses.

SCOR commented on the April renewal outcome, “In a more competitive environment for the April renewals, net technical profitability on the renewed business is expected to deteriorate by 1 point.On a year-to-date basis, the net technical profitability is expected to deteriorate by less than 0.5 point.SCOR is successfully weathering a softening market thanks to its strategy of growing in a profitable and diversified way.” Looking ahead to the mid-year reinsurance renewals SCOR explained that it anticipates pricing will be competitive on loss-free programs, but believes that the overall profitability of its business mix should remain “very attractive”.

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