SCOR Scores 16 Percent Net Jump

SCOR reported a 61 percent rise in net income for the first quarter of 2006, with earnings of $68 million.

Investment income for the period was $159 million, representing a 31 percent rise from 2005's same timeframe.

In the first quarter, gross written premium amounted to $943 million, up 18 percent from the same period in 2005.

The Paris-based reinsurer attributed the growth to a 31 percent increase for non-life business treaties and the sustained expansion of large corporate accounts business, which showed a 29 percent rise. The credit and surety and business rose 46 percent.

The combined ratio for the non-life reinsurance business was 97, down from 100.1 in the comparable 2005 period.

“During the non-life treaty renewals on Jan. 1, SCOR won and regained several treaty shares, mainly on targeted markets and existing portfolio treaties,” the company said.

Treaty business also benefited from the renewal of part of the Alea Europe portfolio, to which SCOR acquired the renewal rights in December of last year.

“The group is on the move,” said Chief Executive Officer Denis Kessler. “It benefits from larger degrees of freedom so as to take advantage of the positive current environment, in both the reinsurance and financial markets.”

Life reinsurance growth written premium remained stable compared to the first quarter of 2005. That line is beset in the U.S. with an unfavorable group rating, the company noted. Operating income for the life reinsurance line rose 58 percent to $24 million.

Earlier this month Standard & Poor's assigned an “A-minus” long-term financial strength rating of the group's non-life reinsurer subsidiary while affirming its “A-minus” financial strength rating on the group in general.