Scor reported a fall in its pre-tax profit as it announced its results for the three months ending 31 March 2004.
The French reinsurer said profit before tax and goodwill amortisation fell to €46.7m, down from €67.7m for the first quarter of 2004.
Scor said its first quarter results reflected a steady improvement in the technical quality of the group’s underwriting, as well as a strategy of selecting risks.
Gross written premiums for the quarter were €716m, down 43% on the €1.3bn reported for the first quarter of the previous year.
The reinsurer put the increase down to an expected cutback in premiums issued by the large corporate accounts division in the first quarter and the non-renewal of a major life reinsurance policy booked in the first quarter of 2003.
The group also reported a combined ratio of 98.8% for the company’s non-life business, an improvement on the 100.1% reported in the previous year.
Scor’s non-life reinsurance business generated €388m in gross written premiums during the first quarter of 2004, down 48% on 2003.
The underwriting result for its non-life reinsurance business was €31.9m for the first quarter of 2004, in line with the result recorded for the first quarter of 2003, said the company.
Scor chairman and chief executive Denis Kessler, said: “Since the implementation of the Back on Track plan, Scor has made profitability an essential condition for underwriting new policies and has chosen to withdraw from markets and activities considered unprofitable.
“This redeployment towards Scor’s core business and markets where the group has acknowledged expertise is reflected in declining gross premium income, aggravated by the group’s current rating.
“The Scor group which has been reserved, recapitalised, resized and repositioned now has the resources needed to restore profitability and solvency.
“The results recorded in the first quarter of 2004 confirm the turnaround that began in the fourth quarter of 2003.
