SCOR Posts 18% Drop in 1st Half Premium Income

France’s SCOR Group reported 2.069 million euros ($2.34 billion) in gross written premiums for the first half of 2003, compared to 2.51 billion euros ($2.84 billion) for the same period in 2002, almost an 18 percent drop.

The decrease is partly attributable to SCOR’s decision to close Commercial Risk Partners (CRP), its Bermuda-based ART subsidiary, which ceased writing business in January 2003. Excluding CRP, Group premium income was down 9% (-2% at constant exchange rates).

In addition to the closure of CRP, The reinsurer explained the decline in premium income as being mainly due to the depreciation of the dollar, indicating that “premium income was down 11% at constant exchange rates.”

The bulletin also stated: “Non-Life reinsurance premium income (P&C treaties and Large Corporate Accounts, excluding Credit and Surety business and CRP) fell by 20% relative to the first-half of 2002 (-13% at constant exchange rates). Life and Accident reinsurance premium income rose 11% over the same period (+19% at constant exchange rates).”

The announcement stressed that “These premium income developments are the direct result of SCOR’s rigorous and selective underwriting policies, centered on risk controls, as laid down in the Back on Track Plan launched in November 2002.”