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Analysis of Scor share price

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In order to invest online in the French company Scor's share, the ideal is to know this company well. This is what we offer here thanks to information on the activities of this insurance group, its competitors and partners, but also other useful information and data such as a historical technical analysis of its price. You will thus be able to set up concrete and effective analyses before trading this stock.

Latest news

Scor's revenue and market capitalization

24/01/2022 - 09h48

The French group Scor is one of the companies that have been affected by the Covid-19 pandemic in 2020. The effects of the health crisis have been felt in the company's financial results.

Elements that can influence the price of this asset:

Analysis N°1

In particular, we will be closely monitoring the development of this group's activities in the insurance market, which offers excellent growth opportunities. The same applies to the reinsurance market, which is currently experiencing a strong recovery and could therefore prove interesting for Scor.

Analysis N°2

The Scor Group's acquisitions of companies should also be taken into consideration as they often herald growth.

Analysis N°3

Increasingly strong competition in certain segments such as reinsurance should also be carefully monitored, particularly with regard to the arrival of new, more competitive players.

Analysis N°4

The Solvency II framework should also be taken into account in your analysis for its impact on the share price.

Analysis N°5

Finally, we will also keep an eye on catastrophic events such as natural disasters, which can multiply and weigh globally on the profitability of the insurance sector worldwide.

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General presentation of Scor

The French group Scor is currently the number one reinsurance company in France. However, its activities can be divided into several divisions according to the level of gross premiums achieved per activity and in this way:

The business relating to life reinsurance contracts accounts for the majority of gross premiums, i.e. 59.3%.

Next come the non-life reinsurance activities which account for 40.7% of the company's gross premiums. These include property and casualty reinsurance with coverage for industrial and commercial property damage, damage to vehicles, ships and stored or transported goods, coverage for fire-related losses and civil liability coverage, which account for 54.20% of these gross premiums, specialty reinsurance such as coverage of agricultural, aviation, construction or credit and surety risks which represent 20.9% of these gross premiums, facultative reinsurance with the reinsurance of large industrial risks which represent 12.3% of these gross premiums and the rest for 12.6%.

As regards the geographical distribution of the Scor group's activities, most of the gross written premiums are in the Americas with more than 45.5% of the premiums. Next comes the Europe-Middle East and Africa sector with 37.1% and the rest of the world with 17.4%.

Analysis of Scor share price
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The major competitors of Scor

To help you better analyze the future challenges of the SCOR group, it is essential to know the reinsurance industry and its main players. We will therefore present you SCOR's biggest competitors here:

Munich Re

This German reinsurer based in Munich is one of the largest in the world. Its shares are listed on the German stock exchanges and on the Xetra electronic trading system. The group is also included in the DAX 30 stock index and the Euro Stoxx 50 stock index.

Swiss Re 

This company also known as Swiss Reinsurance Company is a Swiss insurance and reinsurance company based in Zurich. It is also the second largest company in the reinsurance sector in terms of turnover, just behind Munich Re, which we have just presented to you.

Hannover Re

This German group, which also specialises in reinsurance, is also one of the largest groups in this sector worldwide in terms of turnover. It is based in Hannover, Germany and is majority controlled by Talanx. Hanover Re's business activities include, of course, life, property and liability insurance. The group also has a network of subsidiaries and branches as well as representative offices based on 5 continents and currently employs over 2,500 people.

Berkshire Hathaway 

Finally, you should also keep a close eye on the Berkshire Hathaway Group, which is an American conglomerate and investment company headquartered in Omaha, Nebraska, USA and led by Warren Buffet and Charlie Munger. In addition, the company is ranked among the world's largest publicly traded companies. Its shares are listed on the New York Stock Exchange and its annual general meeting of shareholders is attended by over 37,000 shareholders.


The major partners of Scor

If the Scor group is currently one of the world's leading reinsurance companies, it is of course not without reason, since a large part of its success is due to a very well thought-out development strategy. This strategy naturally includes strategic alliances with other companies, of which here are some recent examples.

MDU

In 2008, the French group Scor renewed a partnership in the form of a reinsurance contract with the MDU or Medical Defence Union, which is the first mutual insurance company for health professionals in the United Kingdom. The initial contract has been extended for a period of 10 years.

SwitchAssur

In 2017, it was with the SwitchAssur group that Scor partnered with the aim of offering its customers a home loan insurance service.

LBO France

More recently in 2018, the Scor Group announced a partnership agreement with the LBO France Group which specializes in private equity. This agreement aims to create a corporate debt fund with a collection of more than €300 million under the name Scor Mid Market Loans. The LBO France group will act as an investment advisor to the fund.

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Positive factors for Scor shares
The factors in favour of a rise in the Scor share price:

To succeed in setting up an effective strategy on the Scor share price, you must, in addition to a good technical analysis, be able to set up a complete fundamental analysis. To do this, you must of course know all the strong and weak points of this stock and this company, which are detailed below.

In terms of the strengths of this company and its stock, these include:

  • Scor's position as the fourth largest reinsurance company in the world and, in particular, its leading position in France and in the US life reinsurance market.
  • The risks are very limited, as this company has a particularly interesting geographical distribution of its activities and a good balance between life and non-life reinsurance activities with the Scor Global Life and Scor PC brands.
  • A financial health that reassures investors with a credit rating raised to Aa3 and a solvency ratio of 212%.
  • The group also benefits from the recent rise in the value of the US dollar as most of its revenues are generated in this currency.
  • Scor has also been repeatedly praised by industry critics for the quality of its management and its track record of revenue growth, profitability and shareholder returns.
  • Finally, it should be noted that the dividend ratio is 44%, a particularly high level for this sector of activity.
Negative factors for Scor shares
The factors in favour of a drop in the Scor share price:

As far as the weak points of this value are concerned, the following points should be noted:

  • Firstly, Scor has a dangerous exposure to natural catastrophe risks in the countries in which it is strongly represented.
  • Just as an appreciation in the value of the US dollar can benefit the company, a depreciation of this currency will have a significant negative impact on Scor's profitability.
  • The group's returns are also affected by low interest rates and a conservative portfolio allocation.
  • The group is also under some pressure with regard to its property and casualty insurance rates, which has been going on for a few years in addition to an increase in large industrial claims as was the case in 2016 in China.
  • Finally, the reinsurance sector is also particularly difficult for stock market investors to analyse, as it is affected by the general mistrust of companies in the financial sector.

In order to make a meaningful analysis of the potential for Scor's share price and whether you should buy or sell, it is advisable to take all of these strengths and weaknesses into account and use them to determine the company's growth potential and possible risks. By comparing this data with the results obtained through technical analysis, you will be able to adapt your strategies according to the forecasts you have made in the short, medium or long term.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

What were the key dates in the history of the SCOR group?

In order to know the history of the SCOR group, there are a few dates that you should remember first. For example, the company was created in 1970. More recently, in 2006, the group absorbed the company Revios, then in 2007, the company Converium. In 2011, TransAmerica Re was acquired by SCOR. Finally, in 2013, the Group also acquired Generali US.

How are the SCOR group's activities organised?

The SCOR group's activities are divided into several segments: Non-Life and Life reinsurance with SCOR Global P&C and SCOR Global Life, specialty insurance with SCOR Business Solutions, The Channel Syndicate and MGA's and asset management with SCOR Global Investments and SCOR Investment Partners. However, this breakdown is likely to change over time.

Will SCOR shares go up or down?

While it is impossible to predict exactly how the SCOR Group share will perform in the coming months and years, you can detect interesting upward or downward signals by using the analysis of this stock. To do this, you will of course need to combine several methods of analysis, including technical analysis and fundamental analysis, in order to multiply the sources of indicators and maximise your chances of finding interesting trends in advance.

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