Underwriting Quality Subpar at Scor, but a Path to Consistency on a Forward-Looking Basis Exists

Scor is a large reinsurance company headquartered in Paris. It operates in over 100 countries, serving many clients from offices worldwide. Scor was established in the 1970s and has grown by acquisitions. This started to take place in the late 1990s with the purchase of La Vittoria Riassicurazioni in Italy. Shortly after this, the business merged with Union des Assurances de Paris. Broader problems for the business began with the mid-1990s acquisition of the reinsurance business of Allstate. This purchase doubled Scor's share in the United States. The acquired reinsurance portfolio was one of the largest books of small and medium-size business reinsurance and led to some reserve summons.