Scor: Historically a Weaker Business That Is Building Resilience

Scor is a large reinsurance company headquartered in Paris. It operates in over 100 countries, serving many clients from offices worldwide that are connected through a backbone network of application, data, and exchange systems. This allows local access to centralized risk analysis, underwriting, or pricing databases, at the same time allowing information on local market conditions to be shared among the group’s worldwide offices. In addition, through regular exchanges of personnel between group headquarters in Paris and its non-French subsidiaries and branch offices, the business encourages professional development and training across its various geographic markets and lines. We think that in the case of Scor, investments in risk analysis, underwriting, and pricing haven’t benefited the business overall. That is because returns on equity have been low.