Scor Earnings: Strong Profits, but Weaker Solvency; Shares Undervalued
Scor has reported a sound set of earnings for the first 9 months with a net income of EUR 650 million so far and EUR 147 million in the third quarter. That leaves the business already well ahead of our EUR 502 million net income forecast and suggests the business will earn quite a bit above its cost of equity for shareholders. Large losses year to date are below the EUR 950 million full-year budget. Solvency has declined to 206%.