Analyst Note| Henry Heathfield, CFA |
Scor has delivered first-half results that are a bit of a jumble. Quality continues to be missing. At first glance, the numbers look pretty good with a net profit for first-half 2021 of EUR 380 million. To give some context, that stands against net profit numbers in the first half of 2018 and 2019 of EUR 262 million and EUR 286 million. The first half is normally pretty consistent given the period’s far lighter experience of natural catastrophes, and prior years' absence of pandemics. However, EUR 311 million of the first-half 2021 net profit comes from a one-off post-tax gain on Scor’s settlement with Covea. What investors are then left with is a net profit for the first half of the year of EUR 69 million. That’s obviously quite a bit lower than what on a sustainable basis we and the market were expecting. We maintain our EUR 25.00 per share fair value estimate and also our no-moat rating.