Stock Analysis & Valuation SCOR Se (SCR.PA)

• Previous Close: €27.50
• Sector Valuation Confidence Level: High

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	21.38	-22
Intrinsic value (DCF)	249.60	808
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

SCOR SE (SCR.PA) is a leading global reinsurer headquartered in Paris, France, providing life and non-life reinsurance solutions across Europe, the Middle East, Africa, the Americas, Latin America, and Asia Pacific. Operating through its SCOR Global P&C and SCOR Global Life segments, the company offers a diversified portfolio of reinsurance products, including property, casualty, aviation, marine, and specialty risks, as well as life and longevity solutions. With a strong presence in both mature and emerging markets, SCOR SE leverages its underwriting expertise and risk management capabilities to serve insurers and institutional clients worldwide. Founded in 1970, SCOR SE has established itself as a key player in the reinsurance industry, combining financial stability with innovative risk transfer solutions. The company's asset management activities further enhance its ability to deliver value to stakeholders. As part of the broader financial services sector, SCOR SE plays a critical role in stabilizing insurance markets by absorbing large and complex risks, making it a vital component of the global insurance ecosystem.

Investment Summary

SCOR SE presents a mixed investment profile. On the positive side, the company benefits from a diversified global footprint, strong underwriting capabilities, and a solid balance sheet with €2.11 billion in cash and equivalents. Its reinsurance business model provides stability through risk diversification, and the company maintains a respectable dividend yield with a payout of €1.8 per share. However, SCOR's profitability metrics are currently weak, with net income of just €4 million and diluted EPS of €0.022 in the latest reporting period. The reinsurance industry faces headwinds from climate change-related catastrophes and competitive pricing pressures, which could impact future earnings. The company's beta of 0.855 suggests it's slightly less volatile than the broader market, but investors should weigh the sector's cyclical nature against SCOR's long-term positioning in the global reinsurance market.

Competitive Analysis

SCOR SE operates in a highly competitive global reinsurance market dominated by large, well-capitalized players. The company's competitive advantage lies in its balanced portfolio across life and non-life reinsurance, geographic diversification, and technical underwriting expertise. SCOR has particularly strong positions in specialty lines like aviation and marine, where its long-standing relationships with cedants provide an edge. In life reinsurance, SCOR's longevity solutions and financial reinsurance products differentiate it from pure P&C players. However, SCOR faces intense competition from larger European reinsurers with greater scale and from Bermuda-based competitors with more flexible capital structures. The company's €5.09 billion market capitalization positions it as a mid-sized player in the global reinsurance landscape, requiring careful strategic positioning against both larger and more nimble competitors. SCOR's Paris headquarters gives it strong access to the European market but may limit its visibility in the important North American market compared to local players. The company's ability to maintain underwriting discipline while innovating in specialty lines and life solutions will be crucial to its competitive positioning going forward.

Major Competitors

• Munich Re (MUV2.DE): Munich Re is the world's largest reinsurer by premium volume, with significantly greater scale than SCOR. Its AA-rated balance sheet and global footprint give it superior risk-bearing capacity, particularly for large catastrophe risks. However, Munich Re's size can make it less agile in specialty lines where SCOR competes effectively. Munich Re's broader insurance operations also create different strategic priorities compared to SCOR's pure reinsurance focus.
• Swiss Re (SREN.SW): Swiss Re is another global reinsurance giant with approximately double SCOR's market capitalization. It has particularly strong positions in property catastrophe reinsurance and corporate solutions. Swiss Re's research capabilities and risk modeling sophistication are industry-leading, though SCOR may compete more effectively in certain specialty lines and life reinsurance segments. Swiss Re's recent focus on digital transformation gives it an edge in technology-driven solutions.
• Hannover Re (HNR1.DE): Hannover Re is closer to SCOR in size and operates a similar balanced life and non-life reinsurance model. It has particularly strong positions in German and European markets, competing directly with SCOR in many segments. Hannover Re's underwriting discipline is renowned, though SCOR may have an edge in certain specialty lines and French market access. Both companies face similar challenges in maintaining profitability in a competitive market.
• Everest Re (RE): Everest Re is a Bermuda-based reinsurer with strong positions in the U.S. and London markets. Its tax-advantaged structure gives it cost advantages SCOR cannot match, but SCOR has better access to European and Asian markets. Everest Re is more focused on property catastrophe risks, while SCOR's more balanced portfolio may provide better diversification benefits. Everest's recent growth has been more aggressive than SCOR's disciplined approach.
• RenaissanceRe (RNR): RenaissanceRe is a specialist in property catastrophe reinsurance with a strong presence in the Bermuda market. Its focus on peak risks makes it more volatile than SCOR's diversified model, but also gives it higher potential returns in hard markets. RenRe's third-party capital management through its Ventures unit is a differentiating factor, while SCOR maintains a more traditional reinsurance approach. RenRe's smaller size makes it more nimble in certain market conditions.