Stock Analysis & Valuation SCOR Se (SCR.SW)

• Previous Close: CHF25.90
• Sector Valuation Confidence Level: High

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	20.10	-22
Intrinsic value (DCF)	12.11	-53
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

SCOR SE (SCR.SW) is a leading global reinsurer headquartered in Paris, France, and listed on the Swiss Exchange (SIX). Operating through its SCOR Global P&C and SCOR Global Life segments, the company provides a diversified portfolio of reinsurance solutions across property, casualty, life, and specialty risks. SCOR serves clients in Europe, the Middle East, Africa, the Americas, Latin America, and Asia Pacific, offering tailored reinsurance products that address mortality, longevity, cyber risks, and more. With a strong presence in both traditional and emerging markets, SCOR leverages its underwriting expertise and risk management capabilities to deliver stability and growth. The company’s asset management business further enhances its financial resilience. Founded in 1970, SCOR has built a reputation for innovation and reliability in the reinsurance sector, making it a key player in the global financial services industry.

Investment Summary

SCOR SE presents a mixed investment profile. The company’s diversified reinsurance portfolio and global footprint provide stability, while its modest beta (0.855) suggests lower volatility relative to the market. However, its recent financial performance shows challenges, with net income of just CHF 4 million and diluted EPS of CHF 0.0223 in the latest fiscal year. Operating cash flow remains strong at CHF 903 million, supporting dividend payments (CHF 1.6828 per share). The reinsurance industry is highly competitive, and SCOR’s elevated total debt (CHF 3.55 billion) could pose risks in a rising interest rate environment. Investors should weigh its established market position against margin pressures and macroeconomic uncertainties.

Competitive Analysis

SCOR SE competes in the global reinsurance market by differentiating itself through a balanced mix of life and non-life reinsurance solutions. Its SCOR Global P&C segment excels in specialty lines such as cyber, aviation, and marine, while SCOR Global Life focuses on longevity and financial solutions. The company’s geographic diversification mitigates regional risks, but its profitability lags behind some peers due to underwriting margin pressures. SCOR’s competitive advantage lies in its technical expertise and long-standing client relationships, though its debt levels are higher than some rivals. The reinsurance sector is consolidating, and SCOR must continue innovating in risk modeling and capital efficiency to maintain its position against larger players like Munich Re and Swiss Re. Its asset management arm provides additional revenue streams but is not a core differentiator.

Major Competitors

• Munich Re (MUV2.DE): Munich Re is the world’s largest reinsurer by premiums, with superior scale and underwriting profitability. Its strong balance sheet and diversified portfolio give it an edge over SCOR in pricing and risk capacity. However, Munich Re’s focus on conservative risk management can limit growth in emerging markets where SCOR is more aggressive.
• Swiss Re (SREN.SW): Swiss Re rivals SCOR in life and P&C reinsurance but has a stronger capital position and broader geographic reach. Its advanced analytics and corporate solutions segment provide a competitive moat. SCOR, however, is more nimble in specialty lines like cyber and longevity risk.
• Hannover Rück SE (HNRG.US): Hannover Re combines reinsurance with primary insurance, offering integrated solutions. It outperforms SCOR in underwriting discipline but lacks SCOR’s innovation in life reinsurance products. Its conservative approach limits exposure to volatile markets where SCOR competes.
• Reinsurance Group of America (RGA.US): RGA dominates the life reinsurance segment, particularly in the U.S. and Asia. It outperforms SCOR in mortality and health reinsurance but has minimal presence in P&C, where SCOR has a broader footprint. RGA’s strong actuarial capabilities are a key strength.