SCOR has reported that net income plummeted 44.5% from €422m (£363m) to €234m (£201.2m) in FY20, as business was impacted by the pandemic.
During the fourth quarter, the reinsurer, which provides P&C and Life reinsurance solutions, saw net income increase from €21m (£18m) to €99m (£85m), however.
Operating result for the year came to £413m (€479m), while gross written premium in 2020 reached £14.1bn (€16.4bn).
Within its life business, SCOR estimates the impact of Covid-19 to be “manageable”, with an impact booked in 2020 at €314m (£271m). Within this amount, the actual Covid-19 related claims paid as at December 31, 2020 stand at €96m (£83m).
Meanwhile, on the P&C side, it also estimates Covid-19 claims to be manageable with an impact booked in 2020 at €284m (£245m).
Denis Kessler, chairman and CEO of SCOR, said: “Covid-19 is a historic shock. Pandemic risk is obviously well known to reinsurers. Infectious diseases figure prominently in the risk maps SCOR draws up each year. The study and modeling of risk was an integral part of our risk management when Covid-19 struck.
“With hindsight, we underestimated the truly global reach of such a phenomenon, as well as the critical impact of the various – unmodelable – decisions taken by governments to contain the spread of the virus, which ultimately had a major impact on the (re)insurance industry’s exposure to this crisis.”
He added: “The measures taken to contain Covid-19, particularly lockdowns, have affected all areas of economic and social life. This has become a multi-faceted crisis – health-related, social, economic, financial and even geopolitical.
“It has therefore impacted reinsurers, in terms of both assets and liabilities, on both the Life and P&C sides.”