On Tuesday, Berenberg renewed its buy recommendation on Scor shares, still with a price target of 35 euros.
In a note published this morning, the analyst anticipates the announcement of "solid" renewals for the property-casualty reinsurance business at the publication scheduled for February 6.
As for the 2023 annual results, due on March 6, the intermediary says it expects lower-than-expected natural catastrophe losses to be offset by increased reserve accumulation.
Berenberg forecasts a combined ratio of 87% for the fourth quarter and 87.8% for the full year 2023, exceeding the annual target of 87% by 0.8 points.
From the professional's point of view, Scor's share price remains the best market in the reinsurance sector, with a PER 2025 of 5.3x, making it one of his "top picks" in the sector.
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Scor SE is the leading French reinsurance company. Gross written premiums per activity are distributed as follows:
- life and health reinsurance (51.2%);
- non-life reinsurance (48.8%): reinsurance against damages (coverage for damage to industrial and commercial property, vehicles, ships, and stored or transported merchandise, coverage for losses due to fire, and civil liability coverage) and specialties (coverage for risks in the agriculture, aviation, construction and credit guarantee fields).
Geographic distribution of gross written premiums is as follows: France (17%), Europe (44.7%), Far East (18.8%), North America (7.4%), South America (2.2%), Africa (0.7%) and other (9.2%).