Reinsurer Scor Q1 net profit surges
PARIS (Reuters) - Scor (SCOR.PA), the world's fifth-biggest reinsurer, reported a 63 percent rise in first quarter net profit in sharp contrast to a profit slump posted earlier this week by world industry leader Swiss Re (RUKN.VX).
Net profit rose to 124 million euros ($192 million) as Scor benefited from last year's takeover of Converium to ride out the effects of the global credit crisis currently engulfing the financial sector.
Scor's earnings were also boosted by tax advantages during the quarter.
On Tuesday, the world's biggest reinsurer Swiss Re said that its first quarter net profit had halved from a year earlier and it announced fresh writedowns of 819 million Swiss francs ($779.3 million) due to the credit crisis.
Scor turned to acquisitions after recovering from heavy losses in its U.S. unit towards the start of the decade. The U.S. division was subsequently closed to new business.
Its takeover of Converium followed the acquisition of German rival Revios in 2006.
Scor shares were down 0.1 percent at 15.89 euros in early trade. The stock has fallen around 9 percent since the start of 2008, in line with an 8 percent decline in the DJ Stoxx European insurance sector .SXIP.
(Reporting by Sudip Kar-Gupta; editing by Rory Channing)
