Scor S/Adr

Good afternoon, ladies and gentlemen, and welcome to the SCORE First Quarter 2026 Results Conference Call. Today's call is being recorded. There will be an opportunity to ask questions after the presentation by pressing star and one on your telephone keypad. In order to give all participants a chance to ask questions, we kindly ask you to limit the number of your questions to two. At this time, I would now like to hand the call to Mr. Thomas Fossard. Please go ahead, sir.

Good afternoon, and welcome to the SCORE Q1 2026 Results Conference Call. I'm joined on the call today by Thierry Léger, Group CEO, and Philippe Prudeux, Group CFO, as well as other COMEX members. Can I please ask you to consider the disclaimer on page two of the presentation? And now, I would like to hand over to Thierry. Thank you, Thomas. Good afternoon, everyone. Thanks for joining us today. I'm glad to announce a strong start to 2026 with continued and disciplined delivery at all levels. The group net income reached 220 million euros in Q1, corresponding to an annualized return on equity of 21.1%. The solvency ratio increased by 5 percentage points to 220%, driven by strong underlying operating capital generation. All our three businesses contributed to the solid performance. I would like to point out explicitly that this was achieved including additional opportunistic buffer building of 300 million euros and precautionary, means 100% ID&R base, reserving for the Middle East conflict. The impact of the conflict in the Middle East is twofold. One is the direct impact on our business. As mentioned during the Q4 earnings calls, War risk is systematically excluded from standard insurance treaties. It is one of the very few exclusions that is truly universal regardless of market cycles or conditions. If war risk is covered, the exposures are priced for and carried mostly by specialized markets. Scores participation in this market is limited and within a strictly controlled framework. The second impact is indirect, related to foreign exchange and inflation in the context of heightened geopolitical tensions. These secondary impacts are monitored and managed as part of our regular processes in pricing, reserving and ALM. Let me now turn to the P&C renewals in 2026. In a more competitive environment, we have been able to increase the year-to-date premium income by 2.4%, by limiting the margin deterioration. We continue to focus on our preferred lines of business in line with our strategy to grow profitably and in a diversifying way. The April renewals represent around 12% of our insurance portfolio. We prioritize margin protection and implemented targeted portfolio management actions, including the non-renewal or resizing of underperforming business. It led to a reduction in premium income, but allowed us to maintain the quality of our portfolio, positioning our book for long-term performance. Consequently, the technical results deteriorated by 0.6 percentage points, better than the previous renewals. Looking ahead, we prepare for increased competitive pressure. We will continue to apply underwriting discipline and to focus on our preferred and diversifying lines of business. Our priorities are clear, capital allocation to the most profitable and diversifying lines, combined with disciplined underwriting. In an environment that becomes increasingly competitive and shaped by macroeconomic and geopolitical uncertainty, our teams remain focused on executing the Forward 2026 strategy. This has allowed us to deliver excellent results while continuing to reinforce the resilience of the group. I see SCORE well-placed to make the best out of the current environment and to deliver on the last year of our Forward 2026 strategic plan. Philipp, over to you.

Thank you very much, Thierry. Good afternoon, everyone. I'm pleased to present our Q1 2026 results. I will focus on the key highlights of the quarter. All three business activities delivered a strong Q1 26. Adjusted net income was 220 million euros, translating into an annualized adjusted ROE of 21.1, well above our 12% forward 26 target. On the P&T side, we delivered a strong ISR of 255 million euros. Insurance revenues grew by 5.4% at constant effects, driven by a satisfactory set of renewals, although reported growth was impacted by adverse FX effects. The combined ratio stood at an excellent 80.2%, reflecting very strong underlying technical performance. Our NASCAT ratio of 4.2% reflects a benign quarter, with the main impact coming from Storm Christine in Portugal. Underlying results are solid, with a 77.7% nutritional ratio, but includes additional buffer building. It also includes a mid-double-digit IBNR provision related to the Middle East conflict, reflecting a prudent view of potential further development. We are also satisfied with our life and health results this quarter, reflecting our focus to deliver steady quarterly performance for the last five quarters. The ISR stands at 107 million euros, with all components in line with our expectations, including the CSM amortization rate and the risk adjustment release. The experience variance is also within our expected range of volatility. The life and health business delivered 115 million euros in new business CSM, driven by growth in protection and longevity. We also significantly improved our capital position, with the solvency ratio increasing from 215 to 220%. This was supported by strong net capital generation in Q1, in line with our full year 2016. guidance of three to five points of Solvency II capital generation over the year. This translates into an economic value growth of 7.4% at constant economic. The economic value per share increased to 51 euros at the end of March 2026. We continue our strategy to improve the resilience of our balance sheet, both on the IFRS 17 and Solvency II. To that end, in this quarter, we added an exceptional amount of 300 million euro buffer to our P&C best estimate liabilities, which was made possible by an internal capital optimization. To conclude, SCORE's strong first quarter performance and strengthened balance sheet confirms the group's positive outlook. This gives us strong confidence in delivering the forward 2026 plan. And now, over to you, Thomas.