2Q26 Preview - clearing overhangs, building for 2027

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2Q26 Preview - clearing overhangs, building for 2027

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SCOR

2Q26 Preview - clearing overhangs,

building for 2027

Reiterate Rating: BUY | PO: 36.00 EUR | Price: 31.98 EUR

Lift our PO +3% to €36 seeing c.20% TSR; reiterate Buy 29 June 2026

We refresh our estimates, reducing 26E EPS -4% after the impacts of the Covea Equity

arbitration payout absorbed by earnings, no change to 27E and +1% 28E. In 2Q26, legal

overhang is lifting, cats seem light and balance sheet is preparing for 2027. We expect

Key ChangesSCOR to continue improving capitalisation, retaining favourable loss experience benefits.

We forecast circa €140m 2Q26 net result and c.€750m 26E. We lift our PO +3% to €36 (EUR) Previous Current

from €3 as one layer of legal overhang has lifted and reiterate our Buy rating. Price Obj. 35.00 36.00

2026E EPS 4.35 4.18

2027E EPS 4.41 4.432Q26 arbitration payout better than we feared; €50m hit

SCOR has acknowledged the arbitration award confirming the validity of the 2028E EPS 4.49 4.51

retrocession treaties entered with Covea. While the award requires $488.3m payment to

Covea, including existing provisions will only have net €50m 2Q26 impact. We see this Shanti Kang >>

Research Analyst

as a 2Q26 EPS headwind, but importantly, it reduces another layer of legal tail risk, has MLI (UK)

no Solvency impact and resolves one of two outstanding Covea-related arbitrations. +44 20 7995 1029 shanti.kang@bofa.com

Fundamentally, we believe P&L impacts are manageable, and balance sheet remains

David Barma >>

intact. One Covea arbitration remains outstanding, from 2025 contesting the conditions Research Analyst

of the original settlement. Further reduction in legal overhang should help lift stock BofASE (France) david.barma@bofa.com

dampeners. Nimrat Kaur >>