While maintaining an 'outperform' rating on Scor, Oddo BHF has lowered its target price from 36 to 28 euros, following a 'very significant profit warning in life reinsurance', 'given the actions taken on reserves and an experience gap that continues to be negative'.

Following this profit warning, the research department now expects a net loss of 208 million euros for the second quarter and 247 million for the full year 2024 (down 68% on its previous forecast).

Beyond the strong negative reaction in the short term, we believe that Scor, after recovering its profitability in property-casualty reinsurance over the past 18 months, should succeed in gradually improving its profitability in life reinsurance", the analyst believes.

In his opinion, the strategic plan update in December should help reassure the market about Scor's prospects, and the stock is trading at low multiples based on its 2025-26 forecasts.

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