Scor Se · EURONEXT:SCR
Scor — Debt Investor Presentation (September 2014)
39 slides from Scor's debt investor presentation, September 2014
Slide 1: Credit Roadshow
Credit Roadshow September 22/23 Mark Kociancic - Group CFO Marco Circelli - Head of Capital & Treasury Management
Slide 2: Disclaimer page
Disclaimer page Certain statements contained in this presentation may relate to forward-looking statements and objectives of SCOR SE, specifically statements announcing or relating to future events, trends, plans, or objectives, based on certain assumptions. These statements are typically identified
Slide 3: Credit Roadshow
Credit Roadshow 1 SCOR has a leading market position 2 SCOR’s business model is fit for today’s challenging environment 3 SCOR delivers sound profitability SCOR has a very strong enterprise risk management policy and its capital management provides the 4 Group with strong financial flexibility 5 Tra
Slide 4: SCOR is a Tier 1 global reinsurance group
SCOR is a Tier 1 global reinsurance group 4000+ clients around the world 39 offices across 5 continents € 10.9 billion1) gross written premiums in 2013 € € 4.5 billion 2013 Life embedded value A leading global reinsurer € 897 million operating cash flow in 2013 € 5.1 billion shareholders’ equity € 3
Slide 5: SCOR's strong position achieved by executing on 3-year strategic plans
SCOR’s strong position has been achieved by a successful history of executing on 3-year-strategic plans SCOR is committed to achieving the strategic objectives of its three-year plans 2013 – 2016 Optimal Dynamics 2010 - 2013 Strong Momentum 2007 - 2010 Dynamic 2004 - 2007 Lift 2002 - 2004 Moving Bac
Slide 6: SCOR is a growing global group with a well balanced portfolio
SCOR is a growing global group with a well balanced portfolio and a presence distributed throughout the world 20% average yearly premium growth between 2005 and 2013 Gross written premiums in € billions (rounded) 10.9 10.3 9.5 7.3 44 % 6.4 6.7 47 % 5.8 49 % 4.5 50 % 51 % 55 % 53 % 2.2 2.7 47 % 53 %
Slide 7: Key characteristics of SCOR Global P&C
Key characteristics of SCOR Global P&C P&C steady growth Gross Written Premiums Underwrites traditional reinsurance business in € millions focusing on short-tail business lines, with a combination of local and global presence, voluntarily 3 982 4 650 4 848 underweight in the US where it has a sele
Slide 8: Key characteristics of SCOR Global Life
Key characteristics of SCOR Global Life Growing life base with biometric focus Published gross written premiums in € millions Focuses on traditional mortality reinsurance risks, providing stability of results, with no 5 405 underwriting of savings products (variable or 4 864 3 620 fixed annuities)
Slide 9: SCOR's engines deliver robust and consistent profitability
SCOR’s 3 engines deliver robust and consistent profitability 97% Normalized CR% YTD P&C combined ratio1) trending downwards and in 95% line with the “Optimal Dynamics” assumption (93-94%) 93% Q4'10 Q4'11 Q4'12 Q4'13 7.3% 7.4% 7.4% 7.2% 7.1% Stable Life technical margin, well within the “Optimal Dyna
Slide 10: SCOR has demonstrated the capacity to regularly increase its Net Worth
SCOR has demonstrated the capacity to regularly increase its Net Worth, shrugging off financial, and natural catastrophes as well as macro external shocks SCOR’s shareholders’ equity since 2006 in € millions European sovereign S&P’s ratings Liquidity crisis debt acute crisis Jun-13: Acquisition of G
Slide 11: Credit Roadshow
Credit Roadshow 1 SCOR has a leading market position 2 SCOR’s business model is fit for today’s challenging environment 3 SCOR delivers sound profitability SCOR has a very strong enterprise risk management policy and its capital management provides the 4 Group with strong financial flexibility 5 Tra
Slide 12: SCOR's Tier 1 status achieved through four cornerstones
SCOR’s tier 1 status has been achieved thanks to the successful execution of its four cornerstones and its relentless focus on profitability and solvency 4 key cornerstones Strong High Controlled risk Robust capital franchise diversification appetite shield Deep presence in By Life and Non-Life
Slide 13: SCOR's highly diversified twin-engine model optimizes risk/return
SCOR’s highly diversified twin-engine model optimizes risk/return Risk / return ratio depending on the relative weights of Life and P&C Optimizes risk- Pure P&C, adjusted return maximum Expected Technical return Minimises expected return risk taking but highest volatility Maximises risk taking ~80%
Slide 14: SCOR confirms its Optimal Dynamics assumptions and targets
SCOR confirms its “Optimal Dynamics” assumptions and targets Key assumptions confirmed “Optimal Dynamics” (2013-2016) “Optimal Dynamics” assumptions are unchanged GWP organic growth1) ~7% SCOR is likely to benefit from a USD appreciation. Non-Life1) ~8.5% For example USD/EUR +10% would have a po
Slide 15: Credit Roadshow
Credit Roadshow 1 SCOR has a leading market position 2 SCOR’s business model is fit for today’s challenging environment 3 SCOR delivers sound profitability SCOR has a very strong enterprise risk management policy and its capital management provides the 4 Group with strong financial flexibility 5 Tra
Slide 16: SCOR delivers strong earnings capacity and stability
SCOR delivers a strong earnings capacity and stability, and benefits from improved capital efficiency, technical profitability and productivity gains Robust P&C combined ratio Optimal use of capital to write business Normalized combined ratio YTD GWP / SHE 2.1 2.1 97% 1.9 2.0 1.5 95% 93% Q4'10 Q4'11
Slide 17: SCOR delivers strong financial results for the first half of 2014
SCOR delivers strong financial results for the first half of 2014 Gross written premium growth of 8.9%1) (12.5% at constant exchange rates) in H1 2014 compared to H1 2013, driven by healthy SCOR Global P&C renewals, by major new contracts signed by SCOR Global Life and by the Generali US Life Re a
Slide 18: In H1 2014, SCOR Global P&C delivers excellent technical profitability
In H1 2014, SCOR Global P&C delivers excellent technical profitability, with a net combined ratio of 90.9% Gross written premiums In € millions H1 2014 gross written premium growth of 0.9% +0.9% (+ 4.7% at constant exchange rates) negatively impacted by foreign exchange rates and catching up on +4
Slide 19: SCOR Global Life confirms a strong technical performance in H1 2014
SCOR Global Life confirms a strong technical performance in H1 2014 Gross written premiums In € millions (rounded) -0.3% H1 2014 gross written premium growth of 2.6% at constant FX compared to H1 2013 pro-forma (-0.3% at current FX) +2.6% (at constant On a published basis, the growth is 19.5% at
Slide 20: Generali US integration essentially completed
The integration of the Generali US acquisition is essentially completed, confirming SCOR Global Life’s leading position in the US Successful Generali US integration Maintained leadership position Done 2013 US life reinsurance recurring new business volume In progress Face amount, in USD billions 1
Slide 21: SCOR Global Investments delivers a return on invested assets of 2.9%
SCOR Global Investments delivers a return on invested assets of 2.9% Total invested assets1): € 14.7 billion at 30/06/2014 In % (rounded) Other investments 3% Cash 9% Liquidity 11% Total investments of € 23.0 billion, of which total Real estate 5% Short-term invested assets of € 14.7 billion and f
Slide 22: Credit Roadshow
Credit Roadshow 1 SCOR is a tier 1 global reinsurance Group 2 SCOR’s business model is fit for today’s challenging environment 3 SCOR delivers sound profitability SCOR has very strong entreprise risk management policy and its capital management provides the 4 Group with strong financial flexibility
Slide 23: SCOR's capital shield strategy
SCOR’s capital shield strategy enables the Group to control its exposures using the whole range of protection mechanisms Traditional retrocession Capital shield tools Wide range of protections including Proportional and Non- Proportional covers (Per event/Aggregate) Size of loss As part of “Opti
Slide 24: SCOR's exposures are monitored to stay permanently within limits
SCOR’s exposures are monitored to stay permanently within limits Overview of 2014 main risk tolerances Limits and exposures for a 1-in-200 year annual probability in € millions Exposure as of Risk Limit end of June Major fraud in largest C&S exposure ~210 US earthquake ~330 US/Caribbean wind ~540 Ex
Slide 25: Dynamic solvency scale with clear escalation process
SCOR relies on a dynamic solvency scale coupled with a clear escalation process to manage its solvency The management responses reflect the dynamic process which enables SCOR to steer its risk and capital positions towards the optimal area. Escalation capitalised Action Possible management respons
Slide 26: In 2014, SCOR confirms the strength of its capital position
In 2014, SCOR confirms the strength of its capital position1) SCOR reaffirms its solvency position Changes in interest and FX rates have a limited impact on SCOR’s Solvency Ratio In € billions (rounded) 20132) 2014 2014 solvency ratio 231% +100 bps in interest rate +9 %pts Available capital (AC)3) 7
Slide 27: Sustained development of shareholders' equity shows strong capitalization
Sustained development of shareholders’ equity is clear evidence of SCOR’s very strong capitalization Consistent profitability and active capital management over the past few years provide strong capital growth, while decreasing the leverage ratio1) below the 25% ceiling 6.3 6.5 6500 6.0 50% Senior d
Slide 28: SCOR generates significant operating cash flow and liquidity
SCOR generates significant operating cash flow and benefits from liquidity within the asset portfolio Strong operating cash flow generation Liquid invested asset portfolio Cumulative annual operating cash flow since 2009 Two-year cash flow projection (as at 30 June 2014) in € billions (rounded) in €
Slide 29: Credit Roadshow
Credit Roadshow 1 SCOR has a leading market position 2 SCOR’s business model is fit for today’s challenging environment 3 SCOR delivers sound profitability SCOR has a very strong enterprise risk management policy and its capital management provides the 4 Group with strong financial flexibility 5 Tra
Slide 30: EUR Transaction Highlights
EUR Transaction Highlights Summary of the terms and conditions Issuer: SCOR Securities Offered: Fixed to reset rate undated subordinated Notes Currency EUR Maturity: Perpetual Optional Redemption: [•] 2025 (“First Call Date”) and every interest payment date thereafter (subject to regulatory approval
Slide 31: CHF Transaction Highlights
CHF Transaction Highlights Summary of the terms and conditions Issuer: SCOR Securities Offered: Fixed to reset rate undated subordinated Notes Currency CHF Maturity: Perpetual Optional Redemption: [•] 2020 (“First Call Date”) and every interest payment date thereafter (subject to regulatory approval
Slide 32: Appendix
Appendix SOOR 32
Slide 33: SCOR H1 2014 financial details
SCOR H1 2014 financial details H1 2013 Variation at Variation at H1 2013 Variation at Variation at in € millions (rounded) H1 2014 Published current FX constant FX Pro-forma current FX constant FX Gross written premiums 5 427 4 984 8.9% 12.5% 5 414 0.2% 3.5% Net earned premiums 4 779 4 463 7.1% 11.0
Slide 34: Shareholders' equity development with BVPS at €27.39
SCOR records positive shareholders’ equity development with a BVPS at € 27.39 after distribution of € 243 million of cash dividends Q2 2014 development In € millions (rounded) 21.2%1) Financial leverage decreased by 0.4 pts 20.8 %1) 1 404 1 404 1 379 109 41 4 256 - 243 SCOR’s financial leverage st
Slide 35: Cash & liquidity position reduced in line with Optimal Dynamics
Cash & liquidity position reduced in line with “Optimal Dynamics” assumptions, with operational cash flows impacted by one-off items Operating cash flow of € 2 million as at 30 June 2014: In € millions (rounded) H1 2014 H1 2013 SCOR Global P&C affected by payments related to 2013 nat cat, a clai
Slide 36: Investment portfolio asset allocation as of 30/06/2014
Investment portfolio1) asset allocation as of 30/06/2014 Tactical asset allocation In % (rounded) “Optimal Dynamics” SAA2) 8% 9% 10% 10% 8% 9% Cash 12% 11% 13% 79 % 79% 77% 78% 77% Column2 Fixed Income Min Max 77% 75% 74% 74% 4% 2% 10% 4% 10% 9% 4% 5% 5% Short-term investments 5.0%3) - Government bo
Slide 37: SCOR's outstanding hybrid securities
SCOR’s outstanding hybrid securities Original Outstanding Floating/ Type amount amount (book Issue date Maturity Coupon + step-up fixed rate issued value) Subordinated US $ 100 30 years First 10 years: 3-month Libor rate floating rate notes US $ 21 million 7 June 1999 Floating million 2029 + 0.80% a
Slide 38: Series of rating upgrades over recent years
SCOR’s strong ERM and financial strength have led to a series of rating upgrades over recent years Evolution of SCOR’s S&P rating Evolution of SCOR’s Moody’s rating A+ + A1 Strong Strong A + A2 + A- + A3 + Secure Secure BBB+ + Baa1 + Good Good BBB Baa2 + BBB- Baa3 2005 2006 2007 2008 2009 2010 2011
Slide 39: 2014 forthcoming events and Investor Relations contacts
2014 forthcoming events and Investor Relations contacts Forthcoming scheduled events 6 November 2014 5 March 2015 SCOR Group: SCOR Group: Q3 2014 results Q4 2014 results Contacts: finance team Marco Circelli Mark Kociancic Head of Group Capital & Group Chief Financial Officer Treasury Management