Scor Se · EURONEXT:SCR
Scor — Q1 2010 Earnings Presentation
36 slides from Scor's earnings presentation, Nov 29, 2010
Slide 1: SCOR Group Q1 2010 Results
SCOR GROUP Q1 2010 Results SCOR generates resilient results and confirms the Group’s capacity to absorb large shocks 1
Slide 2: Notice
Notice Certain statements contained in this presentation are forward-looking statements, of necessity provisional, that are based on risks and uncertainties that could cause actual results, performance or events to differ materially from those in such statements. SCOR is exposed to significant finan
Slide 3: Q1 2010 financial highlights
Q1 2010 financial highlights Î Net income at € 36 million, with Earnings Per Share (EPS) at € 0.20, demonstrates the Group’s capacity to absorb high natural catastrophe losses Î Gross written premiums at € 1 613 million, up 3.3% compared to Q1’09-1) , mainly driven by growth of SCOR Global P&C’s pre
Slide 4: Group: book value per share growth despite exceptional nat cat burden
SCOR continues to increase its book value per share in a quarter with an exceptional natural catastrophe burden Variation at Variation at in €m Q1 2010 Q1 2009 current FX constant FX Gross written premiums 1 613 1 561 +3.3% +3.8% Net earned premiums 1 406 1 345 +4.5% +5.7% Operating result 41 -3 n/a
Slide 5: Robust shareholders' equity growth during the quarter
Robust shareholders’ equity growth during the quarter Q1’2010 development in €m (rounded-1)) 14.6% Financial leverage down 4pts 10.6% 191 -2) 484 477 135 36 26 2 1 Forex Impact +131 Share payments +5 Other -1 +5.1% 4 101 3 901 Total shareholders’ equity Book value Subordinated debt per share -3) € 2
Slide 6: Positive operating cash flow continues in Q1 2010
Positive operating cash flow continues in Q1 2010 in €m Q1 2010 Cash and cash equivalents at 1 January 1 325 Net operating cash flow, of which: 104 Î Business model continues to deliver SCOR Global P&C 81 strong operating cash flow of € 104 million as at 31 March 2010, SCOR Global Life 23 with stron
Slide 7: SCOR Global P&C affected by high level of Nat Cat losses
SCOR Global P&C affected by high level of Nat Cat losses Gross written premiums in €m Î Robust premium volume growth thanks to strong January Renewals Î Net combined ratio impacted by very +4.7% 868 909 high Nat Cat losses (€ 95 million from (at constant and current the Chile Earthquake, € 35 millio
Slide 8: The cat burden in Q1 is well above historical patterns
The cat burden in Q1 is well above historical patterns Net technical ratio (bef. ULAE): YTD evolution-1) Chile, Haiti and Xynthia: €150 million combined-2) Ike & Gustav: € 69 million 105% 105% combined-2) Klaus: € 55 million-2) 101.6% Kyrill: € 28 100% 100% million-2) 95% 93.9% 93.2% 92.7% 91.3% 91.
Slide 9: SCOR Global P&C: very satisfactory outcome of April renewals
SCOR Global P&C: very satisfactory outcome of April renewals… Premiums renewed in April -1) in €m, rounded -7% +4% +3% +6% +9% +0% +14% Î10% of treaty business up for renewal, +20 +13 0 primarily in Japan, Korea, India and +8 +7 USA -17 ÎSustainable growth achieved thanks to 257 positive momentum an
Slide 10: Selective developments and strong portfolio management
… with selective developments and strong portfolio management-1) Speciality Lines +19% (€ 80 million renewed) Treaty P&C +12% (€ 177 million renewed)-2) in €m, rounded in €m, rounded 20 +16% 78 -1% Engineering Japan 17 79 Credit & 19 +29% 25 USA +82% Surety 15 13 15 +33% 18 Agriculture Korea -8% 12
Slide 11: SCOR Global Life: stable volumes with improving operating margin
SCOR Global Life: stable volumes with improving operating margin Gross written premiums in €m +1.6% Î Stable gross written premiums (GWP) compared to Q1’2009, with lower EIA business compared to Q1 2009 as +2.6% previously announced; GWP growth 693 704 (at constant excluding EIA is a robust 9.1%, ma
Slide 12: SCOR Global Investments: strong performance from its own invested assets
SCOR Global Investments: strong performance from its own invested assets-1) Total invested assets-1): € 12 656 million at 31/03 Real Estate Equities Cash & short-term 3% 6% Î Roll-over strategy maintained during investments-2) Alternative Investments-3) 3% the quarter to benefit from inflation Struc
Slide 13: Final remarks: 2010 Forthcoming events
Final remarks: 2010 Forthcoming events Date 29 July 8 September 5 November H1 2010 results Q3 2010 results Event Investors Day presentation presentation SCOR, La Defense, Location Conference Call Conference Call Paris 09:30 CET / 8:30 GMT 11:00 CET / 10:00 GMT 09:30 CET / 8:30 GMT Time and format An
Slide 14: Appendix
APPENDIX Appendix A: Key figures for Q1 2010 Appendix B: Balance sheet & Cash flow statement Appendix C: Calculations of EPS, Book value per share and ROE Appendix D: Net liabilities by segments Appendix E: Details of invested assets Appendix F: Reconciliation of IFRS asset classification to IR pres
Slide 15: Consolidated statement of income, Q1 2010
Appendix A: Consolidated statement of income, Q1 2010 in €m (rounded-1)) Q1 2010 Q1 2009 Gross premiums written 1 613 1 561 Change in unearned premiums -64 -64 Gross Claims expenses -1 179 -1 071 Gross commissions earned -357 -346 Gross Technical result 13 81 Retroceded written premiums -161 -155 Ch
Slide 16: Consolidated statement of income by segment, Q1 2010
Appendix A: Consolidated statement of income by segment, Q1 2010 in €m (rounded-1)) Q1 2010 Q1 2009 Intra- Intra- Life P&C Total Life P&C Total Group Group Gross premiums written 704 909 0 1 613 693 868 0 1 561 Change in unearned premiums 8 -72 0 -64 2 -66 0 -64 Gross Claims expenses -533 -646 0 -1
Slide 17: Calculation of P&C Combined Ratio
Appendix A: Calculation of P&C Combined Ratio Q1 2010 Q1 2009 in €m (rounded-1)) SCOR GPC SCOR GPC Gross earned premiums 837 802 Retroceded earned premiums -66 -79 Net earned premiums (A) 771 724 Expenses for claims and policy benefits -646 -531 Retroceded claims 17 30 Total claims (B) -629 -501 Cla
Slide 18: Reconciliation of total expenses to cost ratio
Appendix A: Reconciliation of total expenses to cost ratio in €m (rounded-1)) Q1 2010 Q1 2009 Total Expenses as per Profit & Loss account 91 89 ULAE (Unallocated Loss Adjustment Expenses) 6 5 Total expense base 97 94 Non controllable expenses (eg. Premium tax, bad debt, etc.) -1 -5 One-time release
Slide 19: Consolidated balance sheet – Assets
Appendix B: Consolidated balance sheet – Assets in €m (rounded-1)) Q1 2010 Q4 2009 Intangible assets 1 419 1 418 Goodwill 787 787 Value of purchased insurance portfolios 547 551 Other intangible assets 85 80 Tangible assets 39 40 Insurance business investments 19 249 18 644 Investment property 304 3
Slide 20: Consolidated balance sheet – Liabilities & shareholders' equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity in €m (rounded-1)) Q1 2010 Q4 2009 Group shareholders’ equity 4 094 3 894 Minority interests 7 7 Total shareholders’ equity 4 101 3 901 Financial liabilities 628 820 Subordinated debt 484 477 Financial debt securities 0 191
Slide 21: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows in €m (rounded-1)) Q1 2010 Q1 2009 CASH AND CASH EQUIVALENTS AT JANUARY 1 1 325 1 783 NET CASH FLOWS FROM OPERATING ACTIVITIES 104 156 Cash flows from changes in scope of consolidation 0 0 Cash flows from acquisitions and sale of financial assets -90
Slide 22: Calculations of EPS, book value per share and ROE
Appendix C: Calculations of EPS, book value per share and ROE Earnings per share calculation Post-tax Return on Equity (ROE) in €m (rounded-1)) in €m (rounded-1)) Q1 2010 Q1 2009 Q1 2010 Q1 2009 Net income-2) (A) 36 93 Net income-2) 36 93 Average number of opening 185 213 031 184 246 437 Opening sha
Slide 23: Net liabilities by segment
Appendix D: Net liabilities by segment Net liabilities Life & P&C in €m (rounded-1)) +4.2% 20 512 19 687 49% 49% SCOR Global Life SCOR Global P&C 51% 51% 31/12/2009 31/03/2010 (1- Numbers on this slide are calculated on complete figures (including decimals); therefore the presentation might contain
Slide 24: Details of total investment portfolio
Appendix E: Details of total investment portfolio Development of total investments since Q1’2008 in €m (rounded-1)) 18 425 18 484 19 051 18 765 19 051 19 542 19 699 19 969 20 433 7 742 7 777 7 142 7 765 7 825 7 285 7 234 7 380 7 691 11 909 11 777 11 874 12 228 12 656 11 140 11 249 11 385 11 360 Q1 2
Slide 25: Details of investment returns
Appendix E: Details of investment returns QTD 2009 2010 in €m published Q1 Q2 Q3 Q4 Q1 Average investments-1) 18 236 18 567 18 841 19 076 19 469 Total net investment results (net of expenses) -14 145 167 170 163 Annualized returns: Net return on investments (ROI) (new method)-1) -0.3% 3.2% 3.6% 3.6%
Slide 26: Investment income development
Appendix E: Investment income development Investment income QTD (before tax & investment expenses) Q1 Q1 in €m (rounded-1)) 2009 2010 Bond impairments -18 -9 186 Equity impairments -136 -2 8 178 176 172 Other impairments 0 -1 97 6 153 22 3 30 39 Real estate amortization -2 -3 40 -4 22 Change in depr
Slide 27: Government bonds portfolio as of 31/03/2010
Appendix E: Government bonds portfolio as of 31/03/2010 By region Top 10 exposures-1) in %. Total € 4.9 billion in €m (rounded-2)) 10% USA 1 424 France 1 112 EU (Non-UK) Germany 567 11% Great Britain 551 43% North America Supra national 365 Canada 320 Netherlands 95 UK Oceania 91 Sweden 75 Others Be
Slide 28: Corporate bond portfolio as of 31/03/2010
Appendix E: Corporate bond portfolio as of 31/03/2010 By rating By sector/type in %. Total € 2.9 billion 5% 2% in €m (rounded-1)) Q1 2010 In % 6% 10% Financial 821 28% AAA Communications 516 18% AA Consumer, Non-cyclical 413 14% A Utilities 297 10% Industrial 230 8% BBB 32% Consumer, Cyclical 184 6%
Slide 29: Corporate bond portfolio by seniority
Appendix E: Corporate bond portfolio as of 31/03/2010 By seniority in €m (rounded-1)) Market to -2) AAA AA A BBB Other Total Book Value %-3) Seniority Senior 49 285 1 123 850 275 2 582 103% Subordinated 0 13 173 49 9 244 102% Hybrid 0 1 21 13 11 47 90% Convertible 0 0 0 0 0 0 0% Other 0 2 0 2 24 28
Slide 30: Financials corporate bond portfolio as of 31/03/2010
Appendix E: “Financials” Corporate bond portfolio as of 31/03/2010 By rating By sector in %. Total € 0.8 billion in €m (rounded-1)) 4% 1% 6% Q1 2010 in % 12% AAA AA Bank 574 70% 24% A Diversified financial services 151 19% BBB Insurance 53 6% <BBB Real estate 43 5% NR Total 821 100% 53% Source: Bloo
Slide 31: Equity portfolio as of 31/03/2010
Appendix E: Equity portfolio as of 31/03/2010 By underlying asset By sector/type in €m (rounded-1)) in %. Total € 0.8 billion Q1 2010 In % 5% 1% 2% Diversified / Funds 293 39% 8% Europe large cap Consumer, Non-cyclical 113 15% 2% Americas large cap Communications 81 11% Utilities 60 8% Asia/Emerging
Slide 32: Structured products portfolio as of 31/03/2010
Appendix E: Structured products portfolio as of 31/03/2010 in €m (rounded-1)) Market to -2) Book AAA AA A BBB Other Total Value %-3) ABS Consumer 43 6 4 1 0 53 102% CDO/PPS CDO 0 8 0 1 19 29 75% PPS 22 35 5 0 0 62 82% MBS Agency / CMO 105 2 0 0 0 107 105% Non-agency prime 339 18 8 3 14 381 99% Alt-A
Slide 33: Unrealized gains & losses development
Appendix E: Unrealized gains & losses development Unrealized gains & losses in €m (rounded-1)) Q1 2010 Variance Q1 2009 Q2 2009 Q3 2009 Q4 2009 YTD Equities -173 -114 -30 12 5 -7 Bonds -278 -195 -9 4 79 75 Real estate & REITS 113 108 114 82 91 9 Total -338 -201 76 98 175 77 (1- Numbers on this slide
Slide 34: Reconciliation of asset revaluation reserve
Appendix E: Reconciliation of asset revaluation reserve Variance 31/12/2009 31/03/2010 in €m (rounded-1)) YTD URGL equities 12 5 -7 URGL bonds 4 79 75 thereof government & government-guaranteed bonds 41 51 10 thereof covered bonds / Agency MBS 2 12 10 thereof corporate bonds 41 69 28 thereof structu
Slide 35: Reconciliation of IFRS asset classification to IR presentation
Appendix F: Reconciliation of IFRS asset classification to IR presentation as of 31/03/2010 in €m (rounded-1)) Cash and Funds Real Alternative Fixed Total IFRS classification short- Equities withheld estate investments income IFRS term by cedants Real estate investments 304 304 AFS - Equities 82 215
Slide 36: Definitions of SCOR Global P&C renewals
Appendix G: Definitions of SCOR Global P&C renewals Î Total premiums up for renewal: premiums of all Treaty contracts incepting in April 2009 at the exchange rate as at December 31, 2009 Î Cancelled/restructured: client or SCOR decided to cancel the business/programs and/or to change their programs