Scor SE · EURONEXT:SCR
Scor — Q3 2012 Earnings Presentation
51 slides from Scor's earnings presentation, 2012
Slide 1: SCOR Group Q3 2012 results
SCOR GROUP Q3 2012 results SCOR records net income of EUR 318 million for the first nine months of 2012, confirming the strength of its business model
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. Undue reliance should not be placed
Slide 3: Two sets of 2011 financial data: published accounts and pro-forma information
In this presentation two sets of 2011 financial data are used: published accounts & pro-forma information Unaudited published accounts 9 months YTD and 3rd quarter accounts: The unaudited published accounts of Q3 2011 did include Transamerica Re figures since it was acquired on 9 August 2011 Unaud
Slide 4: Economic and financial environment has deteriorated and is levelling off
Over the past few years the economic and financial environment has deteriorated and is currently levelling off in most countries Leading indicators show a deterioration, notably in the Eurozone… “As the global economic and financial environment 105 has deteriorated since the end of last year a visib
Slide 5: SCOR overcomes a tough macro environment, delivering strong performance
SCOR overcomes a tough macro environment, delivering a strong performance founded on robust & improving operational profitability 2008 2009 2010 2011 2012 YTD 2012 Notes Gross written The Group enjoys strong growth driven by increased +22% +10% +11% +14% +13% premium growth visibility in the industr
Slide 6: SCOR delivers strong year-to-date 2012 financials
SCOR delivers strong year-to-date 2012 financials Year-to-date gross written premium growth of 13% compared to 2011 pro-forma (33% published), driven by robust SCOR Global P&C renewals and by SCOR Global Life’s growth from both new and existing clients Strong year-to-date net income at € 318 mil
Slide 7: SCOR Q3 2012 YTD financial details
SCOR Q3 2012 YTD financial details in €m (rounded) Q3 2011 Q3 2011 Q3 2012 Variation at Variation at Variation at Variation at YTD YTD pro- YTD 5) current FX constant FX current FX constant FX published forma5) Gross written premiums (GWP) 7 214 5 421 33.1% 25.2% 6 405 12.6% 6.0% Net earned premiums
Slide 8: Robust shareholders' equity development
Robust shareholders’ equity development Q3 2012 development in €m (rounded) 17.8%1) Financial leverage decreases by 1.5 pts 16.3%1) 943 SCOR financial leverage +220 +26 943 stands at 16.3%, with peer 992 +318 -37 group at around 20%5) Treasury stock -36 -203 Other -1 16.3% leverage ratio exclude
Slide 9: Net operating cash flow and liquidity position
€ 556 million of net operating cash flow generated during 2012; liquidity position stands at € 2.6 billion Q3 2012 in €m (rounded) YTD Cash and cash equivalents at 1 January 1 281 Net operating cash flow, of which: 556 Business model continues to deliver a robust operating cash flow of € 556 milli
Slide 10: SCOR Global P&C continues to deliver high growth
In the first nine months of 2012, SCOR Global P&C continues to deliver high growth, coupled with technical profitability above the SMV1.1 plan Gross written premiums in €m +18.0% Strong growth of 18% in Q3 YTD of which 6.5 pts driven by FX; full year growth expected to be in line with Strong Momen
Slide 11: SCOR Global Life continues its positive momentum
SCOR Global Life continues its positive momentum with a strong and stable technical margin Gross written premiums in €m (rounded) 8% growth compared to Q3 2011 YTD pro- +8.0% forma, largely driven by FX; decreases in the Middle East offset by significant increases in +1.2% emerging markets (Latin
Slide 12: SCOR Global Investments delivers robust return on invested assets
SCOR Global Investments delivers a robust on-going return on invested assets of 3.4% in a record low yield environment Total invested assets1): €13.5 billion at 30/09/2012 Other investments2) 2% Cash 9% Real estate 4% Liquidity 19% Total investments of € 21.9 billion, of which total Equities 4% in
Slide 13: Reinsurance pricing environment at January 2013 renewals
SCOR anticipates a reinsurance pricing environment at the January 2013 renewals driven by technical, macro-economic and financial factors January 2013 pricing and T&Cs expected to hold, In an increasingly fragmented reinsurance cycle driven by industry and macro factors SCOR Global P&C: Stable Techn
Slide 14: 2012 & 2013 forthcoming events and contacts
2012 & 2013 forthcoming events and contacts Forthcoming scheduled disclosures February 2013 6 March 2013 SCOR Global P&C: SCOR Group: 2013 January Full Year 2012 Renewals results In the remainder of 2012 SCOR is scheduled to attend the following investor conferences UBS, London (November 14)
Slide 15: The new SCOR IR app
The new SCOR IR app puts SCOR at the fingertips of investors Home Page Latest press releases Financial communication Share price monitor Conference presentations Research Publications Push notifications Contacts 15
Slide 16: Appendices
APPENDICES Appendix A P&L Appendix B Balance sheet & Cash flow Appendix C Calculation of EPS, Book value per share and ROE Appendix D Expenses & cost ratio Appendix E P&C Appendix F Life Appendix G Investment Appendix H Debt Appendix I Other 16
Slide 17: Consolidated statement of income, Q3 2012 YTD
Appendix A: Consolidated statement of income, Q3 2012 YTD in €m (rounded) Q3 2011 YTD Q3 2011 YTD Q3 2012 YTD pro-forma published Gross written premiums 7 214 6 405 5 421 Change in unearned premiums -186 -197 -197 Gross Claims expenses -4 968 -4 667 -4 050 Gross commissions on earned premiums -1 403
Slide 18: Consolidated statement of income by segment, Q3 2012 YTD
Appendix A: Consolidated statement of income by segment for Q3 2012 YTD Q3 2011 YTD Q3 2011 YTD Q3 2012 YTD in €m (rounded) Pro-forma Published Group Intra- Group Intra- Group Intra- Life P&C Total Life P&C Total Life P&C Total functions Group functions Group functions Group Gross written premiums 3
Slide 19: SCOR Q3 2012 QTD financial details
Appendix A: SCOR Q3 2012 QTD financial details in €m (rounded) Q3 2011 Variation at Variation at Q3 2011 Variation at Variation at Q3 2012 published current FX constant FX pro-forma5) current FX constant FX Gross written premiums (GWP) 2 579 2 021 27.6% 18.8% 2 200 17.2% 9.1% Net earned premiums 2 2
Slide 20: Consolidated statement of income, Q3 2012 QTD
Appendix A: Consolidated statement of income, Q3 2012 QTD in €m (rounded) Q3 2011 Pro- Q3 2011 Q3 2012 forma Published Gross written premiums 2 579 2 200 2 021 Change in unearned premiums -97 -46 -46 Gross Claims expenses -1 797 -1 563 -1 472 Gross commissions on earned premiums -429 -431 -405 Gross
Slide 21: Consolidated statement of income by segment, Q3 2012 QTD
Appendix A: Consolidated statement of income by segment for Q3 2012 QTD Q3 2011 Q3 2011 Q3 2012 in €m (rounded) Pro-forma Published Group Intra- Group Intra- Group Intra- Life P&C Total Life P&C Total Life P&C Total functions Group functions Group functions Group Gross written premiums 1 317 1 262 0
Slide 22: Consolidated balance sheet – Assets
Appendix B: Consolidated balance sheet – Assets in €m (rounded) Q3 2012 Q4 2011 Intangible assets 1 960 1 969 Goodwill 788 788 Value of business acquired 1 042 1 069 Other intangible assets 130 112 Tangible assets 541 515 Insurance business investments 21 129 20 148 Real estate investments 473 499 A
Slide 23: Consolidated balance sheet – Liabilities & shareholders' equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity in €m (rounded) Q3 2012 Q4 2011 Group shareholders’ equity 4 727 4 403 Non-controlling interest 7 7 Total shareholders’ equity 4 734 4 410 Financial debt 1 397 1 425 Subordinated debt 943 992 1) Real estate financing 420 409
Slide 24: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows in €m (rounded) Q3 2012 Q3 2011 YTD YTD CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 1 281 1 007 NET CASH FLOWS FROM OPERATION 556 474 Cash flow from changes in scope of consolidation 0 18 1) Cash flow from acquisitions and sale of financ
Slide 25: Net liabilities by segment
Appendix B: Net liabilities by segment Net liabilities Life & P&C in €m (rounded) 2.5% 22 056 22 597 48% 48% SCOR Global Life SCOR Global P&C 52% 52% 31/12/2011 30/09/2012 25
Slide 26: Calculations of EPS, book value per share and ROE
Appendix C: Calculations of EPS, book value per share and ROE, published Earnings per share calculation in €m (rounded) Q3 2012 Q3 2011 YTD YTD Post-tax Return on Equity (ROE) Net income1) (A) 318 228 in €m (rounded) Average number of opening 192 021 303 187 795 401 Q3 2012 Q3 2011 shares (1) Impact
Slide 27: Reconciliation of total expenses to cost ratio
Appendix D: Reconciliation of total expenses to cost ratio Q3 2011 YTD Q3 2011 YTD in €m (rounded) Q3 2012 YTD Pro-forma Published Total Expenses as per Profit & Loss account -399 -352 -316 ULAE (Unallocated Loss Adjustment Expenses) -24 -21 -22 Total management expenses -423 -373 -338 Investment ma
Slide 28: Calculation of P&C Combined Ratio
Appendix E: Calculation of P&C Combined Ratio in €m (rounded) Q3 2012 YTD Q3 2011 YTD P&C P&C Gross earned premiums1) 3 353 2 807 Ceded earned premiums2) -317 -258 Net earned premiums (A) 3 036 2549 Gross claim expenses -2 095 -2 293 Ceded claims 118 297 Total claims (B) -1 977 -1 996 Loss ratio (Ne
Slide 29: Normalized Combined Ratio
Appendix E: Normalized Combined Ratio Normalized Combined Ratio QTD YTD 1 2 3 4 5 1+2+3+5 1 2 3 4 5 1+2+3+5 Cat ratio Cat ratio Published Normalized Published Normalized Reserves delta from Reserves delta from Combined One off Cat ratio Combined Combined One off Cat ratio Combined release 6% Cat rel
Slide 30: Calculation of Life Technical, Investment, Expense and Operating Margins
Appendix F: Calculation of the Life Technical, Investment, Expense and Operating Margins in €m (rounded) Q3 2011 YTD Q3 2011 YTD Q3 2012 YTD Pro-forma Published SGL SGL SGL 1) Gross earned premiums 3 675 3 401 2 417 Ceded earned premiums2) -380 -367 -218 Net earned premiums (A) 3 295 3 034 2,199 Net
Slide 31: Investment portfolio asset allocation as of 30/09/2012
Appendix G: Investment portfolio asset allocation as of 30/09/2012 Tactical asset allocation SM V1.1 SAA1) Min Max 8% 9% 11% 10% 8% 8% 9% Cash 5.0% 2) 100.0% 5% 80% 17% 81% 5% 80% 2% 5% 75% 77% 5% 5% 78% 5% 81% Fixed Income 4% 10% 10% 69% 5% 10% 10% Short‐term investments 0.0% 100.0% 2% 14% 38% Gove
Slide 32: Details of total investment portfolio
Appendix G: Details of total investment portfolio Development of total investments since Q3 2010 in €m (rounded) 21 917 20 944 1) 21 402 21 617 20 593 20 525 21 053 19 865 19 559 8 302 8 379 8 392 7 823 7 640 7 988 8 098 7 623 7 465 13 121 12 953 12 537 12 955 13 100 13 238 13 525 12 242 12 094 Q3 2
Slide 33: Reconciliation of IFRS asset classification to IR presentation
Appendix G: Reconciliation of IFRS asset classification to IR presentation as of 30/09/2012 in €m (rounded) IR classification Total Funds IFRS Cash and Fixed Real Other Total Accrued Technical Total Equities invested withheld by classification short-term income estate investments investments interes
Slide 34: Reconciliation of IFRS invested assets to IR presentation
Appendix G: Reconciliation of IFRS invested assets to IR presentation in €m (rounded) Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 IFRS invested assets 13 562 13 427 13 238 12 478 12 426 12 850 13 332 13 821 13 647 13 946 Accrued interest - 114 - 114 - 115 - 93 - 8
Slide 35: Details of investment returns
Appendix G: Details of investment returns in €m (rounded) QTD 2011 2011 QTD 2012 2012 Annualized returns: Q3 Q3 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 YTD YTD Average investments 19 183 19 200 19 597 19 327 20 265 19 561 20 697 20 985 21 208 20 963 Total net investment income1) 168 176 120 464 160 624 134 143 133
Slide 36: QTD Investment income development
Appendix G: QTD Investment income development Q3 Q3 2011 Q4 2011 Q1 Q2 Q3 Q3 2012 in €m (rounded) YTD YTD 2011 2011 YTD 2012 2012 2012 Income on invested assets 76 255 89 344 69 95 69 233 Realized gains/losses on fixed income 43 81 37 118 23 23 9 54 Realized gains/losses on equities 6 49 0 49 6 -1 2
Slide 37: Government bond portfolio as of 30/09/2012
Appendix G: Government bond portfolio as of 30/09/2012 By region Top exposures in %. Total € 3.5 billion in €m (rounded) USA 1 066 19% Germany 644 33% Canada 347 EU (Non‐UK) Supranational1) 294 UK 255 7% North America France 183 Netherlands 169 UK Australia 144 Denmark 64 Others Belgium 60 Republic
Slide 38: Corporate bond portfolio as of 30/09/2012
Appendix G: Corporate bond portfolio as of 30/09/2012 By rating By sector/type in %. Total € 4.0 billion 1% 2% in €m (rounded) Q3 2012 YTD In % 10% 14% Financial 784 20% AAA Consumer, Non-cyclical 777 19% Communications 586 15% AA Industrial 367 9% A Consumer, Cyclical 359 9% 28% Energy 288 7% BBB U
Slide 39: Corporate bond portfolio by seniority
Appendix G: Corporate bond portfolio as of 30/09/2012 By seniority in €m (rounded) Market to AAA AA A BBB Other 1) Total Book Value % Seniority Senior 59 555 1 735 1 005 405 3 759 103% Subordinated 0 1 18 50 2 72 103% Hybrid 0 0 15 70 55 141 90% Convertible 0 0 0 0 1 1 61% Other 0 6 8 0 6 19 105% To
Slide 40: Financials corporate bond portfolio as of 30/09/2012
Appendix G: “Financials” Corporate bond portfolio as of 30/09/2012 By rating in %. Total € 0.8 billion By sector in €m (rounded) By seniority in %. Total € 0.8 billion 4% 0% Q3 2012 0% 9% In % 16% 17% AAA YTD Senior AA Bank 622 79% 9% Subordinated A Insurance 56 7% 23% Hybrid 1) BBB Diversified fina
Slide 41: Banks financial corporate bond portfolio as of 30/09/2012
Appendix G: “Banks” Financial Corporate bond portfolio as of 30/09/2012 By rating By seniority in %. Total € 0.6 billion 4% in %. Total € 0.6 billion 9% 13% 21% AAA AA 11% Senior A 22% Subordinated BBB Hybrid1) <BBB 76% NR 44% By region Top 10 exposures2) in %. Total € 0.6 billion in €m (rounded) 15
Slide 42: Structured & securitized product portfolio as of 30/09/2012
Appendix G: Structured & securitized product portfolio as of 30/09/2012 in €m (rounded) Market to 1) AAA AA A BBB Other Total Book Value % ABS ABS 15 10 2 0 0 27 105% Loan and CLO Loan and CLO 0 9 0 1 198 208 99% CDO CDO 11 32 1 1 21 66 87% MBS CMO 4 2 0 1 25 33 101% Non-agency CMBS 62 7 2 0 2 73 10
Slide 43: Equity portfolio as of 30/09/2012
Appendix G: Equity portfolio as of 30/09/2012 By underlying asset By sector/type in %. Total € 0.6 billion in €m (rounded) Q3 2012 In % 4% 4% Europe large cap 3% Diversified / Funds 143 26% Communications 88 16% Americas large cap 11% Consumer, Cyclical 66 12% Financial 57 10% Asia / Emerging Indust
Slide 44: Real estate portfolio as of 30/09/2012
Appendix G: Real estate portfolio as of 30/09/2012 in €m (rounded) Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Direct real estate net of debt and including URGL 352 371 376 380 357 Direct real estate amortized costs 500 499 497 494 473 Real estate URGL 102 119 121 125 118 Real estate debt -250 -247 -242
Slide 45: Other investments as of 30/09/2012
Appendix G: Other investments as of 30/09/2012 in €m (rounded) Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Alternative investments 123 120 95 90 80 Non-listed equities 47 44 57 81 37 Commodities 40 38 38 37 35 Infrastructure funds 38 40 43 43 43 Private equity funds 11 10 10 11 11 Insurance Linked Secur
Slide 46: Unrealized gains & losses development
Appendix G: Unrealized gains & losses development Unrealized gains & losses Variance in €m (rounded) Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 YTD Fixed income 1 -46 49 53 185 230 Equities -204 -158 -120 -147 -92 66 Real estate1) 94 110 119 122 119 9 Other investments -5 -6 -4 24 -2 3 Total -113 -99 4
Slide 47: Reconciliation of asset revaluation reserve
Appendix G: Reconciliation of asset revaluation reserve Variance in €m (rounded) 31/12/2011 30/09/2012 YTD Fixed income URGL -46 185 230 Of which: Government bonds & assimilated1) -4 30 34 Covered bonds & agency MBS 8 48 40 Corporate bonds -23 114 137 Structured & securitized products -26 -7 19 Equi
Slide 48: SCOR's impairment policy
Appendix G: SCOR’s impairment policy SCOR’s impairment policy as defined in section 20.1.6.1 Note 1 (H) of the 2011 “Document de Reference” At each balance sheet date, the Group assesses whether there is any evidence of impairment. The amount of impairment is recorded by asset category, as set forth
Slide 49: Debt structure
Appendix H: Debt structure Current Amount Original Floating/ Type Outstanding Issue date Maturity Coupon + Step-up amount issued Fixed rate (Book Value) Subordinated 30 years First 10 years : 3-month Libor rate floating rate notes U.S.$ 100 million U.S.$ 67 million 7 June 1999 Floating 2029 + 0.80%
Slide 50: SCOR's rating has improved dramatically since 2005
Appendix I: SCOR’s rating has improved dramatically since 2005 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 2012 2005 2006 2007 2008 2009 2010 201
Slide 51: SCOR's listing information
Appendix I: SCOR’s listing information Euronext Paris listing SIX Swiss Exchange listing ADR programme SCOR’s shares are publicly traded SCOR’s shares are publicly traded SCOR’s ADR shares trade on the on the Eurolist by Euronext Paris on the SIX Swiss Exchange OTC market : stock market (formerly kn