Scor SE · EURONEXT:SCR
Scor — Q3 2013 Earnings Presentation
51 slides from Scor's earnings presentation, November 2013
Slide 1: SCOR Group Q3 2013 results
SCOR GROUP Q3 2013 results SCOR delivers a strong performance for the first nine months of 2013, recording net income of EUR 302 million
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: SCOR succeeds in combining Profitability, Solvency and Growth
SCOR succeeds in combining Profitability, Solvency and Growth Strengthens balance sheet Executes fast closing Successful issuance of and integration of CHF 250 million to Generali US finance the Generali US SCOR closes the acquisition Continues expansion Generali US acquisition momentum on Octob
Slide 4: State-of-the-art nat cat mapping capabilities for increased understanding of risks
SCOR has developed state-of-the-art nat cat mapping capabilities for increased understanding of risks and exposures across the globe Leveraging Google Earth ® technology, SCOR has developed a state-of-the- art interactive tool to precisely plot exposures with related natural hazards on a global sc
Slide 5: SCOR delivers strong year to date 2013 financials
SCOR delivers strong year to date 2013 financials Q3 2013 YTD gross written premium growth of 4.5% (7.7% at constant exchange rate) compared to 2012, driven by healthy SCOR Global P&C renewals and by major new contracts signed by SCOR Global Life Net income of € 302 million with an 8.5% return o
Slide 6: SCOR Q3 2013 YTD financial details
SCOR Q3 2013 YTD financial details Variation at Variation at Q3 2013 YTD Q3 2012 YTD in € millions (rounded) current FX constant FX Gross written premiums (GWP) 7 539 7 214 4.5% 7.7% Net earned premiums 6 659 6 331 5.2% Operating results 454 475 -4.4% Net income 302 318 -5.0% Group cost ratio1) 5.0%
Slide 7: Robust shareholders' equity development with BVPS at €25.62
Robust shareholders’ equity development with BVPS at € 25.62 after distribution of € 223 million of cash dividends Q3 2013 YTD development in € millions (rounded) 20.0%1)2) Financial leverage increases by 1.6 pts 21.6 %1) 1 346 SCOR financial 1 212 1 346 leverage stands at 302 65 21.6%, well below
Slide 8: €722 million of net operating cash flow generated during Q3 2013 YTD
€ 722 million of net operating cash flow generated during Q3 2013 YTD, +30% compared to Q3 2012 YTD Q3 2013 in € millions (rounded) YTD Cash and cash equivalents at 1 January 1 466 Net cash flows from operations, of which: 722 Business model continues to deliver a robust operating cash flow of € 7
Slide 9: SCOR Global P&C delivers healthy growth and robust technical profitability
SCOR Global P&C delivers healthy growth, robust technical profitability and quarterly performance already in line with Optimal Dynamics Gross written premiums in € millions YTD gross written premium growth of 3.7% +3.7% (+7.1% at constant exchange rates); in view of the impact of exchange rate hea
Slide 10: SCOR Global Life couples strong technical margin with solid growth
SCOR Global Life couples a strong technical margin with solid growth which confirms the dynamism of the franchise Gross written premiums in € millions During 2013, SCOR Global Life (SGL) successfully (rounded) +5.3% captures various opportunities in its “financial solutions” strategic segment cont
Slide 11: New deals signed in 2013 will provide SCOR Global Life with strong inflow
New deals signed in 2013 will provide SCOR Global Life with a strong inflow of gross written premiums in the future Illustration of the premium development for two types of deals signed in 2013: long and short duration deals In 2013, SCOR Global Life successfully captures various opportunities in
Slide 12: SCOR Global Investments delivers on-going return on invested assets of 3.3%
SCOR Global Investments delivers an on-going return on invested assets of 3.3% in a record low yield environment Total invested assets1): € 14.2 billion at 30/09/2013 in % (rounded) Other investments2) 2% Cash 13% Liquidity 18% Total investments of € 22.3 billion, of which total Real estate 6% Equ
Slide 13: SCOR is well on track for 2014
SCOR is well on track for 2014 SCOR continues to optimally combine growth, profitability and solvency to deliver a robust performance in the first nine months of 2013 SCOR is on target towards the execution of its new three-year strategic plan, Optimal Dynamics SCOR successfully finalises the
Slide 14: 2013 & 2014 forthcoming events and Investor Relations contacts
2013 & 2014 forthcoming events and Investor Relations contacts Forthcoming scheduled events 5 February 2014 5 March 2014 SCOR Global P&C: SCOR Group: 2014 January Renewals Q4 2013 Results In 2013 SCOR is scheduled to attend the following investor conferences UBS, London (November 13) Berenbe
Slide 15: The SCOR IR app puts SCOR at the fingertips of investors
The 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 Rating evolution Appendix J Listing information 16
Slide 17: Appendix A: Consolidated statement of income, Q3 2013 YTD
Appendix A: Consolidated statement of income, Q3 2013 YTD in € millions (rounded) Q3 2013 YTD Q3 2012 YTD Gross written premiums 7 539 7 214 Change in gross unearned premiums -73 -186 Gross benefits and claims paid -5 293 -4 968 Gross commissions on earned premiums -1 437 -1 403 Gross technical resu
Slide 18: Appendix A: Consolidated statement of income by segment, Q3 2013 YTD
Appendix A: Consolidated statement of income by segment for Q3 2013 YTD Q3 2013 YTD Q3 2012 YTD in € millions (rounded) Group Group Life P&C Intra-Group Total Life P&C Intra-Group Total functions functions Gross written premiums 3 892 3 647 0 0 7 539 3 697 3 517 0 0 7 214 Change in gross unearned pr
Slide 19: Appendix A: SCOR Q3 2013 QTD financial details
Appendix A: SCOR Q3 2013 QTD financial details in € millions (rounded) Variation at Variation at Q3 2013 QTD Q3 2012 QTD current FX constant FX Gross written premiums (GWP) 2 555 2 579 -0.9% 4.1% Net earned premiums 2 196 2 205 -0.4% Operating results 159 155 2.6% Net income 113 112 0.9% Group cost
Slide 20: Appendix A: Consolidated statement of income, Q3 2013 QTD
Appendix A: Consolidated statement of income, Q3 2013 QTD in € millions (rounded) Q3 2013 QTD Q3 2012 QTD Gross written premiums 2 555 2 579 Change in gross unearned premiums -45 -97 Gross benefits and claims paid -1 798 -1 797 Gross commissions on earned premiums -489 -429 Gross technical result 22
Slide 21: Appendix A: Consolidated statement of income by segment, Q3 2013 QTD
Appendix A: Consolidated statement of income by segment for Q3 2013 QTD in € millions (rounded) Q3 2013 QTD Q3 2012 QTD Group Group Life P&C Intra-Group Total Life P&C Intra-Group Total functions functions Gross written premiums 1 286 1 269 0 0 2 555 1 317 1 262 0 0 2 579 Change in gross unearned pr
Slide 22: Appendix B: Consolidated balance sheet – Assets
Appendix B: Consolidated balance sheet – Assets Q4 2012 Q4 2012 in € millions (rounded) Q3 2013 Restated1) Published Intangible assets 1 892 1 941 1 941 Goodwill 788 788 788 Value of business acquired 979 1 031 1 031 Other intangible assets 125 122 122 Tangible assets 535 540 541 Insurance business
Slide 23: Appendix B: Consolidated balance sheet – Liabilities & shareholders' equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity Q4 2012 Q4 2012 in € millions (rounded) Q3 2013 Restated1) Published 2) Group shareholders’ equity 4 773 4 800 4 803 Non-controlling interest 40 7 7 2) Total shareholders’ equity 4 813 4 807 4 810 Financial debt 1 867 1 648
Slide 24: Appendix B: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows in € millions (rounded) Q3 2013 Q3 2012 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 1 466 1 281 NET CASH FLOWS FROM OPERATIONS 722 556 Cash flow from changes in scope of consolidation 4 0 Cash flow from acquisitions and sale of financial
Slide 25: Appendix B: Net contract liabilities by segment
Appendix B: Net contract liabilities by segment Net liabilities Life & P&C in € millions (rounded) 22 512 -0.3% 22 455 47% 48% SCOR Global Life SCOR Global P&C 53% 52% 31/12/2012 30/09/2013 25
Slide 26: Appendix C: 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 € millions (rounded) Q3 2013 Q3 2012 YTD YTD Post-tax Return on Equity (ROE) Group net income1) (A) 302 318 in € millions (rounded) Average number of opening 192 021 303 192 021 303 Q3 2013 Q3
Slide 27: Appendix D: Reconciliation of total expenses to cost ratio
Appendix D: Reconciliation of total expenses to cost ratio in € millions (rounded) Q3 2013 YTD Q3 2012 YTD Total expenses as per Profit & Loss account -415 -399 ULAE (Unallocated Loss Adjustment Expenses) -24 -24 Total management expenses -439 -423 Investment management expenses 24 20 Total expense
Slide 28: Appendix E: Calculation of P&C combined ratio
Appendix E: Calculation of P&C combined ratio in € millions (rounded) Q3 2013 YTD Q3 2012 YTD P&C P&C Gross earned premiums1) 3 575 3 353 Ceded earned premiums2) -392 -317 Net earned premiums (A) 3 183 3 036 Gross benefits and claims paid -2 227 -2 095 Ceded claims 176 118 Total net claims (B) -2 05
Slide 29: Appendix E: Normalized combined ratio
Appendix E: Normalized combined ratio Normalized net 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
Slide 30: Appendix F: Calculation of the life technical margin
Appendix F: Calculation of the life technical margin Q3 2013 YTD Q3 2012 YTD in € millions (rounded) SGL SGL Gross earned premiums1) 3 891 3 675 Ceded earned premiums2) -415 -380 Net earned premiums (A) 3 476 3 295 Net technical result 140 108 Interests on deposits 114 131 Technical result (B) 254 2
Slide 31: Appendix G: Investment portfolio asset allocation as of 30/09/2013
Appendix G: Investment portfolio asset allocation as of 30/09/2013 Tactical asset allocation in % (rounded) Optimal Dynamics SAA1) 10% 8% 8% 9% 10% 11% 12% 11% 13% Cash 80% 79% 80% Min Max 76% 78% 78% 75% 10% 10% 74% 73% Column2Fixed Income 10% 9% 4% 5% 10% 14% 5% 5.02) - Short‐term investments 26%
Slide 32: Appendix G: Details of total investment portfolio
Appendix G: Details of total investment portfolio Development of total investments since Q3 2011 in € millions (rounded) 21 917 22 248 22 200 22 304 21 402 21 617 21 520 21 053 20 525 8 266 8 141 8 097 8 302 8 379 8 392 7 933 7 988 8 098 13 238 13 525 13 982 14 059 13 587 14 207 12 537 12 955 13 100
Slide 33: Appendix G: Reconciliation of IFRS asset classification to IR presentation
Appendix G: Reconciliation of IFRS asset classification to IR presentation as of 30/09/2013 in € millions (rounded) SGI classification Total Funds Total Fixed Real Other Total Accrued Technical IFRS Cash Loans Equities invested withheld by 1) IFRS income estate investments investments interest items
Slide 34: Appendix G: Reconciliation of IFRS invested assets to IR presentation
Appendix G: Reconciliation of IFRS invested assets to IR presentation in € millions (rounded) Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 IFRS invested assets 12 850 13 332 13 821 13 647 13 946 14 314 14 321 14 080 14 551 Accrued interest - 92 - 91 - 107 - 95 - 97 - 98 -
Slide 35: Appendix G: Details of investment returns
Appendix G: Details of investment returns QTD 2012 2012 QTD 2013 2013 in € millions (rounded) Q3 Q3 Annualized returns: Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 YTD YTD Total net investment income1) 134 143 133 411 155 566 112 120 152 385 Average investments 20 697 20 985 21 208 20 963 21 501 21 098 21 662 21 289 21
Slide 36: Appendix G: QTD Investment income development
Appendix G: QTD Investment income development in € millions (rounded) QTD 2012 2012 QTD 2013 2013 Q3 Q1 Q2 Q3 Q3 YTD Q4 FY Q1 Q2 Q3 YTD Investment revenues on invested assets 69 95 69 233 84 317 64 91 71 226 Realized gains/losses on fixed income 23 23 9 54 11 65 40 13 11 64 Realized gains/losses on
Slide 37: Appendix G: Government bond portfolio as of 30/09/2013
Appendix G: Government bond portfolio as of 30/09/2013 By region Top exposures in %. Total € 3.7 billion in € millions (rounded) USA 1 160 UK 760 Germany 342 Canada 295 17% 23% France 252 Australia 173 EU Supranational1) 108 Republic of Korea 98 North America Netherlands 98 21% Japan 85 UK Singapore
Slide 38: Appendix G: Corporate bond portfolio as of 30/09/2013
Appendix G: Corporate bond portfolio as of 30/09/2013 By rating By sector/type in %. Total € 4.3 billion 1% 1% in € millions (rounded) Q3 2013 In % 11% 17% Consumer, non-cyclical 923 21.6% AAA Financial 779 18.2% Communications 529 12.4% AA Consumer, cyclical 411 9.6% A Industrial 406 9.5% 24% Energ
Slide 39: Appendix G: Corporate bond portfolio as of 30/09/2013
Appendix G: Corporate bond portfolio as of 30/09/2013 By seniority in € millions (rounded) Market to AAA AA A BBB Other 1) Total Book Value % Seniority Senior 56 716 1 945 893 405 4 015 102% Subordinated 0 1 8 51 7 67 104% Hybrid 0 0 19 62 100 181 105% Other 0 6 8 0 2 17 96% Total corporate bond por
Slide 40: Appendix G: Financials corporate bond portfolio as of 30/09/2013
Appendix G: “Financials” corporate bond portfolio as of 30/09/2013 By rating in %. Total € 0.8 billion By sector in € millions (rounded) By seniority in %. Total € 0.8 billion <1%1) Q3 2013 In % <1% 13% 19% 21% AAA Senior Bank 617 79% AA 21% A Insurance 65 8% 8% Subordinated BBB Real estate 52 7% Hy
Slide 41: Appendix G: Banks financial corporate bond portfolio as of 30/09/2013
Appendix G: “Banks” financial corporate bond portfolio as of 30/09/2013 By rating By seniority in %. Total € 0.6 billion 13% in %. Total € 0.6 billion 16% AA 26% A 9% Senior 19% Subordinated BBB Hybrid1) 75% <BBB 42% By region Top 10 exposures2) in %. Total € 0.6 billion in € millions (rounded) 18%
Slide 42: Appendix G: Structured & securitized product portfolio as of 30/09/2013
Appendix G: Structured & securitized product portfolio as of 30/09/2013 in € millions (rounded) Market to 1) AAA AA A BBB Other Total Book Value % ABS ABS 13 10 2 0 0 24 104% CLO CLO2) 70 1 0 0 4 75 100% CDO CDO 11 0 33 0 6 50 87% MBS CMO 0 1 1 2 18 22 100% Non-agency CMBS 22 3 0 0 2 27 107% Non-age
Slide 43: Appendix G: Loans portfolio as of 30/09/2013
Appendix G: Loans portfolio as of 30/09/2013 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 in € millions (rounded) Infrastructure loans 0 0 0 0 20 Real estate loans1) 43 49 45 47 65 Corporate and leveraged loans2) 199 197 201 200 239 Total 242 246 246 247 324 1) Until the Q2 2013 disclosure, the real esta
Slide 44: Appendix G: Equity portfolio as of 30/09/2013
Appendix G: Equity portfolio as of 30/09/2013 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Common shares by underlying asset in € millions (rounded) in %. Total € 0.3 billion 5% 18% Common shares 507 529 505 457 312 13% 1) Convex strategies 0 51 75 72 75 Convertible bonds 20 50 52 57 71 27% 36% Preferred
Slide 45: Appendix G: Real estate portfolio as of 30/09/2013
Appendix G: Real estate portfolio as of 30/09/2013 in € millions (rounded) Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Real estate securities and funds1) 120 115 119 123 121 Direct real estate net of debt and including 357 465 518 664 653 URGL Direct real estate at amortized cost 473 584 627 891 872 Rea
Slide 46: Appendix G: Other investments as of 30/09/2013
Appendix G: Other investments as of 30/09/2013 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 in € millions (rounded) Alternative investments1) 75 67 127 120 113 Non-listed equities 37 39 62 62 62 Commodities 39 37 36 24 25 Infrastructure funds 43 46 46 45 45 Private equity funds 11 12 12 12 13 Insurance L
Slide 47: Appendix G: Unrealized gains & losses development
Appendix G: Unrealized gains & losses development Unrealized gains & losses Variance in € millions (rounded) Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 YTD Fixed income1) 184 203 195 20 53 -150 Loans -1 2 6 5 1 -2 Equities -92 -71 -31 -1 23 94 Real estate2) 121 101 109 104 106 5 Other investments -2 -3
Slide 48: Appendix G: Reconciliation of asset revaluation reserve
Appendix G: Reconciliation of asset revaluation reserve Variance in € millions (rounded) 31/12/2012 30/09/2013 YTD Fixed income URGL 203 53 -150 Of which: Government bonds & assimilated 1) 24 -21 -45 Covered bonds & agency MBS 49 8 -41 Corporate bonds 134 72 -62 Structured & securitized products -4
Slide 49: Appendix H: Debt structure as of 30/09/2013
Appendix H: Debt structure as of 30/09/2013 Original Current amount Floating/ Type amount outstanding (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
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 + Baa1 + BBB+ Good Good BBB Baa2 + BBB- Baa3 2005 2006 2007 2008 2009 2010 2011 2012 2013 2005 2006 2007 2008 2009 201
Slide 51: Appendix J: SCOR's listing information
Appendix J: 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 the Euronext on the SIX Swiss Exchange OTC market Paris stock market (formerly