Scor SE · EURONEXT:SCR
Scor — Q1 2005 Earnings Presentation
40 slides from Scor's earnings presentation, May 31, 2005
Slide 1: First Quarter Results 2005
FIRST QUARTER RESULTS 2005 31 May 2005 First Quarter Results 2005 31 May 2005
Slide 2: Contents
Contents IFRS: FTA Summary p. 4 p. 11 Group business Results by line of business p. 14 p. 21 Latest news Appendices p. 32 p. 38 First Quarter Results 2005 31 May 2005 2
Slide 3: Notice
Notice Your attention is drawn to the fact that first quarter figures cannot be extrapolated to the full year due to time lags in certain writings and to features of quarterly accounting specific to reinsurance. Certain statements contained in this presentation are forward-looking statements, of
Slide 4: IFRS: First Time Adoption (FTA)
IFRS: First Time Adoption (FTA) First Quarter Results 2005 31 May 2005
Slide 5: IFRS Standards
IFRS Standards The objective of International Financial Reporting Standards is to encourage accounting harmonization in Europe The conversion to IFRS standards is a two-step process, which creates, for insurance and reinsurance companies, an asymmetry between assets and liabilities, due to: z th
Slide 6: Change in scope between the Life and Non-Life segments
Change in scope between the Life and Non- Life segments With regard to the transition to IFRS standards, SCOR has reported since January 1, 2005 along the following business segments: z Non-Life reinsurance: in addition to Property & Casualty, Large Corporate Accounts and Credit & Surety treaties,
Slide 7: Impact of the transfer to IFRS accounting standards is slightly positive
Impact of the transfer to IFRS accounting standards is slightly positive SCOR has successfully completed the conversion from French GAAP to IFRS standards IFRS net assets at 12/31/2004 are EUR 1 326 million, stable when compared to the French GAAP (EUR 1 324 million) 2004 IFRS net income is EU
Slide 8: Conversion from French GAAP to IFRS
Conversion from French GAAP to IFRS Net assets as at 12/31/04 and 12/31/03 EUR million 12/31/2004 12/31/2003 Net assets, French GAAP 1 324 619 Impact financial assets IAS32 / 39 51 41 Net impact shadow accounting IFRS4 (34) (34) Impact financial debt IAS32 / 39 14 4 Net impact equalization reserves
Slide 9: Transition from French GAAP to IFRS
Transition from French GAAP to IFRS 2004 consolidated net income at EUR million 12/31/2004 Group net result, French GAAP 69 Impact goodwill impairment 19 Net impact financial debts IAS32 / 39 (5) Net impact of share-based payments IFRS2 (6) Net impact of foreign currency on shares 13 Net impact fina
Slide 10: 2004 IFRS summary balance sheet
2004 IFRS summary balance sheet at EUR million 12/31/2004 Assets Intangible assets 237 Property, plant & equipment 10 Investments from insurance business 8 113 Retrocessionnaires 919 Other assets 2 678 Cash & cash equivalents 1 825 Liabilities Shareholders’ equity 1 326 Financial debt 1 344 Continge
Slide 11: Summary First Quarter 2005
SUMMARY FIRST QUARTER 2005 First Quarter Results 2005 31 May 2005
Slide 12: Highlights at first quarter 2005
Highlights at first quarter 2005 Gross written premiums: EUR 621 million Operational result: EUR 61 million (v. EUR 78 million at 1Q 2004) Group net income: EUR 33 million (v. EUR 45 million at 1Q 2004) Net asset value: EUR 1 382 million (+ 4% v. 12/31/2004) Combined ratio for the non-Life
Slide 13: Key figures
Key figures 03/31/2004 03/31/2005 Change 12/31/2004 EUR million Gross written premiums 722 621 - 14% 2 561 Revenues from ordinary activities 867 658 - 24% 3 047 Operating income 78 61 - 22% 199 Group net income 45 33 - 27% 75 EUR Earnings per share 0.06 0.04 - - Net book value per share 1.71 1.70 -
Slide 14: Group Business First Quarter 2005
GROUP BUSINESS FIRST QUARTER 2005 First Quarter Results 2005 31 May 2005
Slide 15: Premium income is EUR 621 million, down 14%
Premium income is EUR 621 million down 14% EUR million 722 800 - 14% 621 600 46% 43% 400 200 54% 57% 0 03/31/2004 03/31/2005 Non-Life reinsurance (P&C treaties + facultatives (Large Corporate Accounts) + Credit & Surety + Non-Life portion of Life, A&H risks + CRP) Life reinsurance First Quarter Resu
Slide 16: The operating cash flow reflects Group restructuring and repositioning
The operating cash flow reflects Group restructuring and repositioning Group operating cash flow for 1Q 2005, of EUR -348 million, reflects a mixed picture: o A positive operating cash flow in Life o A negative operating cash flow in Non-Life, due to: • very significant reduction in Non-Life under
Slide 17: 1Q 2005 operating cash flow is EUR -348 million
1Q 2005 operating cash flow is EUR -348 million EUR million 03/31/2005 12/31/2004 Net operating cash flow (348) (212) Net investing cash-flow 267 (505) Net financing cash-flow (405) 846 Effect of foreign currency variations on 67 (140) the cash position Change in cash (419) (11) First Quarter Result
Slide 18: The main variations in net liabilities relating to contracts
The main variations in net liabilities relating to contracts The Group net liabilities relating to contracts were down 1% at current exchange rates compared to 31 December 2004. This decrease is due to the size of the liquidations and commutations at CRP and on that portion of the SCOR US book in
Slide 19: Net liabilities relating to contracts at EUR 9,195 million
Net liabilities relating to contracts at EUR 9 195 million Net liabilities relating to contracts EUR million - 1% 10 000 9 000 8 000 7 000 6 000 5 000 9 298 9 195 4 000 3 000 2 000 1 000 0 12/31/2004 03/31/2005 First Quarter Results 2005 Group Business 19
Slide 20: Equity and quasi equity decreased on reimbursement of the 1999-2005 Océane
Equity and quasi equity decreased on account of the reimbursement of the 1999-2005 Océane (convertible bond) EUR million 2 388 - 7% 2 223 2 500 2 000 840 615 1 500 222 226 1 000 1 326 1 382 500 0 12/31/2004 03/31/2005 Group shareholders’ equity Subordinated debt Financial debt in the form of securit
Slide 21: First Quarter 2005 Results by Line of Business
FIRST QUARTER 2005 RESULTS BY LINE OF BUSINESS First Quarter Results 2005 31 May 2005
Slide 22: Non-Life Reinsurance
NON-LIFE REINSURANCE (P&C Treaties + Facultatives (Large Corporate Accounts) + Credit & Surety + Non-Life portion of Life, A&H risks + CRP) Strong operating income at EUR 46 million (v. EUR 64 million at 1Q 2004) Combined ratio for the non-Life activities: 96.2% (100.1% including CRP) v. 99.6% a
Slide 23: Non-Life reinsurance premiums at EUR 356 million, mainly from Europe
Non-Life reinsurance premiums at EUR 356 million, mainly from Europe Non-Life reinsurance gross written premiums EUR million 391 - 9% 400 356 24% 300 23% 15% 13% 200 61% 64% 100 0 03/31/2004 03/31/2005 Europe North America Asia / rest of the world First Quarter Results 2005 Non-Life Reinsurance 23
Slide 24: Non-Life operating income is EUR 46 million at 1Q 2005
Non-Life operating income is EUR 46 million at 1Q 2005 03/31/2004 03/31/2005 Change EUR million Gross written premiums 391 356 - 9% Gross earned premiums 441 324 - 27% Investment income and 68 48 - 29% other operating revenues Acquisition and 131 91 - 31% management costs Operating income 64 46 - 28
Slide 25: Life Reinsurance
LIFE REINSURANCE Operating income is EUR 15 million (v. EUR 14 million at 1Q 2004) Operational result on gross earned premiums in Life reinsurance reaches 5.2% First Quarter Results 2005 31 May 2005
Slide 26: Life reinsurance premiums are EUR 265 million
Life reinsurance premiums are EUR 265 million Life reinsurance gross written premiums EUR million - 20% 400 331 7% 265 8% 300 51% 200 53% 100 42% 39% 0 03/31/2004 03/31/2005 Europe North America Asia / rest of the world First Quarter Results 2005 Life Reinsurance 26
Slide 27: Life operating income is EUR 15 million at 1Q 2005
Life operating income is EUR 15 million at 1Q 2005 03/31/2004 03/31/2005 Change EUR million Gross written premiums 331 265 - 20% Gross earned premiums 318 248 - 22% Acquisition and 89 54 - 39% management costs Investment income and 40 38 - 5% other operating revenues Operating income 14 15 + 7% Firs
Slide 28: Asset Management
ASSET MANAGEMENT First Quarter Results 2005 31 May 2005
Slide 29: Investment portfolio continues to consist mostly of bonds
Investment portfolio continues to consist mostly of bonds EUR million 9 504 12 000 5% 3% 14% 8 000 15% 4 000 63% 0 03/31/2005 Bonds Cash Loans and debts Real estate Equities and affiliates First Quarter Results 2005 Asset Management 29
Slide 30: Investment portfolio by IFRS accounting classification
Investment portfolio by IFRS accounting classification EUR million - 4% 12 000 9 919 3% 9 504 3% 18% 15% 8 000 15% 15% 8% 8% 4 000 56% 59% 0 31/12/2004 31/03/2005 Available for sale Fair value by income Cash Loans and receivables Investment property First Quarter Results 2005 Asset Management 30
Slide 31: Investment income at EUR 87 million
Investment income at EUR 87 million EUR million 150 150 108 87 100 74 100 72 50 20 50 9 7 17 6 -9 0 0 03/31/2004 03/31/2005 -50 -50 Current investment income net of asset management fees Realized capital gains/losses on asset sales net of writedowns Currency gains Change in fair value by income Tota
Slide 32: Latest News
LATEST NEWS First Quarter Results 2005 31 May 2005
Slide 33: Latest news: Irish Reinsurance Partners (IRP)
Latest news Î Irish Reinsurance Partners (IRP) Company created in 2001 with the purpose of reinsuring in quota-share (25%) almost the whole Non-Life portfolio of SCOR Shares held by SCOR for 53.35% and by Highfields Capital Management for 46.65% Net income at 12/31/2004: EUR 50 million Quota
Slide 34: Latest news: Irish Reinsurance Partners (IRP)
Latest news Î Irish Reinsurance Partners (IRP) The buy-back of the minority stake in IRP is set out in the Shareholders’ Agreement of 28 December 2001: The terms of the minority buy-back are defined by a ratio relating SCOR’s market capitalization (12/31/2004 – 03/31/2005) to the diluted US GAAP s
Slide 35: Latest news: Irish Reinsurance Partners (IRP)
Latest news Î Irish Reinsurance Partners (IRP) The terms of the exchange have already been defined and the payment modality is SCOR’s prerogative: either in cash or: part cash / part SCOR shares (in case of the latter, the exchange ratio is determined with reference to the average SCOR share pri
Slide 36: Latest news: Irish Reinsurance Partners (IRP)
Latest news Î Irish Reinsurance Partners (IRP) The shareholders meeting of 31 May 2005 has approved the resolutions which will allow the Board of Directors to organize the minority shareholder’s exit: Resolution n°13 permitting the partial payment of IRP shares in SCOR shares, up to a maximum leve
Slide 37: Slide 37
Slide 38: Appendices
APPENDICES First Quarter Results 2005 31 May 2005
Slide 39: Breakdown of identified shareholders, 28 February 2005
Breakdown of identified shareholders 28 February 2005 Identified Shareholdings represented individual shareholders on the Board 10.02% 30.73% SCOR treasury shares 0.55% Identified institutions 58.70% First Quarter Results 2005 SCOR Share 39
Slide 40: Geographical distribution of identified shareholders
Geographical distribution of identified shareholders – 28 February 2005 France 60.81% Rest of the world 0.78% United Kingdom North America 22.97% 4.59% Continental Europe 10.85% First Quarter Results 2005 SCOR Share 40