Scor Se · EURONEXT:SCR
Scor — Q1 2006 Earnings Presentation
29 slides from Scor's earnings presentation, May 16, 2006
Slide 1: SCOR Group Results at 31 March 2006
SCOR Group Results at 31 March 2006 16 May 2006 SCOR Group Results at 31 March 2006 16 May 2006
Slide 2: Contents
Contents Summary P. 4 Group business P.7 Results by line of business P.14 Appendices P.27 SCOR Group Results at 31 March 2006 16 May 2006 2
Slide 3: 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. Additional information regarding ris
Slide 4: Summary First Quarter 2006
SUMMARY FIRST QUARTER 2006 SCOR Group Results at 31 March 2006 16 May 2006
Slide 5: 2006 First Quarter Results
2006 First Quarter Results Gross written premiums: EUR 734 million (v. EUR 621 at 31 March 2005), i.e. + 18% Operating income: EUR 99.8 million (v. EUR 61 million at 31 March 2005), i.e. + 64% Net income: EUR 53 million (v. EUR 33 million at 31 March 2005), i.e. + 61% Shareholders' equity: EUR 1,763
Slide 6: Key figures
Key figures 31/03/05 31/03/06 Variation EUR millions Gross written premiums 621 734 + 18% Net earned premiums 537 583 + 8% Current investment income (1) 78 94 + 20% Operating income before FVI (2) 44 70 + 59% FVI (2) investment income 17 30 + 76% Operating income 61 99.8 + 64% Net income 33 53 + 61%
Slide 7: Group Business at 31 March 2006
GROUP BUSINESS AT 31 MARCH 2006 SCOR Group Results at 31 March 2006 16 May 2006
Slide 8: The 18% rise in premium income
The 18% rise in premium income can be seen in the sharp increase in Non-Life and large corporate accounts treaty business in the first half of 2006 Gross written premiums, in EUR millions 1 000 734 Life Reinsurance 621 + 18% Non-Life Reinsurance* 45% *(P&C + Large Corporate 36% Accounts + Credit & S
Slide 9: Group solvency has been enhanced due to first quarter net income
Group solvency has been enhanced due to the 2006 first quarter net income EUR millions 2 000 +88 +9 - 35 - 18 1 500 1,763 1 000 1,719 500 0 31/12/05 Income before tax Tax Translation Revaluation 31/03/06 at 31 March 2006 differential reserve and others SCOR Group Results at 31 March 2006 16 May 2006
Slide 10: The level of permanent capital enables us to promote business growth
The level of permanent capital enables us to promote business growth Permanent capital, in EUR millions 2,472 + 2% 2,512 2 500 520 517 2 000 233 232 1 500 1 000 1,719 1,763 500 0 31/12/05 31/03/06 Financing debts represented by shares Subordinated debt Total equity capital SCOR Group Results at 31 M
Slide 11: Positive operating cash flow is increasing financial flexibility
Positive operating cash flow is increasing the Group’s financial flexibility 31/03/05 31/03/06 EUR millions CASH FLOW AT 1 JANUARY 1,825 1,667 Net cash flow variations - 348 + 15 from operating activity Net cash flow variations 170 - 85 from investment activity Net cash flow variations - 308 - 13 fr
Slide 12: SCOR is maintaining its reserve level
SCOR is maintaining its reserve level Net liabilities relating to contracts, in EUR millions 10 000 +0.6% 8,866 8,915 8 000 36% 36% 6 000 4 000 Life Reinsurance 64% 64% 2 000 Non-Life Reinsurance* 0 31/12/05 31/03/06 * (P&C + Large Corporate Accounts + Credit & Surety + CRP) SCOR Group Results at 31
Slide 13: The Group's cost ratio is improving
The Group’s cost ratio is improving Overheads, in EUR millions Cost ratio, in % 60 1.0% 49 49 0.9% 40 7.9% 0.8% 6.7% 0.7% 20 0.6% 0 0.5% 31/03/05 31/03/06 SCOR Group Results at 31 March 2006 16 May 2006 13
Slide 14: First Quarter 2006 Results by Line of Business
FIRST QUARTER 2006 RESULTS BY LINE OF BUSINESS SCOR Group Results at 31 March 2006 16 May 2006
Slide 15: Non-Life Reinsurance
NON-LIFE REINSURANCE (P&C + Large Corporate Accounts + Credit & Surety + CRP) SCOR Group Results at 31 March 2006 16 May 2006
Slide 16: Premium income for Non-Life and large corporate accounts treaties is up 31%
Premium income for Non-Life and large corporate accounts treaties is up 31% Gross written premiums, in EUR millions 500 469 +31% 450 68 400 357 +45% 350 115 47 300 80 +44% 250 200 150 286 North America 100 230 +24% Asia / Rest of the World 50 Europe 0 31/03/05 31/03/06 SCOR Group Results at 31 March
Slide 17: Operating income is up 65%
Operating income is up 65%, reflecting the technical profitability of the Non-Life reinsurance business 31/03/05 31/03/06 Variation EUR millions Gross written premiums 357 469 31% Net earned premiums 296 337 14% Net underwriting income 25 37 48% Management costs (36) (36) 0% Current investment incom
Slide 18: Net combined ratio reaches 97.3%
Net combined ratio reaches 97.3% Net combined ratio, in % 105 100.1% 97.3% 3.4 0.3 85 96.7 97 Net combined ratio* CRP excluding CRP 65 31/03/05 31/03/06 * Net combined ratio: (claims experience + commissions + overheads expenses) / net earned premiums SCOR Group Results at 31 March 2006 16 May 2006
Slide 19: Life Reinsurance
LIFE REINSURANCE SCOR Group Results at 31 March 2006 16 May 2006
Slide 20: Life reinsurance business continues to develop but remains penalised in the US
Life reinsurance business continues to develop but remains penalised in the United States Gross written premiums, in EUR millions 300 264 = 265 250 21 +14% 24 200 104 100 -4% 150 100 Asia / Rest of the World 139 +1% 141 50 North America Europe 0 31/03/05 31/03/06 SCOR Group Results at 31 March 2006
Slide 21: Life reinsurance maintains a satisfactory level of technical profitability
Life reinsurance business maintains a satisfactory level of technical profitabilty 31/03/05 31/03/06 Variation EUR millions Gross written premiums 264 265 0% Net earned premiums 241 245 2% Management costs (12) (15) 25% Current investment income (1) 34 39 15% Current operating income before FVI (2)
Slide 22: Asset Management
ASSET MANAGEMENT SCOR Group Results at 31 March 2006 16 May 2006
Slide 23: SCOR is continuing its active management policy
SCOR is continuing its active management policy Investments, in EUR millions 9,743 - 0.5% 9,691 10 000 10.1% 10.4% 9 000 3.3% 3.3% 8 000 14.1% 14.4% 7 000 17.1% 16.2% 6 000 5 000 4 000 Shares Real estate 3 000 55.4% 55.7% Loans and receivables 2 000 Cash and equivalents 1 000 Bonds 0 31/12/05 31/03/
Slide 24: Active asset management has enabled us to benefit from a favourable financial environment
Active asset management has enabled us to benefit from a favourable financial environment Investment income, in EUR millions 140 Investment income 124 95 Capital gains or losses on investment income, net of writedowns 90 80 80 Effects of currency variations Change in fair value by income 40 30 17 17
Slide 25: Unrealised capital gains up 7%
Unrealised capital gains up 7% Unrealised capital gains before tax, in EUR millions 100 100 +7% +7% 81 81 76 76 2 75 75 14 50 50 67 80 79 62 25 25 9 1 0 0 31/12/05 31/03/06 31/12/05 31/03/06 31/12/05 31/03/06 31/12/04 31/12/05 Off balance sheet unrealised capital gains (real Insureds' stake of unrea
Slide 26: SCOR Group Results at 31 March 2006
SCOR Group Results at 31 March 2006 16 May 2006 SCOR Group Results at 31 March 2006 16 May 2006
Slide 27: Appendices
APPENDICES SCOR Group Results at 31 March 2006 16 May 2006
Slide 28: Investment portfolio by IFRS accounting classification
Investment portfolio by IFRS accounting classification Investments, in EUR millions 9,743 9,691 10 000 3% 3% 9 000 17% 16% 8 000 7 000 14% 14% 6 000 4% 4% 5 000 Investment property 4 000 Cash 3 000 62% 63% Loans and receivables 2 000 Fair value by income 1 000 0 Available for sale 31/12/05 31/03/06
Slide 29: SCOR Group ratings
SCOR Group ratings Financial Senior Subordinated Strength Debt Debt S&P A- A- BBB 1 August 2005 Stable outlook AM Best B++ bbb bbb- 1 December 2004 Positive outlook Positive outlook Positive outlook Moody's Baa1 Baa1 Baa3 7 October 2005 Positive outlook Positive outlook Positive outlook On 2 May 200