Scor SE · EURONEXT:SCR
Scor — Shareholder Meeting (May 2014)
33 slides from Scor's shareholder meeting presentation, May 6, 2014
Slide 1: Combined General Meeting
Combined General Meeting Paris 6 May 2014
Slide 2: Notice: please switch off your mobile phone
Notice To avoid interference, please switch off your mobile phone 2
Slide 3: Notice: Forward-looking statements
Notice Forward-looking statements SCOR does not communicate "profit forecasts" in the sense of Article 2 of (EC) Regulation n°809/2004 of the European Commission. Thus, any forward-looking statements contained in this communication should not be held as corresponding to such profit forecasts. Inform
Slide 4: SCOR delivers in 2013, combining growth, profitability and solvency
Combined general meeting delivers in 2013, combining growth, profitability and solvency 4
Slide 5: A continuously expanding group
A continuously expanding group Increase in reinsurance premiums by + 11.5% in 2013 + 8.3% + 14.5% Note: gross written premiums growth at constant exchange rates (published) 5
Slide 6: A global growing group with a well balanced portfolio
SCOR : a global growing group with a well balanced portfolio and a distributed presence in the world A 20% growth in premiums per year in average between 2005 and 2013 Gross written premiums in € billions (rounded) 10.9 10.3 9.5 7.3 44 % 6.4 6.7 47 % 5.8 49 % 4.5 50 % 51 % 55 % 53 % 2.2 2.7 47 % 53
Slide 7: A profitable group
A profitable group Weighted average Record 2013 net income: shareholders’ equity: €549 million €4,791 million 2013 ROE : 11.5%, up by 26% compared to 2012 7
Slide 8: 2013 ROE above 1,000 bps over the risk-free rate
In 2013, SCOR reaches its profitability target by delivering an ROE above 1,000 bps over the risk-free rate1) Technical profitability Assets profitability Combined ratio: 93.9 % Return on invested assets: 3.1 %2) Technical margin: 7.3 % An increased net income of 31% compared to 2012 Net income, in
Slide 9: A group with a strong solvency
A group with a strong solvency Financial rating Solvency ratio1) at 221% AM Fitch Moody’s S&P Best Rating at the end of 2013 A2)/a+3) A+ A1 A+ Positive outlook 2013: S&P raised to “positive” the outlook on SCOR’s “A+” rating 1) Solvency ratio as per Group Internal Model, ratio of Available Capital o
Slide 10: Strong solvency position in the optimal range
SCOR has a strong solvency position, in the optimal range Solvency SCOR unveils SCOR unveils aa new new & & innovative innovative capital capital management policy management policy at at its its Investors’ Investors’ Day Day SCOR is in the optimal range while maintaining its financial leverage r
Slide 11: SCOR's strategic approach is proven in 2013
SCOR’s strategic approach is proven in 2013 Unlike its peers, SCOR increases its shareholders’ equity1) in 2013, as the shorter duration of its assets is more adapted to the current macro economic environment Shareholders’ equity evolution in 2013 Unrealised gains and losses impact on shareholders’
Slide 12: Full year 2013 consolidated financial statements
Full year 2013 SCOR group consolidated financial statements: a high net income and a strong balance sheet Income statement in € millions Balance Sheet in € millions FY 2013 31.12.2013 SGP&C technical1) 481 SGL technical2) Intangible assets 2 307 359 Investments 22 272 Investment revenues 306 Retroce
Slide 13: Share price outperforms in 2013, total return of 36%
SCOR’s share price outperforms in 2013, providing shareholders with a total return of 36% Share price evolution in 2013 for SCOR and peers 130 SCOR: +30% 125 Partner Re: +25% Swiss Re: +23% 120 Munich Re: +18% 115 110 Hannover Re: +6% 105 100 95 90 85 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13
Slide 14: 1st quarter 2014: SCOR delivers strong results
1st quarter 2014 :SCOR delivers strong results Gross written premium growth of 14.8% at constant exchange rates (11.8%1) at current exchange rates) in Q1 2014 compared to Q1 2013, driven by healthy SCOR Global P&C renewals, by major new contracts signed by SCOR Global Life and by the Generali US co
Slide 15: SCOR pursues a consistent strategy adapted to the changing environment
Combined general meeting pursues a consistent strategy adapted to the current changing environment 15
Slide 16: Optimal Dynamics: well prepared for the changing environment
SCOR is well prepared for the changing environment Macroeconomic environment Industry dynamics Interest rates still at low levels with Competition from alternative capital divergence between US & UK vs. Eurozone SCOR Global P&C has only 6% of its SCOR has built a balance sheet with a low premi
Slide 17: The keys to success: optimality and dynamism
The keys to success in today’s reinsurance market are optimality and dynamism 2 keys to success Optimality Dynamism Optimal risk appetite Full responsiveness Optimal retrocession Proven ability to adapt Optimal capital Speedy reallocation of capital Optimal diversification and capacity
Slide 18: SCOR creates long-term value through optimization of capital and resources
Combined general meeting creates long-term value through the optimization of capital and resources 18
Slide 19: SCOR continuously improves its productivity
SCOR continuously improves its productivity… Economies of scale 1) Increasing productivity: through premium growth + Investment in technology + Talent attraction and retention SCOR improves its productivity and cost structure Increase in written premiums per employee Reduced cost ratio In EUR millio
Slide 20: Investing in new projects: satellite claims assessments
… while investing in new projects Example : satellite claims assessments in agriculture reinsurance The use of satellite images enables low cost, efficient claims assessments in agro (re)insurance Farmer claims Farmer smart satellite index1) vs. claims Vs. smart satellite index1) OK to pay out Check
Slide 21: New tools to monitor risk exposures
SCOR uses new tools to carefully monitor its risk exposures Footprint scenarios complement our normal probabilistic loss scenarios Probabilistic approach Footprint approach (deterministic) “How much would a 1-in-200 year hurricane cost?” “How much would windstorms Lothar & Martin, which occurred in
Slide 22: Example: footprint scenarios
Example : footprint scenarios Scenario 1: San Francisco earthquake (1906) Scenario 2: Windstorms Lothar & Martin (1999) Damages from Lothar Damages from Martin windstorm (RMSv11) windstorm (RMSv11) Today 221% Solvency ratio If a replica of the Today 221% 1906 San If replicas of the Solvency ratio Fr
Slide 23: Continued creation of shareholder value
Continued creation of shareholder value An optimal balance An attractive between growth, shareholder profitability and remuneration policy solvency 23
Slide 24: Capacity to shrug off external shocks
SCOR has demonstrated its capacity to shrug off external shocks SCOR shareholder Equity and S&P ratings evolution since 2007 S&P ratings in € millions Liquidity crisis European sovereign debt crisis Jun‐13: Acquisition of Generali US 3.5 5,000 Aug‐11: Acquisition of Nov‐06: Acquisition of Transameri
Slide 25: Attractive risk / return ratio for shareholders
SCOR offers its shareholders an attractive risk / return ratio SCOR’s “Value proposition” To ensure maximum profitability while strengthening its solvency (from BBB+ in 2005 to A+ positive outlook in 2013) and while minimising volatility 16% Outperforming risk / return Peer 8 14% Peer 5 Peer 7 Peer
Slide 26: Committed to assuming its social responsibility
SCOR is committed to assuming its social responsibility Foundations United Nations Global Compact Principles for Responsible Insurance Governance Environment Board of Directors: Reduction of our environmental footprint: International (~50% of non-French nationals at Green building certif
Slide 27: Strong shareholder remuneration, cash dividend up 8%
SCOR continues its strong shareholder remuneration policy and increases its cash dividend by 8% SCOR has followed a consistent distribution policy since 2005 Distribution rate 1.30 1.20 1.10 1.10 Dividend per share (€) 1.00 0.80 0.80 0.80 0.50 62 % 53 % 37 % 37 % 35 % 45 % 48 % 48 % 44% 1) 2005 2006
Slide 28: Strategy recognized by industry professionals
The strength of the SCOR group’s strategy is recognized by industry professionals 2011 2012 2013 2014 SCOR Global P&C: best SCOR: “Reinsurance reinsurance company SCOR: “Reinsurance Company CEO team for Motor and Company of the Year“ Denis Kessler’s election to the of the Year“ Facultative insurance
Slide 29: Appendix
Appendix SOOR 29
Slide 30: Global P&C benefits from the current tiering of the market
SCOR Global P&C benefits from the current tiering of the market SCOR Global P&C has a very strong SCOR Global P&C has made a good start with franchise the implementation of “Optimal Dynamics” SCOR P&C Position 1 – Solid 2014 renewals: France N°3 +5% overall premium growth4): +4% in Treaty P&C and
Slide 31: Global Life consolidates top-tier positions
SCOR Global Life consolidates top-tier positions in most markets thanks to both organic and external growth The Generali US acquisition will enable SCOR SGL consolidates a leading position to leverage on its leading position Acquisition with a gain on purchase of € 183 SGL Position1) million2) T
Slide 32: Optimally and innovatively utilizes capital market solutions
SCOR optimally & innovatively utilizes capital market solutions High Quality Innovative and cost efficient Capital in safe havens: Contingent capital: 98% in the following jurisdictions: France, Innovative €200 million facility triggered in case Switzerland, Ireland, UK, Singapore, USA and o
Slide 33: Full year 2013 unconsolidated financial statements of SCOR SE
Full year 2013 corporate unconsolidated financial statements of SCOR SE1): a high net income and a strong balance sheet Income statement in € millions Balance Sheet in € million 31.12.2013 FY 2013 Intangible assets 4 Non-Life underwriting income 157 Investments 5 545 Retrocessionaires’ share of tech