Slide 1: Q1 2018 results
SCOR Q1 2018 results April 26, 2018 SCOR delivers strong operating results in Q1 2018 and records a net income of EUR 166 million, up 18.6%
Slide 2: Disclaimer
Disclaimer General: Numbers presented throughout this report may not add up precisely to the totals in the tables and text. Percentages and percent changes are calculated on complete figures (including decimals); therefore the presentation might contain immaterial differences in sums and percentages
Slide 3: SCOR delivers a strong start to 2018
SCOR delivers a strong start to 2018 ▐ GWP (in € millions) +10.2%1) Continued Life expansion in Asia-Pacific and 3 739 3 771 Profitable Life & Health (acquisition of MutRé) +0.9% franchise 2 181 (at current 2 291 +14.7%1) Successful P&C renewals (January and April) exchange rates) expansion +3
Slide 4: SCOR's three engines deliver a strong set of results in Q1 2018
SCOR’s three engines deliver a strong set of results in Q1 2018 Premium growth Premium growth Net combined ratio 1) +10.2% 1) +3.9% 91.8% -5.0% at current FX -2.7 pts compared to Q1 2017 +0.9% at current FX Net income EUR 166 million Premium growth Technical margin +18.6% compared to Q1 2017 1) +14.
Slide 5: SCOR Q1 2018 financial details
SCOR Q1 2018 financial details ▐ In € millions (rounded) Q1 2018 Q1 2017 Variation at current FX Variation at constant FX Gross written premiums 3 771 3 739 0.9% 10.2% Net earned premiums 3 342 3 331 0.3% 9.5% Operating results 242 206 17.5% Net income 166 140 18.6% Group cost ratio 5.0% 5.1% -0.1 p
Slide 6: SCOR records a book value per share of EUR 32.49
SCOR records a book value per share of EUR 32.49 ▐ In € millions (rounded) Financial leverage1) 25.7% 30.1% Book value per share2) € 33.01 € 32.49 Debts callable in 463 Q2 and Q4 SCOR’s financial leverage stands at 2 211 2 276 30.1% temporarily +166 above the range +12 indicated in “Vision -129 in
Slide 7: Net operating cash flow of EUR 123 million impacted by Q3 2017 cat events
SCOR’s generation of net operating cash flow of EUR 123 million is mainly impacted by payments from Q3 2017 cat events ▐ In € millions (rounded) Q1 2018 Q1 2017 SCOR’s business model delivers operating cash flow of EUR 123 million as Cash and cash equivalents at January 1 1 001 1 688 of March 31,
Slide 8: U.S. tax reform requires changes to operational structure
The U.S. tax reform requires SCOR to implement certain changes to its operational structure Targeted solution identified which mitigates Limited impact on SCOR the Base Erosion and Anti-Abuse Tax (“BEAT”) of the Base Erosion and Anti-Abuse Tax (“BEAT”) A target solution has been identified in Q1 2
Slide 9: SCOR Global P&C delivers strong technical profitability with net combined ratio of 91.8%
SCOR Global P&C delivers strong technical profitability with a net combined ratio of 91.8% Gross written premium ▐ In € millions SCOR Global P&C gross written premium stands at +3.9%1) EUR 1 480 million, +3.9% at constant FX compared to the same period of last year (-5.0% at current FX). The growt
Slide 10: SCOR maintained positive pricing trends at the April P&C renewals
SCOR maintained positive pricing trends at the April P&C renewals SCOR’s gross reinsurance premiums grew +13.5% from EUR 445 to 505 million Price improvements in line with January: +2.9% Specialties by Line of Business ▐ Gross premiums (in € millions) Agriculture 108 91 Still in progress Agric
Slide 11: SCOR Global Life records strong profitable growth in Asia-Pacific
In Q1 2018, SCOR Global Life records strong profitable growth expanding the franchise further in Asia-Pacific Gross written premium ▐ In € millions +14.7%1) SCOR Global Life records strong growth in Q1 2018 with gross written premium standing at EUR 2 291 million, +14.7% at constant FX compared to
Slide 12: SCOR Global Investments delivers a return on invested assets of 2.3%
In Q1 2018, SCOR Global Investments delivers a return on invested assets of 2.3% Total invested assets: EUR 18.9 billion at 31/03/2018 ▐ In % (rounded) Others 3% Liquidity 5% Total investments reach EUR 27.6 billion, with total Real estate 4% Cash 5% invested assets of EUR 18.9 billion and funds w
Slide 13: SCOR is on track to deliver Vision in Action targets in 2018
SCOR is on track to successfully deliver “Vision in Action” targets and assumptions in 2018 Profitability (RoE) target Solvency target RoE above 800 bps over the 5-year Solvency ratio in the optimal risk-free rates across the cycle1) 185%-220% range Strategic assumptions of SCOR’s business engines a
Slide 14: 2018 upcoming events and Investor Relations contacts
2018 upcoming events and Investor Relations contacts Forthcoming scheduled events July 26, 2018 September 5, 2018 October 24, 2018 — — — SCOR group SCOR group SCOR group Q2 2018 results Investor Day Q3 2018 results (Paris) SCOR is scheduled to attend the following investor conferences Deutsche Ban
Slide 15: Appendices
APPENDICES A Appendix A: P&L B Appendix B: Balance sheet & Cash flow C Appendix C: Calculation of EPS, Book value per share and RoE D Appendix D: Expenses & cost ratio E Appendix E: P&C F Appendix F: Life G Appendix G: Investment H Appendix H: Debt I Appendix I: Rating evolution J Appendix J: Listin
Slide 16: Appendix A: Consolidated statement of income, Q1 2018
Appendix A: Consolidated statement of income, Q1 2018 ▐ In € millions (rounded) Q1 2018 Q1 2017 Gross written premiums 3 771 3 739 Change in gross unearned premiums -149 -139 Revenues associated with life financial reinsurance contracts 2 1 Gross benefits and claims paid -2 540 -2 626 Gross commissi
Slide 17: Appendix A: Consolidated statement of income by segment, Q1 2018
Appendix A: Consolidated statement of income by segment, Q1 2018 ▐ In € millions (rounded) Q1 2018 Q1 2017 Group Group Life P&C Total Life P&C Total functions functions Gross written premiums 2 291 1 480 3 771 2 181 1 558 3 739 Change in gross unearned premiums -49 -100 -149 -27 -112 -139 Revenues a
Slide 18: Appendix B: Consolidated balance sheet – Assets
Appendix B: Consolidated balance sheet – Assets ▐ In € millions (rounded) Q1 2018 Q4 2017 Goodwill 788 788 Goodwill arising from non insurance activities 71 71 Value of business acquired 1 422 1 412 Insurance business investments 28 946 28 360 Real estate investments 701 701 Available-for-sale inves
Slide 19: Appendix B: Consolidated balance sheet – Liabilities & shareholders' equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity ▐ In € millions (rounded) Q1 2018 Q4 2017 Group shareholders’ equity 6 147 6 195 Non-controlling interest 30 30 Total shareholders’ equity 6 177 6 225 Financial debt 3 247 2 702 Subordinated debt 2 739 2 211 Real estate fina
Slide 20: Appendix B: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows ▐ In € millions (rounded) Q1 2018 Q1 2017 Cash and cash equivalents at the beginning of the period 1 001 1 688 Net cash flows in respect of operations 123 22 Cash flow in respect of changes in scope of consolidation 5 3 Cash flow in respect of acquis
Slide 21: Appendix B: Net contract liabilities by segment
Appendix B: Net contract liabilities by segment Net liabilities Life & P&C ▐ In € millions (rounded) 26 969 27 270 50% 51% Total SCOR Global Life SCOR Global P&C 50% 49% 31/12/2017 31/03/2018 21
Slide 22: Appendix C: Calculation of EPS, book value per share and RoE
Appendix C: Calculation of EPS, book value per share and RoE Earnings per share calculation Q1 2018 Q1 2017 Group net income1) (A) 166 140 Post-tax Return on Equity (RoE) Average number of opening shares (1) 193 500 317 192 534 569 Q1 2018 Q1 2017 Impact of new shares issued (2) 254 902 144 658 Grou
Slide 23: Appendix C: Calculation of the risk-free rate component of RoE target
Appendix C: Calculation of the risk-free rate component of “Vision in Action” RoE target 3) 5-year daily spot rates 1) X Currency mix = Weighted average rates 2) EUR USD GBP EUR USD GBP EUR USD GBP Total st 1 April 2013 0.31 0.76 0.70 57% 30% 13% 0.16 0.22 0.11 0.49 2nd April 2013 0.34 0.77 0.71 57%
Slide 24: Appendix D: Reconciliation of total expenses to cost ratio
Appendix D: Reconciliation of total expenses to cost ratio ▐ In € millions (rounded) Q1 2018 Q1 2017 Total expenses as per Profit & Loss account -204 -205 ULAE (Unallocated Loss Adjustment Expenses) -17 -15 Total management expenses -221 -220 Investment management expenses 16 17 Total expense base -
Slide 25: Appendix E: Calculation of P&C net combined ratio for Q1 2018
Appendix E: Calculation of P&C net combined ratio for Q1 2018 ▐ In € millions (rounded) Q1 2018 Q1 2017 Gross earned premiums1) 1 380 1 446 Ceded earned premiums2) -164 -146 Net earned premiums (A) 1 216 1 300 Gross benefits and claims paid -711 -849 Ceded claims 11 42 Total net claims (B) -700 -807
Slide 26: Appendix E: Normalized net combined ratio
Appendix E: Normalized net combined ratio QTD YTD 1 2 3 4 5 1+2+3+5 1 2 3 4 5 1+2+3+5 Published Normalized Published Normalized Cat ratio Cat ratio net Reserve net net Reserve net One off Cat ratio delta from One off Cat ratio delta from combined release combined combined release combined budget1) b
Slide 27: Appendix E: SCOR Global P&C renewal definitions
Appendix E: SCOR Global P&C renewal definitions Total premiums up for renewal: premiums of all Treaty contracts incepting in April 2017 at the exchange rate as at December 31, 2017 Cancelled/restructured: client or SCOR decided to cancel the business/programs and/or to change their programs (e.g
Slide 28: Appendix F: Calculation of the Life technical margin
Appendix F: Calculation of the Life technical margin ▐ In € millions (rounded) Q1 2018 Q1 2017 Gross earned premiums1) 2 242 2 154 Ceded earned premiums2) -116 -123 Net earned premiums (A) 2 126 2 031 Net technical result 105 105 Interest on deposits 40 42 Technical result (B) 145 147 Net technical
Slide 29: Appendix G: Investment portfolio asset allocation as of 31/03/2018
Appendix G: Investment portfolio asset allocation as of 31/03/2018 ‘‘Vision In Action’’ Tactical Asset Allocation Strategic Asset Allocation ▐ In % of invested assets ▐ In % (rounded) 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Min Max Cash 11% 11% 9% 8% 9% 9% 7% 5% 5% 5.0%1) - Fixed Income 75% 76% 78
Slide 30: Appendix G: Details of investment returns
Appendix G: Details of investment returns ▐ In € millions (rounded) 2017 2018 Annualized returns: Q1 Q2 Q3 Q4 FY Q1 Total net investment income1) 151 161 136 316 764 134 Average investments 27 116 26 601 25 974 26 180 26 468 26 629 Return on Investments (ROI) 2.3% 2.4% 2.1% 4.9% 2.9% 2.0% Return on
Slide 31: Appendix G: Investment income development
Appendix G: Investment income development ▐ In € millions (rounded) 2017 2018 Q1 Q2 Q3 Q4 FY Q1 Investment revenues on invested assets 101 105 96 101 403 101 Realized gains/losses on fixed income 11 35 19 1 66 1 Realized gains/losses on loans 0 0 0 0 0 0 Realized gains/losses on equities 0 -0 1 -1 -
Slide 32: Appendix G: Government bond portfolio as of 31/03/2018
Appendix G: Government bond portfolio as of 31/03/2018 By region Top exposures ▐ In %. Total € 4.5 billion ▐ In %. Total € 4.5 billion Q1 2018 USA 33% France 11% China 11% Canada 6% Germany 6% 24% 22% UK 4% EU (Non-UK) Singapore 4% North America Republic of Korea 4% UK Supranational1) 4% China Austr
Slide 33: Appendix G: Corporate bond portfolio as of 31/03/2018
Appendix G: Corporate bond portfolio as of 31/03/2018 By rating By sector/type ▐ In %. Total € 8.9 billion ▐ In %. Total € 8.9 billion Q1 2018 2% 2% Financial1) 27% Consumer, Non-cyclical 21% 5% 13% AAA Consumer, Cyclical 12% AA Industrial 11% 31% A Communications 10% Technology 7% BBB Energy 5% <BB
Slide 34: Appendix G: Banks corporate bond portfolio as of 31/03/2018
Appendix G: ‘‘Banks’’ corporate bond portfolio as of 31/03/2018 By rating By seniority ▐ In %. Total € 2.0 billion ▐ In %. Total € 2.0 billion 0% 0% 1% 1% 11% AAA 8% 29% AA A Senior Subordinated BBB Hybrid 1) <BBB 59% NR 91% By region Top exposures ▐ In %. Total € 2.0 billion ▐ In %. Total € 2.0 bil
Slide 35: Appendix G: Structured & securitized product portfolio as of 31/03/2018
Appendix G: Structured & securitized product portfolio as of 31/03/2018 By rating By portfolio ▐ In %. Total € 0.2 billion ▐ In %. Total € 0.2 billion AAA 1% 17% ABS AA 37% 4% CLO 37% A 9% CDO BBB MBS <BBB 2% 69% Other 2% 12% NR 10% 35
Slide 36: Appendix G: Loans, equity, real estate and other investment portfolios
Appendix G: Loans, equity, real estate and other investment portfolios as of 31/03/2018 Loans portfolio by underlying assets Equity portfolio by underlying assets ▐ In %. Total € 0.7 billion ▐ In %. Total € 0.6 billion Infrastructure loans 3% Common shares 35% Convertible bonds 43% 36% Real estate l
Slide 37: Appendix G: Reconciliation of IFRS asset classification to IR presentation
Appendix G: Reconciliation of IFRS asset classification to IR presentation as of 31/03/2018 ▐ In € millions (rounded) Total Funds withheld Total Fixed Other Total Accrued Technical Cash Loans Equities Real estate invested by cedants & 1) IFRS income investments investments interest items assets othe
Slide 38: Appendix G: Reconciliation of asset revaluation reserve
Appendix G: Reconciliation of asset revaluation reserve ▐ In € millions (rounded) 31/12/2017 31/03/2018 Variance YTD Fixed income URGL 14 -205 -219 1) Government bonds & assimilated -21 -27 -6 Covered & agency MBS -14 -32 -18 Corporate bonds 50 -147 -196 Structured products -1 -0 0 Loans URGL 1 1 -0
Slide 39: Appendix H: Debt structure as of 31/03/2018
Appendix H: Debt structure as of 31/03/2018 Original amount 1) Floating/ fixed Type Issue date Maturity Coupon + step-up issued rate Undated subordinated Initial rate at 5.25% p.a. until June 8, 2018, CHF 315 8 October fixed to floating rate Perpetual Fixed floating rate indexed million 2012 notes P
Slide 40: Appendix I: SCOR's Financial Strength Rating has improved since 2003
Appendix I: SCOR’s Financial Strength Rating has improved dramatically since 2003 S&P rating Moody’s rating AA+ Aa1 strong strong Very Very AA+ Aa2 AA- Aa3 A+ + A1 + Secure Strong Secure Strong A+ + A2 + A- + A3 + BBB+ + AA- Baa1 + Aa3 Good Good BBB+ Stable Outlook Baa2 + Stable Outlook BBB- Baa3 20
Slide 41: 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
Slide 42: Appendix K: Strategy recognized by industry experts
Appendix K: The strength of the SCOR group’s strategy is recognized by industry experts 2015 2016 2017 2018 SCOR: ‘‘Best SCOR: ‘‘Latin SCOR: “Reinsurer of American Reinsurer SCOR: ‘‘Romanian reinsurer in the Year by of the Year’’ Reinsurer of the Year’’ Argentina” InsuranceERM” Kory Sorenson and SCO