Scor Se · EURONEXT:SCR
Scor — Investor Presentation (2009)
23 slides from Scor's investor presentation, 2009
Slide 1: SCOR Global Life Embedded Value 2008 results
SCOR Global Life Embedded Value 2008 results Valuable SCOR Global Life franchise provides Embedded Value resilience
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. As a result of the extreme and unpre
Slide 3: Agenda
1 Resilient strategy in attractive Life reinsurance market 2 Embedded Value 2008 development 3 Wrap up
Slide 4: SCOR Global Life: a Top-5 Life Reinsurer
Resilient strategy in attractive Life reinsurance market | Embedded Value 2008 development | Wrap up SCOR Global Life: a Top-5 Life Reinsurer Activities in 80 countries N°1: Sweden Combined market share of: N°2: Northern Europe - 8% of the global Life reinsurance market N°4: UK - 14% of the European
Slide 5: Strong regional diversification, focusing on traditional life reinsurance products
Resilient strategy in attractive Life reinsurance market | Embedded Value 2008 development | Wrap up SCOR Global Life: strong regional diversification, focusing on traditional life reinsurance products Distribution of GWP by country is Traditional life reinsurance focus very stable 2008 2007 2008 20
Slide 6: Leveraging on global platform whilst customizing reach to local needs
Resilient strategy in attractive Life reinsurance market | Embedded Value 2008 development | Wrap up SCOR Global Life: leveraging on global platform whilst customizing our reach and presence to local needs Europe Americas Asia Î Very strong market positions Î Seasoned portfolio of Fixed and Î Long-s
Slide 7: Life reinsurance far less affected by the financial crisis than Life Insurance
Resilient strategy in attractive Life reinsurance market | Embedded Value 2008 development | Wrap up SCOR Global Life and life reinsurance are far less affected by the financial crisis than Life Insurance A model that differs from Life SGL and the financial crisis insurance ÎLife reinsurance is diff
Slide 8: A leading traditional Life reinsurer with strong value creation capacity
Resilient strategy in attractive Life reinsurance market | Embedded Value 2008 development | Wrap up SCOR Global Life: a leading traditional Life reinsurer with strong value creation capacity Î Holds a leading position in major markets, which proves its strong franchise Î Operates a business model w
Slide 9: Agenda
1 Resilient strategy in attractive Life reinsurance market 2 Embedded Value 2008 development 3 Wrap up
Slide 10: Positive SCOR Global Life European Embedded Value development in 2008
Resilient strategy in attractive Life reinsurance market | Embedded Value 2008 development | Wrap up Positive SCOR Global Life European Embedded Value development in 2008 Î SCOR’s 2008 Life EEV performs positively growing to € 1.7 billion (or € 9.5 per share) with a strong EEV operating profit of €
Slide 11: SCOR Global Life EEV reaches € 1.7 billion driven by € 182 million operating profit
Resilient strategy in attractive Life reinsurance market | Embedded Value 2008 development | Wrap up SCOR Global Life EEV reaches € 1.7 billion driven by € 182 million operating profit after tax, in €m EEV earnings of € 63 million +182 -54 -65 1 700 +50 1 705 -3 1 702 -45 1 655 1 638 Impacted Pr
Slide 12: Strong EEV operating profit of € 182 million
Resilient strategy in attractive Life reinsurance market | Embedded Value 2008 development | Wrap up Strong EEV operating profit of € 182 million Î EEV operating profit of € 182 million remains strong EEV operating profit Î Solid value added by new business of € 48 million, in €m decrease compared t
Slide 13: EEV earnings at € 63 million impacted by financial market turmoil
Resilient strategy in attractive Life reinsurance market | Embedded Value 2008 development | Wrap up EEV earnings at € 63 million impacted by financial market turmoil Total EEV earnings in €m 2008 2007 Variation Î EEV earnings influenced by negative economic variances: EEV operating profit 182.3 188
Slide 14: Mature business book expected to provide substantial distributable cash flow
Resilient strategy in attractive Life reinsurance market | Embedded Value 2008 development | Wrap up Mature business book expected to provide substantial distributable cash flow over the next years Î Existing business book strongly contributes Trendline-1) of expected annual distributable-2) to the
Slide 15: Stable value not recognized under IFRS
Resilient strategy in attractive Life reinsurance market | Embedded Value 2008 development | Wrap up Stable value not recognized under IFRS Value not recognized under IFRS in €m Î EEV is more suitable to capture the € 264 million of not € 255 million of not economic value of life business than IFRS
Slide 16: Agenda
1 Resilient strategy in attractive Life reinsurance market 2 Embedded Value 2008 development 3 Wrap up
Slide 17: A strong contributor to SCOR Group's portfolio and earnings diversification
Resilient strategy in attractive Life reinsurance market | Embedded Value 2008 development | Wrap up SCOR Global Life: a strong contributor to SCOR Group’s portfolio and earnings diversification Î SCOR Global Life has a strong franchise with top positions in Europe (14% market share) and a leading r
Slide 18: Appendix
APPENDIX Appendix A: Methodology Appendix B: Key economic assumptions Appendix C: Foreign exchange rates Appendix D: Sensitivity of EEV 2008 and VNB 2008 to main assumptions
Slide 19: Appendix A: Methodology
Appendix A: Methodology Î Approach used consistent with 2007 EEV – minor effect from move to swap rates Î Methodology fully consistent with CFO Forum EEV principles Î Economic assumptions market-consistent, using: Î Swap rates as an approximation of risk-free interest rates Î Implied volatilities as
Slide 20: Appendix B: Key economic assumptions
Appendix B: Key economic assumptions Assumptions on risk free rates (2007: government bond rates; 2008: swap rates) Zero Coupon Yields EUR USD GBP CAD Term 31/12/08 31/12/07 31/12/08 31/12/07 31/12/08 31/12/07 31/12/08 31/12/07 5 Years 3.27% 4.22% 2.16% 3.50% 3.21% 4.51% 1.62% 3.93% 10 Years 3.81% 4
Slide 21: Appendix C: Foreign exchange rates
Appendix C: Foreign exchange rates 31 December 31 December Variation 1 Euro = 2008 2007 USD 1.4059 1.4721 -4% GBP 0.9186 0.7334 +25% SEK 10.8650 9.4415 +15% CAD 1.7004 1.4449 +18% CHF 1.5789 1.6547 -5% Estimated split of the EEV by main currencies Other currencies, 13% GBP, 9% EUR, 51% USD, 27% 21
Slide 22: Appendix D: Sensitivities of EEV 2008 to main assumptions
Appendix D: Sensitivities of EEV 2008 to main assumptions after tax, in €m EEV Difference Variation Base case 1 701.8 Mortality/Morbidity -5% (life insurance) 1 939.1 +237.3 +13.9% No mortality improvements (life insurance) 1 488.0 -213.8 -12.6% Mortality/Morbidity -5% (annuities) 1 706.3 +4.6 +0.3%
Slide 23: Appendix D: Sensitivities of VNB 2008 to main assumptions
Appendix D: Sensitivities of VNB 2008 to main assumptions after tax, in €m EEV Difference Variation Base Case 47.9 Mortality/Morbidity -5% (life insurance) 68.3 +20,4 +42.5% No mortality improvements (life insurance) 35.1 -12.8 -26.7% Mortality/Morbidity -5% (annuities) 48.2 +0.2 +0.5% Lapse rates -