Scor Se · EURONEXT:SCR
Scor — Q1 2009 Earnings Presentation
41 slides from Scor's earnings presentation, 2009
Slide 1: SCOR Group Q1 2009 Results
SCOR GROUP Q1 2009 Results SCOR continues to deliver solid results
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: Q1 2009 key highlights
1 Q1 2009 key highlights 2 SCOR delivers solid Q1 2009 results 3 SCOR actively monitors the environment
Slide 4: SCOR: pursuing a consistent and prudent strategy
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment SCOR: pursuing a consistent and prudent strategy Environmental Severe economic and financial Reinsurance industry positive trends market disruptions continue outlook confirmed Maintained SCOR strate
Slide 5: SCOR has consistently created shareholder value during the financial crisis
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment SCOR has consistently created shareholder value during the financial market crisis, demonstrating its solid fundamentals Resilience of shareholders’ equity throughout SCOR consistently created share
Slide 6: SCOR's strategy well-perceived and rewarded by major stakeholders
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment SCOR’s strategy well-perceived and rewarded by major stakeholders Positive analyst recommendations for SCOR… …combined with rating agency upgrades while industry peers are downgraded… upgrades in 20
Slide 7: SCOR delivers solid Q1 2009 results
1 Q1 2009 key highlights 2 SCOR delivers solid Q1 2009 results 3 SCOR actively monitors the environment
Slide 8: Q1 2009 financial highlights
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment Q1 2009 financial highlights Î Return on equity (ROE) of 11.1% despite financial crisis and high natural catastrophe activity Î Gross written premiums at € 1 561 million, up 15.4% compared to Q1 200
Slide 9: SCOR generates solid net income in a quarter affected by Nat Cat losses
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment SCOR generates solid net income in a quarter affected by significant Nat Cat losses and tough financial conditions -1) -2) Variation at in €m Q1 2009 Q1 2008 Variation constant FX Gross written prem
Slide 10: Shareholders' equity 2009 evolution
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment Shareholders’ equity 2009 evolution in €m Q1 2009 development Development since Q3 2007 Financial leverage down 2pts 16.7% Stable development of 18.7% 204 shareholder‘s equity throughout 201 the fin
Slide 11: Strong cash flow further increases cash position in Q1 2009
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment Strong cash flow further increases cash position in Q1 2009 Positive net operating cash flow in €m Q1 2009 Cash and cash equivalents at 1 January 1 783 Î Cash and short-term investments position at
Slide 12: SCOR Global P&C: solid growth coupled with technical profitability
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment SCOR Global P&C: solid growth coupled with technical profitability Gross written premiums in €m +18% ÎQ1 2009 figures positively impacted by volume growth in April / July 2008 +17% renewals - overal
Slide 13: SCOR Global P&C: April renewals confirm 1 January hardening trend
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment SCOR Global P&C: April renewals confirm and slightly amplify 1 January renewal hardening trend… Premiums renewed in April -1) in €m -21% -0.3% +18% +4% +7% +7% Î12% of treaty business up for 9 15 re
Slide 14: Outstanding results with selective developments and strong portfolio management
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment … and show outstanding results with selective developments and strong portfolio management Speciality Lines +10% (€ 69 million renewed) Treaty P&C +6% (€ 167 million renewed)-1) in €m in €m 19 84 En
Slide 15: SCOR Global P&C US: successful turnaround
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment SCOR Global P&C US: successful turnaround Par les chiffres… Reduced legacy exposure whilst increasing …through systematic approach and strategy on ongoing, profitable business… underwriting and comm
Slide 16: SCOR Global Life: life operating margin driven by lower investment returns
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment SCOR Global Life: life operating margin driven by lower investment returns Gross written premiums in €m +12% Î Gross written premiums increased by 12% compared to last year, 693 mainly driven by new
Slide 17: SCOR Global Investments: prudent strategy since 2007
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment SCOR Global Investments: SCOR has been pursuing a prudent strategy since 2007 Decisions taken to protect the asset value since the beginning of the crisis Increased level of liquidity Î Increased ca
Slide 18: SCOR Global Investments: de-risking of investment portfolio continued in Q1 2009
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment SCOR Global Investments: de-risking of investment portfolio has continued in Q1 2009 Total Investments € 19 051 million at 31/03/2009 Real Equities Alternative Î Exceptional cash position and Estate
Slide 19: Trade-off between protection of assets and short-term profitability
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment SCOR Global Investments: there is a trade-off between protection of assets vs. short-term profitability Î Lower recurring yield of 2.7% in €m published Q1 2009 Q1 2008 (excluding funds withheld by c
Slide 20: SCOR Global Investments will take a cautious inflexion in investment strategy
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment SCOR Global Investments will take a cautious inflexion in the investment strategy Investment portfolio actively de-risked Taking market opportunities Î Reduced risk of investment portfolio Î Maintai
Slide 21: SCOR actively monitors the environment
1 Q1 2009 key highlights 2 SCOR delivers solid Q1 2009 results 3 SCOR actively monitors the environment
Slide 22: Excellent operational set-up in a positively trending reinsurance industry
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment SCOR will benefit from an excellent operational set-up in a positively trending reinsurance industry… Changing environment since announcement of strategic plan Dynamic Lift V2 in September 2007 Envi
Slide 23: Maintaining the current business strategy in a deteriorating economic environment
Q1 2009 key highlights | SCOR delivers solid Q1 2009 results | SCOR actively monitors the environment …maintaining the current business strategy in a deteriorating economic environment Changing environment since announcement of strategic plan Dynamic Lift V2 in September 2007 Environment Consequence
Slide 24: Appendix
APPENDIX Appendix A: Consolidated statements of income Q1 2009 Appendix B: Balance sheet & Cash flow statement Appendix C: Calculations of EPS, Book value per share and ROE Appendix D: Net liabilities by segments Appendix E: Details on invested assets Appendix F: Reconciliation of IFRS asset classif
Slide 25: Appendix A: Consolidated statement of income
Appendix A: Consolidated statement of income in €m (rounded) Q1 2009 Q1 2008 Gross written premiums 1 561 1 353 Change in unearned premiums -64 -37 Gross earned premiums 1 497 1 316 Other income from reinsurance operations 0 -4 Net investment income -4 161 Total income from ordinary activities 1 493
Slide 26: Appendix A: Q1 2009 consolidated statement of income by segment
Appendix A: Q1 2009 consolidated statement of income by segment in €m (rounded) Q1 2009 Q1 2008 Intra- Intra- Life P&C Total Life P&C Total Group Group Gross written premiums 693 868 0 1 561 617 736 0 1 353 Change in unearned premiums 2 -66 0 -64 -3 -34 0 -37 Gross earned premiums 695 802 0 1 497 61
Slide 27: Appendix B: Consolidated balance sheet – Assets
Appendix B: Consolidated balance sheet – Assets in €m (rounded) Q1 2009 Q4 2008 Intangible assets 1 457 1 464 Goodwill 787 787 Value of purchased insurance portfolios 600 607 Other intangible assets 69 70 Tangible assets 35 29 Insurance business investments 17 194 16 982 Investment property 283 285
Slide 28: Appendix B: Consolidated balance sheet – Liabilities & shareholders' equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity in €m (rounded) Q1 2009 Q4 2008 Group shareholders’ equity 3 594 3 410 Minority interests 7 6 Total shareholders’ equity 3 601 3 416 Financial liabilities 832 936 Subordinated debt 519 583 Financial debt securities 204 201 F
Slide 29: Appendix B: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows in €m (rounded) Q1 2009 Q1 2008 CASH AND CASH EQUIVALENTS AT JANUARY 1 1 783 2 052 NET CASH FLOWS FROM OPERATING ACTIVITIES 156 53 Cash flows from changes in scope of consolidation 0 0 Cash flows from acquisitions and sale of financial assets -34 788
Slide 30: Appendix C: Calculations of EPS, book value per share and ROE
Appendix C: Calculations of EPS, book value per share and ROE Earnings per share calculation Post-tax Return on Equity (ROE) in €m (rounded) in €m (rounded) Q1 2009 Q1 2008 Q1 2009 Q1 2008 Net income-1) (A) 93 133 Net income-1) 93 133 Average number of closing 184 246 437 182 726 994 Opening shareho
Slide 31: Appendix D: Net liabilities by segment
Appendix D: Net liabilities by segment Net liabilities Life & P&C in €m (rounded) +1.8% 19 324 18 989 48% 48% SCOR Global Life SCOR Global P&C 52% 52% 31/12/2008 31/03/2009 31
Slide 32: Appendix E: Unrealized gains & losses evolution
Appendix E: Unrealized gains & losses evolution Unrealized gains & losses in €m (rounded) Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Equities -14 -24 -115 -127 -209 -236 -173 Bonds -51 -40 -40 -181 -250 -226 -278 Real estates & REITS 122 147 156 141 123 128 113 Total 57 83 1 -167 -336 -
Slide 33: Appendix E: Investment income development
Appendix E: Investment income development Investment income QTD (before tax & investment expenses) in €m (rounded) Q4 Q1 211 2008 2009 250 186 QTD 14 QTD 195 162 8 8 20 97 Bonds impairments -13 -18 33 158 22 Equities impairments -120 -136 5 10 -4 Real estate amortization -2 -2 Change in depreciation
Slide 34: Appendix E: Total corporate bond portfolio
Appendix E: Total corporate bond portfolio By rating By sector/type Q1 2009 In % in %. Total € 2.1 billion in €m Financials 741 35% 1% 4% Industrial 75 4% 11% AAA Communications 151 7% 32% Utilities 109 5% AA Consumer, Non-cyclical 91 4% A Energy 63 3% Consumer, Cyclical 53 2% BBB Diversified 45 2%
Slide 35: Appendix E: Financials corporate bond portfolio
Appendix E: “Financials” corporate bond portfolio (excluding government-guaranteed and covered bonds ) By rating By sector in %. Total € 0.7 billion in €m (rounded) 7% 4% 2% Q1 2009 In % 8% 20% AAA AA Bank 457 62% A Diversified financial services 199 27% BBB Insurance 62 8% <BBB NR Real estate 22 3%
Slide 36: Appendix E: Corporate bonds split as of Q1 2009
Appendix E: Corporate bonds split as of Q1 2009 Amount of in €m (rounded) Market to Unrealized -1) AAA AA A BBB Other Total Book Gains & Value %-2) Losses Government Seniority 383 60 17 0 0 460 100.9% 4 Guaranteed Covered 238 49 3 0 0 290 100.1% 0 Senior 33 138 581 208 61 1 020 93.2% -73 Subordinate
Slide 37: Appendix E: Structured products in fixed income portfolio as of Q1 2009
Appendix E: Structured products in fixed income portfolio as of Q1 2009 Structured product portfolio € 1.0 billion High quality: 90% AAA rating 100% Commercial MBS 20% Alt-A MBS (14% of the par 75% 2% value defeased) Subprime MBS 3% 50% Consumer ABS-1) Prime non- 10% agency MBS 16% CDO 4% MBS ABS CD
Slide 38: Appendix E: Structured products split as of Q1 2009
Appendix E: Structured products split as of Q1 2009 Amount of in €m (rounded) Market to -1) Unrealized AAA AA A BBB Other Total Book Gains & Value %-1) Loss ABS Consumer 79 7 6 3 0 95 96.5% -4 CDO/PPS CDO 31 1 0 0 3 35 44.3% -35 PPS 14 31 19 0 0 64 79.7% -16 MBS Agency 348 3 0 0 2 353 104.6% 14 Non–
Slide 39: Appendix F: Reconciliation of IFRS asset classification to IR presentation
Appendix F: Reconciliation of IFRS asset classification to IR presentation in €m (rounded) Cash and Real Alternative Equities Fixed Funds Total IFRS classification short estate investments income withheld IFRS term by cedants Real estate investments 283 283 AFS - Equities 78 169 645 893 AFS - Fixed
Slide 40: Appendix G: Definitions of SCOR Global P&C renewals
Appendix G: Definitions of SCOR Global P&C renewals Î Premiums up for renewal: Premiums of all Treaty contracts incepting in April 2008 at the exchange rate as of 31 December 2008 Î Cancelled/restructured: Client or SCOR decided to cancel the business/programs and/or to change their programs (e.g. f
Slide 41: Appendix H: 2009 Forthcoming events
Appendix H: 2009 Forthcoming events Date 8 July 30 July 4 November H1 2009 results Q3 2008 results Event Investors Day presentation presentation Location SCOR, La Defense, Paris Conference Call Conference Call 09:30 CET / 8:30 GMT 09:30 CET / 8:30 GMT 14:00 CET / 13:00 GMT Time and Format Analyst co