Scor Se · EURONEXT:SCR
Scor — H1 2009 Earnings Presentation
40 slides from Scor's earnings presentation, 2009
Slide 1: SCOR Group H1 2009 results
SCOR GROUP H1 2009 results SCOR records net income of € 184 million for the First Half of 2009
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: H1 2009 key achievements
1 H1 2009 key achievements 2 SCOR delivers robust H1 2009 results 3 SCOR is actively preparing for 2010 renewals
Slide 4: The SCOR Group is fully operational
H1 2009 key achievements | SCOR delivers robust H1 2009 results | SCOR is actively preparing for 2010 renewals The SCOR Group is fully operational Fully operational Rating upgrades Î Integrations completed Î Upgrade to “A” from S&P Î Hub organization in place A powerful twin- Î Upgrade to “A2” from
Slide 5: Consistent implementation of clear strategic cornerstones
H1 2009 key achievements | SCOR delivers robust H1 2009 results | SCOR is actively preparing for 2010 renewals Consistent implementation of clear strategic cornerstones is improving the Group’s position in the reinsurance industry Strong Controlled High Robust Franchise Risk Appetite Diversification
Slide 6: Solid H1 2009 results confirm business model and consistent execution
H1 2009 key achievements | SCOR delivers robust H1 2009 results | SCOR is actively preparing for 2010 renewals Solid H1 2009 results confirm business model and consistent execution of commitments Investors’ day themes Execution since Q1 2009 ÎNo major acquisitions / transformational ÎSCOR Global Lif
Slide 7: SCOR delivers robust H1 2009 results
1 H1 2009 key achievements 2 SCOR delivers robust H1 2009 results 3 SCOR is actively preparing for 2010 renewals
Slide 8: H1 2009 financial highlights
H1 2009 key achievements | SCOR delivers robust H1 2009 results | SCOR is actively preparing for 2010 renewals H1 2009 financial highlights Î Return On Equity (ROE) of 10.6% despite ongoing financial crisis and high natural catastrophe activity in the first quarter Î Gross written premiums at € 3 25
Slide 9: SCOR generates solid net income and strongly increases book value per share
H1 2009 key achievements | SCOR delivers robust H1 2009 results | SCOR is actively preparing for 2010 renewals SCOR generates solid net income and strongly increases book value per share -1) Variation at Variation at in €m H1 2009 H1 2008 current FX constant FX Gross written premiums 3 254 2 748 +18
Slide 10: Robust shareholders' equity development
H1 2009 key achievements | SCOR delivers robust H1 2009 results | SCOR is actively preparing for 2010 renewals Robust shareholders’ equity development H1 2009 development in €m 18.7% Financial leverage down 2.5pts 16.2% 197 197 201 507 87 12 82 507 583 184 -3 -143 CTA Adjustment 85 Share payments -1
Slide 11: Strong cash flow further increases cash position in H1 2009
H1 2009 key achievements | SCOR delivers robust H1 2009 results | SCOR is actively preparing for 2010 renewals Strong cash flow further increases cash position in H1 2009 Positive net operating cash flow in €m H1 2009 Cash and cash equivalents at 1 January 1 783 Net operating cash flow, of which: 30
Slide 12: SCOR Global P&C: solid growth coupled with technical profitability
H1 2009 key achievements | SCOR delivers robust H1 2009 results | SCOR is actively preparing for 2010 renewals SCOR Global P&C: solid growth coupled with technical profitability Gross written premiums in €m +14% ÎH1 2009 figures positively impacted by solid 2009 renewals in January & +13% April and
Slide 13: Non-Life July renewals: premium volume increased by 20%
H1 2009 key achievements | SCOR delivers robust H1 2009 results | SCOR is actively preparing for 2010 renewals Non-Life July renewals: premium volume increased by 20% to € 175 million Premiums renewed in July -1) in € m +20% 175 Î 5 % of treaty-1) premiums up for renewal 146 Î Market continues to st
Slide 14: SCOR Global Life: robust growth, margin impacted by lower investment returns
H1 2009 key achievements | SCOR delivers robust H1 2009 results | SCOR is actively preparing for 2010 renewals SCOR Global Life: robust growth, with Life operating margin impacted by lower investment returns Gross written premiums in €m +23% Î Gross written premiums increased by 23% compared to last
Slide 15: SCOR Global Investments: cautious inflection in investment strategy
H1 2009 key achievements | SCOR delivers robust H1 2009 results | SCOR is actively preparing for 2010 renewals SCOR Global Investments: cautious inflection in the investment strategy has begun in Q2 2009… Total Investments: € 19 542 million at 30/06/2009 Î Exceptional cash position and short- term i
Slide 16: Improving return on invested assets
H1 2009 key achievements | SCOR delivers robust H1 2009 results | SCOR is actively preparing for 2010 renewals … improving return on invested assets Î Prudent asset management, which in €m published H1 2008 Q1 2009 Q2 2009 H1 2009 YTD QTD QTD YTD safeguarded shareholders throughout Average investmen
Slide 17: SCOR is actively preparing for 2010 renewals
1 H1 2009 key achievements 2 SCOR delivers robust H1 2009 results 3 SCOR is actively preparing for 2010 renewals
Slide 18: SCOR ready to profit from positive momentum and preparing for 2010 renewals
H1 2009 key achievements | SCOR delivers robust H1 2009 results | SCOR is actively preparing for 2010 renewals SCOR ready to profit from positive momentum and actively preparing for Monte Carlo and 2010 renewal season Positive reinsurance outlook SCOR is ready to take business expected to continue o
Slide 19: Appendix
APPENDIX Appendix A: Key figures for Q2 2009 YTD (H1) and QTD 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 classifi
Slide 20: Consolidated statement of income, H1 2009
Appendix A: Consolidated statement of income, H1 2009 in €m (rounded) H1 2009 H1 2008 Gross premiums written 3 254 2 748 Change in unearned premiums -37 -36 Gross Claims expenses -2 290 -1 898 Gross commissions earned -719 -628 Gross Technical result 208 186 Retroceded written premiums -330 -220 Cha
Slide 21: Consolidated statement of income by segment, H1 2009
Appendix A: consolidated statement of income by segment, H1 2009 in €m (rounded) H1 2009 H1 2008 Intra- Intra- Life P&C Total Life P&C Total Group Group Gross premiums written 1 555 1 699 3 254 1 260 1 488 2 748 Change in unearned premiums -8 -29 -37 -21 -15 -36 Gross Claims expenses -1 198 -1 092 -
Slide 22: Consolidated statement of income, Q2 2009
Appendix A: Consolidated statement of income, Q2 2009 in €m (rounded) Q2 2009 Q2 2008 Gross premiums written 1 693 1 395 Change in unearned premiums 27 1 Gross Claims expenses -1 219 -987 Gross commissions earned -373 -330 Gross Technical result 127 80 Retroceded written premiums -175 -121 Change in
Slide 23: Consolidated statement of income by segment, Q2 2009
Appendix A: consolidated statement of income by segment, Q2 2009 in €m (rounded) Q2 2009 Q2 2008 Intra- Intra- Life P&C Total Life P&C Total Group Group Gross premiums written 862 831 1 693 643 753 1 395 Change in unearned premiums -10 37 27 -18 19 1 Gross Claims expenses -659 -561 -1 220 -496 -491
Slide 24: Calculation of P&C Combined Ratio
Appendix A: Calculation of P&C Combined Ratio H1 2009 H1 2008 in €m SCOR GPC SCOR GPC Gross earned premiums 1 670 1 474 Retroceded earned premiums -137 -98 Net earned premiums (A) 1 533 1 376 Expenses for claims and policy benefits -1 092 -965 Retroceded claims 41 8 Total claims (B) -1 051 -957 Clai
Slide 25: Reconciliation of total expenses to cost ratio
Appendix A: Reconciliation of total expenses to cost ratio in €m (rounded) H1 2009 H1 2008 Total Expenses as per Profit & Loss account 187 178 ULAE (Unallocated Loss Adjustment Expenses) 8 8 Total expense base 195 186 Non controllable expenses (eg. Premium tax, bad debt, etc.) -12 -4 Highfields sett
Slide 26: Consolidated balance sheet – Assets
Appendix B: Consolidated balance sheet – Assets in €m (rounded) H1 2009 Q4 2008 Intangible assets 1 436 1 464 Goodwill 787 787 Value of purchased insurance portfolios 576 607 Other intangible assets 73 70 Tangible assets 33 29 Insurance business investments 17 574 16 982 Investment property 282 285
Slide 27: Consolidated balance sheet – Liabilities & shareholders' equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity in €m (rounded) H1 2009 Q4 2008 Group shareholders’ equity 3 629 3 410 Minority interests 6 6 Total shareholders’ equity 3 635 3 416 Financial liabilities 822 936 Subordinated debt 507 583 Financial debt securities 197 201 F
Slide 28: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows in €m (rounded) H1 2009 H1 2008 CASH AND CASH EQUIVALENTS AT JANUARY 1 1 783 2 052 NET CASH FLOWS FROM OPERATING ACTIVITIES 308 523-1) Cash flows from changes in scope of consolidation -13 -12 Cash flows from acquisitions and sale of financial assets
Slide 29: 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) H1 2009 H1 2008 H1 2009 H1 2008 Net income-1) (A) 184 242 Net income-1) 184 242 Average number of opening 184 246 437 182 726 994 Opening share
Slide 30: Net liabilities by segment
Appendix D: Net liabilities by segment Net liabilities Life & P&C in €m (rounded) +3% 19 555 18 989 48% 48% SCOR Global Life SCOR Global P&C 52% 52% 31/12/2008 30/06/2009 30
Slide 31: Unrealized gains & losses development
Appendix E: Unrealized gains & losses development Unrealized gains & losses in €m (rounded) Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Equities -24 -115 -127 -209 -236 -173 -120 Bonds -40 -40 -181 -250 -226 -278 -195 Real estates & REITS 147 156 141 123 128 113 114 Total 83 1 -167 -336
Slide 32: Reconciliation of asset revaluation reserve
Appendix E: Reconciliation of asset revaluation reserve Variance in €m (rounded) Q4 2008 Q2 2009 YTD URGL bonds -226 -195 31 thereof government 67 26 -41 thereof corporate -152 -89 62 thereof structured products -130 -118 11 thereof other securities -11 -13 -2 URGL equities -236 -120 116 URGL REITS
Slide 33: Investment income development
Appendix E: Investment income development Investment income QTD (before tax & investment expenses) FY Q1 Q2 H1 in €m (rounded) 2008 2009 2009 2009 Groupama guarantee impact -10 0 0 0 211 186 Bonds impairments -43 -18 -16 -34 14 162 8 97 Equities impairments -217 -136 -10 -146 20 158 22 154 Real esta
Slide 34: Total corporate bond portfolio
Appendix E: Total corporate bond portfolio By rating By sector/type H1 2009 In % in %. Total € 2.8 billion in €m Financial 818 29% 3% 2% Industrial 154 5% Communications 287 10% 26% AAA 17% Utilities 212 7% AA Diversified 59 2% Consumer, Non-cyclical 258 9% A Consumer, Cyclical 131 5% BBB Energy 75
Slide 35: Financials corporate bond portfolio
Appendix E: “Financials” corporate bond portfolio (excluding government-guaranteed and covered bonds) By rating By sector in %. Total € 0.8 billion in €m (rounded) 3% 3% 4% H1 2009 In % 11% 18% AAA AA Bank 550 67% A Diversified financial services 185 23% BBB Insurance 59 7% <BBB NR Real estate 24 3%
Slide 36: Corporate bonds split as of 30/06/2009
Appendix E: Corporate bonds split as of 30/06/2009 Amount of in €m (rounded) Market to Unrealized -1) AAA AA A BBB Other Total Book Gains & Value %-2) Losses Seniority Gov. Guaranteed 433 37 18 1 0 489 100% -1 Covered 232 10 0 0 0 243 100% 1 Senior 57 190 952 410 58 1 667 98% -32 Subordinated 11 12
Slide 37: Structured products in fixed income portfolio as of 30/06/2009
Appendix E: Structured products in fixed income portfolio as of 30/06/2009 Structured product portfolio € 0.9 billion High quality: 90% AAA rating 100% Commercial MBS 23% Alt-A MBS (14% of the par 75% 2% value defeased) Subprime MBS 3% 50% Consumer Prime non- ABS-1) agency MBS 7% 15% CDO 4% -2) MBS
Slide 38: Structured products split as of 30/06/2009
Appendix E: Structured products split as of 30/06/2009 Amount of in €m (rounded) Market to -1) Unrealized AAA AA A BBB Other Total Book Gains & Value %-2) Loss ABS Consumer 52 6 13 3 0 75 95% -1 CDO/PPS CDO 27 1 0 0 5 33 56% -26 PPS 21 24 19 0 0 64 80% -16 MBS Agency 341 2 0 0 0 343 102% 6 Non-agenc
Slide 39: Key characteristics of subprime and Alt-A products
Appendix E: Key characteristics and performance indicators of subprime and Alt-A products as of 30/06/2009 Alt-A MBS (€ 17 million)-1) Subprime MBS Prime 2nds (Total: € 5 million)-1) Subprime (Total: € 24 million)-1) Î Original average credit support 5.04% Î Prime 2nd Liens make up 19.4% Î 14.4% of
Slide 40: 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 282 282 AFS - Equities 65 132 688 884 AFS - Fixed