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Scor — H1 2005 Earnings Presentation
35 slides from Scor's earnings presentation, Sep 1, 2005
Slide 1: Half-Year Results 2005
HALF-YEAR RESULTS 2005 1 September 2005 Half-Year Results 2005 1 September 2005 1
Slide 2: Contents
Contents Summary Group business p. 4 p. 7 Results by line of business Latest news p. 16 p. 28 Appendices p. 33 Half-Year Results 2005 1 September 2005 2
Slide 3: 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. Additional information regarding
Slide 4: Summary 1st Half 2005
SUMMARY 1st HALF 2005 Half-Year Results 2005 1 September 2005 4
Slide 5: Highlights at first half 2005
Highlights at first half 2005 Gross written premiums: EUR 1,184 million (v. EUR 1,344 at first half 2004), i.e. - 12% Current operating income: EUR 140 million (v. EUR 125 million at first half 2004), i.e. + 12% Group net income: EUR 72 million (v. EUR 61 million at first half 2004), i.e. + 18
Slide 6: Key figures
Key figures 06/30/2004 06/30/2005 Change EUR millions Gross written premiums 1,344 1,184 - 12% Net written premiums 1,260 1,118 - 11% Net earned premiums 1,337 1,062 - 21% Current investment income (1) 176 168 - 5% Operating income before FVI (2) 131 111 - 15% FVI (2) investment income (6) 29 n.d. C
Slide 7: Group Business 1st Half 2005
GROUP BUSINESS 1st HALF 2005 Half-Year Results 2005 1 September 2005 7
Slide 8: Group premium income is EUR 1,184 million, down 12%
Group premium income is EUR 1,184 million, down 12% EUR millions - 12% 1 500 1,344 47% 1,184 - 12% 44% 1 000 at constant exchange rates 53% 56% 500 0 06/30/2004 06/30/2005 Non-Life reinsurance (P&C treaties + facultatives (Large Corporate Accounts) + Credit & Surety + CRP) Life reinsurance Half-Year
Slide 9: The cash flows illustrate the Group's continued restructuring and repositioning
The cash flows illustrate the Group’s continued restructuring and repositioning An operating cash flow of EUR - 517 million for the 1st half of 2005 due to the EUR 547 million commutations carried out • Life reinsurance commutations for an amount of EUR 260 million • Non-Life reinsurance commutati
Slide 10: Operating cash flow for the first half of 2005 amounts to EUR -517 million
Operating cash flow for the first half of 2005 amounts to EUR - 517 million due to the commutations carried out during the period EUR millions 06/30/2005 12/31/2004 Net operating cash flow (517) (212) Including commutations (545) (105) Net investing cash flow 409 (505) Net financing cash flow (230)
Slide 11: Main variations in net liabilities relating to contracts
Main variations in net liabilities relating to contracts The EUR 480 million variation of the net liabilities relating to contracts is mainly explained by the commutations carried out during the first half of 2005, which amount to EUR 547 million When excluding the impact of these commutations,
Slide 12: Net liabilities relating to contracts at EUR 8,818 million
Net liabilities relating to contracts at EUR 8,818 million EUR millions - 5% 10 000 9,298 8,818 8 000 = at current exchange 6 000 rates, excluding the effect of commutations 4 000 2 000 0 12/31/2004 06/30/2005 Net liabilities relating to contracts Half-Year Results 2005 Group Business 12
Slide 13: Group shareholders' equity is up 29%
Group shareholders’ equity is up 29% EUR millions 2 000 + 83 + 22 + 226 1,705 1 500 + 72 - 24 1,326 1 000 500 0 12/31/2004 H1 2005 net 2004 dividends 30 June 2005 Translation Other 06/30/2005 results paid on 8 June capital increase differential comprehensive 2005 income Half-Year Results 2005 Group
Slide 14: Restructured equity and quasi equity (Océane, capital increase, IRP)
Restructured equity and quasi equity (Océane, capital increase, IRP) EUR millions - 2% 2 500 2,484 2,442 936 505 2 000 232 1 500 1,705 222 1,326 1 000 500 0 12/31/2004(*) 06/30/2005 Group shareholders’ equity Subordinated debt Financial debt in the form of securities (*) Financial debt in the form o
Slide 15: Deterioration of overhead ratio is purely due to a weaker level of premiums
Deterioration of overhead ratio is purely due to a weaker level of premiums EUR millions 120 + 1% 101 102 100 80 60 8.6% 40 7.5% 20 0 06/30/2004 06/30/2005 Overhead expenses Overhead expenses to gross written premiums ratio Half-Year Results 2005 Group Business 15
Slide 16: First Half 2005 Results by Line of Business
FIRST HALF 2005 RESULTS BY LINE OF BUSINESS Half-Year Results 2005 1 September 2005 16
Slide 17: Non-Life Reinsurance
NON-LIFE REINSURANCE (P&C Treaties + Facultatives (Large Corporate Accounts) + Credit & Surety + CRP) H1 2005 combined ratio for Non-Life business: 97.2% (excl. CRP / 99.7% including CRP), vs. 100.0% for H1 2004 (excl. CRP / 101.4% including CRP) Non-Life gross written premiums at EUR 659 millio
Slide 18: Non-Life reinsurance premiums at EUR 659 million, mainly from Europe
Non-Life reinsurance premiums at EUR 659 million, mainly from Europe Non-Life reinsurance Gross written premiums - 8% EUR millions 800 713 659 - 6% 195 + 2% 600 198 at constant - 22% exchange rates 109 400 85 409 - 8% 376 200 0 06/30/2004 06/30/2005 Europe North America Asia / rest of the world Half
Slide 19: Non-Life operating income is EUR 112 million at first half 2005
Non-Life operating income is EUR 112 million at first half 2005 EUR millions 06/30/2004 06/30/2005 Change Gross written premiums 713 659 - 8% Net written premiums 645 608 - 6% Net earned premiums 746 580 - 22% Net underwriting income 48 64 + 33% Management costs 58 62 + 7% Current investment income
Slide 20: First estimate of the cost of the 3Q events
First estimate of the cost of the 3Q events Î Significant events: Terror attacks in London: no exposure Aircraft crashes: no exposure Î Major(*) natural events : Floods in Europe (August 2005): EUR 6 to 13 million Hurricane Katrina in North America (August 2005): appraisal in process (*) A m
Slide 21: Life Reinsurance
LIFE REINSURANCE Life reinsurance gross written premiums at EUR 525 million (vs. EUR 631 million at 1st half 2004), i.e. - 17% Life reinsurance operating income at EUR 28 million (vs. EUR 29 million at 1st half 2004), i.e. - 3% Operating income on net earned premiums margin in Life reinsurance
Slide 22: Life reinsurance premiums at EUR 525 million
Life reinsurance premiums at EUR 525 million Life reinsurance Gross written premiums EUR millions 800 - 17% 631 31 - 18% 600 + 35% 324 525 42 at constant exchange rates - 38% 200 400 200 276 + 3% 283 0 06/30/2004 06/30/2005 Europe North America Asia / rest of the world Half-Year Results 2005 Life Re
Slide 23: Life operating income at EUR 28 million
Life operating income at EUR 28 million EUR millions 06/30/2004 06/30/2005 Change Gross written premiums 631 525 - 17% Net written premiums 615 510 - 17% Net earned premiums 591 482 - 18% Management costs 17 19 + 12% Current investment income (1) 73 82 + 12% Operating income before FVI (2) 40 27 - 3
Slide 24: Asset Management
ASSET MANAGEMENT Half-Year Results 2005 1 September 2005 24
Slide 25: Investment portfolio remains mostly in bonds
Investment portfolio remains mostly in bonds - 3% EUR millions 9,919 9,662 10 000 6% 3% 9% 14% 3% 8 000 13% 18% 17% 6 000 59% 58% 4 000 2 000 0 12/31/2004 06/30/2005 Bonds Cash Loans and debts Real estate Equities and affiliates Half-Year Results 2005 Asset Management 25
Slide 26: Unrealized capital gains are up 20% at EUR 183 million
Unrealized capital gains are up 20% at EUR 183 million Unrealized capital gains before tax, EUR millions 200 183 + 20% 63 56 152 150 62 56 127 120 100 96 90 50 0 12/31/2004 06/30/2005 Unrealized capital gains accounted Shareholders’ stake in shareholders’ equity of unrealized capital gains Off balan
Slide 27: Investment income up 16% at EUR 197 million
Investment income up 16% at EUR 197 million EUR millions 250 250 197 200 170 200 153 150 150 141 100 100 50 50 29 19 18 4 9 0 0 -6 -50 06/30/2004 -50 06/30/2005 Current investment income net of asset management fees Realized capital gains/losses on asset sales net of writedowns Currency gains Change
Slide 28: Latest News
LATEST NEWS Half-Year Results 2005 1 September 2005 28
Slide 29: NEW SCOR is a global initiative
NEW SCOR is a global initiative Î NEW SCOR is a project involving all of the SCOR Group entities worldwide. Its objectives are as follows: to adapt SCOR’s structures to its new business volume and risk profile to improve the Group’s operational performance and reduce its costs to improve busin
Slide 30: IRP
IRP Î SCOR now owns 100% of IRP’s capital Î There are no minority shareholders left in the SCOR Group Î Legal proceedings in Dublin have been abandoned Î The hearing in Boston has not yet been held Î IRP has been in run-off since 1st January 2005 Î The strategic focus is now to transfer IRP’s contra
Slide 31: Boosting SCOR LIFE RE's risk-based capital
Boosting SCOR LIFE RE’s (*) risk-based capital Î Due to the growth of SCOR LIFE RE(*) over the last 3 years, SCOR has decided to increase the capital of this subsidiary by EUR 30 million Î The RBC after the capital increase and a commutation carried out during the first half of 2005 is 271%, which s
Slide 32: Slide 32
Slide 33: Appendices
APPENDICES Half-Year Results 2005 1 September 2005 33
Slide 34: Investment portfolio by IFRS accounting classification
Investment portfolio by IFRS accounting classification EUR millions 10 000 9,919 9,662 3% 3% 18% 17% 8 000 14% 13% 6 000 8% 8% 57% 59% 4 000 2 000 0 12/31/2004 06/30/2005 Available for sale Fair value by income Cash Loans and receivables Investment property Half-Year Results 2005 Asset Management 34
Slide 35: SCOR Group ratings
SCOR Group ratings Insurer Senior Subordinated Financial Debt Debt Strength S&P A- A- BBB 1 August 2005 Stable outlook Stable outlook Stable outlook AM Best B++ bbb bbb- 1 December 2004 Positive outlook Positive outlook Positive outlook Moody's Baa2 Baa3 Ba2 7 December 2004 Positive outlook Positive