Scor Se · EURONEXT:SCR
Scor — Investor Presentation (June 2008)
32 slides from Scor's investor presentation, Jun 4, 2008
Slide 1: SCOR Global Life Embedded Value 2007 results
SCOR GLOBAL LIFE Embedded Value 2007 results Valuable SCOR Global Life franchise creates strong Embedded Value increase 4 June 2008
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. Additional information regarding ris
Slide 3: SCOR Global Life is a leading international Life reinsurer
SCOR Global Life is a leading international Life reinsurer A leading global Life reinsurer 5th largest Life reinsurer Winner of prestigious Life re- in the world insurance awards (UK/Ireland): - Redmayne Small Insurers’ Reinsurer of 2007 - Redmayne Irish Reinsurer of 2007 - Redmayne Reassurance Pers
Slide 4: Well-positioned in an attractive Life reinsurance market
1 Well-positioned in an attractive Life reinsurance market 2 Strong Life Embedded Value development 3 Positive strategic outlook
Slide 5: SCOR offers top-class expertise and service in a market with high barriers of entry
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook SCOR offers top-class expertise and service in a market with high barriers of entry Attractive Life reinsurance market with high barriers of entry Committed long-term partnersh
Slide 6: SCOR Global Life focuses on traditional business with European roots and a global reach
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook SCOR Global Life focuses on traditional business with European roots and a global reach Key Data (2007, pro-forma) in €m Gross premiums written Operating result 5th largest Lif
Slide 7: Four client-centric market units supported by transversal functions
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook Four client-centric market units supported by transversal functions CEO SGL Gilles Meyer Deputy CEO SGL Norbert Pyhel Central Cross-Sector Functions 1 Southern & 2 Central & 3 Am
Slide 8: Very strong positions in key markets and further strengthening in others
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook Very strong positions in key markets and further strengthening in others A European top-tier reinsurer - ~8% Global Life with a worldwide network reinsurance market share - ~14%
Slide 9: Europe: Further strengthening our European positions
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook Europe: Further strengthening our European positions SCOR’s competitive strengths Strategic highlights Very strong market positions in the main Products: Capitalizing on SCOR
Slide 10: Americas: Expansion in South America & Canada
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook Americas: Expansion in South America & Canada – monitored growth in key segments in the US SCOR’s competitive strengths Strategic highlights Reached critical size in the US P
Slide 11: Asia: Strong developments and reinforced positions
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook Asia: Strong developments and reinforced positions SCOR’s competitive strengths Strategic highlights Extensive footprint throughout the region Products: Strong product innova
Slide 12: Providing excellent added value services and state-of-the-art expertise in key fields
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook Providing excellent added value services and state-of-the-art expertise in key fields Top-class client service Strong product development & actuarial support Top research and dev
Slide 13: Strong Embedded Value development
1 Taking advantage of an attractive Life reinsurance market 2 Strong Embedded Value development 3 Strategy outlook
Slide 14: Strong Life European Embedded Value development in 2007
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook Strong Life European Embedded Value development in 2007 2007 SCOR Global Life European Embedded Value (EEV) reaches € 1.64 billion including Converium, capital outflow and cons
Slide 15: SCOR Global Life EEV reaches € 1.64 billion driven by € 188 million operating profit
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook SCOR Global Life EEV reaches € 1.64 billion driven by € 188 million operating profit after tax, in €m EEV earnings of € 203 million 1 716 +22 +2 -53 +188 -9 1 663 -114 1 638 +89
Slide 16: Very satisfactory value of new business of € 60 million
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook Very satisfactory value of new business of € 60 million EEV operating profit in €m Strong increase in new business value 2007 2006 Variation from € 51.3 million to € 59.7 milli
Slide 17: Mature business book expected to provide substantial distributable cash flow
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook Mature business book expected to provide substantial distributable cash flow over the next years Trendline1) of expected annual distributable2) cash flow in €m, net of maintenanc
Slide 18: Positive cash production allows for capital repatriation
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook Positive cash production allows for capital repatriation EEV 2007 vs. EEV 2006 in €m The positive cash production in 2007 2007 2006 allowed a cash repatriation of capital to th
Slide 19: Significant growth of € 68 million in value not recognized under IFRS
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook Significant growth of € 68 million in value not recognized under IFRS Value not recognized under IFRS EEV is more suitable to capture the in €m economic value of life business
Slide 20: Strategy outlook
1 Taking advantage of an attractive Life reinsurance market 2 Strong Embedded Value development 3 Strategy outlook
Slide 21: Actively positioning in a changing life environment
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook Actively positioning in a changing life environment Adapting to a changing risk & new Facing more global client needs and regulatory environment (ageing of the increased retentio
Slide 22: SCOR Global Life Vision
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook SCOR Global Life Vision Products Services To concentrate on risks with long-term evolution, To secure client relationships and generate for which we are in a position to buil
Slide 23: SCOR strongly invests in lines of products delivering future value
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook SCOR strongly invests in lines of products delivering future value… Development by lines of business 2007 Value in Force Gross Premium CAGR1) by 2010 Disability & Annuities +6% L
Slide 24: … and in markets delivering future value
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook … and in markets delivering future value Development by geography 2007 Value in Force Gross Premium CAGR1) by 2010 Rest of the Asia 3% Europe +8% World 1% Americas +8% Americas 2
Slide 25: SCOR Global Life: a leading Life reinsurer with strong value creation capacity
Well-positioned in an attractive reinsurance market | Strong Life Embedded Value development | Positive strategic outlook SCOR Global Life: a leading Life reinsurer with strong value creation capacity Holds a leading position in major markets, which proves its strong franchise Operates a busines
Slide 26: Appendices
APPENDICES Appendix A: Methodology Appendix B: Key economic assumptions Appendix C: Foreign exchange rates Appendix D: Sensitivity to main assumptions and to new business assumption Appendix E: External Audit
Slide 27: Appendix A: Methodology
Appendix A: Methodology Approach used fully consistent with 2006 EEV Methodology fully consistent with CFO Forum EEV principles Investment assumptions – market consistent/risk neutral RDR = risk free rate for currency and duration + risk margin for non-financial risk Risk Margin = 3.2% for
Slide 28: Appendix B: Key economic assumptions
Appendix B: Key economic assumptions Assumptions on risk free rates (based on government bond rates) Government Bond Yields Term EUR USD GBP CAD 31/12/06 31/12/07 31/12/06 31/12/07 31/12/06 31/12/07 31/12/06 31/12/07 5 Years 3.97% 4.22% 4.75% 3.50% 5.04% 4.51% 4.03% 3.93% 10 Years 4.05% 4.50% 4.81%
Slide 29: Appendix C: Foreign exchange rates
Appendix C: Foreign exchange rates 31 December 31 December 1 Euro = …foreign currency 2006 2007 USD 1.3170 1.4721 GBP 0.6715 0.7334 SEK 9.0404 9.4415 CAD 1.5281 1.4449 CHF 1.6069 1.6547 Estimated split of the EEV by main currencies Other currencies 11% GBP 12% EUR 52% USD 25% 29
Slide 30: Appendix D: Sensitivities to main assumptions
Appendix D: Sensitivities to main assumptions after tax, in €m EEV Difference Variation Base Case 1 637.6 Discount Rate – 100 bps 1 724.3 +86.8 +5.3% Interest Rates – 100 bps 1 626.6 -10.9 -0.7% Mortality/Morbidity -5% (Life insurance) 1 837.1 +199.5 +12.2% No mortality improvements 1 492.1 -145.5 -
Slide 31: Appendix D: Sensitivities to new business assumptions
Appendix D: Sensitivities to new business assumptions after tax, in €m EEV Difference Variation Base Case 59.7 Discount Rate – 100 bps 69.5 +9.8 +16.4% Interest Rates – 100 bps 63.6 +3.9 +6.5% Mortality/Morbidity -5% (Life insurance) 81.0 +21.4 +35.8% No mortality improvements 43.8 -15.9 -26.6% Mort
Slide 32: Appendix E: External Audit
Appendix E: External Audit B&W Deloitte, consulting actuaries, have reviewed the methodology adopted, the assumptions used and calculations made by SCOR to determine the European Embedded Values. The scope of their review and their opinion is shown in the EEV disclosure of SCOR Global Life. 32