Scor SE · EURONEXT:SCR
Scor — Q1 2014 Earnings Presentation
56 slides from Scor's earnings presentation, 2014
Slide 1: SCOR Group Q1 2014 results
SCOR GROUP Q1 2014 results SCOR delivers a strong performance for the first quarter 2014 with a net income of EUR 135 million
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. Undue reliance should not be placed
Slide 3: Two sets of financial data: published accounts and pro-forma information
In the presentation two sets of financial data are used: published accounts & pro-forma information Audited 2013 published accounts: The audited 2013 annual accounts have been prepared to reflect the acquisition of Generali U.S. They include the results generated by Generali U.S. from the acquisit
Slide 4: SCOR delivers in first three months of 2014, in line with Optimal Dynamics
SCOR delivers during the first three months of 2014, in line with the new strategic plan “Optimal Dynamics” SCOR achieves a successful Q1 2014 SCOR records a strong financial performance, with ROE of 11.2%, above “Optimal Dynamics” target SCOR finalises the integration of Generali US and repays
Slide 5: SCOR delivers strong financial results for the first quarter 2014
SCOR delivers strong financial results for the first quarter 2014 Gross written premium growth of 11.8%1) (14.8% at constant exchange rates) in Q1 2014 compared to Q1 2013, driven by healthy SCOR Global P&C renewals, by major new contracts signed by SCOR Global Life and by the Generali US contribu
Slide 6: SCOR Q1 2014 financial details
SCOR Q1 2014 financial details Q1 2013 Variation at Variation at Q1 2013 Variation at Variation at in € millions (rounded) Q1 2014 Published current FX constant FX Pro-forma current FX constant FX Gross written premiums 2 669 2 388 11.8% 14.8% 2 601 2.6% 5.4% Net earned premiums 2 318 2 125 9.1% 10.
Slide 7: Positive shareholders' equity development with increased BVPS at €27.49
In Q1 2014, SCOR records positive shareholders’ equity development with an increased BVPS at € 27.49 Q1 2014 development In € millions (rounded) 21.2%1) Financial leverage decreases by 0.4 pts 20.8 %1) 1 401 1 379 135 55 -8 SCOR’s financial leverage stands at 20.8%, well below the 25% ceiling indi
Slide 8: Cash & liquidity position reduced in line with Optimal Dynamics assumptions
Cash & liquidity position reduced in line with “Optimal Dynamics” assumptions, with operational cash flows impacted by one-off items Operating cash flow of -€ 101 million as at 31 March 2014; In € millions (rounded) Q1 2014 Q1 2013 SCOR Global P&C affected by payments related to 2013 nat cat, a
Slide 9: SCOR Global P&C delivers excellent technical profitability
In Q1 2014, SCOR Global P&C delivers excellent technical profitability, with a net combined ratio of 88.9% Gross written premiums In € millions +0.4% Q1 2014 gross written premium growth (+ 3.6% at constant exchange rates) negatively impacted by +3.6% foreign exchange rates and seasonality (at con
Slide 10: 1st April renewals: SCOR Global P&C continues to deliver strong results
1st April renewals: SCOR Global P&C continues to deliver strong results... Premiums renewed in April1) in € millions, rounded Approximately 10% of the Treaty business (P&C Change in % -2% -2% +7% +1% +5% -1% +8.5% 4 17 Treaties and Specialties) come up for renewal at -3 -8 22 1st April -5 € 318
Slide 11: ...thanks to its franchise in Asia-Pacific
…thanks to its franchise in Asia-Pacific Main Speciality Lines1) Treaty P&C1) in € millions, rounded in € millions, rounded Agriculture 2) 29 +37% 103 +0% 40 Japan 102 Credit & Surety 18 +54% 27 3) 44 -7% US 41 Engineering 10 +2% 11 29 +15% Indian Sub. 12 -15% 34 Marine & Energy 10 8 +13% 3) 14 -10%
Slide 12: Expected profitability trend in line with past underwriting years
The expected profitability trend is in line with past underwriting years, on a year-to-date basis Expected gross underwriting ratio1) trend, year to date ~ 2% points January April July December 2011 2012 2013 2014 Due to the differences in the mix of business renewing in January, April and June-Ju
Slide 13: SCOR Global Life delivers healthy growth and strong technical performance
SCOR Global Life delivers healthy growth and a strong technical performance in Q1 2014 Gross written premiums In € millions (rounded) +4.5% In Q1 2014, SCOR Global Life delivers healthy 4.5% growth compared to Q1 2013 pro-forma (+6.9% at constant exchange rates and +23.2% +6.9% on a published basi
Slide 14: SCOR Global Life's Embedded Value growth, reaching €24.1 per share
SCOR Global Life’s Embedded Value has experienced significant growth over the past few years, reaching € 24.1 per share Evolution of SCOR’s Embedded Value 5.0 24.1 25.0 4.0 18.8 20.0 18.0 EV in € billions 3.0 15.0 12.2 10.8 9.0 9.5 2.0 10.0 1.0 5.0 0.0 0.0 2007 2008 2009 2010 2011 2012 2013 EV (€, b
Slide 15: SCOR Global Life MCEV reaches €4.5 billion in 2013
SCOR Global Life MCEV reaches € 4.5 billion in 2013 (€ 24.1 per share) After tax, in € millions (rounded) € 18.8 MCEV per share increases by € 5.3 € 24.1 Total MCEV earnings of € 568 m, or 16.4% 4 464.8 166.1 ‐177.8 401.6 437.8 3 456.1 Operating MCEV ‐183.0 364.0 earnings of 11.6% 2 552.2 1 914.0 MC
Slide 16: MCEV fully captures the economic value of the Life business
MCEV fully captures the strong economic value of the Life business Value of New Business Value of New Business strongly increases thanks to significant in € millions (rounded) 340 organic growth and the development of longevity and financial ~ x3 solutions deals which are partly one-off by nature
Slide 17: SCOR Global Life generates significant free cash flow
SCOR Global Life generates significant free cash flow, demonstrating the strength and maturity of the franchise 2013 Free Surplus evolution Free Surplus 1 Free Surplus generation in € millions from in-force business Free Surplus (rounded) utilisation 51.2 ‐143.4 294.0 ‐ 48.0 4 2 ‐246.8 364.0 3 ‐183.
Slide 18: SCOR Global Investments delivers a return on invested assets of 2.6%
SCOR Global Investments delivers a return on invested assets of 2.6% Total invested assets1): € 14.5 billion at 31/03/2014 In % (rounded) Other investments2) 3% Cash 8% Liquidity 12% Total investments of € 22.7 billion, of which total Real estate 5% invested assets of € 14.5 billion and funds Equi
Slide 19: 2014 forthcoming events and Investor Relations contacts
2014 forthcoming events and Investor Relations contacts Forthcoming scheduled events 31 July 2014 10 September 2014 6 November 2014 SCOR Group : SCOR Group : SCOR Group : H1 2014 results Investors’ Day Q3 2014 results In 2014 SCOR is scheduled to attend the following investor conferences JP
Slide 20: The SCOR IR app puts SCOR at the fingertips of investors
The SCOR IR app puts SCOR at the fingertips of investors Home Page Latest press releases Financial communication Share price monitor Conference presentations Research Publications Push notifications Contacts 20
Slide 21: Appendices
APPENDICES Appendix A P&L Appendix B Balance sheet & Cash flow Appendix C Calculation of EPS, Book value per share and ROE Appendix D Expenses & cost ratio Appendix E P&C Appendix F Life Appendix G Investment Appendix H Debt Appendix I Rating evolution Appendix J Listing information Appendix K Award
Slide 22: Appendix A: Consolidated statement of income, Q1 2014
Appendix A: Consolidated statement of income, Q1 2014 Q1 2013 Q1 2013 In € millions (rounded) Q1 2014 Pro-forma Published Gross written premiums 2 669 2 601 2 388 Change in gross unearned premiums -105 -48 -48 Gross benefits and claims paid -1 799 -1 797 -1 627 Gross commissions on earned premiums -
Slide 23: Appendix A: Consolidated statement of income by segment
Appendix A: Consolidated statement of income by segment for Q1 2014 Q1 2013 Q1 2013 Q1 2014 Pro-forma Published Group Intra- Group Intra- Group Intra- In € millions (rounded) Life P&C functions Group Total Life P&C functions Group Total Life P&C functions Group Total Gross written premiums 1 467 1 2
Slide 24: Appendix B: Consolidated balance sheet - Assets
Appendix B: Consolidated balance sheet - Assets In € millions (rounded) Q1 2014 Q4 2013 Intangible assets 2 291 2 307 Goodwill 788 788 Value of business acquired 1 373 1 393 Other intangible assets 130 126 Tangible assets 540 544 Insurance business investments 22 171 22 272 Real estate investments 8
Slide 25: Appendix B: Liabilities & shareholders' equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity In € millions (rounded) Q1 2014 Q4 2013 Group shareholders’ equity 5 123 4 940 Non-controlling interest 39 40 Total shareholders’ equity 5 162 4 980 Financial debt 1 910 2 053 Subordinated debt 1 401 1 379 Real estate financ
Slide 26: Appendix B: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows In € millions (rounded) Q1 2014 Q1 2013 Cash and cash equivalents at the beginning of the period 1 514 1 466 Net cash flows from operations -101 140 Cash flow from changes in scope of consolidation -25 0 Cash flow from acquisitions and sale of financ
Slide 27: Appendix B: Net contract liabilities by segment
Appendix B: Net contract liabilities by segment (published) Net liabilities Life & P&C In € millions (rounded) +0.4% 23 197 23 299 49% 50% SCOR Global Life SCOR Global P&C 51% 50% 31/12/2013 31/03/2014 27
Slide 28: Appendix C: Calculations of EPS, book value per share and ROE
Appendix C: Calculations of EPS, book value per share and ROE, published Earnings per share calculation In € millions (rounded) Q1 2014 Q1 2013 Post-tax Return on Equity (ROE) Group net income1) (A) 135 111 Average number of opening shares (1) 192 757 911 192 384 219 In € millions (rounded) Q1 2014
Slide 29: Appendix D: Reconciliation of total expenses to cost ratio
Appendix D: Reconciliation of total expenses to cost ratio Q1 2013 Q1 2013 In € millions (rounded) Q1 2014 Pro-forma Published Total expenses as per Profit & Loss account -141 -144 -138 ULAE (Unallocated Loss Adjustment Expenses) -10 -8 -8 Total management expenses -151 -152 -146 Investment manageme
Slide 30: Appendix E: Calculation of P&C combined ratio
Appendix E: Calculation of P&C combined ratio In € millions (rounded) Q1 2014 Q1 2013 Gross earned premiums1) 1 111 1 150 Ceded earned premiums2) -103 -104 Net earned premiums (A) 1 008 1 046 Gross benefits and claims paid -641 -689 Ceded claims 44 43 Total net claims (B) -597 -646 Loss ratio (Net a
Slide 31: Appendix E: Normalized net combined ratio
Appendix E: Normalized net combined ratio QTD YTD 1 2 3 4 5 1+2+3+5 1 2 3 4 5 1+2+3+5 Cat ratio Cat ratio Published delta from Normalized Published delta from Normalized Reserve Reserve combined One off Cat ratio budget (6% combined combined One off Cat ratio budget (6% combined release release rati
Slide 32: Appendix E: SCOR Global P&C renewal definitions
Appendix E: SCOR Global P&C renewal definitions Total premiums up for renewal: premiums of all Treaty contracts incepting in April 2013 at the exchange rate as at December 31, 2013 Cancelled/restructured: client or SCOR decided to cancel the business/programs and/or to change their programs (e.g
Slide 33: Appendix F: Calculation of the life technical margin
Appendix F: Calculation of the life technical margin Q1 2013 In € millions (rounded) Q1 2014 Q1 2013 published pro-forma Gross earned premiums1) 1 453 1 403 1 190 Ceded earned premiums2) -143 -140 -111 Net earned premiums (A) 1 310 1 263 1 079 Net technical result 55 60 47 Interests on deposits 40 3
Slide 34: Appendix G: 3rd party assets details
Appendix G: 3rd party assets details From Q1 2014 SCOR will report 3rd party assets separately from SCOR’s Invested assets. The below table shows the reconciliation with previously disclosed invested assets positions In € millions (rounded) Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q
Slide 35: Appendix G: Investment portfolio asset allocation
Appendix G: Investment portfolio1) asset allocation as of 31/03/2014 Tactical asset allocation In % (rounded) Optimal Dynamics SAA2) 8% 8% 9% 10% 10% 8% Cash 12% 11% 13% 80% 79% 79% 77% 78% Column2 Fixed Income Min Max 77% 75% 74% 74% 4% 4% 10% 10% 5% 10% 9% 4% 5% Short‐term investments 5.03) - Gove
Slide 36: Appendix G: Details of total investment portfolio
Appendix G: Details of total investment portfolio Development of total investments1) since Q1 2012 In € millions (rounded) 23 086 22 731 21 890 22 194 22 138 22 111 21 402 21 591 21 384 8 181 8 192 8 392 8 266 8 141 8 097 8 302 8 379 7 933 13 928 13 997 14 014 14 905 14 539 13 100 13 212 13 498 13 4
Slide 37: Appendix G: Reconciliation of IFRS asset classification to IR presentation
Appendix G: Reconciliation of IFRS asset classification to IR presentation as of 31/03/2013 In € millions (rounded) SGI classification Total Funds Total Fixed Real Other Total Accrued Technical IFRS Cash Loans Equities invested withheld by 1) IFRS income estate investments investments interest items
Slide 38: Appendix G: Reconciliation of total insurance business investments to invested assets
Appendix G: Reconciliation of total insurance business investments, cash and cash equivalents to invested assets In € millions (rounded) Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Total insurance business investments, cash and cash 22 124 22 026 22 338 22 580 22 462 22 0
Slide 39: Appendix G: Details of investment returns
Appendix G: Details of investment returns1) In € millions (rounded) QTD 2013 2013 2014 Annualized returns: Q1 Q2 Q3 Q4 FY Q1 Total net investment income2) 112 120 152 128 512 132 Average investments3) 21 604 21 190 21 136 22 305 21 559 22 260 Return on Investments (ROI) 2.1% 2.3% 2.9% 2.3% 2.4% 2.4%
Slide 40: Appendix G: Investment income development
Appendix G: Investment income development QTD 2013 2013 2014 In € millions (rounded) Q1 Q2 Q3 Q4 FY Q1 Investment revenues on invested assets 64 91 71 80 306 77 Realized gains/losses on fixed income 40 13 11 17 81 9 Realized gains/losses on loans 0 0 0 0 1 1 Realized gains/losses on equities 6 4 4 4
Slide 41: Appendix G: Government bond portfolio
Appendix G: Government bond portfolio as of 31/03/2014 By region Top exposures In %. Total € 4.4 billion In € millions (rounded) Q1 2014 USA 1 676 UK 799 Germany 340 18% 18% Canada 337 France 258 EU (Non‐UK) Supranational1) 237 Australia 163 North America Japan 118 18% Republic of Korea 91 UK Singap
Slide 42: Appendix G: Corporate bond portfolio
Appendix G: Corporate bond portfolio as of 31/03/2014 By rating By sector/type In %. Total € 4.5 billion 1%2% In € millions (rounded) Q1 2014 In % 9% Consumer, Non-cyclical 975 22% 19% Financial 867 19% AAA 468 11% Communications AA Industrial 443 10% Consumer, Cyclical 441 10% 24% A 400 9% Energy B
Slide 43: Appendix G: Corporate bond portfolio by seniority
Appendix G: Corporate bond portfolio as of 31/03/2014 By seniority Market to In € millions (rounded) AAA AA A BBB Other1) Total Book Value % Seniority Senior 106 827 1 999 914 332 4 177 102% Subordinated 0 0 7 72 5 85 105% Hybrid 0 0 12 96 94 202 107% Other 0 5 6 2 0 13 97% Total corporate bond port
Slide 44: Appendix G: Financials corporate bond portfolio
Appendix G: “Financials” corporate bond portfolio as of 31/03/2014 By rating In %. Total € 0.9 billion By sector In € millions (rounded) By seniority In %. Total € 0.9 billion <1%1) <1% 11% Q1 2014 In % 18% AAA 20% Bank 685 79% Senior AA A Real estate 67 8% 9% Subordinated 28% BBB Insurance 63 7% 2)
Slide 45: Appendix G: Banks financial corporate bond portfolio
Appendix G: “Banks” financial corporate bond portfolio as of 31/03/2014 By rating By seniority 1) In %. Total € 0.7 billion 11% <1% In %. Total € 0.7 billion 16% AAA 25% AA 11% Senior A 26% Subordinated BBB Hybrid2) <BBB 73% NR 37% By region Top 10 exposures3) In € millions (rounded) In %. Total € 0
Slide 46: Appendix G: Structured & securitized product portfolio
Appendix G: Structured & securitized product portfolio as of 31/03/2014 Market to In € millions (rounded) AAA AA A BBB Other1) Total Book Value % ABS 15 9 2 0 0 26 103% CLO 64 1 0 0 4 68 100% CDO 16 0 33 0 8 57 93% MBS CMO 0 0 1 2 16 19 102% Non-agency CMBS 19 3 0 0 2 23 107% Non-agency RMBS 169 3 1
Slide 47: Appendix G: Loans portfolio
Appendix G: Loans portfolio as of 31/03/2014 In € millions (rounded) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Infrastructure loans 0 0 20 49 64 Real estate loans 45 47 65 92 88 Corporate and leveraged loans1) 201 198 212 244 251 Total 246 245 297 385 402 1) Corporate and leveraged loans exclude 3rd p
Slide 48: Appendix G: Equity portfolio
Appendix G: Equity portfolio as of 31/03/2014 In € millions (rounded) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Common shares by underlying asset In % (rounded) Total € 0.3 billion Common shares 505 457 312 288 264 2% 13% 18% Convex strategies 75 72 75 79 38 Convertible bonds 52 57 71 66 123 Preferred
Slide 49: Appendix G: Real estate portfolio
Appendix G: Real estate portfolio as of 31/03/2014 In € millions (rounded) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Real estate securities and funds 119 123 121 126 128 Direct real estate net of debt and including URGL1) 514 619 603 612 622 Direct real estate at amortized cost 624 784 765 758 757 Rea
Slide 50: Appendix G: Other investments
Appendix G: Other investments as of 31/03/2014 In € millions (rounded) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Alternative investments 127 120 113 109 109 Non-listed equities 62 62 62 67 67 Commodities 36 24 25 0 0 Infrastructure funds 46 45 45 47 47 Private equity funds 12 12 13 13 13 Insurance Lin
Slide 51: Appendix G: Unrealized gains & losses development
Appendix G: Unrealized gains & losses development In € millions (rounded) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Variance YTD Fixed income1) 194 21 52 9 95 87 Loans1) 6 5 0 1 1 0 Equities -31 -1 23 35 29 -7 Real estate2) 108 103 100 110 115 5 Other investments -2 1 5 6 8 2 Total 274 129 181 162 248
Slide 52: Appendix G: Reconciliation of asset revaluation reserve
Appendix G: Reconciliation of asset revaluation reserve In € millions (rounded) 31/12/2013 31/03/2014 Variance YTD Fixed income URGL 9 95 87 Of which: Government bonds & assimilated1) -52 -20 32 Covered & agency MBS 3 21 17 Corporate bonds 59 95 36 Structured & securitized products -2 0 2 Loans 1 1
Slide 53: Appendix H: Debt structure
Appendix H: Debt structure as of 31/03/2014 Original Current amount Floating/ Type amount outstanding (book Issue date Maturity Coupon + step-up fixed rate issued value) Subordinated US $ 100 30 years First 10 years: 3-month Libor rate floating rate notes US $ 21 million 7 June 1999 Floating million
Slide 54: Appendix I: SCOR's rating has improved dramatically since 2005
Appendix I: SCOR’s rating has improved dramatically since 2005 Evolution of SCOR’s S&P rating Evolution of SCOR’s Moody’s rating A+ + A1 Strong Strong A + A2 + A- + A3 + Secure Secure + Baa1 + BBB+ A+ A1 Good Good BBB Baa2 + Positive Outlook Stable Outlook BBB- Baa3 2005 2006 2007 2008 2009 2010 201
Slide 55: Appendix J: SCOR's listing information
Appendix J: SCOR’s listing information Euronext Paris listing SIX Swiss Exchange listing ADR programme SCOR’s shares are publicly traded SCOR’s shares are publicly traded SCOR’s ADR shares trade on the on the Eurolist by the Euronext on the SIX Swiss Exchange OTC market Paris stock market (formerly
Slide 56: Appendix K: Strength of SCOR's strategy recognized by industry experts
Appendix K: The strength of the SCOR group’s strategy is recognized by industry experts 2011 2012 2013 2014 SCOR Global P&C: best SCOR: “Reinsurance reinsurance company SCOR: “Reinsurance Company CEO team for Motor and Company of the Year“ Denis Kessler : “Insurance Hall of Fame of the Year“ Faculta