Scor SE · EURONEXT:SCR
Scor — Q3 2014 Earnings Presentation
55 slides from Scor's earnings presentation, 2014
Slide 1: SCOR Group Q3 2014 results
SCOR GROUP Q3 2014 results For the first nine months of 2014, SCOR records a net income of EUR 377 million, up 25% from 2013
Slide 2: Notice: Cautionary statement
Notice Cautionary statement 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
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 Unaudited published Q3 2013 accounts The acquisition of Generali U.S. occurred on 1 October 2013. Consequently, the unaudited published Q3 2013 accounts do not include results generated by Generali
Slide 4: SCOR produces solid results in the first nine months of 2014
SCOR produces solid results in the first nine months of 2014, leveraging on its unique value proposition as a nimble, Tier 1 global reinsurer Solid net income of Very strong solvency is EUR 377 million maintained enabling consistent thanks to strong core earnings from both Life and P&C dividend poli
Slide 5: SCOR delivers strong financial results for the first nine months of 2014
SCOR delivers strong financial results for the first nine months of 2014 Gross written premium growth of 13.6%1) at constant exchange rates (11.2% at current FX) in Q3 2014 YTD compared to Q3 2013 YTD, driven by SGL’s financial solutions growth in Asian and Latin American countries, by the General
Slide 6: SCOR Q3 2014 YTD financial details
SCOR Q3 2014 YTD financial details Q3 2013 Variation at Variation at Q3 2013 Variation at Variation at in € millions (rounded) Q3 2014 Published current FX constant FX Pro-forma current FX constant FX Gross written premiums 8 382 7 539 11.2% 13.6% 8 184 2.4% 4.6% Net earned premiums 7 341 6 659 10.2
Slide 7: Very strong shareholders' equity development, book value per share at €29.36
SCOR records very strong shareholder’s equity development with a book value per share at € 29.36 after distribution of € 243 million in cash dividends Q3 2014 YTD development In € millions (rounded) 21.2%1) Financial leverage decreased by 1.2 pts 20.0%1) 1 387 1 387 SCOR’s financial 277 leverage s
Slide 8: Cash & liquidity position in line with Optimal Dynamics assumptions
Cash & liquidity position in line with “Optimal Dynamics” assumptions, with operational cash flows impacted by one-off items Strong recovery of operating cash flow in Q3 2014 after a series of timing / one-off impacts in H1: Q3 2014 Q3 2013 In € millions (rounded) Excellent SCOR Global P&C Q3 QT
Slide 9: SCOR Global P&C delivers excellent technical profitability
In Q3 2014 YTD, SCOR Global P&C delivers excellent technical profitability, with a net combined ratio of 91.6% Gross written premiums Q3 2014 YTD gross written premium growth In € millions +0.9% stands at 3.4% at constant exchange rate (+ 0.9% at current exchange rates) with expected +3.4% profita
Slide 10: SCOR Global Life confirms a strong technical performance in Q3 2014 YTD
SCOR Global Life confirms a strong technical performance in Q3 2014 YTD Gross written premiums In € millions (rounded) +3.7% Gross written premium growth of 5.6% at constant exchange rates compared to Q3 2013 +5.6% YTD pro-forma (+3.7% at current FX) (at constant 4 537 exchange 4 703 Strong Q3 s
Slide 11: SCOR Global Investments delivers a return on invested assets of 2.9%
SCOR Global Investments delivers a return on invested assets of 2.9% Total invested assets1): € 15.5 billion at 30/09/2014 Other investments2) 3% Cash 8% Liquidity 10% In % (rounded) Real estate 5% Total investments of € 23.8 billion, with total invested Short-term Equities 3% investments assets o
Slide 12: Reinsurance industry headwinds
As expected, the environment remains uncertain and the macroeconomic environment has worsened since SCOR’s IR Day Reinsurance industry headwinds Macroeconomic Regulatory Increased Evolving uncertainties evolutions Supply demand (e.g.: alternative capital) patterns Equity indices continue to … with c
Slide 13: SCOR's business model fits well with today's environment
SCOR’s business model fits well with today’s environment Limited impact from low Stability provided by Resilience of the RoIA1) yield environment thanks SCOR’s Life engine, with high upside in case to limited exposure to which is not impacted by of faster than expected long-tail business prici
Slide 14: Capacity to absorb shocks while rewarding shareholders with over €1.5bn of dividends
SCOR has demonstrated the capacity to absorb shocks whilst rewarding its shareholders with more than €1.5bn of dividends since 2005 SCOR’s shareholders’ equity since 2006 and Dividend Per Share paid Nov‐13: S&P “A+” positive outlook Shareholders equity in € millions Jun‐12: S&P “A+” Jun‐13: Acquisit
Slide 15: 2014 forthcoming events and Investor Relations contacts
2014 forthcoming events and Investor Relations contacts Forthcoming scheduled events 11 February 2015 5 March 2015 SCOR Global P&C: SCOR Group: 2015 January Renewals Q4 2014 results In 2014 SCOR is scheduled to attend the following investor conferences Citi, Singapore (November 19th) Société
Slide 16: 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 16
Slide 17: 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 18: Appendix A: Consolidated statement of income, Q3 2014 YTD
Appendix A: Consolidated statement of income, Q3 2014 YTD Q3 2013 Q3 2013 In € millions (rounded) Q3 2014 Pro-forma Published Gross written premiums 8 382 8 184 7 539 Change in gross unearned premiums -217 -73 -73 Gross benefits and claims paid -5 733 -5 810 -5 293 Gross commissions on earned premiu
Slide 19: Appendix A: Consolidated statement of income by segment, Q3 2014 YTD
Appendix A: Consolidated statement of income by segment for Q3 2014 YTD Q3 2013 Q3 2013 Q3 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 4 703
Slide 20: Appendix A: SCOR Q3 2014 QTD financial details
Appendix A: SCOR Q3 2014 QTD financial details Q3 2013 Variation at Variation at Q3 2013 Variation at Variation at in € millions (rounded) Q3 2014 Published current FX constant FX Pro-forma current FX constant FX Gross written premiums 2 955 2 555 15.7% 15.7% 2 770 6.7% 6.7% Net earned premiums 2 56
Slide 21: Appendix A: Consolidated statement of income, Q3 2014 QTD
Appendix A: Consolidated statement of income, Q3 2014 QTD Q3 2013 Q3 2013 In € millions (rounded) Q3 2014 Pro-forma Published Gross written premiums 2 955 2 770 2 555 Change in gross unearned premiums -73 -45 -45 Gross benefits and claims paid -1 974 -1 970 -1 798 Gross commissions on earned premium
Slide 22: Appendix A: Consolidated statement of income by segment, Q3 2014 QTD
Appendix A: Consolidated statement of income by segment for Q3 2014 QTD Q3 2013 Q3 2013 Q3 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 1 676
Slide 23: Appendix B: Consolidated balance sheet - Assets
Appendix B: Consolidated balance sheet - Assets In € millions (rounded) Q3 2014 Q4 2013 Intangible assets 2 348 2 307 Goodwill 788 788 Value of business acquired 1 423 1 393 Other intangible assets 137 126 Tangible assets 544 544 Insurance business investments 23 242 22 272 Real estate investments 8
Slide 24: Appendix B: Consolidated balance sheet - Liabilities & shareholders' equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity In € millions (rounded) Q3 2014 Q4 2013 Group shareholders’ equity 5 465 4 940 Non-controlling interest 36 40 Total shareholders’ equity 5 501 4 980 Financial debt 1 869 2 053 Subordinated debt 1 387 1 379 Real estate financ
Slide 25: Appendix B: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows In € millions (rounded) Q3 2014 Q3 2013 Cash and cash equivalents at the beginning of the period 1 514 1 466 Net cash flows from operations 470 722 Cash flow from changes in scope of consolidation -25 4 Cash flow from acquisitions and sale of financi
Slide 26: Appendix B: Net contract liabilities by segment
Appendix B: Net contract liabilities by segment (published) Net liabilities Life & P&C In € millions (rounded) +4.7% 24 285 23 197 50% 49% SCOR Global Life SCOR Global P&C 51% 50% 31/12/2013 30/09/2014 26
Slide 27: 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 Q3 2014 Q3 2013 In € millions (rounded) YTD YTD Post-tax Return on Equity (ROE) Group net income1) (A) 377 302 Q3 2014 Q3 2013 Average number of opening shares (1) 192 757 911 192 384 219 In € mil
Slide 28: Appendix D: Reconciliation of total expenses to cost ratio
Appendix D: Reconciliation of total expenses to cost ratio Q3 2013 YTD Q3 2013 YTD In € millions (rounded) Q3 2014 YTD Pro-forma Published Total expenses as per Profit & Loss account -441 -427 -415 ULAE (Unallocated Loss Adjustment Expenses) -30 -25 -24 Total management expenses -471 -452 -439 Inves
Slide 29: Appendix E: Calculation of P&C combined ratio
Appendix E: Calculation of P&C combined ratio In € millions (rounded) Q3 2014 YTD Q3 2013 YTD Gross earned premiums1) 3 492 3 575 Ceded earned premiums2) -354 -392 Net earned premiums (A) 3 138 3 183 Gross benefits and claims paid -2 064 -2 227 Ceded claims 148 176 Total net claims (B) -1 916 -2 051
Slide 30: 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 31: Appendix F: Calculation of the Life technical margin
Appendix F: Calculation of the Life technical margin Q3 2013 YTD Q3 2013 YTD In € millions (rounded) Q3 2014 YTD pro-forma published Gross earned premiums1) 4 673 4 536 3 891 Ceded earned premiums2) -470 -502 -415 Net earned premiums (A) 4 203 4 034 3 476 Net technical result 185 183 142 Interests o
Slide 32: Appendix G: 3rd party invested assets details
Appendix G: 3rd party invested assets details From Q1 2014 SCOR reports 3rd party assets separately from SCOR’s invested assets. The below table shows the reconciliation with previously disclosed invested asset positions In € millions (rounded) Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 20
Slide 33: Appendix G: Investment portfolio asset allocation as at 30/09/2014
Appendix G: Investment portfolio1) asset allocation as at 30/09/2014 Tactical asset allocation In % (rounded) “Optimal Dynamics” SAA2) 9% 10% 11% 10% 8% 9% 8% Cash 12% 13% 80% 77% 78% 77% 78 % Column2 Min Max 77% 74% 2% 2% Fixed Income 74% 74% 4% 4% 10% 9% 4% 5% Short‐term investments 5.0%3) - 4% Go
Slide 34: Appendix G: Invested assets (excluding cash) by currency
Appendix G: Invested assets (excluding cash) by currency as at 30/09/2014 Total invested assets (excluding cash) as at 30/09/2014, in % (rounded) Non EUR-denominated Other assets 66% CAD 6% 5% GBP 11% USD 44% EUR 34% 34
Slide 35: Appendix G: Details of total investment portfolio
Appendix G: Details of total investment portfolio Development of total investments1) since Q3 2012 23 824 In € millions (rounded) 23 086 22 954 22 731 21 890 22 194 22 138 22 111 21 384 8 364 8 181 8 192 8 233 8 392 8 266 8 141 8 097 7 933 14 905 14 539 14 721 15 460 13 498 13 928 13 997 13 451 14 0
Slide 36: Appendix G: Reconciliation of IFRS asset classification to IR presentation
Appendix G: Reconciliation of IFRS asset classification to IR presentation as at 30/09/2014 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 37: 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 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Total insurance business investments, cash and cash 22 462 22 013 22 648 23 785 23 452 23 783 24 630 equiva
Slide 38: Appendix G: Details of investment returns
Appendix G: Details of investment returns1) In € millions (rounded) 2013 2013 2014 Annualized returns: Q1 Q2 Q3 Q3 YTD Q4 FY Q1 Q2 Q3 Q3 YTD Total net investment income2)3) 111 120 151 383 127 509 132 149 140 421 Average investments4) 21 604 21 190 21 136 21 310 22 305 21 559 22 260 22 185 22 707 22
Slide 39: Appendix G: Investment income development
Appendix G: Investment income development 2013 2013 2014 In € millions (rounded) Q1 Q2 Q3 Q3 YTD Q4 FY Q1 Q2 Q3 Q3 YTD Investment revenues on invested assets2) 63 91 70 224 79 303 77 88 79 244 Realized gains/losses on fixed income 40 13 11 64 17 81 9 30 13 53 Realized gains/losses on loans 0 0 0 1 0
Slide 40: Appendix G: Government bond portfolio as at 30/09/2014
Appendix G: Government bond portfolio as at 30/09/2014 By region Top exposures In %. Total € 4.8 billion In € millions (rounded) Q3 2014 USA 1 891 UK 645 18% Canada 400 20% Germany 310 Supranational1) 273 EU (Non‐UK) France 244 North America Japan 186 14% Australia 176 UK Republic of Korea 133 Other
Slide 41: Appendix G: Corporate bond portfolio as at 30/09/2014
Appendix G: Corporate bond portfolio as at 30/09/2014 By rating By sector/type In %. Total € 5.0 billion 1% 3% In € millions (rounded) Q3 2014 In % 8% Consumer, Non-cyclical 1 143 23% 20% AAA Financial 850 17% Industrial 554 11% AA Communications 545 11% 23% Energy 469 9% A Consumer, Cyclical 454 9%
Slide 42: Appendix G: Corporate bond portfolio by seniority
Appendix G: Corporate bond portfolio as at 30/09/2014 By seniority Market to Book In € millions (rounded) AAA AA A BBB Other1) Total Value % Seniority Senior 147 1 009 2 248 966 321 4 692 102% Subordinated 0 1 10 74 7 92 105% Hybrid 0 0 10 90 117 216 106% Other 0 5 4 2 0 11 99% Total corporate bond
Slide 43: Appendix G: Financials corporate bond portfolio as at 30/09/2014
Appendix G: “Financials” corporate bond portfolio as at 30/09/2014 By rating In %. Total € 0.9 billion By sector In € millions (rounded) By seniority In %. Total € 0.9 billion 2% <1% Q3 2014 In % <1% 14% AAA 19% Senior Bank 680 80% 18% AA Real estate 71 8% A Subordinated 10% 24% BBB Insurance 53 6%
Slide 44: Appendix G: Banks financial corporate bond portfolio as at 30/09/2014
Appendix G: “Banks” financial corporate bond portfolio as at 30/09/2014 By rating By seniority In %. Total € 0.7 billion <1%1) In %. Total € 0.7 billion 15% 16% AAA 24% AA 12% Senior A 19% Subordinated BBB Hybrid2) <BBB 72% NR 41% By region Top 10 exposures3) In %. Total € 0.7 billion In € millions
Slide 45: Appendix G: Structured & securitized product portfolio
Appendix G: Structured & securitized product portfolio as at 30/09/2014 Market to In € millions (rounded) AAA AA A BBB Other1) Total Book Value % ABS 8 9 2 0 0 19 104% CLO 114 0 0 0 0 114 100% CDO 16 0 32 0 6 55 92% MBS CMO 0 0 1 1 16 18 100% Non-agency CMBS 18 3 0 0 2 23 105% Non-agency RMBS 129 3
Slide 46: Appendix G: Loans portfolio as at 30/09/2014
Appendix G: Loans portfolio as at 30/09/2014 In € millions (rounded) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Infrastructure loans 20 49 64 77 63 Real estate loans 45 47 65 92 88 118 159 Corporate and leveraged loans1) 201 198 212 244 251 247 273 Total 246 245 297 385 402 442 495 1) C
Slide 47: Appendix G: Equity portfolio as at 30/09/2014
Appendix G: Equity portfolio as at 30/09/2014 In € millions (rounded) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Common shares 505 457 312 287 264 281 287 Convex strategies 75 72 75 79 38 36 36 Convertible bonds 52 57 71 66 123 130 143 Preferred shares 20 20 19 18 16 16 14 Total 653 606
Slide 48: Appendix G: Real estate portfolio as at 30/09/2014
Appendix G: Real estate portfolio as at 30/09/2014 In € millions (rounded) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Real estate securities and funds 119 123 121 126 128 127 132 Direct real estate net of debt and 514 619 603 612 622 634 603 including URGL1) Direct real estate at amorti
Slide 49: Appendix G: Other investments as at 30/09/2014
Appendix G: Other investments as at 30/09/2014 In € millions (rounded) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Alternative investments 127 120 113 109 109 107 111 Non-listed equities 62 62 62 67 67 65 65 Commodities 36 24 25 0 0 0 0 Infrastructure funds 46 45 45 47 47 47 49 Private e
Slide 50: Appendix G: Unrealized gains & losses development
Appendix G: Unrealized gains & losses development Variance In € millions (rounded) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 YTD Fixed income1) 194 21 52 9 95 172 166 157 Loans1) 6 5 0 1 1 0 2 1 Equities -31 -1 23 35 29 38 30 -5 Real estate2) 108 103 100 110 115 118 123 13 Other invest
Slide 51: Appendix G: Reconciliation of asset revaluation reserve
Appendix G: Reconciliation of asset revaluation reserve In € millions (rounded) 31/12/2013 30/09/2014 Variance YTD Fixed income URGL 9 166 157 Of which: Government bonds & assimilated1) -52 12 64 Covered & agency MBS 3 52 49 Corporate bonds 59 102 44 Structured & securitized products -2 -1 Loans 1 2
Slide 52: Appendix H: Debt structure as of 30/09/2014
Appendix H: Debt structure as of 30/09/2014 Original Current amount Floating/ fixed Type amount outstanding (book Issue date Maturity Coupon + step-up 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 milli
Slide 53: 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 Baa2 + BBB Positive Outlook Stable Outlook Baa3 BBB- 2005 2006 2007 2008 2009 2010 20
Slide 54: 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 55: Appendix K: 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