Scor SE · EURONEXT:SCR
Scor — Q1 2012 Earnings Presentation
48 slides from Scor's earnings presentation, 2012
Slide 1: SCOR Group Q1 2012 results
SCOR GROUP Q1 2012 results SCOR records a net result of € 104 million, confirming the dynamism of its franchise
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 2011 financial data: published accounts and pro-forma information
In this presentation two sets of 2011 financial data are used: published accounts & pro-forma information Audited 2011 published annual accounts: The audited 2011 published annual accounts have been prepared to reflect the acquisition of Transamerica Re from the acquisition date of 9th August 2011
Slide 4: SCOR delivers an excellent start of the year, confirming the dynamism of its franchise
SCOR delivers an excellent start of the year, confirming the dynamism of its franchise SCOR continues to move forward in the reinsurance industry Attains strong financials, with ROE of 9.7%, in line with Strong Momentum targets, supported by significant premium growth (+13% on Controlled pro-forma
Slide 5: Q1 2012 financial highlights
Q1 2012 financial highlights Q1 2012 gross written premium growth of 13.2% pro-forma (39.8% published), driven by robust SCOR Global P&C renewals and by SCOR Global Life’s growth from both new and existing clients Strong Q1 2012 net income at € 104 million with a 9.7% return on equity (ROE) Ro
Slide 6: SCOR Q1 2012 financial details
SCOR Q1 2012 financial details in €m (rounded) Q1 2011 Variation at Variation at Q1 2011 Variation at Variation at Q1 2012 published5) current FX constant FX pro-forma5) current FX constant FX Gross written premiums (GWP) 2 327 1 665 39.8% 35.3% 2 056 13.2% 9.6% Net earned premiums 2 016 1 446 39.4%
Slide 7: Shareholders' equity development
Shareholders’ equity development 2012 development 17.8%1) Financial leverage stable 17.5%1) in €m (rounded) 1 015 992 +104 +107 -77 -18 Treasury stock -11 Other -7 SCOR financial leverage stands at 4 410 4410 4514 4544 4537 4 526 17.5%, with peer Total shareholders’ equity group at around 20%5) 4)
Slide 8: €110 million net operating cash flow in Q1 2012; liquidity at € 2.4 billion
€ 110 million of net operating cash flow generated during Q1 2012 despite payment of 2011 Cat events; liquidity position stands at € 2.4 billion in €m (rounded) 2012 Business model continues to deliver a Cash and cash equivalents at 1 January 1 281 robust operating cash flow of € 110 million as of
Slide 9: SCOR Global P&C meets SM V1.1 strategic plan objectives in Q1 2012
In Q1 2012 SCOR Global P&C meets SM V1.1 strategic plan objectives, combining healthy growth with very good technical profitability Gross written premiums in €m Q1 2012 top line positively impacted by +20.8% strong 1/1 renewals and volume seasonality, reflecting last year’s April & July renewals;
Slide 10: April renewals confirm SCOR Global P&C is well positioned
April renewals confirm that SCOR Global P&C is very well positioned in the markets… Premiums renewed in April1) in €m, rounded -6% -1% +10% +2% +2% +4% +11% 11% of business (Treaty P&C + Specialty +7 +11 -19 +32 +8 Lines) up for renewal: primarily in Japan, India, -3 South Korea and the U.S. Of wh
Slide 11: Strong growth with active portfolio management, in line with Strong Momentum V1.1
…combining strong growth with active portfolio management and progressing in line with Strong Momentum V1.1 targets Speciality Lines flat (€ 102 million renewed)1) Treaty P&C +16% (€ 262 million renewed)1) in €m, rounded in €m, rounded 29 109 Agriculture -17% Japan +25% 24 137 Credit & 27 -6% 31 Sur
Slide 12: SCOR Global Life delivers a solid Q1 2012 technical performance
SCOR Global Life delivers a solid Q1 2012 technical performance Gross written premiums in €m (rounded) +6.6% Solid 6.6% growth compared to Q1 2011 pro- forma (+65% on published basis) with 1 176 1 103 significant increases in emerging markets (Latin +3.0% 411 TaRe America and Asia/Australia); Cana
Slide 13: SCOR Global Life MCEV reaches € 3.3 billion in 2011
SCOR Global Life MCEV1) reaches € 3.3 billion in 2011, driven by gain on purchase of TaRe and MCEV earnings: + 50% compared to 2010 Total MCEV earnings of € 232.8 m (10.5%)3) 3 319.3 After tax, in €m (rounded) ‐113.7 111.9 346.5 414.4 Operating MCEV 1 781.5 2 210.9 530.0 earnings of ‐180.7 2) 15.7%3
Slide 14: MCEV fully captures the strong economic value of the Life business
MCEV fully captures the strong economic value of the Life business Value of New Business1) soars The value of new business more than doubles between in €m (rounded) 124 2010 and 2011, driven by significant organic growth, the 57 +118% implementation of Strong Momentum initiatives (e.g. UK Longevit
Slide 15: SCOR Global Life produces significant free cashflow
SCOR Global Life produces significant free cashflow, demonstrating the strength and maturity of the franchise 2011 free surplus evolution Free surplus in €m (rounded) 27.8 962.9 ‐229.9 95.0 29.7 260.0 ‐ 180.7 2 599.9 550.4 552.3 47.6 Endogenous Free Free surplus 1 4 Surplus generation utilisation 3
Slide 16: SCOR Global Investments achieves a return on invested assets of 2.9%
SCOR Global Investments achieves a return on invested assets of 2.9% in a challenging environment, starting to prudently re-risk its invested assets Total invested assets1): €13.1 billion at 31/03/2012 Other investments2) 2% Real estate 4% Cash 8% Liquidity 18% Total investments of € 21.4 billion,
Slide 17: 2012 forthcoming events
2012 forthcoming events Forthcoming scheduled disclosures 27 July 2012 6 September 2012 14 November 2012 SCOR Group: SCOR Group: SCOR Group: H1 2012 results IR Day Q3 2012 results In 2012 SCOR is scheduled to attend the following investor conferences UBS Global Financial Services, New York (
Slide 18: Appendices
APPENDICES Appendix A Key figures for Q1 2012 Appendix B Balance sheet & Cash flow statement Appendix C Calculations of EPS, Book value per share and ROE Appendix D Net liabilities by segment Appendix E Details of invested assets Appendix F SCOR’s impairment policy Appendix G Reconciliation of IFRS
Slide 19: Appendix A: Consolidated statement of income, Q1 2012
Appendix A: Consolidated statement of income, Q1 2012 in €m (rounded) Q1 2011 Q1 2011 Q1 2012 Pro-forma Published Gross written premiums 2 327 2 056 1 665 Change in unearned premiums -82 -96 -96 Gross Claims expenses -1 501 -1 653 -1 387 Gross commissions earned -486 -417 -364 Gross Technical result
Slide 20: Appendix A: Consolidated statement of income by segment for Q1 2012
Appendix A: Consolidated statement of income by segment for Q1 2012 Q1 2011 Q1 2011 Q1 2012 Pro-forma Published in €m (rounded) Group Intra- Group Intra- Group Intra- Life P&C Total Life P&C Total Life P&C Total functions Group functions Group functions Group Gross written premiums 1 176 1 151 0 0 2
Slide 21: Appendix A: Calculation of P&C Combined Ratio
Appendix A: Calculation of P&C Combined Ratio in €m (rounded) Q1 2012 Q1 2011 P&C P&C Gross earned premiums 1 066 863 Retroceded earned premiums -100 -72 Net earned premiums (A) 966 791 Expenses for claims and policy benefits -640 -893 Retroceded claims 29 45 Total claims (B) -611 -848 Loss ratio (N
Slide 22: Appendix A: Calculation of the Life Technical, Investment, Expense and Operating Margins
Appendix A: Calculation of the Life Technical, Investment, Expense and Operating Margins Q1 2011 Q1 2011 in €m (rounded) Q1 2012 Pro-forma Published SGL SGL SGL Gross earned premiums 1 179 1 097 706 Retroceded earned premiums -129 -106 -51 Net earned premiums (A) 1 050 991 655 Net Technical Result 3
Slide 23: Appendix A: Reconciliation of total expenses to cost ratio
Appendix A: Reconciliation of total expenses to cost ratio Q1 2011 Q1 2011 in €m (rounded) Q1 2012 Pro-forma Published Total Expenses as per Profit & Loss account -135 -119 -104 ULAE (Unallocated Loss Adjustment Expenses) -8 -7 -7 Total management expenses -143 -126 -111 Investment management expens
Slide 24: Appendix B: Consolidated balance sheet – Assets
Appendix B: Consolidated balance sheet – Assets in €m (rounded) Q1 2012 Q4 2011 Intangible assets 1 957 1 969 Goodwill 788 788 Value of purchased insurance portfolios 1 055 1 069 Other intangible assets 114 112 Tangible assets 552 515 Insurance business investments 20 708 20 148 Investment property
Slide 25: Appendix B: Consolidated balance sheet – Liabilities & shareholders' equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity in €m (rounded) Q1 2012 Q4 2011 Group shareholders’ equity 4 519 4 403 Minority interests 7 7 Total shareholders’ equity 4 526 4 410 Financial liabilities 1 459 1 425 Subordinated debt 1 015 992 Financial debt to entities in
Slide 26: Appendix B: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows in €m (rounded) Q1 2012 Q1 2011 CASH AND CASH EQUIVALENTS AT JANUARY 1 1 281 1 007 NET CASH FLOWS FROM OPERATING ACTIVITIES 110 201 Cash flows from changes in scope of consolidation 0 0 Cash flows from acquisitions and sale of financial assets 81 -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 Post-tax Return on Equity (ROE) in €m (rounded) in €m (rounded) Q1 2012 Q1 2011 Q1 2012 Q1 2011 Net income1) (A) 104 -80 Average number of opening 192 021 303 187 795 401 Net income1) 104 -80 shar
Slide 28: Appendix D: Net liabilities by segment
Appendix D: Net liabilities by segment Net liabilities Life & P&C in €m (rounded) 22 056 0.7% 22 216 48% 48% SCOR Global Life SCOR Global P&C 52% 52% 31/12/2011 31/03/2012 28
Slide 29: Appendix E: Investment portfolio asset allocation as of 31/03/2012
Appendix E: Investment portfolio asset allocation as of 31/03/2012 Tactical asset allocation SM V1.1 SAA1) Min Max 8% 9% 11% 10% 8% Cash 5.0% 2) 100.0% 80% 17% 81% 2% 75% 77% 78% Fixed Income 4% 10% 69% 10% Short term investments 0.0% 100.0% 2% 14% 65% 38% Government bonds & assimilated 25.0% 30.0%
Slide 30: Appendix E: Details of total investment portfolio
Appendix E: Details of total investment portfolio Development of total investments since Q1 2010 in €m (rounded) 3) 20 171 21 329 20 944 20 593 19 865 19 559 20 525 21 053 21 402 8 101 7 823 7 640 8 098 8 302 7 777 7 623 7 988 7 465 12 393 13 228 13 121 12 953 12 242 12 537 12 955 13 100 12 094 Q1 2
Slide 31: Appendix E: Reconciliation of IFRS invested assets to IR presentation
Appendix E: Reconciliation of IFRS invested assets to IR presentation in €m (rounded) Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 IFRS invested assets 12 656 13 562 13 427 13 238 12 478 12 426 12 850 13 332 13 821 Accrued interest - 107 - 114 - 114 - 115 - 93 - 85 - 92 -
Slide 32: Appendix E: Details of investment returns
Appendix E: Details of investment returns in €m (rounded) 2011 2012 Q1 Q2 Q3 Q4 2011 Q1 QTD QTD QTD QTD Annualized returns: 2 Average investments 19 183 19 200 19 597 20 265 19 561 7 20 697 Total net investment income1) 168 176 120 160 624 134 Net return on investments (ROI) 3.5% 3.7% 2.5% 3.2% 3.2%
Slide 33: Appendix E: QTD Investment income development
Appendix E: QTD Investment income development Q1 Q2 Q3 Q4 2011 Q1 in €m (rounded) 2011 2011 2011 2011 YTD 2012 Income on invested assets 75 104 76 89 344 69 Realized gains/losses on fixed income 22 16 43 37 118 23 Realized gains/losses on equities 28 15 6 0 49 6 Realized gains/losses on real estate
Slide 34: Appendix E: Government bond portfolio as of 31/03/2012
Appendix E: Government bond portfolio as of 31/03/2012 By region Top exposures in %. Total € 3.4 billion in €m (rounded) USA 991 16% Germany 658 Canada 359 35% UK 348 EU (Non‐UK) 10% Supranational1) 291 North America France 213 Netherlands 167 UK Denmark 78 Others Australia 76 Belgium 58 39% Republi
Slide 35: Appendix E: Corporate bond portfolio as of 31/03/2012
Appendix E: Corporate bond portfolio as of 31/03/2012 By rating By sector/type in %. Total € 3.9 billion 1%2% Q1 2012 In % in €m (rounded) 9% 13% Financial 812 21% AAA Consumer, Non-cyclical 690 18% Communications 619 16% AA Industrial 339 9% 27% A Consumer, Cyclical 325 8% Energy 282 7% BBB Utiliti
Slide 36: Appendix E: Corporate bond portfolio as of 31/03/2012
Appendix E: Corporate bond portfolio as of 31/03/2012 By seniority in €m (rounded) Market to AAA AA A BBB Other 1) Total Book Value % Seniority Senior 66 491 1 812 936 353 3 658 102% Subordinated 0 1 50 21 2 73 99% Hybrid 0 0 13 90 30 134 86% Convertible 0 0 0 0 1 1 82% Other 0 7 8 0 6 20 102% Total
Slide 37: Appendix E: Financials corporate bond portfolio as of 31/03/2012
Appendix E: “Financials” Corporate bond portfolio as of 31/03/2012 By rating in %. Total € 0.8 billion By sector in €m (rounded) By seniority in %. Total € 0.8 billion 4% 2% 22% Q1 2012 In % 14% 0% 14% AAA Bank 631 78% Senior AA Diversified 9% Subordinated A financial services 95 12% 1) Hybrid BBB I
Slide 38: Appendix E: Banks financial corporate bond portfolio as of 31/03/2012
Appendix E: “Banks” Financial Corporate bond portfolio as of 31/03/2012 By rating By seniority in %. Total € 0.6 billion 3% 2% in %. Total € 0.6 billion 11% 11% AAA 24% 10% AA Senior A Subordinated BBB Hybrid1) <BBB 79% NR 60% By region Top 10 exposures2) in %. Total € 0.6 billion in €m (rounded) 12
Slide 39: Appendix E: Structured & securitized product portfolio as of 31/03/2012
Appendix E: Structured & securitized product portfolio as of 31/03/2012 in €m (rounded) Market to AAA AA A BBB Other 1) Total Book Value % ABS ABS 15 11 2 0 0 28 104% Loan and CLO Loan and CLO 0 8 0 0 77 85 98% CDO CDO 11 30 1 1 19 63 85% MBS CMO 6 2 1 0 25 34 103% Non-agency CMBS 75 8 0 0 2 85 104%
Slide 40: Appendix E: Equity portfolio as of 31/03/2012
Appendix E: Equity portfolio as of 31/03/2012 By underlying asset By sector/type in %. Total € 0.7 billion in €m (rounded) Q1 2012 In % 3% 3% 3% Europe large cap Diversified / Funds 213 31% 9% Communications 104 15% Americas large cap Industrial 91 13% Utilities 73 10% Asia / Emerging Energy 59 9% m
Slide 41: Appendix E: Real estate portfolio as of 31/03/2012
Appendix E: Real estate portfolio as of 31/03/2012 in €m (rounded) Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Direct real estate net of debt and including URGL 313 379 352 371 376 Amortized costs 377 518 500 499 497 Real estate URGL 115 118 102 119 121 Real estate debt -179 -258 -250 -247 -242 Real est
Slide 42: Appendix E: Other investments as of 31/03/2012
Appendix E: Other investments as of 31/03/2012 in €m (rounded) Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Alternative investments 116 120 123 120 95 Non-listed equities 46 46 47 44 57 Commodities 62 51 40 38 38 Infrastructure funds 31 35 38 40 43 Private equity funds 11 10 11 10 10 ILS1) 0 0 17 44 76 O
Slide 43: Appendix E: Unrealized gains & losses development
Appendix E: Unrealized gains & losses development Unrealized gains & losses Variance in €m (rounded) Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 YTD Fixed income 11 40 1 -46 49 95 Equities -8 -58 -204 -158 -120 38 Real estate1) 113 116 94 110 119 9 Other investments 6 1 -5 -6 -4 2 Total 121 99 -113 -99
Slide 44: Appendix E: Reconciliation of asset revaluation reserve
Appendix E: Reconciliation of asset revaluation reserve Variance in €m (rounded) 31/12/2011 31/03/2012 YTD Fixed income URGL -46 49 95 Of which: Government bonds & assimilated1) -4 -7 -3 Covered bonds & agency MBS 8 19 11 Corporate bonds -23 54 77 Structured & securitized products -26 -16 11 Equitie
Slide 45: Appendix F: SCOR's impairment policy
Appendix F: SCOR’s impairment policy SCOR’s impairment policy as defined in section 20.1.6.1 Note 1 (H) of the 2011 “Document de Reference” At each balance sheet date, the Group assesses whether there is any evidence of impairment. The amount of impairment is recorded by asset category, as set forth
Slide 46: Appendix G: Reconciliation of IFRS asset classification to IR presentation
Appendix G: Reconciliation of IFRS asset classification to IR presentation as of 31/03/2012 in €m (rounded) IR classification Total Funds IFRS Cash and Fixed Real Other Total Accrued Technical Total Equities invested withheld by classification short-term income estate investments investments interes
Slide 47: Appendix H: Debt structure
Appendix H: Debt structure Current Original Amount Floating/ Debt Issue date Maturity Coupon + Step-up Next call date amount issued Outstanding Fixed rate (Book Value) First 10 years : 3-month Libor Subordinated 30 years U.S.$ 100 million U.S.$ 67 million 7 June 1999 Floating rate + 0.80% and 1.80%
Slide 48: Appendix I: SCOR Global P&C renewal definitions
Appendix I: SCOR Global P&C renewal definitions Total premiums up for renewal: premiums of all Treaty contracts incepting in April 2011 at the exchange rate as at December 31, 2011 Cancelled/restructured: client or SCOR decided to cancel the business/programs and/or to change their programs (e.g