Scor Se · EURONEXT:SCR
Scor — Investor Day (November 2022)
112 slides from Scor's investor day presentation, Nov 9, 2022
Slide 1: First nine months 2022 results and Investor Day
First nine months 2022 results and Investor Day November 09, 2022 SCOR takes action to restore profitability in a challenging environment
Slide 2: Disclaimer
Disclaimer General Numbers presented throughout this document may not add up precisely to the totals in the tables and text. Percentages and percent changes are calculated on complete figures (including decimals); therefore the document might contain immaterial differences in sums and percentages du
Slide 3: Agenda
Agenda 1 SCOR’s 9M 2022 results Slides 4 – 25 2 Focus on delivering Sustainable Performance Slides 26 – 50 3 Making P&C ready for the new cycle Slides 51 – 60 4 SCOR’s financials under IFRS 17: mechanics and fundamentals Slides 61 – 70 5 Conclusion Slides 71 – 76 6 Appendix Slides 77 – 112 3
Slide 4: SCOR's 9M 2022 results
SCOR’s 9M 2022 results Ian Kelly Chief Financial Officer
Slide 5: Content
Content a Update on 9M 2022 earnings b Update on balance sheet and solvency c Update on inflation d 2023 outlook 5
Slide 6: Key take-aways from Q3 2022 results
a Key take-aways from Q3 2022 results P&L performance reflects We have taken meaningful the highly volatile environment balance sheet actions ⚫ Release of excess reserves margin, leading to L&H ⚫ Positive underlying trends including lower Covid-19 claims technical result EUR 460m above normalized 8.
Slide 7: SCOR's results in the first nine months 2022
a SCOR’s results in the first nine months 2022 Net combined ratio Premium growth 119.5% P&C +15.8% 1) +16.8 pts compared to +24.1% at current FX Premium growth 9M 2021 +6.2%1) +13.6% at current FX Net income Technical margin Premium growth EUR -509 million 14.9% L&H -2.0% 1) +3.6 pts compared to Ret
Slide 8: In Q3 2022, earnings reflect heavy Nat Cat activity and reserving actions
a In Q3 2022, SCOR’s earnings reflect heavy Nat Cat activity and reserving actions Q3 2022 adjusted net income and major developments All figures in EUR million, post-tax Heavy Nat Cat quarter with SCOR’s mitigation 1 actions not fully visible in the 2022 financials 104 -265 P&C reserves strengthene
Slide 9: P&C: underwriting performance affected by Nat Cats and reserves strengthening
a P&C: underwriting performance is affected by significant Nat Cats and reserves strengthening GWP 9M 2022 Net Combined ratio (in EUR m) (in %) GWP growth +15.8%1) +24.1%2) 141.4% o/w Specialty Insurance +24.7%1) +36.4%2) ⚫ EUR 485m reserves strengthening 119.5% 24.2% + 503 7,463 represents 8.5pts o
Slide 10: SCOR's market share on Hurricane Ian below historical levels
a In this heavy Nat Cat quarter, SCOR’s market share on Hurricane Ian has been below historical levels observed for Floridan hurricanes Estimated In EUR million, pre-tax Industry market loss Q3 SCOR net claims Hurricane Ian October $ 70bn2 279 Convective storms ⚫ Net market share1 for Hurricane and
Slide 11: L&H: strong technical margin in Q3 embedding release of reserves
a L&H: strong technical margin in Q3 embedding release of reserves GWP 9M 2022 L&H Technical Margin (in EUR m) (in %) 32.2% GWP growth -2.0%1) +4.7%2) 23.9% +468 14.9% 11.3% 7,035 6,896 7,364 Day 1 impact 5.7% of Life in-force transaction 8.3%3 5.6% 9M 2021 9M 2022 Q3 2022 9M 2021 9M 2022 FX 9M 2022
Slide 12: Invested assets benefitting faster from rising reinvestment rates
a Invested assets benefitting faster from rising reinvestment rates Total invested assets as at 30/09/2022 (in %) Others 4% Liquidity 10% Real estate 3% Cash 7% ⚫ EUR 22.2bn invested assets (+EUR 0.7bn versus Q2 2022) Equity 0% and EUR 9.2bn funds withheld1 Loans 5% Short-term Structured & investmen
Slide 13: Highly liquid invested assets allow a buy and maintain strategy
Highly liquid invested assets allow a “buy and maintain” strategy on the fixed a income portfolio which translates into a quick recapture of their current unrealized losses in shareholders equity over the next few years Financial cash flows1 of EUR 8.9 billion on invested Evolution of unrealized gai
Slide 14: SCOR's liquidity position is strong at EUR 2.3 billion
a SCOR’s liquidity position is strong at EUR 2.3 billion (in EUR m) 9M 2022 9M 2021 Cash and cash equivalents at January 1 2,083 1,804 ⚫ Operating cash flows of EUR 54 million Net cash flows from operations, of which: 54 2,018 ⚫ P&C cash flows driven by: P&C 867 1,502 − a strong level of premiums re
Slide 15: SCOR has accelerated its P&C reserves review process
Balance sheet actions P&C reserves L&H reserves DTA b SCOR has accelerated its P&C reserves review process Approach Conclusion Traditional yearly process was accelerated to deliver 1 conclusions for the Q3 results release Economic Social inflation inflation assumptions assumptions ⚫ Initial assumpti
Slide 16: SCOR has confirmed excess reserves in L&H
Balance sheet actions P&C reserves L&H reserves DTA b SCOR has confirmed excess reserves in L&H Approach Conclusion Reserves review concurrent with IFRS 17 transition preparation L&H reserves ⚫ Detailed review of all underlying assumptions with specific focus on biometric assumptions Following the r
Slide 17: Prudent approach on Deferred Tax Assets
Balance sheet actions P&C reserves L&H reserves DTA b SCOR is taking a prudent approach on Deferred Tax Assets ⚫ Recovery period for French tax perimeter as of end Balance Sheet Review 2021 not in line with market practice and has been significantly reduced ⚫ EUR 94 million provision booked in Q3 20
Slide 18: SCOR's book value remains strong
b SCOR’s book value remains strong Shareholders’ equity (in EUR m) Financial leverage 1) 27.8% +3.2 pts 31.0% Adjusted for fixed income URGL2) 28.1% -1.1 pts 27.0% Book value per share 3) EUR 35.26 -13.8% EUR 30.39 Adjusted for fixed income URGL2) EUR 34.85 +6.2% EUR 37.01 2 581 2 660 2 660 +954 +21
Slide 19: Solvency ratio remains strong at 217%
b SCOR’s solvency ratio remains strong at 217%, at the upper end of the optimal range Solvency ratio evolution (in %) 226% +43pts 223% 217% 220% -3pts ⚫ Strong solvency at Q3 at the -6pts Optimal range -9pts upper part of the optimal -10pts 185% -10pts range -14pts ⚫ Variation notably reflects P&C r
Slide 20: Strong balance sheet, prudent reserves and strong capitalization
b SCOR benefits from a strong balance sheet, prudent reserves and strong capitalization Prudent reserving approach Strong solvency Resilient book value EUR 34bn 217% EUR 5,430m 220% Optimal EUR 30.39 range per share P&C 63% 185% L&H 37% SCOR technical reserves SCOR Solvency II ratio SCOR Shareholder
Slide 21: Adapting approach to inflation: pricing and underwriting actions
c SCOR is adapting its approach to inflation: we adapt our pricing framework and take proactive underwriting actions SCOR’s pricing framework for loss inflation Underwriting actions ⚫ Conservative assumptions with over 500 inflation indices, based on ⚫ Maintain and expand stabilization clauses in −
Slide 22: Invested assets positioning protects against inflation and recession
c SCOR is adapting its approach to inflation: invested assets positioning protects against inflation and a potential recession 47% of invested assets is Protective features of invested assets protected against inflation portfolio in case of market downturn or recession Total invested assets split as
Slide 23: Efficiency gains on management expenses offset inflation
c SCOR is adapting its approach to inflation: efficiency gains on management expenses will more than offset inflation impact Levers Key initiatives EUR 125m recurrent efficiency gains ⚫ Cost discipline and frugality on management expenses by year Disciplined approach to ⚫ Rationalization of demand t
Slide 24: Leveraging tailwinds for value creation in 2023
d Leveraging tailwinds for value creation in 2023 Hardening P&C Increased L&H Favourable interest reinsurance market demand post pandemic rates environment ⚫ Price increases across all main lines of ⚫ Large protection gap in many ⚫ Financial contribution of the investment business countries portfoli
Slide 25: 2023 outlook under IFRS 4 framework
d 2023 outlook under IFRS 4 framework P&C GWP annual growth Profitability (RoE) target No change in assumptions vs Quantum Leap, with growth from rates increases potentially partly offset by further portfolio management actions depending on market conditions Growth L&H GWP annual growth ~0% to ~2%2
Slide 26: Focus on delivering Sustainable Performance
Focus on delivering Sustainable Performance Laurent Rousseau Chief Executive Officer 26 Classification : Internal
Slide 27: Focused on delivering a sustainable performance
We are focused on delivering a sustainable performance We have already taken … and have clear meaningful remediation actions in 2022… strategic priorities for 2023 ⚫ L&H business 1. Remediate further underwriting performance and restore − Reduction in US pandemic risk exposure by c. 2% through profi
Slide 28: Strategic priorities in our 1-year plan
Strategic priorities in our 1-year plan ⚫ Proactively manage portfolio to increase profitability and reduce volatility 1 ⚫ Tighten further underwriting and follow a conservative pricing approach Restore profitability ⚫ Build a nimble and efficient organization, with a disciplined approach to managem
Slide 29: Our view of the L&H reinsurance market
Our view of the L&H reinsurance market, and our chosen strategic orientations Strategic imperative Performance drivers Strategic orientations ⚫ Differentiate through strong pricing and innovation Leverage further US Grow our leadership capabilities mortality leadership position position ⚫ Secure dir
Slide 30: Our view of the P&C reinsurance market
Our view of the P&C reinsurance market, and our chosen strategic orientations Strategic imperative Performance drivers Strategic orientations Accelerate reinsurance Deliver a sustainable growth, after successful ⚫ Cycle management: know when to grow performance through Specialty Insurance the cycle
Slide 31: Completing our economic performance framework under IFRS 17 in 2023
We will complete our economic performance framework under IFRS 17 in 2023 2023 ⚫ Focus on a 1-year action plan to ⚫ Design the KPIs that will drive ⚫ Release IFRS 17 KPIs restore sustainable performance economic value creation over the long-term, despite ongoing market ⚫ Reveal the value of our L&H
Slide 32: Agenda
Agenda 01 Restore profitability 02 Maximize benefits of market tailwinds 03 Build on a resilient balance sheet 32
Slide 33: Restore profitability
Restore profitability
Slide 34: Meaningful actions and further levers to deliver technical profitability
We have been taking meaningful actions and have identified further levers to deliver on technical profitability 1.1 We continue to focus on our 2021 commitments 1.2 We are actively managing the portfolio to deliver technical profitability while minimizing volatility 1.3 We have refined our pricing a
Slide 35: We continue to focus on our 2021 commitments
1.1 We continue to focus on our 2021 commitments In 2021, we committed to We delivered on our commitments in 2022 ⚫ Strengthened underwriting discipline and portfolio pruning: -50% Agriculture PML1 by YE 2023, Reduce -21%1,2 Nat Cat PML in 2022 volatility ⚫ Nat Cat exposure reduction bearing fruit i
Slide 36: Actively managing the portfolio to maximize profitability
1.2 We are actively managing the portfolio to maximize profitability while minimizing volatility Portfolio actions to increase profitability… … and reduce volatility Portfolio reallocation during P&C 2022 Renewals: Of business actively Priced underwriting - EUR managed through ratio reduction cancel
Slide 37: Refined pricing and strengthened P&C underwriting discipline
1.3 We have refined our pricing and strengthened our P&C underwriting discipline ahead of 2023 renewals Client Differentiation Volatility Minimization Inflation Management Pricing Adequacy Steering ⚫ Top-down approach based on ⚫ SCOR positioning above high ⚫ Cedants’ own internal ⚫ Strictly drive po
Slide 38: Transform and simplify organization, EUR 125m efficiency gains
1.4 We transform and simplify our organization, generating EUR 125m yearly efficiency gains on management expenses Disciplined approach to management expenses EUR 125m Further strengthening yearly efficiency of data and tech capabilities gains on management expenses by year end 2025 Organization tra
Slide 39: Maximize benefits of market tailwinds
Maximize benefits of market tailwinds
Slide 40: Maximize the benefits of the supportive market environment
We will maximize the benefits of the supportive market environment 2.1 P&C: Market trends show an acceleration of the Reinsurance cycle L&H: Covid-19 impact is trending down and SCOR is well positioned to capture post-pandemic market 2.2 opportunities 2.3 Investments: SCOR’s high-quality fixed incom
Slide 41: P&C: Market trends show acceleration of the Reinsurance cycle
2.1 P&C: Market trends show an acceleration of the Reinsurance cycle Very attractive Credit & Surety Reinsurance Reinsurance Property, Power & Energy ⚫ Price increases across main Single Risks lines of business well above inflation ⚫ Terms & Conditions are a Casualty Europe key value lever, alongsid
Slide 42: L&H: Covid-19 impact trending down, post-pandemic opportunities
2.2 L&H: Covid-19 impact is trending down and SCOR is well positioned to capture post-pandemic market opportunities Increased awareness fueling strong demand 2020-2022 YTD: 1.1 million US population death due to Covid for protection and health solutions post the pandemic SCOR’s Covid-19 claims 2020-
Slide 43: Investments: fixed income portfolio benefits from rising rates
2.3 Investments: SCOR’s very high-quality fixed income portfolio benefits faster from a rising interest rate environment Regular investment income benefits quicker from increasing reinvestment rates Portfolio reinvestment rate (in %) 5.1%2 ⚫ Current reinvestment rate at 5.1% as of 30 September 2022
Slide 44: Build on a resilient balance sheet
Build on a resilient balance sheet
Slide 45: Prudent approach and resilient balance sheet
We rely on our prudent approach and build on a resilient balance sheet 3.1 We anticipate higher inflation for longer and take a holistic approach to manage its broad impacts 3.2 We build on a resilient and robust balance sheet 3.3 We have a strong liquidity position and improved cash fungibility 3.4
Slide 46: Higher inflation for longer: a holistic approach
3.1 We anticipate higher inflation for longer and take a holistic approach to manage its broad impacts 1 L&H business 5 Group management expenses ⚫ Largely immune to inflation ⚫ EUR 125m yearly efficiency gains by year end 2025, equivalent to 14% of 2022 budgeted Group cost ratio management expenses
Slide 47: Resilient and robust balance sheet (1/2)
3.2 We build on a resilient and robust balance sheet (1/2) We have reviewed our reserves, We have strong reserves Positive outlook both P&C and L&H EUR 34bn ⚫ Accelerated P&C reserves review: ⚫ L&H business largely immune to inflation ⚫ Thorough review of the portfolio P&C 63% ⚫ P&C reserves at best
Slide 48: Resilient and robust balance sheet (2/2)
3.2 We build on a resilient and robust balance sheet (2/2) Eligible Own Funds as of Q3 2022 Historical solvency ratio (in %) In EUR bn Total EUR 9.3bn Tier 2 - Hybrid 1.5 220% Tier 1 - Hybrid 1.0 185% Tier 1 231 225 226 226 Tier 1 213 215 220 217 Unrestricted 6.7 Solvency FY 2015 FY 2016 FY 2017 FY
Slide 49: Strong liquidity position and improved cash fungibility
3.3 We have a strong liquidity position and improved cash fungibility We generate strong cashflows …our focus, going forward, that translate into strong financial flexibility… will be on enhancing cash fungibility Net cash flows from operations (EUR m) Local entity 1 Local entity 2 Life in-force tra
Slide 50: SCOR's dividend policy is unchanged
3.4 SCOR’s dividend policy is unchanged 1 Ensure the projected solvency position is in the optimal range 2 Estimate and allocate capital to support future accretive growth 3 Define the amount of a sustainable regular dividend accordingly 4 Evaluate any excess capital for shareholder repatriation or
Slide 51: Making P&C ready for the new cycle
Making P&C ready for the new cycle Jean-Paul Conoscente Chief Executive Officer – P&C 51
Slide 52: Content
Content a In 2022, P&C took strong actions to remediate its underwriting performance… ⚫ SCOR’s underperformance has led to a thorough diagnostic and proactive remediations ⚫ SCOR took strong action in 2022: 1. meaningfully repositioned its Nat Cat portfolio 2. strengthened its retrocession program b
Slide 53: Underperformance led to thorough diagnostic and remediations (1/2)
a SCOR’s underperformance has led to a thorough diagnostic and proactive remediations (1/2) Net Combined ratio (in %) 1 111.0% Nat Cat Nat Cat above budget reveals 103.7% 100.6% unsatisfactory risk/reward Management 99.4% 99.0% 100.2% expenses 104.9% Net technical 96.9% 92.3% 92.1% 94.2% 94.3% ratio
Slide 54: Underperformance led to thorough diagnostic and remediations (2/2)
a SCOR’s underperformance has led to a thorough diagnostic and proactive remediations (2/2) Targeted remediation Extended diagnostic and action plan ⚫ Re-underwrite exposures in Japan, Australia and Florida ⚫ Re-underwrite proportional property, aggregates and Mitigate climate low Cat XL layer Nat C
Slide 55: Strong action in 2022 (1/2): repositioned Nat Cat portfolio
a SCOR took strong action in 2022 (1/2): meaningfully repositioned its Nat Cat portfolio Significant reduction of the as-if net claims cost of major recent events Meaningful decrease in SCOR net share in industry loss of major hurricanes2 - 34% - 26% - 78% - 49% - 25% 1.3% 1.2% 1.1% 1.0% 0.6% 0.4% 2
Slide 56: Strong action in 2022 (2/2): strengthened retrocession program
a SCOR took strong action in 2022 (2/2): strengthened its retrocession program Summary of Nat Cat retrocession strategy Inuring covers Group main retrocession covers Non-Prop North Atlas Catastrophe bonds Attachment Return Period ~15 years ● SCOR’s capital sourcing structure is a America Specialty c
Slide 57: 2022 actions reduced North America Property Cat exposure
SCOR's 2022 actions effectively reduced its North America Property Cat b exposure, with the full impact expected to be visible in 2023 De-risking and New business Share increases Growth of 31.12.2021 pruning of mostly 31.07.2022 on non-Cat existing business SCOR’s portfolio in Global Lines -17% GWP
Slide 58: Actions reduced Cat volatility and make earnings more predictable
b SCOR’s actions reduced Cat volatility and will make earnings more predictable Stable expected gross Underwriting SCOR is more confident in its ability Ratio amid 2022 reinsurance renewals to reach profitability objectives Achieved price improvements offset Probability for the Net Probability for t
Slide 59: New market dynamics create significant opportunities for P&C
c New market dynamics create significant opportunities for P&C New market dynamics … … create opportunities Estimated Reinsurance Capital The Insurer, 13.10.22 600 500 90 94 95 ● Higher demand for protection 88 400 Insurance journal, 12.10.22 95 ● Tension on capacity, decreasing (USD bn) 300 availab
Slide 60: P&C well positioned to extract value from the hard market
c P&C is well positioned to extract the maximum value from the hard market SCOR has a competitive position in key markets around the world Market share1,3 Position1,3 Business led as % of GWP1,2 2021 GWP, % EMEA France3 13% #2 55% Germany 7% #5 4% Italy 11% #3 41% UK 4% #6 23% EMEA BeLux 8% #5 40% 4
Slide 61: SCOR's financials under IFRS 17
SCOR’s financials under IFRS 17: mechanics and fundamentals Ian Kelly Chief Financial Officer 61
Slide 62: Content
Content a SCOR has retained the Building Block Approach in IFRS 17 for its businesses b IFRS 17 captures the Economic Value of SCOR’s portfolio, closely aligned with Solvency II c CSM and shareholders’ equity define the IFRS 17 Economic Value d IFRS 17 Insurance Revenue is a better reflection of the
Slide 63: Building Block Approach retained in IFRS 17
a SCOR has retained the Building Block Approach in IFRS 17 for its businesses Building block approach (BBA) ⚫ Measurement used for all portfolios Portfolios applied ⚫ Common approach between L&H and P&C, and between different lines of business Discount Rates ⚫ Locked-in rates Economic Variances ⚫ Im
Slide 64: IFRS 17 captures Economic Value, aligned with Solvency II
b IFRS 17 captures the Economic Value of SCOR’s portfolio, closely aligned with Solvency II EUR >9bn EUR 8.7bn IFRS 17 is closely aligned with Solvency II on key topics CSM (~40-50%) CSM P&C (~10%) ⚫ Both represent economic value frameworks CSM L&H (~90%) ⚫ Future cashflows recognised using a best e
Slide 65: CSM and shareholders' equity define IFRS 17 Economic Value
c CSM and shareholders’ equity define the IFRS 17 Economic Value P&C CSM Life CSM Mixed CSM Illustrative IFRS 17 Economic Value = Contractual CSM (net of tax) + Service Margin (CSM)1 Shareholders’ equity CSM New Assumptions CSM CSM closing Contractual Service Margin Opening Business changes amortiza
Slide 66: IFRS 17 Insurance Revenue reflects volume of risk exposure
d IFRS 17 Insurance Revenue is a better reflection of the volume of insurance risk exposure Revenue walk IFRS 4 to IFRS 17 c.-30% Illustrative EUR 19bn Changes in L&H unearned Difference in premiums Commissions Funds L&H timing of withheld ⚫ Insurance revenue is profit revenue recognition a better r
Slide 67: IFRS 17 technical profitability and equity growth
e IFRS 17 technical profitability is a key indicator of the conversion of Economic Value into shareholders’ equity growth Illustrative1 a IFRS 17 technical profitability IFRS 17 technical profitability drivers: ⚫ Assumed ultimate profitability at the time of underwriting ⚫ Variance of actuals vs ini
Slide 68: Impacts on technical profitability for P&C and L&H
f Different impacts on technical profitability for P&C and L&H in the transition IFRS 4 transition to IFRS 17: IFRS 4 transition to IFRS 17: Impact on P&C combined ratio Impact on Life technical profitability Numerator: lower claims and expenses under IFRS 17, – driven by → L&H Insurance service res
Slide 69: On track for IFRS 17 transition: timeline
g SCOR is on track for the transition to IFRS 17: timeline Investor day Q4 2022 results Q1 2023 results 09/11/2022 02/03/2023 11/05/2023 ⚫ SCOR’s financials under IFRS 17: ⚫ FY 2022 figures published in ⚫ Full reporting in IFRS 17 including mechanics and fundamentals IFRS 4 2022 comparative informat
Slide 70: IFRS 17 transition: outstanding strategic considerations
g SCOR is on track for the transition to IFRS 17: outstanding strategic considerations Macro environment ⚫ Sensitivity of KPIs in a rapidly evolving and more volatile macro environment Economic view ⚫ IFRS 17 brings added volatility irrespective of macro conditions which needs to be taken into accou
Slide 71: Conclusion
Conclusion 71
Slide 72: Building strategic priorities on strong foundations
SCOR will be building its strategic priorities on strong foundations P&C reserves increasing Volatility reduction bearing fruit Ready for IFRS 17 transition and maintained at best estimate SCOR’s estimated market share in Floridan losses Net P&C reserves in EUR bn o/w EUR +485m strengthening of P&C
Slide 73: Aspire to be a global leading reinsurer
We aspire at being a global leading reinsurer rooting its performance in its people’s value(s) and innovative culture Strong fundamentals Levers to create value for shareholders Tier 1 Grow P&C reinsurance leadership leveraging its technical composite reinsurer 1 expertise in Global Lines and benefi
Slide 74: Sustainability performance recognized by ESG rating agencies
SCOR's sustainability performance recognized by main ESG rating agencies Q2 2022 Last Update: Last Update: Last Update: July 2022 June 2022 September 2022 AA BBB 61 59 63 58 BB 45 39 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Scale :
Slide 75: Sustainable performance for the benefit of all stakeholders
SCOR wants to deliver a sustainable performance for the benefit of all stakeholders Create sustainable, long-term economic value for shareholders Performance Bring value to clients by offering a differentiated value proposition Business Foster values in our organization and society: People & Culture
Slide 76: Investor Relations contacts and upcoming events
Investor Relations contacts and upcoming events SCOR Group SCOR Group Upcoming SCOR Investor day FY 2022 results Q1 2023 results events November 9, 2022 March 2, 2023 May 12, 2023 UBS European BNP Paribas Exane Oddo Citi’s European SCOR attendance at Conference 2022 MidCap CEO Conference BHF Forum I
Slide 77: Appendix
APPENDIX
Slide 78: Appendix
Appendix A P&L Slides 79 – 84 B Balance sheet & Cash flow Slides 85 – 87 C Calculation of EPS, Book value per share and RoE Slides 88 – 89 D Expenses & cost ratio Slides 90 – 91 E P&C Slides 92 – 95 F L&H Slides 96 – 96 G Investments Slides 97 – 108 H Debt Slides 109 – X I Rating evolution Slides 11
Slide 79: SCOR 9M 2022 financial details
Appendix A: SCOR 9M 2022 financial details Variation Variation 9M 2022 9M 2021 In EUR m (rounded) at current FX at constant FX Gross written premiums 14,827 13,047 13.6% 6.2% Net earned premiums 11,509 10,270 12.1% 5.0%3) Operating results -375 584 n.a. Net income -509 339 n.a. Group Group cost rati
Slide 80: SCOR Q3 2022 financial details
Appendix A: SCOR Q3 2022 financial details Variation Variation Q3 2022 Q3 2021 In EUR m (rounded) at current FX at constant FX Gross written premiums 5,141 4,606 11.6% 2.3% Net earned premiums 3,925 3,598 9.1% 0.4%3) Operating results -216 -20 n.a. Net income -270 -41 n.a. Group Group cost ratio 4.4
Slide 81: Consolidated statement of income, 9M 2022
Appendix A: Consolidated statement of income, 9M 2022 In EUR m (rounded) 9M 2022 (IFRS 9) 9M 20211) Gross written premiums 14,827 13,047 Change in gross unearned premiums -624 -440 Revenues associated with life financial reinsurance contracts 8 10 Gross benefits and claims paid -12,636 -11,103 Gross
Slide 82: Consolidated statement of income, Q3 2022
Appendix A: Consolidated statement of income, Q3 2022 In EUR m (rounded) Q3 2022 (IFRS 9) Q3 20211) Gross written premiums 5,141 4,606 Change in gross unearned premiums -195 -148 Revenues associated with life financial reinsurance contracts 3 4 Gross benefits and claims paid -5,026 -4,184 Gross comm
Slide 83: Income statement by segment, 9M 2022
Appendix A: Consolidated statement of income by segment, 9M 2022 9M 2022 (IFRS 9) 9M 20211) Group Group In EUR m (rounded) L&H P&C Total L&H P&C Total Functions Functions Gross written premiums 7,364 7,463 14,827 7 035 6 012 13 047 Change in gross unearned premiums -29 -595 -624 -3 -437 -440 Revenue
Slide 84: Income statement by segment, Q3 2022
Appendix A: Consolidated statement of income by segment, Q3 2022 Q3 2022 (IFRS 9) Q3 20211) Group Group In EUR m (rounded) L&H P&C Functions Total L&H P&C Functions Total Gross written premiums 2,505 2,636 5,141 2,362 2,244 4,606 Change in gross unearned premiums -9 -186 -195 -5 -143 -148 Revenues a
Slide 85: Consolidated balance sheet – Assets
Appendix B: Consolidated balance sheet – Assets 9M 2022 (IFRS 9) Q4 20211) In EUR m (rounded) Goodwill 800 800 Goodwill arising from non insurance activities 82 82 Value of business acquired 1,237 893 Insurance business investments 31,923 31,489 Real estate investments 603 629 Investments at fair va
Slide 86: Balance sheet – Liabilities & shareholders' equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity 9M 2022 (IFRS 9) Q4 20211) In EUR m (rounded) Group shareholders’ equity 5,417 6,385 Non-controlling interest 13 17 Total shareholders’ equity 5,430 6,402 Financial debt 3,285 3,226 Subordinated debt 2,660 2,581 Real estate
Slide 87: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows 9M 2022 9M 2021 In EUR m (rounded) Cash and cash equivalents at the beginning of the period 2,083 1,804 Net cash flows in respect of operations 54 2,018 Cash flow in respect of changes in scope of consolidation -8 -8 Cash flow in respect of acquisiti
Slide 88: Calculation of EPS, book value per share and RoE
Appendix C: Calculation of EPS, book value per share and RoE Earnings per share calculation Post-tax Return on Equity (RoE) 9M 2022 9M 2021 Group net income1) (A) - 509 339 9M 2022 9M 2021 Average number of opening shares (1) 186,896,376 186,730,076 -3,137,498 141,426 Group net income1) -509 339 Imp
Slide 89: Risk-free rate component of Quantum Leap RoE target
Appendix C: Calculation of the risk-free rate component of “Quantum Leap” RoE target 5-year daily spot rates Currency mix = 1) Weighted average rates X 3) EUR 2) USD GBP EUR USD GBP EUR USD GBP Total Oct 2, 2017 -0.28 1.93 0.76 52% 37% 11% -0.14 0.72 0.09 0.66 Oct 3, 2017 -0.28 1.92 0.78 52% 37% 11%
Slide 90: Reconciliation of total expenses to cost ratio
Appendix D: Reconciliation of total expenses to cost ratio 9M 2022 9M 2021 In EUR m (rounded) Total expenses as per Profit & Loss account -734 -648 ULAE (Unallocated Loss Adjustment Expenses) -67 -54 Total management expenses -801 -702 Investment management expenses 46 63 Total expense base -755 -63
Slide 91: Reconciliation of total expenses to cost ratio
Appendix D: Reconciliation of total expenses to cost ratio Q3 2022 Q3 2021 In EUR m (rounded) Total expenses as per Profit & Loss account -243 -218 ULAE (Unallocated Loss Adjustment Expenses) -28 -17 Total management expenses -271 -235 Investment management expenses 13 22 Total expense base -258 -21
Slide 92: Calculation of P&C net combined ratio
Appendix E: Calculation of P&C net combined ratio 9M 2022 9M 2021 In EUR m (rounded) Gross earned premiums1) 6,868 5,575 Ceded earned premiums2) -1,163 -797 Net earned premiums (A) 5,705 4,778 Gross benefits and claims paid3) -6,286 -4,472 Ceded claims 1,096 930 Total net claims (B) -5,190 -3,542 Lo
Slide 93: Calculation of P&C net combined ratio
Appendix E: Calculation of P&C net combined ratio Q3 2022 Q3 2021 In EUR m (rounded) Gross earned premiums1) 2,450 2,101 Ceded earned premiums2) -449 -346 Net earned premiums (A) 2,001 1,755 Gross benefits and claims paid3) -2,886 -2,179 Ceded claims 618 709 Total net claims (B) -2,268 -1,470 Loss r
Slide 94: 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 Published net Normalized Published net Normalized Reserve Cat ratio delta Reserve Cat ratio delta combined One off Cat ratio net combined combined One off Cat ratio net combined release from budget1) release from b
Slide 95: Breakdown of retrocession by type
Appendix E: Breakdown of retrocession by type Diversification of third-party capacity $1,870m $1,830m $1,850m $1,540m 2019 2020 2021 2022 Cat Bonds Collateralized Sidecar outstanding reinsurance investments ● Combination of traditional and innovative sources, including collateralized & securitized r
Slide 96: Calculation of Life technical margin and Covid-19 bookings
Appendix F: Calculation of the Life technical margin and Summary of Life Covid-19 bookings Calculation of the Life Technical Margin EUR m (rounded) Q3 2022 Q3 2021 9M 2022 9M 2021 ⚫ The net technical result amounts to EUR 745 million for the 9M 2022 (incl. EUR 460 million Gross earned premiums1) 2,4
Slide 97: Investment portfolio asset allocation as of 30/09/2022
Appendix G: Investment portfolio asset allocation as of 30/09/2022 ‘‘Quantum Leap’’ Strategic Tactical Asset Allocation Asset Allocation (in %, rounded) (in % of invested assets) 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Min Max Cash 9% 10% 10% 8% 10% 11% 11% 8% 7% 10% 7% 5.0%1) - Fixed Income
Slide 98: Details of investment returns
Appendix G: Details of investment returns In EUR m (rounded) 2021 (IAS39) 2022 (IFRS9) Annualized returns: Q1 Q2 Q3 9M Q4 FY Annualized returns: Q1 Q2 Q3 9M Total net investment income1) 173 122 116 411 140 551 Total net investment income1) 125 105 152 383 Average investments 28,428 28,567 29,210 28
Slide 99: Investment income development
Appendix G: Investment income development 2021 (IAS39) 2022 (IFRS9) Q1 Q2 Q3 9M In EUR m (rounded) Q1 Q2 Q3 9M Q4 FY Interest revenue on debt instruments not measured at Investment revenues on invested assets 86 89 92 267 106 373 88 105 116 309 FVTPL Realized gains/losses on fixed income 74 14 3 91
Slide 100: Government bond portfolio as of 30/09/2022
Appendix G: Government bond portfolio as of 30/09/2022 By region Top exposures (In %. Total EUR 5.2bn) (In %. Total EUR 5.2bn) 30 September 2022 EU (Non-UK) USA 31% 5% North America China 20% UK Australia 7% 35% China Canada 7% Other Republic of Korea 6% 38% Supranational 5% India 4% Brazil 3% Singa
Slide 101: Corporate bond portfolio as of 30/09/2022
Appendix G: Corporate bond portfolio as of 30/09/2022 By rating (In %. Total EUR 10.1bn) By seniority (In %. Total EUR 10.1bn) 3% 2% 2% 2% 1% 5% 9% AAA AA Senior A Subordinated 35% 46% Hybrid 2) BBB Other <BBB NR 95% By region (In %. Total EUR 10.1bn) By sector/type (In %. Total EUR 10.1bn) 30 Septe
Slide 102: Banks corporate bond portfolio as of 30/09/2022
Appendix G: ‘‘Banks’’ corporate bond portfolio as of 30/09/2022 By rating (In %. Total EUR 2.0bn) By sector/type (In %. Total EUR 2.0bn) <1% <1% <1% 8% 8% 3% AA 35% Senior A Subordinated BBB Hybrid 1) <BBB Other 57% NR 89% By region (In %. Total EUR 2.0bn) Top exposures (In %. Total EUR 2.0bn) 30 Se
Slide 103: Structured & securitized product portfolio
Appendix G: Structured & securitized product portfolio as of 30/09/2022 By rating (In %. Total EUR 0.4bn) By portfolio (In %. Total EUR 0.4bn) <1% 4% 3% 30% AAA CLO AA CDO A MBS <BBB <1% 4% 66% NR Other <1% 93% 103
Slide 104: Loans, equity, real estate and other investment portfolios
Appendix G: Loans, equity, real estate and other investment portfolios as of 30/09/2022 Loans portfolio by underlying assets (In %. Total EUR 1.2bn) Equity portfolio by underlying assets (In %. Total EUR <0.1bn) <1% Infrastructure loans 6% Common shares 32% Real estate loans Convertible bonds 44% Pr
Slide 105: IFRS 9 key principles
Appendix G: IFRS 9 key principles ⚫ Under IAS 39 all investments on SCOR’s balance sheet were already at market value. This remains unchanged under Valuation of investments IFRS 9, which does not trigger any measurement gap What does not change with IFRS 9? Performance measurement ⚫ For the vast maj
Slide 106: IFRS 9 classification
Appendix G: IFRS 9 classification 9M 2022 balance sheet analysis (not rounded) Amortized cost and Fair value through Other Total In EUR m Fair value through OCI profit and loss Cash 1,127 523 -101 1,549 Fixed income 17,435 352 8 17,795 Loans 1,116 53 0 1,169 Equities 15 33 0 48 Real Estate 0 122 549
Slide 107: Reconciliation of IFRS asset classification to SCOR investments
Appendix G: Reconciliation of IFRS asset classification to SCOR investments quarterly results presentation as of 30/09/2022 Total Funds withheld Total Fixed Other Total Accrued Technical Cash Loans Equities Real estate invested by cedants & IFRS income investments investments interest items1) In EUR
Slide 108: Reconciliation of asset revaluation reserve
Appendix G: Reconciliation of asset revaluation reserve In EUR m (rounded) 31/12/2021 30/09/2022 Variance YTD4) Fixed income URGL 101 -1,595 -1,696 Government bonds & assimilated1) 21 -143 -164 Covered & agency MBS 14 -145 -159 Corporate bonds 62 -1,296 -1,358 Structured products 4 -11 -14 Loans URG
Slide 109: Debt structure as at 30/09/2022
Appendix H: Debt structure as at 30/09/2022 Original amount 1) Type Tier Issue date Maturity Floating/ fixed rate Coupon + step-up issued Initial rate at 3.875% p.a. until October 1, 2025, Undated subordinated EUR 250 1 October 12) Perpetual Fixed revised every 11 years notes PerpNC11 million 2014 a
Slide 110: SCOR's Financial Strength Rating since 2003
Appendix I: SCOR’s Financial Strength Rating since 2003 S&P rating Moody’s rating AA+ Aa1 strong strong Very Very AA+ Aa2 AA- - Aa3 - - A+ + A1 + Secure Strong Secure Strong A+ + A2 + A- + A3 + BBB+ + AA- Baa1 + Aa3 Good Good BBB+ Negative Outlook Baa2 + Negative Outlook BBB- Baa3 2003 2005 2007 200
Slide 111: 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 on SCOR’s shares are publicly traded on SCOR’s ADR shares trade on the OTC the Eurolist by the Euronext Paris stock the SIX Swiss Exchange market market Main infor
Slide 112: Strategy recognized by industry experts
Appendix K: The strength of the SCOR Group’s strategy is recognized by industry experts 2018 2019 2020 2021 CRO of the year: SCOR: Reinsurer Chief Risk Officer Frieder Knüpling of the year Frieder Knüpling is SCOR Chairman Chairman of the Denis Kessler wins CRO Forum Lifetime Achievement Award SCOR