Scor SE · EURONEXT:SCR
Scor — H1 2013 Earnings Presentation
50 slides from Scor's earnings presentation, July 2013
Slide 1: SCOR Group H1 2013 results
SCOR GROUP H1 2013 results SCOR records net income of EUR 189 million in the first half 2013, despite high Nat Cat activity, a continued low yield environment and equity impairments
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: SCOR's positive trajectory continues despite a testing environment
In spite of a testing environment, SCOR’s positive trajectory continues, its developments outweighing the challenges it faced in H1 2013 H1 2013 has been characterized by high nat cat SCOR’s positive developments continue, setting the tone activity and a persistently low yield environment for the ne
Slide 4: SCOR expects to complete Generali U.S. acquisition in Q4 2013
SCOR expects to complete Generali U.S. acquisition in Q4 20131) and to become the U.S. Life reinsurance market leader2) What is SCOR buying? What are the conditions? How is the deal being financed? The acquisition includes: SCOR is to acquire Generali U.S. The transaction will be financed by
Slide 5: SCOR delivers strong financials for the first half of 2013
SCOR delivers strong financials for the first half of 2013 H1 2013 gross written premium growth of 7.5% compared to 2012, driven by healthy SCOR Global P&C renewals and by major new contracts signed by the SCOR Global Life engine Net income of € 189 million with a 8.1% return on equity (ROE); 9.
Slide 6: SCOR H1 2013 financial details
SCOR H1 2013 financial details in € millions (rounded) Variation at Variation at H1 2013 H1 2012 current FX constant FX Gross written premiums (GWP) 4 984 4 635 7.5% 9.7% Net earned premiums 4 463 4 126 8.2% Operating results 295 320 -7.8% Net income 189 206 -8.3% Group cost ratio1) 5.0% 5.3% -0.3pt
Slide 7: Shareholders' equity development with BVPS at €25.21
Robust shareholders’ equity development with BVPS at €25.21 after distribution of € 223 million of cash dividends H1 2013 development in € millions (rounded) 20.0%1)2) Financial leverage decreases by 0.7 pts 19.3%1) 1 212 1 186 189 -223 1 186 -60 -31 55 SCOR financial Thereof leverage stands at -
Slide 8: Net operating cash flow of €319 million; liquidity at €2.2 billion
€ 319 million of net operating cash flow generated during H1 2013; liquidity position at € 2.2 billion in € millions (rounded) H1 2013 Cash and cash equivalents at 1 January 1 466 Net cash flows from operations, of which: 319 Business model continues to deliver a robust operating cash flow of € 31
Slide 9: SCOR Global P&C continues to deliver healthy growth
In H1 2013, SCOR Global P&C continues to deliver healthy growth, with technical profitability at a better level than the SMV1.1 plan Gross written premiums in € millions Solid growth of 5.5% at current exchange rate in H1 +5.5% 2013 in line with full year expectations (~+ 6%) and confirms assumpti
Slide 10: June-July renewals show premium volume increase of 8%
June-July renewals show an overall premium volume increase of 8% up to € 436 million, and confirm increasingly fragmented markets Premiums renewed in June-July1) in €m, -9% -3% +13% +7% +5% -5% +8% rounded 436 June-July renewals represent only 10% of SGPC 20 -18 premiums 402 29 -36 52 175 -12 193
Slide 11: SCOR Global Life delivers strong growth with robust technical margin
SCOR Global Life delivers strong growth with a robust technical margin Gross written premiums in € millions Strong 9.5% growth compared to H1 2012, driven (rounded) +9.5% by double-digit growth in the UK/ Ireland, Asia and Spain (BBVA deal), slightly offset by negative FX and selective decreases i
Slide 12: SCOR Global Investments delivers return on invested assets of 3.4%
SCOR Global Investments delivers an on-going return on invested assets of 3.4% in a record low yield environment Total invested assets1): € 13.6 billion at 30/06/2013 in % (rounded) Other investments2) 3% Cash 11% Liquidity 16% Total investments of € 21.5 billion, of which total Real estate 6% Equ
Slide 13: 2013 forthcoming events and Investor Relations contacts
2013 forthcoming events and Investor Relations contacts Forthcoming scheduled events 4 September 2013 6 November 2013 SCOR Group: SCOR Group: IR Day Q3 2013 Results In 2013 SCOR is scheduled to attend the following investor conferences Macquarie, Boston (September 17) Citi, Hong Kong (Novemb
Slide 14: The new SCOR IR app
The new 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 14
Slide 15: 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 / Renewals Appendix F Life Appendix G Investment Appendix H Debt Appendix I Rating evolution Appendix J Listing information 15
Slide 16: Appendix A: Consolidated statement of income, H1 2013
Appendix A: Consolidated statement of income, H1 2013 in € millions (rounded) H1 2013 H1 2012 Gross written premiums 4 984 4 635 Change in gross unearned premiums -27 -89 Gross benefits and claims paid -3 495 -3 171 Gross commissions on earned premiums -948 -974 Gross Technical result 513 401 Ceded
Slide 17: Appendix A: Income statement by segment, H1 2013
Appendix A: Consolidated statement of income by segment for H1 2013 H1 2013 H1 2012 in € millions (rounded) Group Group Life P&C Intra-Group Total Life P&C Intra-Group Total functions functions Gross written premiums 2 606 2 378 0 0 4 984 2 380 2 255 0 0 4 635 Change in gross unearned premiums 2 -29
Slide 18: Appendix A: SCOR Q2 2013 financial details
Appendix A: SCOR Q2 2013 financial details in € millions (rounded) Variation at Variation at Q2 2013 Q2 2012 current FX constant FX Gross written premiums (GWP) 2 596 2 308 12.5% 15.6% Net earned premiums 2 338 2 110 10.8% Operating results 120 165 -27.3% Net income 78 102 -23.5% Group cost ratio1)
Slide 19: Appendix A: Consolidated statement of income, Q2 2013
Appendix A: Consolidated statement of income, Q2 2013 in € millions (rounded) Q2 2013 Q2 2012 Gross written premiums 2 596 2 308 Change in gross unearned premiums 21 -7 Gross benefits and claims paid -1 868 -1 670 Gross commissions on earned premiums -497 -488 Gross Technical result 251 143 Ceded wr
Slide 20: Appendix A: Income statement by segment, Q2 2013
Appendix A: Consolidated statement of income by segment for Q2 2013 in € millions (rounded) Q2 2013 Q2 2012 Group Group Life P&C Intra-Group Total Life P&C Intra-Group Total functions functions Gross written premiums 1 415 1 181 0 0 2 596 1 204 1 104 0 0 2 308 Change in gross unearned premiums 3 18
Slide 21: Appendix B: Consolidated balance sheet – Assets
Appendix B: Consolidated balance sheet – Assets Q4 2012 Q4 2012 in € millions (rounded) H1 2013 Restated1) Published Intangible assets 1 897 1 941 1 941 Goodwill 788 788 788 Value of business acquired 987 1 031 1 031 Other intangible assets 122 122 122 Tangible assets 535 540 541 Insurance business
Slide 22: Appendix B: Balance sheet – Liabilities & shareholders' equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity Q4 2012 Q4 2012 in € millions (rounded) H1 2013 Restated1) Published 2) Group shareholders’ equity 4 696 4 800 4 803 Non-controlling interest 41 7 7 2) Total shareholders’ equity 4 737 4 807 4 810 Financial debt 1 715 1 648
Slide 23: Appendix B: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows in € millions (rounded) H1 2013 H1 2012 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 1 466 1 281 NET CASH FLOWS FROM OPERATIONS 319 239 Cash flow from changes in scope of consolidation 4 0 Cash flow from acquisitions and sale of financial
Slide 24: Appendix B: Net contract liabilities by segment
Appendix B: Net contract liabilities by segment Net liabilities Life & P&C in € millions (rounded) 22 512 -1.5% 22 164 47% 48% SCOR Global Life SCOR Global P&C 53% 52% 31/12/2012 30/06/2013 24
Slide 25: 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) H1 2013 H1 2012 Post-tax Return on Equity (ROE) Group net income1) (A) 189 206 in € millions (rounded) Average number of opening 192 021 303 192 021 303 shares (1) H1 2013
Slide 26: Appendix D: Reconciliation of total expenses to cost ratio
Appendix D: Reconciliation of total expenses to cost ratio in € millions (rounded) H1 2013 H1 2012 Total Expenses as per Profit & Loss account -280 -270 ULAE (Unallocated Loss Adjustment Expenses) -16 -15 Total management expenses -296 -285 Investment management expenses 16 13 Total expense base -28
Slide 27: Appendix E: Calculation of P&C Combined Ratio
Appendix E: Calculation of P&C Combined Ratio in € millions (rounded) H1 2013 H1 2012 P&C P&C Gross earned premiums1) 2 349 2 173 Ceded earned premiums2) -232 -188 Net earned premiums (A) 2 117 1985 Gross benefits and claims paid -1 458 -1 362 Ceded claims 93 74 Total net claims (B) -1 366 -1 288 Lo
Slide 28: Appendix E: Normalized Combined Ratio
Appendix E: Normalized Combined Ratio Normalized 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 Normalized Published Normalized Reserves delta from Reserves delta from Combined One off Cat ratio Combined Combined One off Cat ratio Combined release 6% Cat rel
Slide 29: 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 June & July 2012 at the exchange rate as of December 31, 2012 Cancelled/restructured: client or SCOR decided to cancel the business/programs and/or to change their program
Slide 30: Appendix F: Calculation of the Life Technical margin
Appendix F: Calculation of the Life Technical margin H1 2013 H1 2012 in € millions (rounded) SGL SGL Gross earned premiums1) 2 608 2 373 Ceded earned premiums2) -260 -232 Net earned premiums (A) 2 348 2 141 Net technical result 107 73 Interests on deposits 65 84 Technical result (B) 172 157 Net Tech
Slide 31: Appendix G: Investment portfolio asset allocation
Appendix G: Investment portfolio asset allocation as of 30/06/2013 Tactical asset allocation in % (rounded) 8% Cash SM V1.1 SAA1) 11% 10% 8% 9% 10% 12% 11% 17% 4% 81% 4% 80% 81% Fixed Income 4% 78% 4% 79% 4% 77% 4% 76% 4% 76% Short‐term investments 10% 10% Min Max 4% 69% 10% 9% 4% 5% 10% 14% 2% Gove
Slide 32: Appendix G: Details of total investment portfolio
Appendix G: Details of total investment portfolio Development of total investments since Q2 2011 in € millions (rounded) 21 917 22 248 22 200 21 402 21 617 21 520 20 525 21 053 19 559 8 392 8 266 8 141 8 302 8 379 7 933 7 988 8 098 7 465 13 100 13 238 13 525 13 982 14 059 13 587 12 094 12 537 12 955
Slide 33: Appendix G: Reconciliation of IFRS asset classification to IR presentation
Appendix G: Reconciliation of IFRS asset classification to IR presentation as of 30/06/2013 in € millions (rounded) SGI classification Total Funds Total Fixed Real Other Total Accrued Technical IFRS Cash Equities invested withheld by IFRS income estate investments investments interest items1) classi
Slide 34: Appendix G: Reconciliation of IFRS invested assets to IR presentation
Appendix G: Reconciliation of IFRS invested assets to IR presentation in € millions (rounded) Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 IFRS invested assets 12 478 12 426 12 850 13 332 13 821 13 647 13 946 14 314 14 321 14 080 Accrued interest - 93 - 85 - 92 - 9
Slide 35: Appendix G: Details of investment returns
Appendix G: Details of investment returns QTD 2012 2012 QTD 2013 2013 in € millions (rounded) Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Annualized returns: Total net investment income1) 134 143 278 133 155 566 112 120 232 Average investments 20 697 20 985 20 841 21 208 21 501 21 098 21 662 21 289 21 476 Return on
Slide 36: Appendix G: QTD Investment income development
Appendix G: QTD Investment income development in € millions (rounded) QTD 2012 2012 QTD 2013 2013 Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Investment revenues on invested assets 69 95 164 69 84 317 64 91 155 Realized gains/losses on fixed income 23 23 46 9 11 65 40 13 53 Realized gains/losses on equities 6 -1 5 2
Slide 37: Appendix G: Government bond portfolio
Appendix G: Government bond portfolio as of 30/06/2013 By region Top exposures in %. Total € 3.3 billion in € millions (rounded) USA 1 016 20% UK 450 27% Germany 381 Canada 297 EU France 226 Supranational1) 190 North America Netherlands 155 14% Australia 136 UK Japan 95 Others Singapore 78 Republic
Slide 38: Appendix G: Corporate bond portfolio
Appendix G: Corporate bond portfolio as of 30/06/2013 By rating By sector/type in %. Total € 4.2 billion 1%1% in € millions (rounded) H1 2013 In % 11% 16% Consumer, Non-cyclical 908 21% AAA Financial 740 18% Communications 551 13% AA Consumer, Cyclical 417 10% 24% A Industrial 396 9% Energy 327 8% B
Slide 39: Appendix G: Corporate bond portfolio by seniority
Appendix G: Corporate bond portfolio as of 30/06/2013 By seniority in € millions (rounded) Market to AAA AA A BBB Other 1) Total Book Value % Seniority Senior 65 662 1 970 890 399 3 986 101% Subordinated 0 1 8 49 8 65 103% Hybrid 0 0 16 64 86 166 101% Convertible 0 0 0 0 8 8 104% Other 0 6 9 0 2 18
Slide 40: Appendix G: Financials corporate bond portfolio
Appendix G: “Financials” Corporate bond portfolio as of 30/06/2013 By rating in %. Total € 0.7 billion By sector in € millions (rounded) By seniority in %. Total € 0.7 billion <1%1) <1% 12% H1 2013 In % AAA 19% 22% Bank 586 79% Senior AA Subordinated 21% A Insurance 61 8% 8% 2) Hybrid BBB Real estat
Slide 41: Appendix G: Banks financial corporate bond portfolio
Appendix G: “Banks” Financial Corporate bond portfolio as of 30/06/2013 By rating By seniority in %. Total € 0.6 billion 13% in %. Total € 0.6 billion 16% AA 27% A 9% Senior 20% Subordinated BBB Hybrid1) 75% <BBB 41% By region Top 10 exposures2) in %. Total € 0.6 billion in € millions (rounded) 19%
Slide 42: Appendix G: Structured & securitized product portfolio
Appendix G: Structured & securitized product portfolio as of 30/06/2013 in € millions (rounded) Market to 1) AAA AA A BBB Other Total Book Value % ABS ABS 14 10 2 0 0 25 103% Loan and CLO Loan and CLO 71 1 0 3 201 275 101% CDO CDO 11 33 0 0 7 52 87% MBS CMO 0 2 2 1 19 24 100% Non-agency CMBS 31 3 1
Slide 43: Appendix G: Equity portfolio
Appendix G: Equity portfolio as of 30/06/2013 By underlying asset By sector/type in %. Total € 0.6 billion in € millions (rounded) H1 2013 In % Europe large cap 20% Diversified / Funds 195 33% Financial 95 16% Americas large cap Consumer, Cyclical 90 15% 3% Communications 59 10% 44% Asia / Emerging
Slide 44: Appendix G: Real estate portfolio
Appendix G: Real estate portfolio as of 30/06/2013 in € millions (rounded) Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Real estate securities 158 163 164 163 170 Direct real estate net of debt and including URGL 380 357 465 518 664 Direct real estate at amortized cost 494 473 584 627 891 Real estate URG
Slide 45: Appendix G: Other investments
Appendix G: Other investments as of 30/06/2013 in € millions (rounded) Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Alternative investments 90 80 67 130 132 Non-listed equities 81 37 39 62 62 Commodities 37 35 37 36 24 Infrastructure funds 43 43 46 46 45 Private equity funds 11 11 12 12 12 Insurance Link
Slide 46: Appendix G: Unrealized gains & losses development
Appendix G: Unrealized gains & losses development Unrealized gains & losses Variance in € millions (rounded) Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 YTD Fixed income 53 185 204 199 23 -181 Equities -147 -92 -71 -31 -1 70 Real estate1) 122 119 102 110 106 5 Other investments 24 -2 -3 -2 1 3 Total 52
Slide 47: Appendix G: Reconciliation of asset revaluation reserve
Appendix G: Reconciliation of asset revaluation reserve Variance in € millions (rounded) 31/12/2012 30/06/2013 YTD Fixed income URGL 204 23 -181 Of which: Government bonds & assimilated 1) 24 -36 -60 Covered bonds & agency MBS 49 9 -39 Corporate bonds 134 53 -81 Structured & securitized products -2
Slide 48: Appendix H: Debt structure
Appendix H: Debt structure as of 30/06/2013 Current Amount Original Floating/ Type Outstanding Issue date Maturity Coupon + Step-up amount issued Fixed rate (Book Value) Subordinated 30 years First 10 years: 3-month Libor rate floating rate notes US $ 100 million US $ 24 million 7 June 1999 Floating
Slide 49: I: SCOR's rating has improved 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 BBB+ + Baa1 + Good Good BBB Baa2 + BBB- Baa3 2005 2006 2007 2008 2009 2010 2011 2012 2005 2006 2007 2008 2009 2010 201
Slide 50: 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