Scor Se · EURONEXT:SCR
Scor — H1 2008 Earnings Presentation
28 slides from Scor's earnings presentation, Aug 27, 2008
Slide 1: SCOR Group Half-year 2008 Results
SCOR GROUP Half-year 2008 Results SCOR keeps delivering and confirms its profitability track record 27 August 2008
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. Additional information regarding ris
Slide 3: SCOR keeps delivering - Key achievements in H1 2008
SCOR keeps delivering - Key achievements in H1 2008 Business engines are in full production 9 SCOR Global P&C 2008 renewals confirm highly valuable franchise 9 SCOR strengthens local presence in Emerging Markets by opening office in South Africa, launches P&C branch in China and becomes admitted rei
Slide 4: Creation of "new SCOR" successfully completed after one year
Creation of "new SCOR" successfully completed after one year… Integration process completed Key talents mobilized and new management teams announced 9 Incentive schemes and compensation harmonized and merged 9 Synergy targets confirmed and restructuring plan implemented 9 Hub organization successful
Slide 5: ...while demonstrating its profitability track record
...while demonstrating its profitability track record Non Life Combined Ratio (%) Life operating margin (%) 3) 100.1% 106.5% 96.4% 99.3% 98.7% 8.2% 7.5% 7.7% 7.3% 4.2% 2004 2005 2006 20072) H1 2008 2004 2005 2006 20072) H1 2008 A consistent profitability track record Net income ROE (%) 450 14.1% 12.
Slide 6: H1 2008 published results - Key highlights
H1 2008 published results - Key highlights Annualized return on equity (ROE) reaches 13.2% - confirms positive profitability track-record Top-line meets expectations - gross premiums at more than € 2.7 billion, up 29.4% compared to H1 2007 Strong net income at € 225 million (EPS at € 1.25) up
Slide 7: SCOR realises strong net income in H1 2008 – up 24%
SCOR realises strong net income in H1 2008 – up 24% Variation H1 2007 2) H1 20073) H1 2008 1) Variation Variation at constant in €m published proforma exchange rates Gross written premiums 2 748 2 124 +29.4% 2 957 - 7.1% - 1.4% Net earned premiums 2 497 1 873 +33.3% 2 613 - 4.4% + 2.6% Operating inc
Slide 8: Non-Life: Net Combined Ratio improved to 98.7%
Non-Life: Net Combined Ratio improved to 98.7% Gross written premiums in €m -9.3% Gross written premium evolution in line with Q1 and reduced contributions from London JVs -3.3% Net technical ratio stable vs Q1 within 1 641 (at constant 1 488 targeted range despite additional cat exchange rates)
Slide 9: Non-Life July renewals: Premium volume increased by 22% to € 159 million
Non-Life July renewals: Premium volume increased by 22% to € 159 million Premiums renewed on July 1st 1) in €m +22% 159 Only 6% of treaty2) premiums up for 130 63 Specialty Lines renewal in July, showing different +31% 48 Treaty P&C trends across markets and business lines, each with limited volum
Slide 10: Life: Strong operating performance
Life: Strong operating performance Gross written premiums in €m 1) Gross written premiums increase by -4.3% 0.8% at constant exchange rates SCOR experienced strong new 1 317 +0.8% business development in Asia, Middle 1 260 (at constant East, France and US, which is only exchange rates) marginall
Slide 11: Life: Prevoyance Ré acquisition strengthens SCOR's #1 market position in France
Life: Prevoyance Ré acquisition strengthens SCOR’s #1 1) market position in France Improved market position and expertise… Increased SCOR Global Life’s market share from 25% to 31% in France Enhanced access to French Life and Health Traditional reinsurance market and the social protection field
Slide 12: Asset Management: Cautious investment approach continues
Asset Management: Cautious investment approach continues Total investments € 18.5 billion in €m, published H1 2008 H1 2007 Real Average investments over the period 18 636 13 931 Estate Equities Alternative 2% 5% Investments3) Total net investment results (net of Cash expenses) 314 342 14% 2% Return
Slide 13: Stable Shareholder's equity despite challenging market environment
Stable Shareholder’s equity despite challenging market environment in €m Financial leverage 18% 19% 206 203 206 203 579 587 579 201 24 587 20 -141 -16 -24 -150 -143 Min Interest -30 Other +64) 3 544 3 401 +2% 3 630 3 480 Total shareholder’s equity Book value per share 1) € 19.99 € 19.16 Subordinated
Slide 14: Positive cash flow development further increases cash position in H1 2008
Positive cash flow development further increases cash position in H1 2008 Positive net operating cash flow in €m, YTD H1 2008 Positive operating cash flow of € 523 million for first 6 months of 2008 Cash and cash equivalents at January 1 2 052 Net operating cash flow positively impacted Net oper
Slide 15: SCOR well on track - supported by profitable business engines and robust capital position
SCOR well on track - supported by profitable business engines and robust capital position Capital – adequacy confirmed Robust balance sheet demonstrated Non-Life – managing the cycle despite the financial market crisis - SCOR focuses on efficient capital shield strategy proved diversification an
Slide 16: Appendices
APPENDICES Appendix A: Key figures for Q2 2008 (published & proforma) Appendix B: Calculations of EPS, Book Value per share and ROE Appendix C: Net liabilities by segments Appendix D: Investments by IFRS accounting, unrealized gains and losses, investment income, structured products Appendix E: Esti
Slide 17: A: Key figures for Q2 2008
Appendix A: Key figures for Q2 2008 Variation Q2 2008 Q2 2007 Variation Q2 20071) Variation at constant in €m published proforma exchange rates Gross written premiums 1 395 1 084 +28.7% 1 533 - 9% - 2.3% Net earned premiums 1 274 979 +30.1% 1 350 - 5.6% +2.4% Operating income 139 129 +7.8% 173 - 19.
Slide 18: Appendix A: Key figures at constant exchange rates
Appendix A: Key figures at constant exchange rates Q2 2007 1) Variation H1 2007 1) Variation Q2 2008 at constant H1 2008 at constant in €m, constant exchange rates Proforma exch. rates Proforma exch. rates Gross written premiums 1 498 1 533 -2.3% 2 915 2 957 -1.4% Net earned premiums 1 383 1 350 +2.
Slide 19: Appendix A: Consolidated Q2 2008 QTD statement of income
Appendix A: Consolidated Q2 2008 QTD statement of income Q2 2008 Q2 2007 in €m proforma1) Gross written premiums 1'395 1'533 Change in unearned premiums 1 -29 Gross earned premiums 1'396 1'503 Other income from reinsurance operations 1 6 Net investment income 182 248 Total income from ordinary activ
Slide 20: Appendix A: Q2 2008 QTD consolidated statement of income by segment
Appendix A: Q2 2008 QTD consolidated statement of income by segment1) Q2 2008 Q2 2007 proforma3) in €m Non- Intra- Non- Intra- Life Total Life Total Life group Life group Gross written premiums 643 752 1395 683 850 1533 Change in unearned premiums -18 19 1 6 -36 -29 Gross earned premiums 625 771 0 1
Slide 21: Appendix B: Calculations of EPS, Book Value per share and ROE
Appendix B: Calculations of EPS, Book Value per share and ROE Breakdown of Earnings per Share Calculation Post-tax Return on Equity (ROE) in €m H1 2007 in €m H1 2007 H1 2008 Published H1 2008 Published Net income (A) 2251) 181 Q2 2008 net income 2251) 181 Number of opening shares (1) 182 726 994 118
Slide 22: Appendix C: Net liabilities by segments
Appendix C: Net liabilities by segments Net liabilities in €m 18 047 -2% 17 725 Stable at 43% constant 42% exchange rates Life Non-Life 57% 58% 31/03/2008 30/06/2008 22
Slide 23: Appendix D: Investment portfolio by IFRS accounting classification
Appendix D: Investment portfolio by IFRS accounting classification Investments in €m 19 092 18 586 1% -2.7% 2% 11% 14% 39% Investment associated 39% Investment property Cash 2% Deposits, loans & receivables 1% Fair value by income Available for sale 47% 44% 31/12/2007 30/06/2008 Published 23
Slide 24: Appendix D: Unrealized gains & losses evolution
Appendix D: Unrealized gains & losses evolution Unrealized gains & losses in €m 1) 1) 2006 Q4 2007 Q1 2007 Q2 2007 Q3 2007 Q4 2008 Q1 2008 Q2 98 105 27 57 73 1 -168 122 122 119 156 122 147 141 28 29 23 -52 -46 -14 -34 -51 -40 -115 -115 -128 -40 -181 Equities Bonds Real estates & REITS 1) Immaterial
Slide 25: Appendix D: Investment income development
Appendix D: Investment income development Q1 Q2 Q2 Investment income QTD (before tax & investment expenses) QTD QTD YTD Groupama guarantee impact -10 0 -10 In €m Equities impairments -17 -30 -47 250 Real estate amortization -5 -3 -8 211 195 14 182 Other impairments 0 -4 -4 8 20 152 4 Change in depre
Slide 26: Appendix D: Structured products in fixed income portfolio at 30/6/08
Appendix D: Structured products in fixed income portfolio at 30/6/08 Structured product portfolio € 1.2 billion of high quality; 90% AAA rating Commercial MBS 100% Alt-A MBS 19% 2% 75% Subprime MBS 4% Consumer 50% ABS1) Prime non- 11% agency MBS 12% CDO 7% US Agency Principal protected MBS ABS CDO &
Slide 27: Appendix D: Key characteristics and performance indicators of subprime and Alt-A products
Appendix D: Key characteristics and performance indicators of subprime and Alt-A products Alt-A MBS (Total: USD 28.1m) Subprime MBS Prime 2nds (Total: USD 12.6m) Subprime (Total: USD 52.5m) Original average credit support 4.78% Prime 2nd Liens make up 21% 15% of subprime exposure of total subp
Slide 28: Appendix E: Estimated sensitivity to interest rates and equity market
Appendix E: Estimated sensitivity to interest rates and equity market Estimated sensitivity to interest rate & equity market movements on net income and shareholders’ equity 2007 2006 in €m Net Shareholders’ Net Shareholders’ Total Total income equity impact income equity impact Interest rates +100