Scor SE · EURONEXT:SCR
Scor — H1 2012 Earnings Presentation
51 slides from Scor's earnings presentation, July 2012
Slide 1: SCOR Group H1 2012 results
SCOR GROUP H1 2012 results In a challenging environment, SCOR meets its targets and records net income of EUR 206 million in the first half of 2012
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 Unaudited 2011 published half-year report: The unaudited published accounts of H1 2011 do not include Transamerica Re figures since it was acquired on 9 August 2011 Unaudited pro-forma informa
Slide 4: SCOR's growing franchise provides underlying profitability in line with operational assumptions
SCOR’s growing franchise provides underlying profitability levels in line with its operational assumptions In the first half of 2012, SCOR’s operational performance is consistent with its Strong Momentum assumptions Strong H1’12 Momentum V1.11) Actuals Group gross written premiums annual growth ~ +9
Slide 5: SCOR's positive momentum continues, delivering consistently on its targets
SCOR’s positive momentum in the industry continues, thanks to its ability to consistently deliver on its targets SCOR delivers on its targets combining profitability and solvency Controlled risk appetite Strong H1’12 Momentum V1.1 Actuals High Security level provided to diversification AA A+ clien
Slide 6: H1 2012 financial highlights
H1 2012 financial highlights H1 2012 gross written premium growth of 10% compared to 2011 pro-forma (36% published), driven by robust SCOR Global P&C renewals and by SCOR Global Life’s growth from both new and existing clients Strong H1 2012 net income at € 206 million with a 9.3% return on equi
Slide 7: SCOR H1 2012 financial details
SCOR H1 2012 financial details in €m (rounded) H1 2011 Variation at Variation at H1 2011 Variation at Variation at H1 2012 published5) current FX constant FX pro-forma5) current FX constant FX Gross written premiums (GWP) 4 635 3 400 36.3% 29.1% 4 205 10.2% 4.4% Net earned premiums 4 126 2 967 39.1%
Slide 8: Positive shareholders' equity development
Positive shareholders’ equity development H1 2012 development 17.8%1) Financial leverage decreases by 0.4 pts 17.4%1) in €m (rounded) 1 031 1 031 992 +206 +127 +78 -30 SCOR financial -203 leverage stands at 17.4%, with Treasury stock -37 Other +7 peer group at around 23%5) 4 410 4791 4 791 4 588 4
Slide 9: Net operating cash flow of €239 million; liquidity at €2.3 billion
€ 239 million of net operating cash flow generated during H1 2012; liquidity position stands at € 2.3 billion in €m (rounded) H1 2012 Cash and cash equivalents at 1 January 1 281 Business model continues to deliver a robust Net operating cash flow, of which: 239 operating cash flow of € 239 millio
Slide 10: SCOR Global P&C continues strong and profitable growth
In H1 2012, SCOR Global P&C continues to deliver strong and profitable growth Gross written premiums in €m +16.0% H1 2012 top line positively impacted by strong renewals and volume seasonality; full year growth expected to be in line with Strong Momentum strategic plan assumptions +10.2% 2 255 of
Slide 11: SCOR Global P&C June-July renewals: premium volume up 24%
SCOR Global P&C June-July renewals: premium volume increases by 24% to € 462 million at conditions meeting expectations Specialty Lines Premiums renewed in June-July1) Treaty P&C in €m, rounded -6% -1% +12% +9% +9% +1% +24% June-July renewals represent 12% of P&C treaties’2) 462 premiums up for re
Slide 12: SCOR Global Life delivers performance anchored to technical profitability
SCOR Global Life delivers a performance anchored to technical profitability Gross written premiums in €m (rounded) 5% growth compared to H1 2011 pro-forma +5.3% driven by FX; significant increases in emerging markets (Latin America and Asia/Australia), Central and Eastern Europe, Canada and -0.7%
Slide 13: SCOR Global Investments delivers robust return on invested assets
SCOR Global Investments delivers a robust return on invested assets of 3.0% in a record low yield environment Total invested assets1): €13.2 billion at 30/06/2012 Other investments2) 3% Cash 8% Liquidity 18% Total investments of € 21.6 billion, of which total invested Real estate 4% Equities 5% as
Slide 14: SCOR is a leading reinsurance player with a global footprint
SCOR is a leading player in the reinsurance industry with a global footprint SCOR relative YTD share price performance has been potentially affected by: the negative status of Euronext stocks compounded by the positive position of peers located in “safe haven” countries (Germany, Switzerland, USA)
Slide 15: 2012 forthcoming events and contacts
2012 forthcoming events and contacts Forthcoming scheduled disclosures 6 September 2012 13 November 2012 SCOR Group: SCOR Group: IR Day Q3 2012 results In 2012 SCOR is scheduled to attend the following investor conferences Macquarie, Boston (September 18) Société Générale, Paris (November 28
Slide 16: 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 Other 16
Slide 17: Appendix A: Consolidated statement of income, H1 2012
Appendix A: Consolidated statement of income, H1 2012 H1 2011 H1 2011 in €m (rounded) H1 2012 pro-forma published Gross written premiums 4 635 4 205 3 400 Change in unearned premiums -89 -151 -151 Gross Claims expenses -3 171 -3 104 -2 578 Gross commissions earned -974 -858 -750 Gross Technical resu
Slide 18: Appendix A: Consolidated statement of income by segment, H1 2012
Appendix A: Consolidated statement of income by segment for H1 2012 H1 2011 H1 2011 H1 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 2 380 2 255 0 0 4
Slide 19: Appendix A: SCOR Q2 2012 financial details
Appendix A: SCOR Q2 2012 financial details in €m (rounded) Q2 2011 Variation at Variation at Q2 2011 Variation at Variation at Q2 2012 published5) current FX constant FX pro-forma6) current FX constant FX Gross written premiums (GWP) 2 308 1 735 33.0% 23.1% 2 149 7.4% -0.7% Net earned premiums 2 110
Slide 20: Appendix A: Consolidated statement of income, Q2 2012
Appendix A: Consolidated statement of income, Q2 2012 in €m (rounded) Q2 2011 Q2 2011 Q2 2012 Pro-forma Published Gross written premiums 2 308 2 149 1 735 Change in unearned premiums -7 -55 -55 Gross Claims expenses -1 670 -1 451 -1 191 Gross commissions earned -488 -441 -386 Gross Technical result
Slide 21: Appendix A: Consolidated statement of income by segment, Q2 2012
Appendix A: Consolidated statement of income by segment for Q2 2012 Q2 2011 Q2 2011 Q2 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 1 204 1 104 0 0 2
Slide 22: Appendix B: Consolidated balance sheet – Assets
Appendix B: Consolidated balance sheet – Assets in €m (rounded) H1 2012 Q4 2011 Intangible assets 1 982 1 969 Goodwill 788 788 Value of purchased insurance portfolios 1 074 1 069 Other intangible assets 120 112 Tangible assets 560 515 Insurance business investments 20 976 20 148 Investment property
Slide 23: Appendix B: Consolidated balance sheet – Liabilities & shareholders' equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity in €m (rounded) H1 2012 Q4 2011 Group shareholders’ equity 4 581 4 403 Minority interests 7 7 Total shareholders’ equity 4 588 4 410 Financial liabilities 1 472 1 425 Subordinated debt 1 031 992 1) Real estate financing 421
Slide 24: Appendix B: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows in €m (rounded) H1 2012 H1 2011 CASH AND CASH EQUIVALENTS AT JANUARY 1 1 281 1 007 NET CASH FLOWS FROM OPERATING ACTIVITIES 239 384 Cash flows from acquisitions and sale of financial assets -168 444 Cash flows from acquisitions and disposals of tangi
Slide 25: Appendix B: Net liabilities by segment
Appendix B: Net liabilities by segment Net liabilities Life & P&C in €m (rounded) 2.5% 22 056 22 602 48% 48% SCOR Global Life SCOR Global P&C 52% 52% 31/12/2011 30/06/2012 25
Slide 26: 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 €m (rounded) H1 2012 H1 2011 Post-tax Return on Equity (ROE) Net income1) (A) 206 40 Average number of opening in €m (rounded) 192 021 303 187 795 401 shares (1) H1 2012 H1 2011 Impact of new s
Slide 27: Appendix D: Reconciliation of total expenses to cost ratio
Appendix D: Reconciliation of total expenses to cost ratio H1 2011 H1 2011 in €m (rounded) H1 2012 Pro-forma Published Total Expenses as per Profit & Loss account -270 -243 -2021) ULAE (Unallocated Loss Adjustment Expenses) -15 -14 -14 Total management expenses -285 -257 -216 Investment management e
Slide 28: Appendix E: Calculation of P&C Combined Ratio
Appendix E: Calculation of P&C Combined Ratio in €m (rounded) H1 2012 H1 2011 P&C P&C Gross earned premiums 2 173 1 814 Retroceded earned premiums -188 -166 Net earned premiums (A) 1 985 1 648 Expenses for claims and policy benefits -1 362 -1 554 Retroceded claims 74 164 Total claims (B) -1 288 -1 3
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 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 program
Slide 30: Appendix F: Calculation of Life Technical, Investment, Expense and Operating Margins
Appendix F: Calculation of the Life Technical, Investment, Expense and Operating Margins H1 2011 H1 2011 in €m (rounded) H1 2012 Pro-forma Published SGL SGL SGL Gross earned premiums 2 373 2 240 1 435 Retroceded earned premiums -232 -238 -116 Net earned premiums (A) 2 1411) 2 002 1,319 Net Technical
Slide 31: Appendix G: Investment portfolio asset allocation as of 30/06/2012
Appendix G: Investment portfolio asset allocation as of 30/06/2012 Tactical asset allocation SM V1.1 SAA1) Min Max 8% 9% 11% 10% 8% 8% Cash 5.0% 2) 100.0% 4% 80% 17% 81% 4% 80% 2% 4% 75% 77% 4% 78% 4% Fixed Income 4% 10% 10% 69% 4% 10% Short‐term investments 0.0% 100.0% 2% 14% 38% Government bonds &
Slide 32: Appendix G: Details of total investment portfolio
Appendix G: Details of total investment portfolio Development of total investments since Q2 2010 in €m (rounded) 21 402 21 617 21 329 20 944 3) 20 525 21 053 20 593 19 865 19 559 8 101 7 823 8 098 8 302 8 379 7 640 7 988 7 623 7 465 13 228 13 121 12 953 12 242 12 537 12 955 13 100 13 238 12 094 Q2 2
Slide 33: Appendix G: Reconciliation of IFRS asset classification to IR presentation
Appendix G: Reconciliation of IFRS asset classification to IR presentation as of 30/06/2012 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 34: Appendix G: Reconciliation of IFRS invested assets to IR presentation
Appendix G: 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 Q2 2012 IFRS invested assets 12 656 13 562 13 427 13 238 12 478 12 426 12 850 13 332 13 821 13 647 Accrued interest - 107 - 114 - 114 - 115 -
Slide 35: Appendix G: Details of investment returns
Appendix G: Details of investment returns in €m (rounded) QTD 2011 2011 QTD 2012 2012 Annualized returns: Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Average investments 19 183 19 200 19 191 19 597 20 265 19 561 20 697 20 985 20 841 Total net investment income1) 168 176 343 120 160 624 134 143 278 Net return on inve
Slide 36: Appendix G: QTD investment income development
Appendix G: QTD Investment income development Q2 H1 Q3 Q4 2011 Q1 Q2 H1 in €m (rounded) 2011 2011 2011 2011 YTD 2012 2012 2012 Income on invested assets 104 179 76 89 344 69 95 164 Realized gains/losses on fixed income 16 38 43 37 118 23 23 46 Realized gains/losses on equities 15 43 6 0 49 6 -1 5 Re
Slide 37: Appendix G: Government bond portfolio as of 30/06/2012
Appendix G: Government bond portfolio as of 30/06/2012 By region Top exposures in %. Total € 3.5 billion in €m (rounded) USA 1 117 18% Germany 617 33% Canada 331 1) EU (Non‐UK) Supranational 301 7% UK 231 North America France 202 Netherlands 166 UK Australia 157 Others Denmark 74 Belgium 59 42% Repu
Slide 38: Appendix G: Corporate bond portfolio as of 30/06/2012
Appendix G: Corporate bond portfolio as of 30/06/2012 By rating By sector/type in %. Total € 3.9 billion 1%2% H1 2012 In % in €m (rounded) 10% 12% Financial 777 20% AAA Consumer, Non-cyclical 741 19% Communications 564 15% AA Industrial 364 9% A Consumer, Cyclical 334 9% 28% Energy 292 8% BBB Utilit
Slide 39: Appendix G: Corporate bond portfolio by seniority
Appendix G: Corporate bond portfolio as of 30/06/2012 By seniority in €m (rounded) Market to AAA AA A BBB Other 1) Total Book Value % Seniority Senior 61 474 1 766 987 366 3 653 102% Subordinated 0 1 23 49 2 75 99% Hybrid 0 0 13 65 49 127 81% Convertible 0 0 0 0 1 1 63% Other 0 6 8 0 6 20 103% Total
Slide 40: Appendix G: Financials corporate bond portfolio as of 30/06/2012
Appendix G: “Financials” Corporate bond portfolio as of 30/06/2012 By rating in %. Total € 0.8 billion By sector in €m (rounded) By seniority in %. Total € 0.8 billion 2% 0% 1% 7% H1 2012 In % 14% 18% AAA Bank 604 78% Senior AA 22% Diversified 9% Subordinated A financial services 84 11% 1) Hybrid BB
Slide 41: Appendix G: Banks financial corporate bond portfolio as of 30/06/2012
Appendix G: “Banks” Financial Corporate bond portfolio as of 30/06/2012 By rating By seniority in %. Total € 0.6 billion 6% 1% in %. Total € 0.6 billion 11% 22% AAA AA 11% 22% Senior A Subordinated BBB Hybrid1) <BBB 78% NR 49% By region Top 10 exposures2) in %. Total € 0.6 billion in €m (rounded) 14
Slide 42: Appendix G: Structured & securitized product portfolio as of 30/06/2012
Appendix G: Structured & securitized product portfolio as of 30/06/2012 in €m (rounded) Market to 1) AAA AA A BBB Other Total Book Value % ABS ABS 15 10 2 0 0 27 104% Loan and CLO Loan and CLO 0 9 0 1 188 199 99% CDO CDO 12 29 1 1 19 61 85% MBS CMO 5 2 0 2 25 34 102% Non-agency CMBS 72 7 2 0 2 83 10
Slide 43: Appendix G: Equity portfolio as of 30/06/2012
Appendix G: Equity portfolio as of 30/06/2012 By underlying asset By sector/type in %. Total € 0.7 billion in €m (rounded) H1 2012 In % 3% 3% 4% Europe large cap Diversified / Funds 221 33% 9% Communications 95 14% Americas large cap Industrial 83 13% Utilities 66 10% Asia / Emerging Energy 51 8% ma
Slide 44: Appendix G: Real estate portfolio as of 30/06/2012
Appendix G: Real estate portfolio as of 30/06/2012 in €m (rounded) Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Direct real estate net of debt and including URGL 379 352 371 376 380 Direct real estate amortized costs 518 500 499 497 494 Real estate URGL 118 102 119 121 125 Real estate debt -258 -250 -247
Slide 45: Appendix G: Other investments as of 30/06/2012
Appendix G: Other investments as of 30/06/2012 in €m (rounded) Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Alternative investments 120 123 120 95 90 Non-listed equities 46 47 44 57 81 Commodities 51 40 38 38 37 Infrastructure funds 35 38 40 43 43 Private equity funds 10 11 10 10 11 Insurance Linked Secu
Slide 46: Appendix G: Unrealized gains & losses development
Appendix G: Unrealized gains & losses development Unrealized gains & losses Variance in €m (rounded) Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 YTD Fixed income 40 1 -46 49 53 98 Equities -58 -204 -158 -120 -147 11 Real estate1) 116 94 110 119 122 12 Other investments 1 -5 -6 -4 24 30 Total 99 -113 -99
Slide 47: Appendix G: Reconciliation of asset revaluation reserve
Appendix G: Reconciliation of asset revaluation reserve Variance in €m (rounded) 31/12/2011 30/06/2012 YTD Fixed income URGL -46 53 98 Of which: Government bonds & assimilated1) -4 -1 3 Covered bonds & agency MBS 8 31 23 Corporate bonds -23 41 64 Structured & securitized products -26 -18 9 Equities
Slide 48: Appendix G: SCOR's impairment policy
Appendix G: 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 49: Appendix H: Debt structure
Appendix H: Debt structure 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 U.S.$ 100 million U.S.$ 67 million 7 June 1999 Floating 2029 + 0.80%
Slide 50: 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 BBB+ + Baa1 + Good Good BBB Baa2 + BBB- Baa3 2005 2006 2007 2008 2009 2010 2011 2012 2005 2006 2007 2008 2009 2010 201
Slide 51: Appendix I: SCOR's listing information
Appendix I: 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 Euronext Paris on the SIX Swiss Exchange OTC market : stock market (formerly kn