Scor SE · EURONEXT:SCR
Scor — Q1 2013 Earnings Presentation
50 slides from Scor's earnings presentation, Aug 21, 2013
Slide 1: SCOR Group Q1 2013 results
SCOR GROUP Q1 2013 results SCOR records net income of EUR 111 million
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: In 2013, SCOR actively pursues the implementation of its strategic plan
In 2013, SCOR actively pursues the implementation of its strategic plan SGPC delivers strong January and April renewals combining a 9% increase in GWP and a price rise of 1.9% in January and a 6% increase in GWP and a price rise of 0.7% in April Strong SGPC and SGL sign capital relief deals in S
Slide 4: SCOR delivers strong financials for the first quarter of 2013
SCOR delivers strong financials for the first quarter of 2013 Q1 2013 gross written premium growth of 3.9% compared to 2012 at constant FX, driven by healthy SCOR Global P&C renewals and by major new contracts signed by the SCOR Global Life engine In 2013, SCOR Group gross written premiums are e
Slide 5: SCOR Q1 2013 financial details
SCOR Q1 2013 financial details in € millions (rounded) Variation at Variation at Q1 2013 Q1 2012 current FX constant FX Gross written premiums (GWP) 2 388 2 327 2.6% 3.9% Net earned premiums 2 125 2 016 5.4% Operating results 175 1555) 12.9% Net income 111 104 6.7% Group cost ratio1) 5.3% 5.2% 0.1pt
Slide 6: Robust shareholders' equity development with BVPS above € 27
Robust shareholders’ equity development with BVPS above € 27 2013 development in € millions (rounded) 20.0%1)2) Financial leverage decreases by 1.2 pts 18.8%1) 1 212 1 212 111 31 53 Total shareholders’ equity reaches € 5 billion in Q1 2013 +4.1% SCOR financial 5 002 leverage stands at 4 8072) 18
Slide 7: Net operating cash flow and liquidity position
€ 140 million of net operating cash flow generated during Q1 2013; liquidity position at € 2.3 billion in € millions (rounded) 2013 Cash and cash equivalents at 1 January 1 466 Net cash flows from operations, of which: 140 Business model continues to deliver a robust operating cash flow of € 140 m
Slide 8: SCOR Global P&C continues to deliver healthy growth
In Q1 2013, SCOR Global P&C continues to deliver healthy growth, with technical profitability better than the SMV1.1 plan Gross written premiums in € millions Solid growth of 5.3% in Q1 2013 at constant FX, +4.0% in line with full year expectations (~+ 6%) +5.3% SCOR Global P&C confirms assumpti
Slide 9: 1st April 2013 renewals, SCOR Global P&C
At the 1st April 2013 renewals, SCOR Global P&C continues its profitable growth, well balanced across geographies and lines of business Premiums renewed in April1) Around 10% of Treaty business (P&C Treaties and in € millions, rounded -5% +1% +9% +3% +2% -4% +6% Specialties) comes up for renewal a
Slide 10: SCOR Global P&C further expands its franchise in Asia-Pacific and the Americas
SCOR Global P&C further expands its franchise in Asia-Pacific and the Americas Speciality Lines1) Treaty P&C1) in € millions, rounded in € millions, rounded Agriculture 2) 33 132 34 +2% Japan +3% 136 Credit & 24 Surety 21 -10% US 42 +13% 48 Engineering 21 20 -4% Indian sub- 31 +11% Marine & 16 conti
Slide 11: SCOR Global Life delivers a strong and stable technical margin
SCOR Global Life delivers a strong and stable technical margin, in line with Strong Momentum assumptions Gross written premiums in € millions 2.6% growth compared to Q1 2012 at constant (rounded) +1.3% exchange rates, driven by double-digit growth in the UK, Spain (BBVA deal) and Asia, offset by n
Slide 12: SCOR Global Life MCEV reaches € 3.5 billion in 2012
SCOR Global Life MCEV reaches € 3.5 billion in 2012 (€18.8 per share) After tax, in € millions (rounded) € 18.0 MCEV per share increases by € 0.8 € 18.8 Total MCEV earnings of € 372 m, or 11.2% 3 456.1 24.7 3 319.3 87.1 ‐260.2 1) 285.2 1 914.0 1 781.5 Operating MCEV earnings of 8.6% 1 537.8 1 542.1
Slide 13: 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 Business Value of New Business is stable, close to 2011 value, although in € millions (rounded) 124 122 no new longevity deals were written in 2012 due to timing issues ~ stable New business margin increases to 3.6%
Slide 14: SCOR Global Life generates significant free cash flow
SCOR Global Life generates significant free cash flow, demonstrating the strength and maturity of the franchise 2012 Free Surplus evolution Free Surplus in € millions (rounded) 72.0 ‐9.2 ‐190.6 86.9 326.0 ‐260.2 2 1 1 075.5 Free Surplus Free Surplus generation from in-force business utilisation 3 59
Slide 15: SCOR Global Investments delivers return on invested assets of 3.0%
SCOR Global Investments delivers an on-going return on invested assets of 3.0% in a record low yield environment Total invested assets1): € 14.1 billion at 31/03/2013 in % (rounded) Other investments2) 3% Cash 12% Liquidity 16% Total investments of € 22.2 billion, of which total Real estate 5% Equ
Slide 16: 2013 forthcoming events and Investor Relations contacts
2013 forthcoming events and Investor Relations contacts Forthcoming scheduled events 1 August 2013 4 September 2013 6 November 2013 SCOR Group: SCOR Group: SCOR Group: H1 2013 Results IR Day Q3 2013 Results In 2013 SCOR is scheduled to attend the following investor conferences Autonomous, Lo
Slide 17: 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 17
Slide 18: 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 18
Slide 19: Appendix A: Consolidated statement of income, Q1 2013
Appendix A: Consolidated statement of income, Q1 2013 in € millions (rounded) Q1 2013 Q1 2012 Gross written premiums 2 388 2 327 Change in gross unearned premiums -48 -82 Gross benefits and claims paid -1 627 -1 501 Gross commissions on earned premiums -451 -486 Gross Technical result 262 258 Ceded
Slide 20: Appendix A: Consolidated statement of income by segment
Appendix A: Consolidated statement of income by segment for Q1 2013 Q1 2013 Q1 2012 in € millions (rounded) Group Group Life P&C Intra-Group Total Life P&C Intra-Group Total functions functions Gross written premiums 1 191 1 197 0 0 2 388 1 176 1 151 0 0 2 327 Change in gross unearned premiums -1 -4
Slide 21: Appendix B: Consolidated balance sheet – Assets
Appendix B: Consolidated balance sheet – Assets Q4 2012 Q4 2012 in € millions (rounded) Q1 2013 Restated1) Published Intangible assets 1 923 1 941 1 941 Goodwill 788 788 788 Value of business acquired 1 017 1 031 1 031 Other intangible assets 118 122 122 Tangible assets 534 540 541 Insurance busines
Slide 22: Appendix B: Consolidated balance sheet – Liabilities & equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity Q4 2012 Q4 2012 in € millions (rounded) Q1 2013 Restated1) Published 2) Group shareholders’ equity 4 995 4 800 4 803 Non-controlling interest 7 7 7 2) Total shareholders’ equity 5 002 4 807 4 810 Financial debt 1 621 1 648 1
Slide 23: Appendix B: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows in € millions (rounded) Q1 2013 Q1 2012 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 1 466 1 281 NET CASH FLOWS FROM OPERATIONS 140 110 Cash flow from changes in scope of consolidation 0 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) -0.6% 22 512 22 383 47% 48% SCOR Global Life SCOR Global P&C 53% 52% 31/12/2012 31/03/2013 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) Q1 2013 Q1 2012 Post-tax Return on Equity (ROE) Group net income1) (A) 111 104 in € millions (rounded) Average number of opening 192 021 303 192 021 303 shares (1) Q1 2013
Slide 26: Appendix D: Reconciliation of total expenses to cost ratio
Appendix D: Reconciliation of total expenses to cost ratio in € millions (rounded) Q1 2013 Q1 2012 Total Expenses as per Profit & Loss account -138 -135 ULAE (Unallocated Loss Adjustment Expenses) -8 -8 Total management expenses -146 -143 Investment management expenses 9 7 Total expense base -137 -1
Slide 27: Appendix E: Calculation of P&C Combined Ratio
Appendix E: Calculation of P&C Combined Ratio in € millions (rounded) Q1 2013 Q1 2012 P&C P&C Gross earned premiums1) 1 150 1 066 Ceded earned premiums2) -104 -100 Net earned premiums (A) 1 046 966 Gross benefits and claims paid -689 -640 Ceded claims 43 29 Total net claims (B) -646 -611 Loss ratio
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 April 2012 at the exchange rate as at December 31, 2012 Cancelled/restructured: client or SCOR decided to cancel the business/programs and/or to change their programs (e.g
Slide 30: Appendix F: Calculation of the Life Technical margin
Appendix F: Calculation of the Life Technical margin Q1 2013 Q1 2012 in € millions (rounded) SGL SGL Gross earned premiums1) 1 190 1 179 Ceded earned premiums2) -111 -129 Net earned premiums (A) 1 079 1 050 Net technical result 47 32 Interests on deposits 33 44 Technical result (B) 80 76 Net Technic
Slide 31: Appendix G: Investment portfolio asset allocation
Appendix G: Investment portfolio asset allocation as of 31/03/2013 Tactical asset allocation in % (rounded) 8% 8% Cash SM V1.1 SAA1) 9% 11% 10% 9% 10% 12% 17% 4% 81% 4% 80% 81% Fixed Income 4% 75% 4% 77% 4% 78% 4% 79% 4% 4% 76% Short‐term investments Min Max 10% 10% 10% 4% 4% 69% 10% 14% 9% 2% 5.0%
Slide 32: Appendix G: Details of total investment portfolio
Appendix G: Details of total investment portfolio Development of total investments since Q1 2011 in € millions (rounded) 21 917 22 248 22 200 21 402 21 617 20 525 21 053 19 865 19 559 8 392 8 266 8 141 8 098 8 302 8 379 7 623 7 988 7 465 13 100 13 238 13 525 13 982 14 059 12 242 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 31/03/2013 in € millions (rounded) SGI classification Total Total Funds Fixed Real Other Total Accrued Technical IFRS IFRS Cash Equities invested withheld by 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 IFRS invested assets 12 478 12 426 12 850 13 332 13 821 13 647 13 946 14 314 14 321 Accrued interest - 93 - 85 - 92 - 91 - 107 - 95 -
Slide 35: Appendix G: Details of investment returns
Appendix G: Details of investment returns in € millions (rounded) QTD 2012 2012 2013 Annualized returns: Q1 Q2 Q3 Q4 FY Q1 Total net investment income1) 134 143 133 155 566 112 Average investments 20 697 20 985 21 208 21 501 21 098 21 662 Return on investments (ROI) 2.6% 2.8% 2.5% 2.9% 2.7% 2.1% Ret
Slide 36: Appendix G: QTD Investment income development
Appendix G: QTD Investment income development in € millions (rounded) QTD 2012 2012 2013 Q1 Q2 Q3 Q4 FY Q1 Investment revenues on invested assets 69 95 69 84 317 64 Realized gains/losses on fixed income 23 23 9 11 65 40 Realized gains/losses on equities 6 -1 2 2 10 6 Realized gains/losses on real es
Slide 37: Appendix G: Government bond portfolio
Appendix G: Government bond portfolio as of 31/03/2013 By region Top exposures in %. Total € 3.6 billion in € millions (rounded) USA 1 163 21% Germany 499 25% UK 490 Canada 299 EU Supranational 1) 295 Australia 160 North America Netherlands 155 14% France 124 UK Japan 81 Others Singapore 65 Denmark
Slide 38: Appendix G: Corporate bond portfolio
Appendix G: Corporate bond portfolio as of 31/03/2013 By rating By sector/type in %. Total € 4.2 billion 1%2% in € millions (rounded) Q1 2013 In % 11% 14% Consumer, Non-cyclical 889 21% AAA Financial 747 18% Communications 581 14% AA Consumer, Cyclical 402 10% 24% A Industrial 387 9% Energy 322 8% B
Slide 39: Appendix G: Corporate bond portfolio by seniority
Appendix G: Corporate bond portfolio as of 31/03/2013 By seniority in € millions (rounded) Market to AAA AA A BBB Other 1) Total Book Value % Seniority Senior 63 592 2 004 888 408 3 955 103% Subordinated 0 0 8 52 8 69 105% Hybrid 0 0 15 61 83 159 100% Convertible 0 0 0 0 7 7 96% Other 0 7 13 0 2 23
Slide 40: Appendix G: Financials corporate bond portfolio
Appendix G: “Financials” Corporate bond portfolio as of 31/03/2013 By rating in %. Total € 0.7 billion By sector in € millions (rounded) By seniority in %. Total € 0.7 billion <1%1) 1% 11% Q1 2013 In % AAA 18% 21% Bank 586 79% Senior AA Subordinated 22% A Insurance 62 8% 8% 2) Hybrid BBB Real estate
Slide 41: Appendix G: Banks financial corporate bond portfolio
Appendix G: “Banks” Financial Corporate bond portfolio as of 31/03/2013 By rating By seniority in %. Total € 0.6 billion in %. Total € 0.6 billion 12% 15% AAA 26% AA 10% Senior A 21% Subordinated BBB Hybrid1) <BBB 75% NR 41% By region Top 10 exposures2) in %. Total € 0.6 billion in € millions (round
Slide 42: Appendix G: Structured & securitized product portfolio
Appendix G: Structured & securitized product portfolio as of 31/03/2013 in € millions (rounded) Market to 1) AAA AA A BBB Other Total Book Value % ABS ABS 14 10 2 0 0 26 105% Loan and CLO Loan and CLO 64 1 0 4 201 270 102% CDO CDO 11 33 0 1 23 68 90% MBS CMO 0 2 3 1 24 29 101% Non-agency CMBS 35 3 1
Slide 43: Appendix G: Equity portfolio
Appendix G: Equity portfolio as of 31/03/2013 By underlying asset By sector/type in %. Total € 0.6 billion in € millions (rounded) Q1 2013 In % Europe large cap 19% Diversified / Funds 228 35% Financial 94 14% Americas large cap Consumer, Cyclical 75 12% 3% Communications 70 11% 44% Asia / Emerging
Slide 44: Appendix G: Real estate portfolio
Appendix G: Real estate portfolio as of 31/03/2013 in € millions (rounded) Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Real estate securities 144 158 163 164 163 Direct real estate net of debt and including URGL 376 380 357 465 518 Direct real estate at amortized cost 497 494 473 584 627 Real estate URG
Slide 45: Appendix G: Other investments
Appendix G: Other investments as of 31/03/2013 in € millions (rounded) Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Alternative investments 95 90 80 67 130 Non-listed equities 57 81 37 39 62 Commodities 38 37 35 37 36 Infrastructure funds 43 43 43 46 46 Private equity funds 10 11 11 12 12 Insurance Linke
Slide 46: Appendix G: Unrealized gains & losses development
Appendix G: Unrealized gains & losses development Unrealized gains & losses Variance in € millions (rounded) Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 YTD Fixed income 49 53 185 204 199 -5 Equities -120 -147 -92 -71 -31 40 Real estate1) 119 122 119 102 110 8 Other investments -4 24 -2 -3 -2 0 Total 45
Slide 47: Appendix G: Reconciliation of asset revaluation reserve
Appendix G: Reconciliation of asset revaluation reserve Variance in € millions (rounded) 31/12/2012 31/03/2013 YTD Fixed income URGL 204 199 -5 Of which: Government bonds & assimilated 1) 24 40 16 Covered bonds & agency MBS 49 34 -15 Corporate bonds 134 126 -8 Structured & securitized products -2 -1
Slide 48: Appendix H: Debt structure
Appendix H: Debt structure as of 31/03/2013 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 $ 67 million 7 June 1999 Floating
Slide 49: Appendix 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