Scor SE · EURONEXT:SCR
Scor — KBW conference 2011
25 slides from Scor's conference presentation, Sep 21, 2011
Slide 1: KBW conference
KBW conference Benjamin Gentsch, Deputy CEO of SCOR Global P&C 21st September 2011
Slide 2: KBW conference on 21 September 2011
KBW conference on 21 September 2011 1 Accelerating towards “Strong Momentum” 2 SCOR Global P&C optimally positioned within an increasingly fragmented pricing environment 2
Slide 3: One year after Strong Momentum V1.0…
One year after Strong Momentum V1.0… One year ago, after the successful implementation of the “Dynamic Lift” plan, SCOR presented the “Strong Momentum” plan, covering the mid 2010 – mid 2013 period “Strong Momentum” rested upon strict adherence to four strategic cornerstones, and three main targ
Slide 4: … SCOR presents Strong Momentum V1.1
… SCOR presents Strong Momentum V1.1 One year after the announcement of the “Strong Momentum” plan (SMV1.0), SCOR presents version 1.1 of “Strong Momentum” (SMV1.1), covering the period from mid 2011 to mid 2013 Version V1.1 rests upon the same four strategic cornerstones as V1.0… Strong Control
Slide 5: SCOR expands its global franchise, expecting to reach gross written premiums of €10 billion in 2013
SCOR expands its global franchise, expecting to reach gross written premiums of € 10 billion in 2013 SCOR expands its global franchise GWP in € billions ~10.0 Existing franchise expected to reach 0.8 ~ €10 billion euros in premium by 2013 Focus on continuous development of market-leading service
Slide 6: KBW conference on 21 September 2011
KBW conference on 21 September 2011 1 Accelerating towards “Strong Momentum” 2 SCOR Global P&C optimally positioned within an increasingly fragmented pricing environment 6
Slide 7: SCOR Global P&C pursues its growth while maintaining its Strong Momentum V1.0 profitability assumptions
SCOR Global P&C (SGPC) pursues its growth while maintaining its Strong Momentum V1.0 profitability assumptions SGPC “Strong Momentum” presented in September 2010 planned the first two years relatively flat in terms of pricing, then picking up in 2013 Despite H1 2011 losses, unless a shock event
Slide 8: 2012 price evolutions seen and expected as of June 2011
2012 price evolutions seen and expected as of June 2011, confirming the high fragmentation of the P&C reinsurance market Weighted average 2012 Min. – Max. Markets Line of Business pricing1) expected trends by market concerned by LoB Liability flat 0 – 5% USA, Australia, Japan, Motor + 1.5% 5 – 15% F
Slide 9: Group global business model optimally fits the increasingly fragmented P&C reinsurance markets
SCOR Group global business model optimally fits the increasingly fragmented P&C reinsurance markets … that operates based on a multi- SCOR benefits from the fungibility of SCOR is a truly global entity… domestic deployment its capital and its diversification of its network: 25 local entities for by
Slide 10: Global P&C's assessment of its potential in the segments where it operates at 2012 renewals (I)
SCOR Global P&C’s assessment of its potential in the segments where it operates at 2012 renewals (I) Treaty P&C Cat business very attractive in all major markets due to the ongoing price adjustment related to Q1 2011 events, selected approach in Non-Cat lines on markets where SCOR can push for impro
Slide 11: Global P&C's assessment of its potential in the segments where it operates at 2012 renewals (II)
SCOR Global P&C’s assessment of its potential in the segments where it operates at 2012 renewals (II) Specialty Lines and Business Solutions Almost unchanged attractiveness of business is proof of SCOR’s strategic stability and long-term focus Segmentation by Line Specialty Lines Short- to mid-term
Slide 12: SCOR Global P&C is a worldwide top-tier reinsurer with a solid foothold in all markets
SCOR Global P&C is a worldwide top-tier reinsurer with a solid foothold in all markets, which has strengthened its relationships across all lines Strong global franchise to become the reinsurer of choice by providing Lead2) development by line solutions and services, i.e. more than “just” products 2
Slide 13: SCOR Global P&C has the potential for continued growth whilst keeping solvency and profitability targets
SCOR Global P&C has the potential for continued growth whilst keeping its solvency and profitability targets in line with Strong Momentum V1.0 Presence in local market/line1): 2011 2013 SCOR Global P&C provides a global offer in Treaty P&C Treaty P&C and Specialty Lines reinsurance to its Germany cl
Slide 14: All the initiatives of Strong Momentum V1.0 are being pursued and two new initiatives have been launched
All the initiatives of Strong Momentum V1.0 are being pursued and two new initiatives have been launched Initiative Status Comment Scale up of Launched New product mix, triggering an amended business model and organization. 1 Business Solutions & on track Based on seven sub-business cases, e.g. offs
Slide 15: Global P&C Strong Momentum update confirms growth rate and shows an improved technical ratio
Global P&C “Strong Momentum” update confirms growth rate and shows an improved technical ratio SGPC’s growth via new initiatives in most of the business areas Treaties show contrasting situations: Growing in the selected emerging markets in Gross Written Premiums2) SGPC CAGR1): which economies c
Slide 16: SCOR Global P&C maintains greater stability of its net technical results than its peers
As of June 2011, SCOR Global P&C maintains greater stability of its net technical results than its peers, “normalized” Net Technical Ratio, “normalized” taking out disclosed reserve releases EQ Japan 160% EQ New Zealand Australian Floods SCOR consistently 140% among most Ike Chile EQ profitable re
Slide 17: SGPC low volatility of results is backed by a strong Capital Shield
SGPC low volatility of results is backed by a strong Capital Shield, of which 85% of the protection is still in place for the remainder of 2011 (as of 30/06) Estimated potential impact of two further major Nat Cat events in 2011 Following two further events in the table, All in €m, gross losses, U.S
Slide 18: SCOR Global P&C combined ratio assumption over the plan remains at 95-96%
SCOR Global P&C combined ratio assumption over the plan remains at 95-96%, leveraging on continued active portfolio management Pursued trend of progressive reduction of the attritional loss ratio1) Combined ratio assumption over 1 thanks to portfolio mix evolution the plan maintained at 95-96% 67% 6
Slide 19: SCOR Global P&C combines growth and profitability, in line with its Strong Momentum assumptions
SCOR Global P&C combines growth and profitability, in line with its “Strong Momentum” assumptions SCOR Global P&C keeps delivering SCOR Global P&C is ideally structured to benefit from an industry which is characterised by an increasingly fragmented pricing environment and in line with SMV1.0 mark
Slide 20: Appendix
Appendix SOOR,..., P&C 20
Slide 21: Economic assumptions have changed but performance targets remain the same
Economic assumptions have changed but performance targets remain the same Under the following assumptions Key profitability drivers Economy1): “Strong “Strong Real GDP annual rate growth: Momentum” Momentum” V1.0 V1.1 2011 projection in SMV1.0: 2.4% Expected2) in 2011: 1.6% GWP Growth ~9% ~14%
Slide 22: Treaty P&C: expecting continued growth across all regions with improvements in underlying profitability
Treaty P&C: expecting continued growth across all regions with improvements in underlying profitability Estimated gross premium income, on an Underwriting Year basis By type i.e. organic growth or initiatives By region1) In € billions (rounded) In € billions (rounded) ~2.4 ~2.4 ~2.4 ~2.4 ~2.1 ~2.1 ~
Slide 23: Specialty Lines: expecting double-digit growth across all regions with improvements in underlying profitability
Specialty Lines: expecting double-digit growth across all regions with improvements in underlying profitability Estimated gross premium income, on an Underwriting Year basis By type i.e. organic growth or initiatives By region1) In € billions (rounded) In € billions (rounded) ~1.8 ~1.6 ~1.8 ~1.4 0.2
Slide 24: Business Solutions: expecting continued growth across all regions with improvements in underlying profitability
Business Solutions: expecting continued growth across all regions with improvements in underlying profitability Estimated gross premium income, on Underwriting Year basis By type i.e. organic growth or initiatives By region1) In € billions (rounded) In € billions (rounded) ~0.6 ~0.6 ~0.6 ~0.6 ~0.5 ~
Slide 25: High confidence in 2010 P&C reserves adequacy, with a margin embedded in the reserves
High confidence in 2010 P&C reserves adequacy, with a margin embedded in the reserves of between 1% and 2% Group methodology applied Since 2008, full IT integration of ex-Converium. All Group historical data is in a Group-wide to each segment thanks to database, providing higher transparency and f