Scor SE · EURONEXT:SCR
Scor — H1 2015 Earnings Presentation
52 slides from Scor's earnings presentation, August 2015
Slide 1: SCOR Group H1 2015 results
SCOR GROUP H1 2015 results SCOR delivers a strong performance for the first half of 2015 with a net income of EUR 327 million, up 28% from H1 2014
Slide 2: Notice
Notice Certain statements Cautionary contained in this presentation are forward-looking statements, of necessity provisional, that are based statement on risks and uncertainties that could cause actual results, performance or events to differ materially from those in such statements. Undue reliance
Slide 3: SCOR delivers a strong performance in first half of 2015
SCOR delivers a strong performance in first half of 2015 thanks to its robust franchise, innovation and agility Strong premium growth (+19.6%) in H1 20151) confirms SCOR’s robust franchise and Tier 1 status Performance Performance Delivering a high net income Fitch upgrades SCOR of EUR 327 million i
Slide 4: High quality results for H1 2015 leveraging on its three engines
SCOR delivers high quality results for the first half of 2015, leveraging on its three engines Premium growth 1) Combined ratio Premium growth 1) +19.1% 90.9% +19.6% +5.9% at constant FX Stable compared to H1 2014 +5.3% at constant FX Premium growth 1) Technical margin Net income +20.1% 7.2% € 327 m
Slide 5: SCOR H1 2015 financial details
SCOR H1 2015 financial details in € millions (rounded) H1 2015 H1 2014 Variation at current FX Variation at constant FX Gross written premiums 6 493 5 427 19.6% 5.3% Net earned premiums 5 798 4 779 21.3% 7.0% Operating results 540 403 34.0% Net income1) 327 256 27.7% Group cost ratio 5.1% 5.0% 0.1 p
Slide 6: Increase in shareholders' equity with book value per share at EUR 32.29
SCOR records an increase in shareholders’ equity with a book value per share at EUR 32.29 after distribution of EUR 260 million in cash dividends H1 2015 development In € millions (rounded) Financial 24.1% leverage1) 23.1% 2 180 2 180 Successful placement 1 743 280 of EUR 250 million 327 dated sub
Slide 7: EUR 130 million of net operating cash flow generated during H1 2015
EUR 130 million of net operating cash flow generated during H1 2015 Operating cash flow of EUR 130 million as at 30 June 2015, mostly impacted by In € millions (rounded) H1 2015 H1 2014 foreign exchange rate movements, notably on hedge settlements, and volatility and Cash and cash equivalents at 1
Slide 8: SCOR Global P&C delivers excellent technical profitability
In H1 2015, SCOR Global P&C delivers an excellent technical profitability, with a net combined ratio of 90.9% Gross written premiums In € millions +19.1% H1 2015 gross written premium growth of 19.1% (+ 5.9% at constant exchange rates), confirming the trends observed in Q1 2015 +5.9% (at constant
Slide 9: June-July renewals show premium volume increase of 23.6%
June-July renewals show an overall premium volume increase of 23.6%, up to EUR 516 million, and confirm SGPC’s strong franchise Premiums renewed in June-July1) In € millions (rounded) Change in % -8% -0% +8% +16% +8% -1% +23.6% June-July renewals represent approximately 10% of the Excl. new large
Slide 10: Overall price change reflects strength of SGPC's business model
The overall price change reflects the strength of SGPC’s business model in a competitive market environment SCOR portfolio - Price changes, 2015 vs. 2014 Year to date, more than 90% of the Treaty in % (rounded) P&C business has already been renewed Whilst the overall price decrease comes out Jun
Slide 11: SCOR Global Life expands global franchise in key markets
SCOR Global Life expands global franchise in key markets, maintaining strong technical performance Gross written premiums In € millions (rounded) H1 2015 gross written premium growth of 20.1% +20.1% (+4.9% at constant FX) compared to H1 2014, thanks to: +4.9% Solid growth in all three business a
Slide 12: SCOR Global Investments delivers strong return on invested assets of 3.4%
SCOR Global Investments delivers a strong return on invested assets of 3.4%, in a particularly low yield environment Total invested assets: € 17.3 billion at 30/06/2015 Other investments 2% Liquidity 9% In % (rounded) Real estate 5% Total investments of EUR 26.1 billion, with total invested Cash 8
Slide 13: 2015 forthcoming events and Investor Relations contacts
2015 forthcoming events and Investor Relations contacts Forthcoming scheduled events 9 September 2015 4 November 2015 SCOR Group: SCOR Group: Investors’ Day Q3 2015 results In 2015 SCOR is scheduled to attend the following investor conferences Kepler Cheuvreux, Paris (September 17th) Natixis
Slide 14: The SCOR IR app puts SCOR at the fingertips of investors
The 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 @SCOR_SE SCOR SCOR SE 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 Appendix F Life Appendix G Investment Appendix H Debt Appendix I Rating evolution Appendix J Listing information Appendix K Other
Slide 16: Consolidated statement of income, H1 2015
Appendix A: Consolidated statement of income, H1 2015 In € millions (rounded) H1 2015 H1 2014 Gross written premiums 6 493 5 427 Change in gross unearned premiums -107 -144 Revenues associated with life financial reinsurance contracts 4 21) Gross benefits and claims paid -4 516 -3 759 Gross commissi
Slide 17: Consolidated statement of income by segment for H1 2015
Appendix A: Consolidated statement of income by segment for H1 2015 H1 2015 H1 2014 Group Group In € millions (rounded) Life P&C Total Life P&C Total functions functions Gross written premiums 3 634 2 859 6 493 3 027 2 400 5 427 Change in gross unearned premiums 10 -117 -107 -15 -129 -144 Revenues a
Slide 18: SCOR Q2 2015 financial details
Appendix A: SCOR Q2 2015 financial details in € millions (rounded) Q2 2015 Q2 2014 Variation at current FX Variation at constant FX Gross written premiums 3 369 2 758 22.2% 5.5% Net earned premiums 3 001 2 461 21.9% 5.7% Operating results 253 193 31.1% Net income1) 152 121 25.6% Group cost ratio 5.1
Slide 19: Consolidated statement of income, Q2 2015
Appendix A: Consolidated statement of income, Q2 2015 In € millions (rounded) Q2 2015 Q2 2014 Gross written premiums 3 369 2 758 Change in gross unearned premiums -51 -39 Revenues associated with life financial reinsurance contracts 2 11) Gross benefits and claims paid -2 412 -1 960 Gross commission
Slide 20: Consolidated statement of income by segment for Q2 2015
Appendix A: Consolidated statement of income by segment for Q2 2015 Q2 2015 Q2 2014 Group Group In € millions (rounded) Life P&C functions Intra-Group Total Life P&C functions Intra-Group Total Gross written premiums 1 908 1 461 3 369 1 560 1 198 2 758 Change in gross unearned premiums 9 -60 -51 -1
Slide 21: Consolidated balance sheet - Assets
Appendix B: Consolidated balance sheet - Assets In € millions (rounded) H1 2015 Q4 2014 Intangible assets 2 501 2 385 Goodwill 788 788 Value of business acquired 1 559 1 455 Other intangible assets 154 142 Tangible assets 576 542 Insurance business investments 26 508 25 217 Real estate investments 8
Slide 22: Consolidated balance sheet - Liabilities & shareholders' equity
Appendix B: Consolidated balance sheet – Liabilities & shareholders’ equity In € millions (rounded) H1 2015 Q4 2014 Group shareholders’ equity 5 993 5 694 Non-controlling interest 33 35 Total shareholders’ equity 6 026 5 729 Financial debt 2 634 2 232 Subordinated debt 2 180 1 743 Real estate financ
Slide 23: Consolidated statements of cash flows
Appendix B: Consolidated statements of cash flows In € millions (rounded) H1 2015 H1 2014 Cash and cash equivalents at the beginning of the period 860 1 514 Net cash flows in respect of operations 130 2 Cash flow in respect of changes in scope of consolidation -25 Cash flow in respect of acquisition
Slide 24: Net contract liabilities by segment
Appendix B: Net contract liabilities by segment Net liabilities Life & P&C In € millions (rounded) 25 947 24 644 +5.3% 50% 50% SCOR Global Life SCOR Global P&C 50% 50% 31/12/2014 30/06/2015 24
Slide 25: Calculation of EPS, book value per share and ROE
Appendix C: Calculation of EPS, book value per share and ROE Earnings per share calculation In € millions (rounded) H1 2015 H1 2014 Post-tax Return on Equity (ROE) Group net income1) (A) 327 256 Average number of opening shares (1) 192 691 479 192 757 911 In € millions (rounded) H1 2015 H1 2014 Impa
Slide 26: Reconciliation of total expenses to cost ratio
Appendix D: Reconciliation of total expenses to cost ratio In € millions (rounded) H1 2015 H1 2014 Total expenses as per Profit & Loss account -355 -292 ULAE (Unallocated Loss Adjustment Expenses) -26 -20 Total management expenses -381 -312 Investment management expenses 26 20 Total expense base -35
Slide 27: Calculation of P&C combined ratio
Appendix E: Calculation of P&C combined ratio In € millions (rounded) H1 2015 H1 2014 Gross earned premiums1) 2 742 2 271 Ceded earned premiums2) -292 -212 Net earned premiums (A) 2 450 2 059 Gross benefits and claims paid -1 571 -1 325 Ceded claims 119 81 Total net claims (B) -1 452 -1 244 Loss rat
Slide 28: Normalized net combined ratio
Appendix E: Normalized net combined ratio QTD YTD 1 2 3 4 5 1+2+3+5 1 2 3 4 5 1+2+3+5 Cat ratio delta Cat ratio delta Published from budget Normalized Published from budget Normalized Reserve Reserve combined One off Cat ratio (6% until combined combined One off Cat ratio (6% until combined release
Slide 29: 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 2014 at the exchange rate as at December 31, 2014 Cancelled/restructured: client or SCOR decided to cancel the business/programs and/or to change their programs
Slide 30: Calculation of the Life technical margin
Appendix F: Calculation of the Life technical margin In € millions (rounded) H1 2015 H1 2014 Gross earned premiums1) 3 644 3 012 Ceded earned premiums2) -296 -292 Net earned premiums (A) 3 348 2 720 Net technical result 159 113 Interests on deposits 83 82 Technical result (B) 242 195 Net technical m
Slide 31: Investment portfolio asset allocation as at 30/06/2015
Appendix G: Investment portfolio asset allocation as at 30/06/2015 Tactical asset allocation In % (rounded) “Optimal Dynamics” SAA1) 5% 4% 8% 11% 10% 8% 9% 8% 82% 82% Cash 13% 81% 78% 77% 78% <1% 4% 79% Min Max 74% 77% <1% Column2 74% 4% 4% 2% 1% Fixed Income 5% 2% Short-term investments 5.0%2) - 4%
Slide 32: Details of total investment portfolio
Appendix G: Details of total investment portfolio Development of total investments since Q2 2014 In € millions (rounded) 27 119 26 120 24 854 23 824 22 954 9 032 8 817 8 607 8 364 8 233 18 087 17 303 15 460 16 247 14 721 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Invested assets1) Funds withheld2) 1) P
Slide 33: Reconciliation of IFRS asset classification to IR presentation
Appendix G: Reconciliation of IFRS asset classification to IR presentation as at 30/06/2015 In € millions (rounded) SGI classification Total Funds Total Fixed Real Other Total Accrued Technical IFRS Cash Loans Equities invested withheld by IFRS income estate investments investments interest items1)
Slide 34: Reconciliation of insurance business investments to invested assets
Appendix G: Reconciliation of total insurance business investments, cash and cash equivalents to invested assets In € millions (rounded) Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Total insurance business investments, 23 783 24 630 26 077 29 164 27 916 cash and cash equivalents Funds withheld -8 233 -8
Slide 35: Details of investment returns
Appendix G: Details of investment returns In € millions (rounded) 2014 2015 Annualized returns: Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Total net investment income1)2) 132 149 281 140 155 576 180 185 365 Average investments 22 260 22 185 22 223 22 707 23 635 22 697 25 276 25 922 25 599 Return on Investments (ROI
Slide 36: Investment income development
Appendix G: Investment income development 2014 2015 In € millions (rounded) Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Investment revenues on invested assets1) 77 88 165 79 90 334 79 113 192 Realized gains/losses on fixed income 9 30 39 13 36 89 9 26 35 Realized gains/losses on loans 1 Realized gains/losses on equi
Slide 37: Government bond portfolio as at 30/06/2015
Appendix G: Government bond portfolio as at 30/06/2015 By region Top exposures In %. Total € 4.9 billion In € millions (rounded) H1 2015 USA 1 779 UK 752 14% Canada 479 25% Supranational1) 383 Germany 252 EU (Non-UK) Australia 225 France 195 North America Japan 149 UK Republic of Korea 142 Netherlan
Slide 38: Corporate bond portfolio as at 30/06/2015
Appendix G: Corporate bond portfolio as at 30/06/2015 By rating By sector/type In %. Total € 6.0 billion 1% 3% In € millions (rounded) H1 2015 In % 7% Consumer, Non-cyclical 1 321 22% 1 031 17% 20% AAA Financial Industrial 743 12% AA Communications 643 11% 23% Consumer, Cyclical 618 10% A 496 8% Ene
Slide 39: Corporate bond portfolio by seniority
Appendix G: Corporate bond portfolio as at 30/06/2015 By seniority Market to In € millions (rounded) AAA AA A BBB Other1) Total Book Value % Seniority Senior 174 1 211 2 675 1 250 358 5 668 101% Subordinated 3 32 35 4 75 103% Hybrid 10 99 106 215 101% Other 5 2 3 1 10 96% Total corporate bond portfo
Slide 40: Financials corporate bond portfolio as at 30/06/2015
Appendix G: “Financials” corporate bond portfolio as at 30/06/2015 By rating In %. Total € 1.0 billion By sector In € millions (rounded) By seniority In %. Total € 1.0 billion 1% <1% H1 2015 In % <1% 10% 19% AAA Bank 854 83% 14% Senior AA 19% 7% Real estate 94 9% A Subordinated BBB Insurance 47 5% 1
Slide 41: Banks financial corporate bond portfolio as at 30/06/2015
Appendix G: “Banks” financial corporate bond portfolio as at 30/06/2015 By rating By seniority In %. Total € 0.8 billion 11% <1%1) In %. Total € 0.8 billion 12% AAA 22% 12% AA 8% Senior A Subordinated BBB Hybrid2) <BBB NR 80% 55% By region Top exposures In %. Total € 0.8 billion In € millions (round
Slide 42: Structured & securitized product portfolio as at 30/06/2015
Appendix G: Structured & securitized product portfolio as at 30/06/2015 Market to In € millions (rounded) AAA AA A BBB Other1) Total Book Value % ABS 12 11 2 25 102% CLO 182 182 100% CDO 13 0 31 4 49 88% MBS CMO 0 1 0 14 16 98% Non-agency CMBS 9 3 1 13 103% Non-agency RMBS 55 7 0 0 7 69 101% Others
Slide 43: Loans portfolio as at 30/06/2015
Appendix G: Loans portfolio as at 30/06/2015 In € millions (rounded) Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Infrastructure loans 77 63 64 56 84 Real estate loans 118 159 185 193 163 Corporate and leveraged loans 247 273 292 322 311 Total 442 495 541 571 557 43
Slide 44: Equity portfolio as at 30/06/2015
Appendix G: Equity portfolio as at 30/06/2015 In € millions (rounded) Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Common shares 281 287 303 382 324 Convex strategies 36 36 39 23 22 Convertible bonds 130 143 155 202 196 Preferred shares 16 14 14 14 18 Total 463 482 511 622 561 Common shares by region In
Slide 45: Real estate portfolio as at 30/06/2015
Appendix G: Real estate portfolio as at 30/06/2015 In € millions (rounded) Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Real estate securities and funds 127 132 133 136 130 Direct real estate net of debt and including 634 603 643 660 673 URGL Direct real estate at amortized cost 753 718 755 760 753 Real
Slide 46: Other investments as at 30/06/2015
Appendix G: Other investments as at 30/06/2015 In € millions (rounded) Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Alternative investments 107 111 108 142 34 Non-listed equities 65 65 68 83 93 Infrastructure funds 47 49 64 68 66 Private equity funds 15 15 15 21 41 Insurance Linked Securities (ILS) 166 1
Slide 47: Unrealized gains & losses development
Appendix G: Unrealized gains & losses development In € millions (rounded) Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Variance YTD Fixed income 172 166 218 374 121 -96 Loans 0 2 6 8 7 1 Equities 38 30 40 38 35 -5 Real estate 118 123 126 135 138 12 Other investments 7 5 5 14 15 10 Total 334 327 395 569 3
Slide 48: Reconciliation of asset revaluation reserve
Appendix G: Reconciliation of asset revaluation reserve In € millions (rounded) 31/12/2014 30/06/2015 Variance YTD Fixed income URGL 218 121 -96 1) Government bonds & assimilated 29 29 0 Covered & agency MBS 60 38 -22 Corporate bonds 133 60 -73 Structured products -4 -5 -1 Loans URGL 6 7 1 Equities
Slide 49: Debt structure as at 30/06/2015
Appendix H: Debt structure as at 30/06/2015 Original Current amount 1) Floating/ fixed Type amount Issue date Maturity Coupon + step-up outstanding (book value) rate issued Subordinated € 100 20 years First 10 years: 3-month Euribor € 93 million 6 July 2000 Floating floating rate notes 20NC10 millio
Slide 50: SCOR's Financial Strength Rating has improved dramatically since 2005
APPENDIX I: SCOR’s Financial Strength Rating has improved dramatically since 2005 Evolution of SCOR’s S&P rating Evolution of SCOR’s Moody’s rating A+ + A1 Strong Strong + A2 + A + A3 + A- Secure Secure BBB + Baa + 1 + A+ A1 Good + Good Baa BBB 2 Positive Outlook Stable Outlook BBB Baa - 3 2005 2006
Slide 51: 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
Slide 52: Strategy recognized by industry experts
Appendix K: The strength of the SCOR group’s strategy is recognized by industry experts 2012 2013 2014 2015 SCOR: “Reinsurance Denis Kessler: SCOR: “Reinsurance “2014 Strategy of Company CEO Company of the Year“ Denis Kessler: “Insurance Hall of Fame the Year” award of the Year“ in 2014 by IIS” Cat