Scor Se · EURONEXT:SCR
Scor — H1 2007 Earnings Presentation
49 slides from Scor's earnings presentation, Aug 29, 2007
Slide 1: SCOR Group 2007 First Half Results
SCOR Group 2007 First Half Results 29 August 2007 SCOR Group - 2007 First Half Results 29 August 2007
Slide 2: Summary
Summary Summary P. 4 Group business P. 11 Results by line of business P. 21 Appendices P. 38 SCOR Group - 2007 First Half Results 29 August 2007 2
Slide 3: 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 4: Summary: 2007 First Half Results
SUMMARY 2007 First Half Results SCOR Group - 2007 First Half Results 29 August 2007
Slide 5: A great set of results for the First Half 2007
Key figures | Significant events | Group Business | Non-Life | Life | Asset management A great set of results for the First Half 2007 Gross written premiums: €2,124m (+55%*) Æ Non-Life gross written premiums: €943m (+12%*) Æ Life gross written premiums: €1,181m (+124%*) Operating income: €255m (+36%
Slide 6: As shown by the Key Performance Indicators
Key figures | Significant events | Group Business | Non-Life | Life | Asset management as shown by the Key Performance Indicators Non-Life Reinsurance operating profit: €177m Life Reinsurance operating profit: €79m Combined ratio for Non-Life business: 98.8% (compared to 98.2% in First Half 2006) Ma
Slide 7: Significant events: Converium acquisition (1/4)
Key figures | Significant events | Group Business | Non-Life | Life | Asset management Significant events since 1 January 2007: SCOR finalized the Converium acquisition (1/4) Acquisition of 32.9% of the capital of Converium: Æ SCOR announces on 19 February 2007 the acquisition of 32.9 % of the capit
Slide 8: Significant events: Converium acquisition (2/4)
Key figures | Significant events | Group Business | Non-Life | Life | Asset management Significant events since 1 January 2007: SCOR finalized the Converium acquisition… (2/4) On 27 June 2007, the Swiss Federal Office of Private Insurance (FOPI) authorises the combination between SCOR and Converium
Slide 9: Significant events: continued business development (3/4)
Key figures | Significant events | Group Business | Non-Life | Life | Asset management Significant events since 1 January 2007: …and continued to develop its business successfully (3/4) The first version of « Dynamic Lift », the new strategic plan covering the period from mid-2007 to mid-2010, is pu
Slide 10: Significant events: continued business development (4/4)
Key figures | Significant events | Group Business | Non-Life | Life | Asset management Significant events since 1 January 2007: …and continued to develop its business successfully (4/4) Non-Life reinsurance treaties in Japan, Korea and India were up for renewal on 1 April 2007. These treaties repres
Slide 11: Group Business
GROUP BUSINESS 2007 First Half Results SCOR Group - 2007 First Half Results 29 August 2007
Slide 12: 55% increase in group premium income
Key figures | Significant events | Group Business | Non-Life | Life | Asset management The scale and scope of the company is developing as evidenced by the 55% increase in group premium income* Gross written premiums, in €m 2400 2200 +55% 2,124 2000 1800 (+59% at constant exchange rates) 1600 56% 1,
Slide 13: The group's capital base is growing
Key figures | Significant events | Group Business | Non-Life | Life | Asset management The group’s capital base is growing… Shareholders’ equity, in €m 3 000 +233 -52 +374 -135 -36 +7 2 500 2,644 2,253 2 000 (2) 31/12/06 Increase in Dividends Half year 2007 Tax Revaluation Other variations 30/06/07
Slide 14: Post-tax Return On Equity: 15.4% annualized
Key figures | Significant events | Group Business | Non-Life | Life | Asset management …as is the post-tax Return On Equity (ROE): 15.4% on an annualized basis for the First Half 2007 30/06/06 31/12/06 30/06/07 €m Net income 102 306 181 Opening shareholders’ equity 1,719 1,719 2,253 Weighted net inc
Slide 15: The financial structure is evolving positively
Key figures | Significant events | Group Business | Non-Life | Life | Asset management The financial structure is evolving positively… Long-term capital resources, in €m 5 000 +31% 4 500 4,317 207 4 000 3,443 +25% 592 3,304 3 500 +4% 207 Debt securities 3 000 469 592 2 500 582 Subordinated debt 2 00
Slide 16: Improvement in financial leverage and financing costs
Key figures | Significant events | Group Business | Non-Life | Life | Asset management …and there continues to be a dramatic improvement in the financial leverage and financing costs… An optimised financial leverage Fixed charge coverage ratios into the A range 46.7% 8.0 36.6% 7.1 31.3% 6.6 27% 27.9
Slide 17: Operating cash flow reaches a record €362m
Key figures | Significant events | Group Business | Non-Life | Life | Asset management …while operating cash flow reaches a record €362m in the First Half of 2007 30/06/07 €m Net cash flow + 362 from operating activity of which realised commutations (30) Net cash flow (192) from investment activity
Slide 18: SCOR is pursuing its prudent reserving policy
Key figures | Significant events | Group Business | Non-Life | Life | Asset management SCOR is pursuing its prudent reserving policy… Net liabilities relating to contracts, in €m (at current exchange rates) +51% 14 000 12,703 13,086 12 000 +3% +47% 10 000 57% 8,642 57% Life Reinsurance 8 000 Non-Lif
Slide 19: Non-Life reserves up 3%
Key figures | Significant events | Group Business | Non-Life | Life | Asset management …with Non-Life reserves up 3% (and up 6% excluding Discontinued Business) Net liabilities relating to contracts in Non-Life reinsurance, in €m 6 000 5,605 5,417 +3% 496 5 000 559 123 144 4 000 3 000 Discontinued B
Slide 20: Cost Ratio of 6.4% during the First Half 2007
Key figures | Significant events | Group Business | Non-Life | Life | Asset management SCOR continues to curb its costs: Cost Ratio of 6.4% during the First Half 2007 Overheads, in €m Cost ratio, in % 135 10% 105 9% 7.7% 8% Overheads / gross written premiums ratio 7% 6.4% 6% 5% (*) 30/06/06 30/06/07
Slide 21: Results by Line of Business: Non-Life Reinsurance
RESULTS BY LINE OF BUSINESS 2007 First Half Results NON-LIFE REINSURANCE SCOR Group - 2007 First Half Results 29 August 2007
Slide 22: Non-Life business grew 12%
Key figures | Significant events | Group Business | Non-Life | Life | Asset management The Non-Life business grew a very robust 12% compared to the same period of last year… Gross written premiums, in €m +12% 1 000 943 900 844 185 800 160 +16% 700 196 600 182 Americas +8% 500 Asia-Pacific /Rest of t
Slide 23: Non-Life operating result up 16%
Key figures | Significant events | Group Business | Non-Life | Life | Asset management …while the Non-Life operating result was up by even more: +16% compared to the same period of last year 30/06/2006 30/06/2007 Variation €m Gross written premiums 844 943 +12% Net earned premiums 691 813 +18% Net u
Slide 24: Main events affecting P&C accounts in First Half 2007
Key figures | Significant events | Group Business | Non-Life | Life | Asset management These are the main events affecting P&C accounts during the First Half of 2007 Combined Ratio Kyrill 98.2% 98.8% Gonu 8.2 6.5 0.8 Australian Flood 1.5 4.9 5 4 6.8 June UK Flood 4.3 22.9 Management expenses 23.1 DB
Slide 25: Results by Line of Business: Life Reinsurance
RESULTS BY LINE OF BUSINESS 2007 First Half Results LIFE REINSURANCE SCOR Group - 2007 First Half Results 29 August 2007
Slide 26: The Group continues to expand its Life business
Key figures | Significant events | Group Business | Non-Life | Life | Asset management The Group continues to expand its Life business… Gross written premiums, in €m 1,181 1 200 64 1 000 353 +124% 800 Asia-Pacific/ Rest of the World 600 528 Americas 41 Europe 400 192 764 200 295 0 30/06/06 30/06/07
Slide 27: Technical profitability in Life reinsurance remains strong
Key figures | Significant events | Group Business | Non-Life | Life | Asset management …as the technical profitability in the Life reinsurance business remains strong 30/06/2006 30/06/2007 Variation €m Gross written premiums 528 1,181 +124% Net earned premiums 485 1,061 +119% Technical management co
Slide 28: Update on the Revios integration
Key figures | Significant events | Group Business | Non-Life | Life | Asset management Here is a brief update on the status of the Revios integration… Most important areas of integration Creation of SCOR Global Life SE Integration Business Unit 1 (Paris) Integration Business Unit 2 (Cologne) Integra
Slide 29: Integration proceeding according to schedule
Key figures | Significant events | Group Business | Non-Life | Life | Asset management …which is proceeding according to schedule Integration Central Functions Revios has complied with SCOR closing requirements and schedules Joint Embedded Value guideline in place since early 2007 Approaches to Econ
Slide 30: Results by Line of Business: Asset Management
RESULTS BY LINE OF BUSINESS 2007 First Half Results ASSET MANAGEMENT SCOR Group - 2007 First Half Results 29 August 2007
Slide 31: Investments keeping pace with business growth
Key figures | Significant events | Group Business | Non-Life | Life | Asset management The Group’s investments are keeping pace with the growth of the business… Investments, in €m +54% 15 000 14,027 14,211 5% 7% 2% +1% 5% 2% Investments in associates 10 000 9,223 +52% 39% 39% Equities 10% 3% Real es
Slide 32: Increasing the performance of asset management
Key figures | Significant events | Group Business | Non-Life | Life | Asset management …while SCOR continues its efforts to increase the performance of asset management Investment income, in €m 2007 First Half Year annualized Return On Investment: 5.0% (vs. 4.9% in First Half 2006) 364 280 239 Curre
Slide 33: Return On Investment of 5.0%
Key figures | Significant events | Group Business | Non-Life | Life | Asset management Given the very high quality of the assets, the Return On Investment (ROI) of 5.0% is an appreciable performance 30/06/2006 30/06/2007 €m Average investments over the period 9,555 13,931 In % Current yield 3.6% 4.1
Slide 34: Our investment principles are disciplined (1/2)
Key figures | Significant events | Group Business | Non-Life | Life | Asset management Our investment principles are disciplined (1/2) Mission statement: optimizing the risk/return profile of our investment portfolio in order to support the results of the reinsurance business Four investment princip
Slide 35: Asset Management is tailored and reactive
Key figures | Significant events | Group Business | Non-Life | Life | Asset management Asset Management is tailored and reactive to developments in the financial markets Asset Management main drivers: Efficient bond portfolio management in a context of rate increase – Limited credit exposure Active
Slide 36: No compromising on quality of investment assets
Key figures | Significant events | Group Business | Non-Life | Life | Asset management No compromising on quality of investment assets 95% of the bonds are of the highest credit ratings: Æ 73% in the AAA category Æ 11% in the AA category Æ 11% in the A category The equity portfolio consists mostly o
Slide 37: SCOR Group Results
SCOR Group Results 2007 First Half Results 29 August 2007 SCOR Group - 2007 First Half Results 29 August 2007
Slide 38: Appendices
APPENDICES Appendix A: Key Figures Appendix B: Detail of Earnings Per Share Calculation Appendix C: Detail of Net Asset Value Per Share Calculation Appendix D: Balance Sheet (SCOR standalone and Pro Forma balance sheet SCOR + Converium) Appendix E: Investment portfolio by IFRS accounting classificat
Slide 39: Appendix A: Key Figures
Appendix A: Key Figures 30/06/2006 30/06/2007 Variation €m, current exchange rates Gross written premiums 1,372 2,124 +55% Net earned premiums 1,177 1,873 +59% Current net investment income (1) 217 357 +65% Operating income before FVI (2) 166 249 +50% FVI (2) investment income 22 7 -68% Other income
Slide 40: Appendix A: Key Figures at constant exchange rates
Appendix A: Key Figures at constant exchange rates 30/06/2006 30/06/2007 Variation €m, constant exchange rates Gross written premiums 1,372 2,180 +59% Net earned premiums 1,177 1,902 +62% Operating income 188 262 +39% Net income 102 188 +84% Net liabilities relative to contracts 8,642 13,121 +52% To
Slide 41: Appendix A: Key Figures on a like-for-like basis
Appendix A: Key Figures on a like-for-like basis (excluding Revios) 30/06/2006 30/06/2007 Variation €m, current exchange rates Gross written premiums 1,372 1,465 +7% Net earned premiums 1,177 1,303 +11% Operating income 188 209 +11% Net income 102 148 +45% Net liabilities relative to contracts 8,642
Slide 42: Appendix A: Like-for-like at constant exchange rate
Appendix A: Key Figures on a like-for-like basis (excluding Revios) and at constant exchange rate 30/06/2006 30/06/2007 Variation €m, constant exchange rates Gross written premiums 1,372 1,506 +10% Net earned premiums 1,177 1,322 +12% Operating income 188 215 +14% Net income 102 155 +52% Net liabili
Slide 43: Appendix B: Earnings Per Share calculation
Appendix B: detail of Earnings Per Share calculation Earnings Per Share 30/06/2006 30/06/2007 Variation € Net Income (A) 102,219,009 181,289,312 +77% Number of opening shares (1)(*) 96,876,907 118,405,108 - Impact of the17 837 210 shares issued 26/04/07 (2) - 6,405,628 - Time Weighted Treasury Share
Slide 44: Appendix C: Net Asset Value Per Share calculation
Appendix C: detail of Net Asset Value Per Share calculation Net Asset Value Per Share 30/06/2006 30/06/2007 Variation € Net Equity (A) 1,671,933,251 2,644,361,677 +58% Number of closing shares (1) (*) (**) 96,876,907 136,242,318 Closing Treasury Shares (2) 1,085,276 2,911,144 Basic Number of Shares
Slide 45: Appendix D: SCOR standalone balance sheet
Appendix D: SCOR standalone balance sheet 30/06/2007 SCOR standalone, €m 30/06/07 30/06/07 Assets Liabilities Intangible Assets 854 Shareholder’s Equity 2,651 Investments 13,255 Debt 922 Retrocessionaires’ Share Reserves 14,176 of Technical Reserves 1,090 Other Liabilities 1,470 Other Assets 3,061 C
Slide 46: Appendix D: Pro-Forma balance sheet: SCOR + Converium
Appendix D: Pro-Forma balance sheet: SCOR + Converium 30/06/2007 Pro Forma Balance Sheet: SCOR and Converium, €m 30/06/07 30/06/07 Assets Liabilities Intangible Assets 1,261 Shareholder’s Equity 3,568 Investments 18,615 Debt 1,067 Retrocessionaires’ Share Reserves 19,973 of Technical Reserves 1,408
Slide 47: Investment portfolio by IFRS accounting classification
Investment portfolio by IFRS accounting classification Investments, in €m +54% 15 000 14,027 14,211 2% 5% 2% 6% 6% +1% Investments in associates +52% 10 000 9,223 39% Investment property 39% 3% 19% Cash 2% 14% 2% Deposits, loans & receivables 3% 5 000 Fair value by income 51% 46% 61% Available for s
Slide 48: All rating agencies rank SCOR and Converium in the "A" category
All of the rating agencies now rank SCOR and Converium in the “A” category Insurer Senior Subordinated Financial Debt Debt Strength S&P A- A- BBB 1 August 2005 stable outlook AM Best A- a- bbb+ / bbb 08 September 2006 stable outlook Moody’s A3 A3 Baa2 13 13oOctober 2006 stable outlook Fitch A- A- BB
Slide 49: SCOR Group Results
SCOR Group Results 2007 First Half Results 29 August 2007 SCOR Group - 2007 First Half Results 29 August 2007