Annual Report - Scor

Annual Report SCOR 2009
january february march april may june july august september october november december
The Redmayne report is published annually by Redmayne
Consulting (which specialises in UK and Irish Life and Protection
business). The premier commercial report in this field is based on
a survey of the key reinsurance buyers from the UK and Ireland.
The survey takes into account value added by the reinsurer, the
positive or negative impact of the reinsurer on the market, and the
standard of support services offered by the reinsurer (including
underwriting advice, paying claims, general understanding and
quality of support, and pricing research).
11 February
SCOR records strong 2009 Non-Life renewals
and optimises its portfolio with a view to greater
profitability and predictability
SCOR tapped the benefits of its ranking in the top five on the
global reinsurance market during the 2009 reinsurance renewals
season. In this period of financial turmoil and credit crisis, where
the lack of financial flexibility for insurers was a major reason
behind the increased demand for reinsurance, the Group
maintained an extremely strict policy on technical underwriting.
The annual negotiations with its clients enabled SCOR to optimise
its portfolio and pursue diversification, whilst ensuring that its
capital was allocated as profitably as possible. SCOR recorded an
average price increase of 3.3% with a reduction in acquisition
costs and stable exposure. The Group thereby demonstrates its
strength and confirms the success of the combination of the SCOR
and Converium portfolios that was achieved in 2008. The total
premium volume of treaties renewed in January 2009 reached EUR
1,708 million (Property and Casualty treaties and Specialty
treaties), representing a 3% increase compared to 2008.
The renewals demonstrate the anti-cyclical nature of the
reinsurance industry in a difficult economic and financial context.
19 February
SCOR reopens market for catastrophe bonds, setting new
innovative standards with its USD 200 million cat cover
SCOR has successfully invested its catastrophe bond Atlas V, the
first “CAT bond" issued on the financial markets for over six
months. The multi-year property catastrophe ("CAT") agreement
with Atlas V Capital Limited (“Atlas V") provides protection of USD
200 million for exposures to earthquakes and hurricanes in the
USA and Puerto Rico.
With Atlas V, SCOR is setting new transparency and security
standards; it applies an innovative structure characterised in
particular by:
1) improvements in managing counterparty risk for SCOR and
investors by employing a much-enhanced total return swap*;
2) complete transparency regarding the asset development of the
collateral for investors: information on the assets invested is
permanently accessible;
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3) exclusive use of US-government-backed assets;
4) top-up “margining" facility by the total return swap
counterparty, which guarantees that the collateral will
constantly be replenished in the event of a drop in the underlying
security. SCOR is a frequent issuer of Insurance Linked Securities,
with seven transactions completed: Atlas Reinsurance I, II, III and
IV and Atlas V, Helix, originally issued by Converium, which is
now part of SCOR SE, and finally the four-year mortality swap.
Atlas III, Atlas IV, Helix and the mortality swap provide ongoing
protection.
* The bank that plays this role guarantees the sponsor payment in the event of a claim and
guarantees the investors the return of their capital at the end of the transaction. It also
guarantees the payment of interest.
24 February
SCOR implements the Paris Hub - The Hub:
an innovative concept becomes a reality
The new Paris platform will be a branch of the Group’s parent
company, SCOR SE. It will unite the support functions of the two
Societa Europae domiciled in France, namely SCOR Global P&C SE
and SCOR Global Life SE, along with those of their European
branches. The underwriting functions of SCOR Global Life and
SCOR Global P&C based in Paris will remain unchanged in terms
of their local dimensions (i.e. the French market), as well as their
regional and global responsibilities. The Paris Hub is headed by
Frédéric Fougère.
4 March
SCOR achieves solid 2008 results with a net income
of EUR 315 million, supported by an outstanding liquidity
position of EUR 3.7 billion
SCOR generates solid results for the twelve months of 2008,
despite a very challenging financial market environment and a
higher than average natural catastrophe year. Net income for the
full year stands at EUR 315 million, with an annual return on equity
(ROE) of 9.0% and twelve months’ earnings per share (EPS) of EUR
1.76, and a net profit of EUR 35 million in the fourth quarter 2008.
SCOR’s business model is based on strong business and
geographical diversification, with a clear focus on traditional
reinsurance. It has very limited exposure of reinsurance liabilities
to economic activity risks and no material off balance sheet
exposure.
2008 gross written premiums meet expectations, at EUR 5,807
million, up 22.0% compared to 2007 published performance. On
a pro-forma basis and at constant exchange rates, premium
volume rose by 3.2%.
These results demonstrate the quality of the operational
performances of Life and Non-Life business: Non-Life reinsurance
business reports a combined ratio of 98.6%, despite major natural
catastrophe events such as hurricanes Ike and Gustav and snow