4.4 Legal risk - Scor

SCOR Global P&C
The table below shows the movement in the net reserves for unpaid losses and loss expenses of SCOR Global P&C.
The table begins by showing the initial reported year-end gross and net reserves, including IBNR, recorded at the balance
sheet date at the exchange rates applicable at each balance sheet date.
The cumulative redundancy/deficiency line represents the cumulative change in estimates since the initial reserve was
established. It is equal to the latest incurred claim amount less the initial reserve. The amounts in this line in the loss
development tables are not a precise indication of the adequacy of the initial reserves that appear on the first and third line
of the table. Trends and conditions that have affected development of liabilities in the past may not be indicative of future
developments. Accordingly, it may not be appropriate to extrapolate future redundancies or deficiencies based on these
tables.
The next section of the table shows the portion of the initial year-end net reserves that was paid (claims paid) as at the end
of subsequent calendar year. Claims paid are converted to EUR at the average foreign exchange rates during the year of
payment and are not revalued to the initial exchange rates at which the reserves were established. Additionally, payments
include losses covered by unearned premium reserves, less DAC, in addition to those covered by the initial claims reserves.
The net incurred losses section is the sum of the paid claims and the change in claims reserves and IBNR at the average
exchange rate of the period.
A significant portion of SCOR Global P&C reserves relates to liabilities payable in currencies other than the EUR. The
fluctuations of the EUR to those currencies are embedded in the data in the below table.
The following tables present the consolidated ten-year loss development of our Non-Life operations on an IFRS basis and a
three-year reconciliation of beginning and ending reserve balances on an IFRS basis. The IFRS loss development data is
presented on a calendar year basis, as well as the reserve reconciliation data represents our allocation of incurred and paid
losses and loss adjustment expenses between current and prior years on a calendar year basis.
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