Share Evolution
Market Evolution
The prolonged economic cycle in the United States and the improvement in the European situation have taken financial asset valuations to high levels. The positive dynamics of the economic environment have been significant, without triggering new inflationary pressure. The traditional relationship between unemployment and inflation, implied from the Philips curve, has become less relevant, at least on a short-term basis and at the local level, and deflationary pressures coming from the “new economy” have played a notable role, although they remain difficult to quantify. In this context, central banks have maintained a strong accommodative bias while initiating a progressive exit from “Quantitative Easing” policies.
The U.S. Federal Reserve, on the back of a more advanced economic cycle, has been the first to tighten its monetary policy, its policy rate increasing from 0.75% to 1.5% over 2017. Nevertheless, this evolution has had virtually no impact on long-term interest rates, inflation remaining under control. As a consequence, U.S. 10-year government rates at the end of 2017 stand at 2.41%, almost stable compared to the beginning of the year, like the 10-year rates in the Eurozone (0.43%), in the United Kingdom (1.19%) and in Japan (0.05%). However, the divergence in terms of monetary policy between the U.S. Federal Reserve and the European Central Bank now implies a differential in policy rates close to 2%. The higher yield of the U.S. Dollar being perceived as transitory, the Euro has appreciated against the U.S. currency by 14%, finishing the year at 1.20.
U.S. equities have benefitted from supportive growth prospects and from a weaker U.S. Dollar but also, through the Trump administration, from announced regulatory cuts and unprecedented tax packages. Over the year, the S&P 500 returns 21.8%, the Nasdaq 29.7% and the Dow Jones 28.1%. European equities also post solid performances, in spite of the Euro appreciation, with a total return of 12.5% for the French CAC 40 and the German DAX, and of 16.9% for the Italian MIB.
The improved economic outlook has also benefited emerging countries with an increase in commodity prices and more notably in crude oil, which ends 2017 at circa USD 60.
Distribution of identified shareholders as at 31/12/2017
Geographic distribution of identified institutional shareholders as at 31/12/2017
SHAREHOLDER STRUCTURE
SCOR has around 21,000 shareholders around the world, and approximately 85% of SCOR shares continue to be held in free float. At the end of the year, 81% of the shares were held by institutional investors and 2% by private investors. The breakdown of identified institutional shareholders by region shows that 67% of SCOR shares were owned by Europeans and 33% by non-Europeans.
Scor share price evolution
SCOR’S SHARE PROFILE
SCOR shares are listed on Eurolist Paris (deferred payment, continuous, ISIN code FR 0010411983). SCOR has also had a secondary listing on the SWX Swiss Exchange since 8 August 2007. SCOR’s ADR securities can be traded on the US over-the-counter market.
• ISIN Code: FR0010411983 • Bloomberg: SCR-FP • Factset: SCR-FR • Nasdaq: SCR-FP • Market indices: SBF TOP 80, SBF 120, CAC Next 20, CAC Large 60, CAC All-Shares, CAC All Tradable, CAC Financials, Euronext FAS IAS, Euronext 100, Ethibel® Sustainability Index Excellence Europe (ESI Europe • First listed: 16 October 1989 • Share Capital / Market capitalization of 31/12/17 (euros): 6,439,984,866 (Source: Euronext) • Number of Outstanding Shares at 31/12/17: 193,500,317 • Share Price at 31/12/17: EUR 33.55 • Year high (date): EUR 37.44 (13-July-2017) • Year low (date): EUR 31.35 (23-January-2017) • Earnings per Share at 31/12/17: EUR 1.53 • Book Value per Share at 31/12/17: EUR 33.01 • Diluted Book Value per Share at 31/12/17: EUR 32.47
SCOR’S FINANCIAL STRENGTH
SCOR’s financial strength is recognized both internally and externally. Rating agencies, being independent from the Group, rate the insurance financial strength of the Group and provide credit ratings to the Group’s debt. From 1 January 2016 onwards, the regulatory solvency position of the Group, based on Solvency II, is assessed by SCOR’s internal model, which was approved in November 2015 by the relevant Supervisors. The Group’s financial strength is also reflected in the credit market via the development of CDS.