SCOR has once again shown its ability to deliver strong results and its resilience to major shocks in the 3rd quarter of 2011, while facing a tremendous financial crisis that came after exceptional natural catastrophes in the first part of the year. The 3rd quarter was also marked by the completion of the acquisition of Transamerica Re on 9 August 2011, the contribution of which has been taken into account in the published accounts from this date1.
For the 3rd quarter 2011:
- Gross written premiums stand at EUR 2,021 million, for the first time above EUR 2 billion in a quarter, up 14.7% compared to the 3rd quarter 2010 (+20.0% at constant exchange rates).
- SCOR Global P&C records gross written premiums of EUR 1,037 million (+2.9% compared to the 3rd quarter 2010, +7.4% at constant exchange rates). The net combined ratio stands at 94.8% (-0.1 point versus the 3rd quarter 2010), including 5.9 points from new natural catastrophes (notably the floods in Denmark and hurricane Irene) but with no deterioration of the net losses of Q1 and Q2 2011 events thanks to SCOR’s strong capital shield program.
- SCOR Global Life gross written premiums reach EUR 984 million, up 30.5% compared to the 3rd quarter 2010 (+36.9% at constant exchange rates), with the Transamerica Re business contributing EUR 256 million since 9 August 2011. The Life reinsurance operating margin stands at 6.4%,supported by improved technical profitability and despite lower financial results due to a deliberately high level of liquid assets.
- Operating cash-flow amounts to EUR 90 million, influenced by the payout of significant amounts following the exceptional cat events that occurred in the 1st quarter of 2011.
- Net income reaches EUR 188 million, up 70.1% compared to the 3rd quarter 2010 (+80.1% at constant exchange rates), with solid performances from all divisions and a contribution of EUR 108 million related to Transamerica Re. This contribution is composed of a gain on purchase of EUR 101 million and an operating performance net of tax for the period from 9 August to 30 September 2011 of EUR 7 million.
- SCOR Global Investments delivers an investment income of EUR 82 million on invested assets and a return on invested assets (excluding funds withheld by cedants) of 2.7% (3.8% in the 3rd quarter 2010). Anticipating the market turmoil, SCOR significantly and deliberately reduced its exposure to equities in mid-June 2011 and adopted a significant cash and short-term investments position (21% of the invested assets at the end of September 2011).
- Shareholders’ equity stands at EUR 4,224 million at 30 September 2011, compared to EUR 4,009 million at 30 June 2011. Book value per share stands at EUR 22.77 per share.
For the first nine months of 2011:
- Premium income stands at EUR 5,421 million, up 8.0% compared to the first nine months of 2010 (+11.4% at constant exchange rates). On a pro-forma basis, premium income stands at EUR 6,405 million.
- Gross written premiums for SCOR Global P&C stand at EUR 2,981 million, up 7.5% compared to the same period in 2010 (+11.0% at constant exchange rates). The net combined ratio is 106.6% (+6.9 points compared to the first nine months of 2010), down from 135.2% in Q1 2011 and 113.1% in H1 2011. 18.7 points are related to natural catastrophes (10.5 points in the first nine months of 2010).
- SCOR Global Life records gross written premiums of EUR 2,440 million (+8.5% compared to the same period in 2010, +11.9% at constant exchange rates). Pro-forma premium income is EUR 3,424 million. The Life operating margin reaches 6.9%, compared to 7.1% in the first nine months of 2010.
- Operating cash-flow stands at EUR 474 million (+1.5% compared to the same period in 2010).
- Net income reaches EUR 228 million (compared to EUR 267 million in the same period of 2010), with a total net pre-tax cost of EUR 476 million for natural catastrophes occurring in the first nine months of the year. Net income stands at EUR 266 million on a pro-forma basis.
- Return on invested assets (excluding funds withheld by cedants) stands at 3.8%, compared to 4.0% for the same period in 2010.
Denis Kessler, Chairman and CEO of SCOR, comments: “In the 3rd quarter 2011, SCOR has once again successfully combined profitability, growth and solvency. Having demonstrated its capacity to absorb a series of exceptionally intense natural catastrophes in the first half of 2011, SCOR has demonstrated considerable resilience this quarter in the face of a very fragile economic and financial environment. Since the beginning of the financial crisis in 2007, the effectiveness of SCOR’s risk anticipation and management policy has enabled the Group to limit the impact of this environment on its shareholders, for instance by having no exposure to sovereign debt in peripheral European countries. The finalisation of the Transamerica Re mortality portfolio acquisition in the 3rd quarter, which gives the Group a new dimension in the Life Reinsurance market, has helped SCOR to accelerate towards the implementation of its strategic plan for the period 2011-2013, “Strong Momentum”, version “V1.1” of which was presented at the beginning of September”.
1 Detailed information on definitions and methodology are provided in the last page of this press release and in the Q3 2011 results presentation available at www.scor.com.