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SCOR generates a robust net income for 2009, with both Life and P&C units providing solid contributions and strongly expanding their franchises. The asset management returns reflect the defensive character of the portfolio, which is increasingly taking advantage of the inflection program of the asset allocation announced during the July 2009 Investors’ Day.
Key items of the full year 2009:
- Total gross written premiums for 2009 reach EUR 6,379 million, up 9.8% compared to 2008 (+10.0% at constant exchange rates);
- Net income for the fourth quarter of 2009 more than doubles compared to the same period in 2008 (EUR 92 million vs. EUR 35 million), driven by robust performances from all business units, leading to a net income for the full year of EUR 370 million, up 17.6% compared to 2008; twelve months’ earnings per share (EPS) stand at EUR 2.06;
- Return On Equity (ROE) for 2009 reaches 10.2%, exceeding SCOR’s target of 900 bps above the risk-free rate set in the Dynamic Lift V2 plan;
- SCOR Global P&C delivers a 2009 combined ratio of 96.8%, excluding 2 points from the one-off WTC arbitration outcome1 and including 5.1 points of natural catastrophe claims;
- SCOR Global Life delivers an operating margin of 5.8%, similar to the 6.0% achieved last year;
- Operating cash flow reaches EUR 851 million;
- SCOR Global Investments (SGI) pursues “rollover” investment strategy by reducing the Group’s liquidity position to EUR 1.7 billion at 31 December 2009 (from EUR 3.7 billion at the end of December 2008). Net Return on Investments reaches 3.5% in the fourth quarter 2009 and 2.4% on average for the full year 2009;
- Shareholders’ equity grows by 14.2% (EUR 485 million) compared to year-end 2008, reaching EUR 3.9 billion; book value per share stands at EUR 21.80;
- SCOR proposes a dividend of EUR 1.00, representing a payout ratio of 48%, with an option proposed to the shareholders to receive the dividend in SCOR shares2.
Denis Kessler, Chairman and Chief Executive Officer of SCOR, comments: "In 2009 the Group grew significantly, by further strengthening its franchise and improving its technical performance and its financial results, whilst increasing its solvency. Both P&C and Life reinsurance businesses grew significantly while generating operating cash flows which totalled EUR 851 million. And whilst pursuing a very cautious asset management policy, the Group recorded a rising return on its investments in a difficult financial context. The year 2009 saw SCOR make further progress in the field of risk management, allowing it to manage a universe of rapidly developing risks through a very rigorous underwriting policy. The Group thus managed to exceed its medium-term ROE objective whilst increasing its shareholders’ equity which reached EUR 3.9 billion. SCOR is well positioned to further strengthen its competitive position, as seen by the success of the last renewals campaign."
1 The WTC arbitration was finalised on 12th November, 2009 with a Q4 2009 after tax impact of EUR 39 million; including the WTC arbitration outcome, the combined ratio for the full year 2009 is 98.8%.
2 Subject to approval of the Shareholders’ Annual General Meeting on April 28th, 2010, being specified that the issue price for the new shares is set at 90% of the average share price over the last 20 trading days before the decision is made by the AGM minus the dividend amount.
