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SCOR Global Life presents excellent Market Consistent Embedded Value (MCEV) figures in 2011, demonstrating once again the profitable growth of SGL’s franchise and its long-term capacity for value creation.
Key items for SGL’s 2011 MCEV:
Key items for SGL’s 2011 MCEV:
- MCEV growth of 50.1% (after internal capital movements) to EUR 3.3 billion (EUR 18.0 per share) compared to 2.2 billion in 2010, supported by a significant MCEV operating profit of EUR 346 million driven by:
- value of new business of EUR 124 million, compared to EUR 57 million in 2010, with a new business margin of 2.9% compared to 2.4% in 2010
- positive experience variances of EUR 43 million compared to EUR 23 million in 2010
- The value not recognized under IFRS increases to EUR 1,020 million from the 2010 amount of EUR 517 million, driven by the gain on purchase from the Transamerica Re acquisition
- The Transamerica Re acquisition results in an MCEV gain on purchase of EUR 414 million, and the business acquired shows positive mortality experience during the ~5 months since the closing of the transaction
- SCOR Global Life continues to generate free cash flow and repatriate EUR 181 million to the Group (including EUR 140 million dividend payment to SCOR SE)
- Strength of SCOR Global Life business model confirmed, with biometric focus providing low MCEV sensitivity to interest rates and financial markets compared to most primary Life insurers
Gilles Meyer, Chief Executive Officer of SCOR Global Life, comments: “SGL’s 2011 Embedded Value results, increased by 50% compared to 2010, confirm the depth of the division’s franchise and its capacity for value creation, also benefiting from the strong gain on purchase of EUR 414 million resulting from the acquisition of Transamerica Re’s mortality portfolio. SGL proves once again that it is a strong shareholder value contributor for the Group. These results further demonstrate SGL’s leading position as a top-tier life reinsurer in the world, which has been further reinforced thanks to the consolidation of its presence in the American markets.”
