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SCOR Global Life is the 5th largest life reinsurer in the world, with leading positions in Europe and in many Asian markets. SCOR has reached a critical size in North America and has further strengthened its market positions in Latin America, Asia, the Commonwealth of Independent States (CIS) and the Middle East. SCOR Global Life generated pro-forma gross written premiums of EUR 2.613 billion in 2007, with over 75% of its book consisting of traditional mortality and financing business. SCOR’s European Embedded Value (EEV) figures demonstrate the long-term value-creation capacity of SCOR Global Life as well as its ability to generate cash:
- Strong increase of SCOR Global Life’s EEV in 2007 to EUR 1.64 billion, giving an EEV per share of EUR 9, which underlines the significant value contribution of SCOR Global Life to the Group;
- SCOR Global Life’s ability to create long-term value is demonstrated by a strong EEV increase to EUR 1.72 billion on a comparable basis (excluding Converium, foreign exchange rate impact and capital movements);
- Value added by new business of EUR 59.7 million is up 16.4% compared to 2006, testifying to positive underlying business trends and the strong market position of SCOR Global Life;
- Strong improvement of EEV operating profit (up 16.1% to EUR 188.3 million) and of EEV earnings (up 5% to EUR 202.7 million) with a return on EEV of 13.4% (excluding Converium, capital movements and foreign exchange rate impact);
- Significant increase of EUR 68 million for EEV not recognised in IFRS equity, to EUR 263.5 million;
- SCOR Global Life’s strong capacity to generate cash is demonstrated by a reduction in deployed capital of EUR 114.4 million (capital movements);
Denis Kessler, Chairman and Chief Executive Officer of SCOR, comments: “SCOR Global Life continues to deliver consistent and solid earnings, whilst strongly contributing to the Group’s overall diversification. We are very satisfied with the way Life is developing and will continue to enhance our industry-leading expertise in long-term care, critical illness and substandard risks, providing an important way to strategically diversify and balance the Life book portfolio. In today’s reinsurance market environment, the low volatility of the Life business, with its high-entry barriers favouring established players, is a strong shareholder value contributor.”
