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The Group records very good results in the 2nd quarter 2011, combining the high technical profitability of itsoperations, the strong performance of a pertinent asset management policy, major progress in terms of business volume, notably illustrated at each renewal, and a very high level of solvency.
In the 2nd quarter 2011:
- Gross written premiums stand at EUR 1,735 million, up 5.5% compared to the 2nd quarter 2010 (+11.6% at constant exchange rates).
- Net income stands at EUR 120 million, at the same level as the 2nd quarter 2010, with very strong technical performances from both Life and Non-Life reinsurance.
- Operating cash flow increases sharply (+76.5%) to EUR 183 million, compared to EUR 104 million in the 2nd quarter 2010.
- SCOR Global P&C gross written premiums reach EUR 991 million (+15.9% compared to the 2nd quarter 2010 and +23.4% at constant exchange rates). The renewals of April (+13%), June and July (+22%) have confirmed those of January 2011 (+13%) as well as the Group’s excellent positioning on all markets.
- The Non-Life combined ratio stands at 92.6%, of which 5.5 positive impact points are linked to a legal action over the World Trade Center, with a ratio of 6.6% for natural catastrophes, of which 1.6 points are due to the events of the first quarter.
- SCOR Global Life records gross written premiums of EUR 744 million, down 5.8% compared to the second quarter 2010 (-1.3% at constant exchange rates). Excluding fixed annuity business in the United States, the sale of which was finalized on 19 July 2011, SGL gross written premiums are down 1.2% compared to the second quarter 2010 and up 3.6% at constant exchange rates.
- The Life reinsurance operating margin reaches 6.9%, up by 0.3 points compared to the second quarter 2010.
- SCOR Global Investments delivers a strong financial contribution to the second quarter 2011 results. Return on invested assets (excluding funds withheld by cedants) stands at 4.5%, compared to 3.9% in the second quarter 2010, thanks to a dynamic asset management policy and adapted positioning, notably with zero exposure to sovereign debt in the weakest Eurozone countries.
In the 1st half 2011:
- Gross written premiums reach EUR 3,400 million, up 4.4% compared to the 1st half 2010 (+6.7% at constant exchange rates).
- Net income stands at EUR 40 million, with a total pre-tax cost of EUR 423 million for natural catastrophes occurring in the 1st half of the year.
- Operating cash flow stands at EUR 384 million, up 84.9% compared to the first half 2010.
- These results include some non-recurring items, such as a legal action over the World Trade Center, and the sale of the Group’s fixed annuity business in the US. A few non-recurring items of a similar amount were also recorded in the first half 2010.
- SCOR Global P&C gross written premiums stand at EUR 1,944 million, up 10.2% compared to the same period in 2010 (13.0% at constant exchange rates).
- The SCOR Global P&C combined ratio is 113.1%, of which 2.8 positive impact points are linked to a legal action over the World Trade Center, and 25.7 points are linked to natural catastrophes.
- SCOR Global Life records gross written premiums of EUR 1,456 million (-2.5% compared to the 1st half 2010 and -0.7% at constant exchange rates; excluding US fixed annuity business, -0.1% and +1.8% at constant exchange rates).
- The SCOR Global Life operating margin rises to 7.2%, compared to 6.5% for the same period in 2010.
- Return on invested assets stands at 4.4% (excluding funds withheld by cedants), compared to 4.1% in the 1st half 2010.
- Following the distribution of EUR 201 million in dividends for 2010 (EUR 1.10 per share), shareholders’ equity stands at EUR 4,009 million at 30 June 2011, compared to EUR 4,166 million at 31 March. Book value per share (BPS) thus stands at EUR21.97 at the end of the 1st half 2011, compared to EUR 22.86 at the end of the 1st quarter 2011.
Throughout this first half, SCOR has actively continued to implement its strategic plan covering the period 2010-2013, “Strong Momentum”. In Life reinsurance, the focus on biometric risks has been demonstrated by the acquisition of the mortality risk portfolio of Transamerica Re, as announced on 26 April 2011. This acquisition makes SCOR Global Life the second largest Life reinsurer in the United States. The biometric focus is also illustrated by the sale of the Group’s fixed annuity business in the US, which was finalized on 19 July 2011. Moreover SCOR Global Life has begun to develop its activities in Australia and New Zealand with the opening of a regional office. The Group has also successfully launched a new Lloyd’s syndicate, “Channel 2015”, of which it is the sole capital provider, and has acquired the entire capital of Solareh SA as part of its policy of developing value added services for its insurer clients.
Denis Kessler, Chairman and CEO of SCOR, comments: “SCOR’s very good results in the second quarter and its capacity to absorb major shocks, like the natural catastrophes that occurred in the first quarter, once again demonstrate the relevance of the Group’s business model based on four cornerstones: a strong and diversified franchise, following on from the success recorded in each renewal; a mid-level risk appetite combined with a very comprehensive and solid Enterprise Risk Management policy, illustrated notably by our underwriting policy and by asset management with no exposure to the sovereign debt currently under discussion; a high level of diversification, both between Life and Non-Life business and through a balanced presence by geographical region; and a “capital shield” policy which proved its effectiveness even after a first half 2011 marred by exceptional Nat Cat events”.
