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2016-02-09

January 2016 Renewal Results : SCOR Global P&C continues to perform in lasting soft market conditions

Press Release

9 February 2016 - N°03

January 2016 Renewal Results

SCOR Global P&C continues to perform

in lasting soft market conditions

At the 1 January 2016 renewals, SCOR Global P&C manages to maintain
quasi-stable expected technical profitability compared to January 2015, while
recording gross premium growth of 2% at constant exchange rates, to EUR 3.0
billion.

In a (re)insurance market that shows some signs of levelling out for certain
types of contracts and exposures, but where competition regained some
momentum at the very end of 2015,
SCOR Global P&C achieves sustainable growth in spite of the pressures on
prices worldwide, in line with the indications given at Monte Carlo and Baden
Baden.

SCOR Global P&C continues to find pockets of profitable new business, more
than counterbalancing the premium reductions caused by increased selectivity
and heightened portfolio management, thereby maintaining overall expected
profitability. This has been made possible by a combination of several
factors, such as the successful deployment of the client-focused initiative
in the US, and having developed the right culture and the right tools to
manage global client relationships and steer business in real time.

Key performance indicators

* Expected technical profitability remains quasi-stable compared to January
2015, with the overall gross underwriting ratio[1]increasing by only 0.3
percentage points, mainly due to non-proportional business, while the
overall gross loss ratio reduces slightly. The expected return on
risk-adjusted capital meets the SCOR Global P&C performance requirement,
which is based on the Group's target ROE.

Based on this limited deterioration and thanks to the improved
efficiency of the retrocession cover achieved for 2016, SCOR Global P&C
expects a net combined ratio of close to 94% for 2016 under normal loss
experience.

* The overall decrease in risk-adjusted pricing is contained at -1% . SCOR
Global P&C continues to benefit from a high level of exposure to more
resilient primary insurance markets, through proportional business.
* The 2% overall premium growth reflects very fragmented trends, by
market/region and by line of business . Further openings in the US, where
the rebuilding of the franchise is progressing very well, have offset
voluntary reductions of shares or cancellations with clients that no longer
meet profitability conditions, from both mature and emerging markets.
Another feature worth highlighting is that SCOR Global P&C maintains
preferred levels of signings, including on the oversubscribed programs.

Based on the outcome of the January renewals and on current
exchange rates,

SCOR Global P&C anticipates total gross premiums of EUR 6.0 billion in 2016.

Added value and client relationships

In a context of intense competition, the quality and history of client
relationships, and of the services provided to business partners, continue to
positively distinguish SCOR Global P&C as a reinsurer that adds value over
and above the provision of capacity.

With the implementation of Solvency II in January 2016, and the adoption of
similar principles by an increasing number of regulators outside the European
Union, the ability to provide clients with feasibility studies of specific
capital management and capital optimization solutions becomes a competitive
advantage. Thanks to its Alternative Solutions Initiative, SCOR Global P&C's
responsiveness to client demands has proved beneficial to its overall
reinsurance relationships.

Main business line developments

The premiums up for renewal at 1 January 2016 represent 68% of the total
annual volume of treaty premiums and are distributed between P&C treaties
(71%) and Specialty treaties (29%).

* ForP&C treaties : gross premiums increase by 2.4% at constant exchange
rates, to EUR 2.144 billion, with very active portfolio management that led
to a re-balancing of the portfolio towards the US in real time as we went
through the renewals. The premium reductions of 2% recorded in the EMEA and
APAC regions are more than counterbalanced by profitable growth of 24% in
the US, leveraging on the US Client-Focused Initiative.
* ForSpeciality treaties : gross premiums increase by 0.9% to EUR 880 million
at constant exchange rates, including the positive outcome to date for the
renewals in Agriculture, which are still in progress, while the other lines
of business show stability or limited reductions.

Victor Peignet, CEO of SCOR Global P&C,
comments:"In view of the difficult business environment in which we operate,
this is yet another renewal season that can be considered a success. For the
third year in a row under the "Optimal Dynamics" plan, our strategic
initiatives are proving relevant, both in our core reinsurance business,
where we continue to achieve notable progress in the US and with
Global Clients, and in the field of Alternative Solutions, where SCOR Global
P&C positions itself as an influential player. Despite the headwinds in front
of us, this is a good start to the year and gives us confidence in our
ability to maintain profitability on target for 2016."

*

********

Contact details

Marie-Laurence Bouchon

Group Head of Communications
+33 (0)1 58 44 76 10

mbouchon@scor.com

Bertrand Bougon

Head of Investor Relations
&Rating Agencies
+33 (0)1 58 44 71 68

bbougon@scor.com

http://www.scor.com/

SCOR photo gallery

Twitter:@SCOR_SE

Forward-looking statements

SCOR does not communicate "profit forecasts" in the sense of Article 2 of (EC)
Regulation n°809/2004 of the European Commission. Thus, any forward-.looking
statements contained in this communication should not be held as
corresponding to such profit forecasts. Information in this communication may
include "forward-looking statements", including but not limited to statements
that are predictions of or indicate future events, trends, plans or
objectives, based on certain assumptions and include any statement which does
not directly relate to a historical fact or current fact. Forward-looking
statements are typically identified by words or phrases such as, without
limitation, "anticipate", "assume", "believe", "continue", "estimate",
"expect", "foresee", "intend", "may increase" and "may fluctuate" and similar
expressions or by future or conditional verbs such as, without limitations,
"will", "should", "would" and "could." Undue reliance should not be placed on
such statements, because, by their nature, they are subject to known and
unknown risks, uncertainties and other factors, which may cause actual
results, on the one hand, to differ from any results expressed or implied by
the present communication, on the other hand.
Please refer to SCOR's Document de référence filed with the AMF on 20 March
2015 under number D.15-0181 (the "Document de référence"), for a description
of certain important factors, risks and uncertainties that may affect the
business of the SCOR Group. As a result of the extreme and unprecedented
volatility and disruption of the current global financial crisis, SCOR is
exposed to significant financial, capital market and other risks, including
movements in interest rates, credit spreads, equity prices, and currency
movements, changes in rating agency policies or practices, and the lowering
or loss of financial strength or other ratings.
The Group's financial information is prepared on the basis of IFRS and
interpretations issued and approved by the European Union. This financial
information does not constitute a set of financial statements for an interim
period as defined by IAS 34 "Interim Financial Reporting". The Group's
financial information is prepared on the basis of IFRS and interpretations
issued and approved by the European Union. This financial information does
not constitute a set of financial statements for an interim period as defined
by IAS 34 "Interim Financial Reporting".
---------------------------------------[1]underwriting ratio = loss ratio + commission ratio, on an underwriting year
basis

SCOR Press Release
http://hugin.info/143549/R/1984551/727639.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: SCOR via Globenewswire

HUG#1984551

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