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2016-10-27

SCOR: First nine months 2016 results

Press Release

27 October 2016 - N° 26

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| SCOR records net income of EUR 438 million for the first nine months of 2016, |
|confirming the strength of its business |
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In the first nine months of 2016, SCOR continues to deliver high quality
results in terms of earnings, profitability and cash flow generation. During
the third quarter of 2016, both targets of the new strategic plan "Vision in
Action" - profitability and solvency - have been achieved.

* Gross written premiums reach EUR 10,216 million at the end of the first
nine months of 2016, up 4.4% at constant exchange rates compared to the
first nine months of 2015 (+2.2% at current exchange rates), with:

* a strong contribution from SCOR Global Life, with gross written premiums
reaching EUR 5,982 million over the period (+7.8% at constant exchange
rates and +6.1% at current exchange rates);
* stable SCOR Global P&C gross written premiums at constant exchange rates
(-0.1% at constant exchange rates, -2.8% at current exchange rates),
standing at EUR 4,234 million in the first nine months of 2016.

* SCOR Global P&C records strong technical profitability in the first nine
months of 2016 with a net combined ratio of 93.0%.

* SCOR Global Life records a robust technical margin of 7.1% in the first
nine months of 2016.

* SCOR Global Investments achieves a solid return on invested assets of 2.9%
in the first nine months of 2016, while implementing the normalization of
the asset management policy.

* Group net income reaches EUR 438 million in the first nine months of 2016,
down 11.0% compared to the first nine months of 2015 due to a higher number
of natural catastrophes and a challenging macroeconomic environment. The
annualizedreturn on equity (ROE) stands at 9.3% in the first nine months of
2016, or 855 basis points above the risk-free rate[1].

* The business model delivers arobust operating cash flow of EUR 1.3 billion
as at 30 September 2016, compared to EUR 558 million for the same period in
2015. This results from the generation of strong recurring cash flows in
2016 and two exceptional items: SCOR Global P&C received a non-recurring
fund withheld payment of around EUR 300 million, and SCOR Global Life
benefitted from a timing difference in claims payments, which is expected
to normalize by the end of 2016.

* Shareholders' equity stands at EUR 6,436 million at 30 September 2016,
compared to EUR 6,363 million at 31 December 2015 after the payment of EUR
278 million of dividends for the year 2015. This translates into a book
value per share of EUR 34.65 at 30 September 2016.

* SCOR's financial leverage stands at 25.1% at 30 September 2016.

* SCOR'sestimated solvency ratio at 30 September 2016 stands at 212%, within
the optimal solvency range of 185%-220% as defined in the "Vision in
Action" plan.

SCOR Group 2016 YTD and Q3 2016 standalone key financial details:

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| YTD QTD |
| In EUR millions (unaudited, rounded, at current exchange rates) 9 months 9 months Variation Q3 2016 Q3 2015 Variation |
| |
| 2016 2015 |
| Gross written premiums 10,216 9,996 +2.2% 3,481 3,503 -0.6% |
| Group Cost Ratio 5.0% 5.0% 0.0 pts 4.8% 4.8% 0.0 pts |
| Return on invested assets 2.9% 3.1% -0.2 pts 2.6% 2.6% 0.0 pts |
| Annualized ROE 9.3% 11.1% -1.8 pts 10.7% 11.4% -0.7 pts |
| Net income* 438 492 -11.0% 163 165 -1.2% |
| Shareholders' equity 6,436 6,104 +5.4% 6,436 6,104 +5.4% |
| P&C Combined ratio 93.0% 90.8% +2.2 pts 91.4% 90.6% +0.8 pts |
| Life technical margin 7.1% 7.2% -0.1 pts 7.1% 7.2% -0.1 pts |
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(*)
Consolidated net income, Group
share.
During the third quarter of 2016, SCOR launchedits new strategic plan "Vision
in Action"
[2], after having fully achieved the targets of its previous plan, "Optimal
Dynamics". "Vision in Action" relies on three dynamics to enhance its
profitability and its solvency: build on the continuity and the consistency
of previous plans, expand and deepen the franchise and normalize the asset
management policy.
During the quarter,the successful redemption of two debts
(EUR 350 million and CHF 650 million undated subordinated note lines), and the
fact that their prefinancing benefitted from exceptional market conditions
demonstrate both SCOR's capacity to actively manage its financing and the
quality of the Group's franchise on the financial markets.
In September,SCOR's insurance financial strength rating was upgraded by
Moody's to Aa3 from
A1
, with a stable outlook[3]. This upgrade reflects (i) SCOR's improved
franchise, (ii) its diversified business profile and lower exposure than
peers to the segments currently under the most pricing pressure, (iii) the
high stability of its profits and (iv) its strong and stable capitalisation.
Taking all sectors into consideration and excluding government-related
entities,SCOR is now the only company to have three "AA" ratings
[4]in France.
In October, for the second consecutive year, SCOR was named"North American
Life Reinsurer of the Year 2016"
by Reactions Magazine[5], confirming the Group's reinforced leadership in the
US individual Life market.

A few days later, SCOR was named"Life Reinsurer of the Year 2016"
by Asia Insurance Review[6]. This prestigious award is a recognition of SCOR's
success story in Asia-Pacific, where the Group has built a strong Life
reinsurance platform to service its customers, with strong local presence and
expertise.
Denis Kessler, Chairman&CEO of SCOR,
comments:"Considering the extremely low interest rate environment,
SCOR has delivered strong results since the beginning of 2016, in terms of
profitability, solvency and cash flow generation. In the third quarter of
2016, the first quarter in which our plan "Vision in Action" has been
implemented, the profitability and solvency targets have both been achieved.
During the quarter, and following the upgrades to AA- in 2015 by
Standard&Poor's and Fitch, the upgrade of SCOR's financial strength rating to
Aa3 by Moody's underscored the relevance of the Group's strategy and business
model. Finally, SCOR was recently named "Life Reinsurer of the Year 2016" in
both the US and Asia. SCOR is well positioned to meet the needs of its
clients throughout the world, and actively implementing its new strategic
plan and is preparing the year-end renewals
."
In the first nine months of 2016, SCOR Global P&C achieves strong technical
profitability with a net combined ratio of 93.0%
In the first nine months of 2016, SCOR Global P&C gross written premiums stand
at EUR 4,234 million. At constant exchange rates, gross written premiums were
stable year-on-year (-0.1% at constant exchange rates; -2.8% at current
exchange rates).
This evolution was driven by:

* Latest revisions of 2015-16 premium estimates recently communicated by
ceding companies and affecting business lines particularly sensitive to the
macro-economic environment (e.g. Engineering, Marine&Offshore) ;
* More pronounced reduction than anticipated in the activity of some aviation
accounts, driven by the re-underwriting and rebalancing of the airlines
portfolio;
* Increased selectivity in very competitive market environments, particularly
on large corporate accounts and in Latin America.

The above elements are either non-recurring or impact limited parts of
business. SCOR Global P&C is working on a promising pipeline of new business
between now and the end of the year. Therefore and in accordance with the
"Vision in Action" plan, SCOR Global P&C confirms the assumption of annual
gross written premium growth of between 3% and 8% from 2016 to 2019.

SCOR Global P&C key figures:
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| In EUR millions (unaudited, rounded, at current exchange rates) YTD QTD |
| 9 months 2016 9 months 2015 Variation Q3 2016 Q3 2015 Variation |
| Gross written premiums 4,234 4,356 -2.8% 1,433 1,497 -4.3% |
| Combined ratio 93.0% 90.8% +2.2 pts 91.4% 90.6% +0.8 pts |
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In the first nine months of 2016, SCOR Global P&C records resilient technical
profitability with a net combined ratio of 93.0%, including:

* A 5.7% net nat cat ratio in the first nine months of 2016, coming from a
series of mid-size events: mainly Fort McMurray wildfires, earthquakes in
Japan (Kumatomo), Taiwan and Ecuador, Netherlands and Texas hailstorms and
Europe and Louisiana floods;

* A net attritional and commission ratio of 80.5% for the first nine months
of 2016, compared to 82.5% in the first nine months of 2015.

The "normalized" net combined ratio (with a natural catastrophe budget of 6%
and without the 1.1 point of reserve releases in the second quarter) stands
at 94.4% in the first nine months of 2016, in line with the latest
assumptions communicated during the 2016 Investor Day[7].

SCOR Global Life combines growth and strong profitability in the first nine
months of 2016

SCOR Global Life records strong growth in the first nine months of 2016, with
gross written premiums standing at EUR 5,982 million, up 7.8% at constant
e...

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