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Scor: The SCOR Global P&C 1 April renewals lead to premium growth of 8.5% with expected profitability well within targets

Press Release
30 April 2014

For more information, please contact:
Géraldine Fontaine +33 (0) 1 58 44 75 58
Group Communications

Antonio Moretti +33 (0) 1 58 44 77 15
Investor Relations

SCOR Global P&C
1 April renewals lead to
premium growth of 8.5% with expected profitability well within targets

SCOR Global P&C (SGPC) records premium growth of 8.5% at constant exchange
rates with regard to the EUR 318 million of premiums up for renewal at 1
April 2014.

The premiums up for renewal at 1 April represent around 10% of the total
annual volume of treaty premiums, with the main countries renewing being
Japan, India and the US.

SGPC confirms its leading position in key markets such as Japan and India,
achieving strong premium growth and overall expected profitability well
within targets.

The premium income growth bears witness to the depth and breadth of the SGPC
franchise in Asia-Pacific, both in mature and emerging economies, globally
across Treaty P&C business and Treaty Specialty lines:

* in Japan, SCOR Global P&C manages to maintain the stability of its P&C
Treaty book of business in an otherwise shrinking reinsurance market,
characterized by reduced cession levels and the unification of reinsurance
programmes following mergers and acquisitions;
* in India, SCOR Global P&C reaps the fruits of a strong presence on this
market, providing a full range of services and engaging in genuine
partnerships with cedants. This enables SGPC to seize meaningful
opportunities generally speaking, and more specifically in Specialty lines
such as Agriculture, Credit&Surety.

The expected technical performance measured in terms of gross underwriting
ratio deteriorates by just under 2 percentage points compared to April 2013,
while return on allocated capital deteriorates by just under 3 percentage
points. The expected profitability trend observed in April 2014 is largely
driven by the Japanese market, where non-proportional prices in the Property
CAT segment have returned to their pre-Tohoku (2011) levels. Excluding the
price reductions affecting the non-proportional Property CAT segments, the
overall price level is broadly stable.

Looking at the January to April 2014 period versus the same period in 2013,
the expected gross underwriting ratio increases by 1 percentage point, while
the net underwriting ratio is expected to benefit from savings achieved in
the retrocession programme, as announced in January. The return on allocated
capital is nearly stable. The expected profitability of the overall book
renewed in April remains well within SGPC targets. Given that profit levels
of the April and later renewals tend to be higher than in January, these
April renewals contribute to improving the 2014 profitability expectation.

Overall, SGPC benefits from the composition of its book of business, with 72%
of the premiums renewed in April 2014 relating to proportional business,
which benefits from sound and generally improving primary insurance trends.
As a result of this, the risk-adjusted price reduction is contained at 2.7%
overall. A small increase in proportional reinsurance prices (+ 0.3%) partly
compensates an 8.3% reduction on non-proportional segments, especially in
Property CAT.

The premiums up for renewal at 1 April are distributed between P&C Treaties
(68%) and Specialty Treaties (32%), in three geographical areas: Asia (61%),
the Americas (30%) and EMEA (9%).
The main business line developments at the April 2014 renewals are as follows:

* forP&C Treaties : gross premiums increase by 3% at constant exchange rates,
to EUR 236 million, thanks to SGPC's strong franchise in Japan ;

* forSpecialty Treaties : gross premiums increase by 23% at constant exchange
rates, to EUR 109 million, mainly driven by positive business developments
in the Agriculture and Credit segments, thanks to the further opening of
the markets in India and in China.

Victor Peignet, CEO of SCOR Global P&C,
comments:"Thanks to its strong franchise in the Asia-Pacific region, SCOR
Global P&C
has successfully managed the April 2014 renewals.
Through its strong presence in Specialty lines and its proximity to key
SGPC has proven its ability to materialize sizeable opportunities
of profitable diversification.
The contained
overall price reduction, to a level that is still consistent with our
profitability assumptions,
demonstrates the competitive advantage of having a broad and diversified
business platform,
based on
longstanding client relationships. On the back of these strong renewals, we
reiterate the "Optimal Dynamics" three-year assumption of a
93%-94% net combined ratio
and annual premium growth assumption of around 8.5% over the period."

* *
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 05 March
2014 under number D. 14-0117 (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".

SCOR Press Release


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


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