Record 2007 results – SCOR enters a new global dimension with net income reaching EUR 407 million
SCOR's 2007 results.
SCOR has entered a new global dimension in terms of earning power and business volume: since 2005 the Group’s gross written premiums have doubled and the net income has more than tripled, with all business drivers producing record results. The acquisitions of Revios and Converium make the SCOR Group the fifth largest reinsurer in the world, with a high degree of diversification. SCOR’s franchise comprises 3,500 clients served by six newly-established Hubs, 49 offices and 1,581 specialists across five continents.
- On a published basis, 2007 was a record year for SCOR with net income up by 62% to EUR 407 million, a ROE of 14.1% and a strong 2007 EPS reaching EUR 2.79, supported by a net operating cash flow of EUR 611 million, the highest in the history of the company.
- On a pro-forma basis, consolidating Converium since 1 January 2007, net income reached EUR 450 million for 2007, up 79% compared to 2006.
- Very strong top-line performance supported by acquisitions. On a published basis, SCOR records a premium increase of 62% to EUR 4,762 million. 2007 pro-forma gross written premiums stand at EUR 5,853 million, an increase of 100% compared to 2006.
- Strong profit contribution from both business engines: on a published basis Non-Life recorded a combined ratio of 97.3% and Life an operating margin of 7.6%. The respective pro-forma figures are 99.3% and 7.7%.
- On the basis of the published accounts, the prudent asset management strategy delivers a stable return of 4.4% on a total investment portfolio of EUR 19.1 billion (4.3% for pro-forma).
- Very efficient Enterprise Risk Management (ERM) process applied to protect the whole organization. No direct liability risks from monoline companies or subprime. Very limited risks from monoliner credit-enhanced securities (0.42% of total invested assets) and subprime investments (0.27% of total invested assets).
- Confirmed pre-tax annual synergy targets of EUR 68 million by 2009, EUR 51 million already identified (run-rate basis).
- Shareholder equity reaches EUR 3,629 million (published accounts as of 31 December 2007) including minorities. Book value per share stands at EUR 20.0. No financing is necessary to support current rating.
- Proposed dividend of EUR 0.80 per share subject to the approval of the Annual General Meeting, representing a pay-out ratio of nearly 36.2%.
Denis Kessler, Chairman and Chief Executive Officer of SCOR, said: “The Group had a very strong year in 2007 and posted record numbers in terms of profits and shareholder returns. SCOR entered a new global dimension and is adequately positioned to further develop its diverse book. All business drivers are performing strongly and have contributed to these results. Profiting from the new innovative ‘Hub’ structure, the Group will further solidify its leading role in the reinsurance sector. Very satisfying January 2008 renewals demonstrate the depth of the franchise of the new Group. With an Enterprise Risk Management culture firmly in place, the Group’s assets have been managed very prudently. For this reason, the Group only saw marginal exposure to the subprime and monoliner crisis. SCOR can thus continue to implement the strategy outlined in the three-year stategic plan ‘Dynamic Lift V2’. With a close eye on the evolution of a difficult environment, we are convinced that the Group meets all the conditions required to reach its medium-term objectives, not least because of the expected synergies.”
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