Press release


SCOR Global Life’s Embedded Value reaches EUR 2.2 billion (EUR 12.2 per share), further demonstrating the dynamism and profitability of its franchise

SCOR Global Life's 2010 Embedded Value.

The development of SCOR Global Life’s (SGL) Market Consistent Embedded Value (MCEV) in 2010 further demonstrates the dynamism and profitability of the franchise and continues SGL’s positive history of value creation.
Key items for SGL’s 2010 MCEV:
  • SCOR moved from EEV to MCEV principles, resulting in an immaterial restatement (0.18%) of the 2009 Embedded Value under EEV
  • MCEV growth of 17.9% (after internal capital movements) to EUR 2.2 billion (EUR 12.2 per share) compared to 1.9 billion in 2009, supported by a significant MCEV operating profit of EUR 179 million
  • Value of New Business of EUR 57 million in 2010 compared to EUR 95 million in 2009 (EUR 113 million under EEV), with a new business margin of 2.4%, down from 3.2% in 2009 (5.2% under EEV), mainly due to a large block transaction in 2009
  • SGL operating performance further enhanced by strong investment return, resulting in total MCEV earnings of EUR 243 million
  • Annualized EV growth of 12.0% (before internal capital movements) between 2006 and 2010 validates the strong value creation capacity of the SGL business model
  • Embedded Value leaps from EUR 1 366 million at the end of 2005 (including Revios) to EUR 2 211 million at the end of 2010, with total Embedded Value earnings of EUR 1.0 billion over this period
  • Strength of SGL business model confirmed, with biometric focus providing low MCEV sensitivity to interest rates and financial markets


Gilles Meyer, Chief Executive Officer of SCOR Global Life, comments: “SGL’s 2010 Embedded Value results confirm the strength of its business model, the depth of its franchise and its capacity for value creation. Total Embedded Value earnings have reached EUR 1.0 billion over the last five years, with sensitivity analysis demonstrating the robustness of this value creation. The acquisition of Transamerica Re’s mortality business, announced last April, will further consolidate SGL’s position among the top worldwide Life reinsurers.


A strong performance by SGL’s 2010 Embedded Value
SGL’s 2010 MCEV increases by EUR 273 million to EUR 2 211 million against EUR 1 938 million in the previous year, an increase of 17.9% after internal capital movements and 14.1% before internal capital movements.
The MCEV per share grows significantly to EUR 12.2 from EUR 10.8 in 2009.
The 2010 MCEV operating profit attains EUR 179 million, compared to EUR 191 million in 2009. The value added by new business reaches EUR 57 million, down from EUR 113 million in 2009 (EUR 95 million on comparable MCEV basis), mainly due to a large block transaction in 2009. The new business margin is 2.4% in 2010, versus 3.2% in 2009 under MCEV.
Total MCEV earnings, taking into account economic variances such as economic assumption changes and investment variances, reach EUR 243 million in 2010 compared to EUR 299 million in 2009 (under EEV). Economic variances are less important in 2010 than in the previous year (EUR 65 million vs. EUR 108 million) due to the recovery of the financial markets in 2009.
Free cash flow generation of EUR 232 million in 2010, with new business entirely funded by the expected runoff of the in-force portfolio. The existing mature business book is expected to contribute strongly to overall free cash flow in the near future. 
The MCEV not recognised under IFRS equity grows by EUR 89 million in 2010, reaching EUR 517 million.
Details of the Embedded Value approach used by SCOR Global Life, including an analysis of Embedded Value from 2009 to 2010, along with details of the methodology used, analysis of sensitivities to certain key parameters and reconciliation of the Embedded Value to SCOR’s IFRS equity, can be found in the document entitled "SCOR Global Life Market Consistent Embedded Value 2010 – Supplementary Information" and the "SCOR Global Life" slide show presentation, both of which are available at www.scor.com.
The Embedded Value has been calculated in accordance with the European Insurance CFO Forum Market Consistent Embedded Value Principles (Copyright© Stichting CFO Forum Foundation 2008) published in June 2008 and October 2009 by the CFO Forum.
Towers Watson have been commissioned to review the methodology and assumptions used as well as the results of the calculations made by SCOR to determine the Embedded Values. The scope of their review and opinion is presented in "2010 Market Consistent Embedded Value – Supplementary Information". This MCEV disclosure should not be viewed as a substitute for SCOR's primary financial statements.


Marie-Laurence Bouchon

Group Head of Communications

+33 (0)1 58 44 75 43



Ian Kelly

Head of Investor Relations

+44 203 207 8561