Press release


SCOR records a net income of EUR 181 million, up 77%

2007 first half results.

2007 First Half Results*:
  • Gross written premiums: EUR 2,124 million (+55%*
  •  Non-Life gross written premiums: EUR 943 million (+12%*
  •  Life gross written premiums: EUR 1,181 million (+124%*
  • Operating income: EUR 255 million (+36%*
  • Net income after tax: EUR 181 million (+77%*)
  • Shareholders’ equity at 30 June 2007: EUR 2,644 million (+17% compared to 31 December 2006, +58% compared to 30 June 2006)
  • Annualized return on weighted average equity (ROE): 15.4% (12.3%*)
  • Net income per share: EUR 1.49 (+39%*
  • Net book value per share: EUR 19.83 (+14%*)
Results by line of business:
  • Net combined ratio for Non-Life reinsurance: 98.8% (98.2%*)
  • Margin on net earned premiums for Life reinsurance: 7.4% (7.2%*)
  • Investment income: EUR 364 million (+52%*)
  • Annualized net return on invested assets (ROI): 5.0% (4.9%*)

Significant events since 1 January 2007: SCOR finalized the Converium acquisition
  • Acquisition of 32.9% of the capital of Converium: 
  • SCOR announces on 19 February 2007 the acquisition of 32.9% of the capital of Converium 
  • SCOR’s shareholders give their full support to the combination of SCOR and Converium on 26 April 2007.  The acquisition is financed for 80% by the issuance on 26 April 2007 of 17,837,210 new SCOR shares
  • On 10 May 2007, SCOR and Converium announce that they have reached a friendly agreement
  • On 12 June 2007, SCOR announces the opening of its mixed public tender and exchange offer for the shares of Converium 
  • On 27 June 2007, the Swiss Federal Office of Private Insurance (FOPI) authorises the combination between SCOR and Converium
  • Great success of the Offer: on 2 August 2007, SCOR announces results:  ownership of 96.32% of Converium
  • Settlement and Delivery of the Offer takes place on 8 August 2007. As part of this exchange, SCOR issues 46,484,676 new shares
  • On 30 August 2007, the EGM of Converium will take place to change the name to SCOR Switzerland and to nominate the new Board of Directors and the new Executive Committee
Other significant events since 1 January 2007: 
  • The first version of “Dynamic Lift”, the new strategic plan covering the period from mid-2007 to mid-2010, is published on 4 April 2007: it lays out the growth and profitability prospects of the combined Group resulting from the merger of SCOR and Converium, on the basis of realistic market assumptions, an optimal diversification and the application of a rigorous underwriting policy centered on profitability requirements.  The second version of Dynamic Lift will be presented on 3 September 2007
  • SCOR American Depositary Shares (ADS) delisted on 14 June 2007 from the New York Stock Exchange
  • On 8 August, the SCOR group announces that it is now listed on the SWX Swiss Exchange
  • SCOR now owns 98.67% of ReMark, a global insurance direct-marketing company, through a series of successive purchases between January and June 2007
  • On 25 June 2007, SCOR officially becomes an “SE” (Societas Europaea). On 25 July 2007, SCOR Global Life officially becomes an SE. On 3 August 2007, SCOR Global P&C officially becomes an SE
  • On 2 July 2007, SCOR Global Life announces its 31 December 2006 European Embedded Value: €1,513m
  • Non-Life reinsurance treaties in Japan, Korea and India were up for renewal on 1 April 2007.  These treaties represent around 65% of SCOR’s portfolio in the Asia-Pacific zone.  During the 1 April 2007 renewals, written premiums in Japan reached EUR 41.1 million, down 8% compared to 2006 at constant exchange rates  
During the 1 April 2007 renewals, written premiums in Korea reached EUR 25.6 million, up 10% at constant exchange rates compared to 2006.  In India, written premiums reached EUR 19.5 million, an increase of 23% at constant exchange rates compared to 2006
On 21 August, SCOR announced that its Non-Life Treaty renewals at 1 July 2007 were up by 19%, mainly in Asia (up 69%), the Middle East (up 30%) and the United States (up 19%)
  • On 20 August, AM BEST affirms the rating of SCOR and upgrades the rating of Converium to “A-, stable outlook”. On 24 August, Fitch affirms the rating of SCOR and upgrades the rating of Converium to “A-, stable outlook”.  All of the rating agencies now rank SCOR and Converium in the “A” category with a stable outlook
Following the Board of Directors’ meeting, Denis Kessler, Chairman and Chief Executive Officer, said: 
The SCOR Group has seen a sharp increase in its business during the First Half of 2007, due to the successful integration of Revios and the strong mobilisation of the underwriting teams in both Life and Non-Life reinsurance.  The highly satisfactory renewals at 1 April and 1 July confirm this dynamism.  The results are increasing very sharply, with each centre of activity – SCOR Global P&C, SCOR Global Life and Asset Management – making a major and growing contribution.  The return of the Group’s US entity to profitability in property and casualty reinsurance is demonstrated by the very limited reactivation of tax credits, which bears witness to the success of SCOR’s repositioning across the Atlantic.
Since 1 January 2007, SCOR has been successfully working on the acquisition of Converium, whose full integration is currently underway.  The new combined Group’s 2008 underwriting plan is ready.  A new three-year plan, called Dynamic Lift, has been drawn up in order to set out a number of objectives, notably including profitability, which the Group has set itself for the coming years, and in order to indicate the ways and means it will use to achieve these.

The Group dynamics are positive: it is expanding its franchise, it is highly disciplined in its underwriting, it is prudently managing its assets, it is following an acquisition policy that strictly adheres to its strategic objectives and it now has a wider pool of skills and expertise.


(*): the 2007 First Half results take account of the acquisition of Revios on 21 November 2006. The 2006 First Half results did not include Revios.  All comparisons in parentheses are to the First Half of 2006, unless stated otherwise.

SCOR’s acquisition of 32.9% de Converium on 26 April 2007 has resulted in the inclusion of a pro rata quota share of the Converium results in SCOR’s results.  This inclusion only affects the amount of shareholders’ equity and the number of shares and, consequently, net income per share, net book value per share and ROE.



Marie-Laurence Bouchon

Group Head of Communications

+33 (0)1 58 44 75 43



Ian Kelly

Head of Investor Relations

+44 203 207 8561