27Aug08

Press release

Group

SCOR records net income of EUR 225 million in the First Half of 2008, confirming its profitability track record

SCOR's first half of 2008 results.

SCOR records solid First Half results, demonstrating its ongoing strong profitability. The results are again supported by positive contributions from both the Life and Non-Life business engines, which confirms the commercial dynamism of the Group. SCOR’s capital adequacy remains unaffected by the currently challenging financial markets.
 
  • Net income year-to-date stands at EUR 225 million, up 24.3% compared to the first six months of 2007 on a published basis. On a pro forma basis, the increase would have been 5.1%. Annualised return on equity (ROE) stands at 13.2% and six months’ earnings per share (EPS) at EUR 1.25.
  • Strong profitability contribution of Life & Non-Life operations: Non-Life combined ratio stands at 98.7%, and Life business generates an operating margin of 7.3%.
  • Top-line performance is in line with expectations with year-to-date 2008 gross written premiums at EUR 2,748 million, up 29.4% compared to the first six months of 2007 on a published basis. At constant exchange rates and on a pro forma basis, the premium volumes decline slightly by 1.4%.
  • Positive July 2008 P&C renewals see a premium increase of 22%; the July renewals (representing 6% of total treaty premiums) underline SCOR’s highly valuable business franchise. The Group applies strict underwriting discipline, with a firmer pricing environment than expected.
  • A diversified and prudent investment portfolio (with cash position at EUR 2.6 billion at 30 June 2008) limited the impact of the current financial market turmoil on the investment result. 
  • Robust shareholders’ equity of EUR 3.4 billion at 30 June 2008 including minorities, despite adverse foreign exchange impacts on the net asset value of non-Euro denominated subsidiaries and despite the dividend payment of EUR 143 million (i.e. EUR 0.8 per share). Book value per share stands at EUR 18.92.
  • The execution of the restructuring plan is well on track: in the second quarter of 2008 the roll-out of this plan activates deferred tax assets of EUR 20 million, offset by integration costs of EUR 29 million before tax.
Denis Kessler, Chairman and Chief Executive Officer of SCOR, comments: “In less than one year we successfully completed the creation of a “new SCOR” by combining Converium and SCOR in a very efficient manner. SCOR’s strong First Half 2008 results confirm our profitability track record, supported by the solid business performance of our “twin-engines”, Life and Non-Life. The Group presents a robust balance sheet despite the challenging financial market environment, which clearly demonstrates our strong Enterprise Risk Management policy.

Contact

Marie-Laurence Bouchon

Group Head of Communications

+33 (0)1 58 44 75 43

mbouchon@scor.com

 

Ian Kelly

Head of Investor Relations

+44 203 207 8561

ikelly@scor.com