24May07

Press release

Group

SCOR records a net income of EUR 76 million, up 43%

SCOR's 2007 first quarter results.

2007 First Quarter Results*:
 
  • Gross written premiums: EUR 1,040 million (+ 42%*
  • Non-Life gross written premiums: EUR 474 million (+ 1%*
  • Life gross written premiums: EUR 566 million (+ 114%*

 

  • Operating income: EUR 127 million (+ 27%*
  • Net income after tax: EUR 76 million (+ 43%*)
 
  • Shareholders’ equity at 31 March 2007: EUR 2,314 million (+ 3% compared to 31 December 2006)
  • Annualized return on weighted average equity (RoE): 14.0% (12.7%*)
 
  • Net income per share: EUR 0.66 (+ 35%*
  • Net book value per share: EUR 20.03 (+ 9%*
 
Results by Line of Business:
 
  • Net combined ratio for Non-Life reinsurance: 97.7% (97.3%*)
  • Margin on net earned premiums for Life reinsurance: 7.8% (7.6%*)
  • Investment income: EUR 168 million (+ 35%*)
  • Annualized net return on invested assets (RoI): 4.6% (4.8% in 2006)


Significant Events in the First Quarter of 2007:
 

  • The SCOR share consolidation was conducted through the exchange of 10 old shares for 1 new share.  To date, 97% of SCOR shares have been consolidated.
  • The SCOR group estimates the pre-tax technical cost of storm "Kyrill" at EUR 28 million for all of the Group’s branches and the markets concerned.
  • The SCOR group acquired 32.9% of Converium on 19 February 2007 in order to create a Top 5 global multi-line reinsurer.
  • On 26 February 2007, the SCOR group launched a voluntary public tender offer for Converium shares.
 
Significant Events since 1 April 2007
 
  • “Dynamic Lift” v1, the new strategic plan covering the period from mid 2007 to mid 2010, was published on 4 April 2007.  This plan lays out the growth and profitability prospects of the combined Group that will result from the combination of SCOR and Converium, on the basis of realistic market assumptions, an optimal level of diversification and the implementation of a rigorous underwriting policy focused on profitability. 
  • SCOR records an increase of 8.5% in Non-Life Treaty premium income on the Asian and Indian markets.

 

Denis Kessler, Chairman and Chief Executive Officer, said:
 
The 2007 first quarter results are in line with the profitability targets set out in the Dynamic Lift plan, as demonstrated by the 14% RoE level and the 35% increase in net income per share.  These results demonstrate the pertinence of the Group’s strategic development, such as the successful integration of Revios business into SCOR Global Life on the Life reinsurance side, the application of a strict and underwriting policy in Non-Life reinsurance, and the repositioning of the Group towards the expanding European and Asian markets.  The level of the net combined ratio shows that the Group is capable of absorbing a medium-level shock such as the Kyrill storms.
 
Furthermore, the Group has proved its ability to lead the Converium acquisition to a successful conclusion, achieving major milestones in the process, and is delighted with the friendly agreement that has been reached.
 

SCOR has demonstrated the pertinence of its strategic choices in terms of underwriting and acquisition, as well as its ability to create value for its shareholders.

 

(*) : the 2007 first quarter results take account of the acquisition of Revios on 21 November 2006. The 2006 first quarter results did not include Revios. See table on page 6 for information on a like-for-like basis and at constant exchange rates. All comparisons in parentheses are to the first quarter of 2006, except when mentioned differently.

 

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