SCOR’s asset management Business Unit has managed the Group's investment portfolio internally since 2008
Description and mission
SCOR Global Investments is the asset management Business Unit of the SCOR group. It is composed of two dedicated entities: (i) a Group Investment Office and (ii) an asset management company, SCOR Investment Partners, regulated by the French Autorité des Marchés Financiers ("AMF").
The Group Investment Office is in charge of the interaction between the SCOR group and its asset managers. In accordance with the Group’s risk appetite, it sets and monitors investment constraints. It is also in charge of reporting and data quality and the ESG investment policy of the Group.
SCOR Investment Partners manages or oversees the Group’s investment portfolio. Since 2012, SCOR Investment Partners has opened some of its investment strategies to third-party institutional investors.
The investment mandate assigned to SCOR’s asset management Business Unit consists of:
- proposing the strategic and tactical positioning of the invested assets portfolio, subject to risk appetite and risk limits, respecting a strict ALM process, economic and market expectations, accounting rules and strict currency matching between assets and liabilities;
- implementing the Group’s investment strategy;
- optimizing the absolute return on invested assets and focusing on the recurrence of yields while controlling yield volatility. This objective is achieved through active and dynamic portfolio management, the identification of cycles and market opportunities, and strict qualitative and quantitative risk management.
SCOR’s investment strategy
SCOR’s investment strategy relies on strict monitoring of the Group’s risk appetite and dynamic positioning in accordance with a comprehensive Asset Liability Management (ALM) process, while integrating economic and market expectations.
The investment portfolio is dynamically distributed according to the Strategic Asset Allocation disclosed in the three-year strategic plan “Vision in Action”, in order to optimize its financial contribution to the results and capital allocation of the Group. SCOR follows a capital-driven investment process, ensuring that tactical asset allocation is aligned with the Group’s risk appetite. Meanwhile, SCOR has set very strict risk limits (strategic asset allocation, investment guidelines, capital intensity) which, combined with a permanent monitoring process, protect the Group from extreme market events and severe loss scenarios.
SCOR has a strict governance process and an ERM-focused organizational structure:
- on the recommendation of its Risk Committee, the Board of Directors approves risk appetite, risk limits and consequently the capital allocated to investments;
- on the recommendation of the Group Investment Committee, the Executive Committee approves the overall investment strategy and the strategic and tactical positioning of the investment portfolio.