SCOR Global Life presents solid European Embedded Value (EEV) figures that demonstrate the resilience of SCOR’s Life business in the financial market crisis. The figures further demonstrate the long-term value-creation capacity of the fifth largest life reinsurer in the world, having leading positions in Europe and in many Asian markets. With a combined market share of 8% globally and 14% in Europe, SCOR Global Life generated gross written premiums of EUR 2.7 billion in 2008. Over 70% of its book consists of traditional mortality and financing business that is only very moderately affacted by economic risks.
- SCOR’s 2008 Life EEV performs positively growing to EUR 1.7 billion with a strong EEV operating profit of EUR 182 million.
- Increase in EEV of 3.9% demonstrates the resilience of SCOR Global Life’s business model in the financial crisis.
- Solid value of new business of EUR 48 million, with a new business margin of 3.4%, testifying to the strength of the franchise.
- Strong Life operating performance partially impacted by financial market turmoil resulting in EEV earnings of EUR 63 million.
- SCOR continues to strictly apply market-consistent valuation of EEV, using unadjusted risk-free rates and year-end implied volatilities.
- The value not recognised under IFRS of EUR 255 million despite financial market impact.
- SCOR Global Life sees numerous business opportunities in the current financial crisis that have led to an increased demand for reinsurance capital and have contributed to a healthy stream of business.
Gilles Meyer, Chief Executive Officer of SCOR Global Life, comments: “The strong European Embedded Value results by SCOR Global Life prove the healthy business fundamentals of the Life portfolio and especially its resilience to economic shocks. The strong EEV results underpin the fact that SCOR Global Life has a very strong franchise and operates a business model perfectly suited to the specific nature of the Life reinsurance market, allowing us to be optimistic for the future, confirm our strategic ambitions and to deliver strong future value to the Group by reaching the expected operating margin of 6.0%.”