SCOR records net income of EUR 318 million for the first nine months of 2012, confirming the strength of its business model

SCOR's results of the first nine months of 2012.

SCOR overcomes a tough macro environment, delivering a strong performance for the first nine months of 2012 founded on robust and improving operational profitability:
  • Gross written premiums from both business engines increase sharply to EUR 7,214 million, up by 13% on a pro forma basis (+33% on a published basis1), driven by increased visibility in the industry:
  • high growth of 18.0% for SCOR Global P&C gross written premiums, to EUR 3,517 million;
  • growth of 8.0% on a pro forma basis for SCOR Global Life gross written premiums, to EUR 3,697 million.
  • Net combined ratio reaches 93.7%, with SCOR Global P&C exceeding Strong Momentum V1.1 profitability assumptions and confirming ongoing positive trend. 
  • Life technical margin is 7.3%, with SCOR Global Life continuing to deliver a technical performance in line with Strong Momentum V1.1 assumptions. 
  • SCOR Global Investments achieves solid returns while maintaining a prudent and defensive strategy (ongoing return on invested assets before equity impairments of 3.4%, and return on invested assets after equity impairments of 2.8%). 
  • Operating cash flow stands at EUR 556 million, already above its full-year level of 2011.
  • The Group continues its cost control policy, with a cost ratio of 5.1%, alongside active investment in the future with more than 25 ongoing projects.
  • SCOR delivers a strong net income of EUR 318 million, compared to EUR 228 million in the first nine months of 2011 on a published basis (+39.5%). Consistent ROE stands at 1,045 basis points above the risk-free rate excluding equity impairments (924 basis points including impairments), demonstrating clear capacity to deliver strong results in spite of a challenging environment.
  • Shareholders’ equity increases to EUR 4,734 million at 30 September 2012, compared to EUR 4,410 million at 31 December 2011, after the distribution of EUR 203 million in dividends for 2011 (EUR 1.10 per share). Book value per share stands at EUR 25.73 at 30 September 2012, compared to EUR 23.83 at 31 December 2011.
  • SCOR financial leverage stands at 16.3% at 30 September 2012, excluding the CHF 315 million perpetual subordinated placement, as this was closed on October 8, 2012 (the leverage ratio stands at 19.9% including the effect of this placement), with peer group at around 20%2. In addition, SCOR actively managed its liabilities, buying back an existing debt for 80% of its EUR 50 million par value.
In spite of a difficult economic and financial environment, SCOR has continued to record robust double-digit growth since the beginning of the year. “Season 3” of the three-year Strong Momentum plan, presented at the beginning of September, reaffirms the Group’s ability to achieve the objectives set by its strategic plan, managing to combine growth, profitability and solvency.
This success has been unanimously recognized by industry professionals, who have presented the Group with a large number of prestigious awards that simultaneously reward the quality and performance of SCOR’s business model, and the effectiveness of its management.
The excellent conditions of the CHF 315 million perpetual subordinated placement, launched in September and closed on 8 October, also demonstrate the continued acknowledgement of the strengths of SCOR’s business model by the financial markets.  
Denis Kessler, Chairman and CEO of SCOR, comments: “The excellent results recorded by the Group for the first nine months of 2012 once again demonstrate the pertinence and robustness of its business model, in spite of a global economic environment that remains at half-mast. SCOR is actively preparing its next renewal campaign in January, being well positioned to continue to progress thanks notably to its series of rating upgrades in 2012. A very strict and consistent enterprise risk management policy will continue to support the Group’s strong growth ability, providing highly efficient protection against the main risks faced, in a financial and economic environment that remains particularly uncertain”.

1 For more information on pro forma data (related to the acquisition of Transamerica Re), please refer to page 5 of this press release and page 3 of the financial presentation, available at
2 See details on page 8 of the financial presentation, available at

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