SCOR publishes a net income of EUR 512 million along with a 15% increase in shareholders' equity, and proposes a dividend of EUR 1.40, up 8%
(Thomson Reuters ONE) -
Press Release
5 March 2015 - N°05
2014 Annual Results
SCOR publishes a net income of EUR 512 million along with
a 15% increase in shareholders' equity,
and proposes a dividend of EUR 1.40, up 8%
|
Over the course of 2014, the Group has|Contacts
continuously and consistently delivered high|
quality results, improving its competitive|Marie-Laurence Bouchon
position. Thanks to a well-diversified global|Group Head of Communications
franchise, a strong worldwide presence and a|+33 (0)1 58 44 76 10
solid financial performance, SCOR once again|mbouchon(at)scor.com
delivers a strong level of profitability and|
achieves a solvency level in line with its|
strategic objectives in 2014. | Bertrand Bougon
|Head of Investor Relations
|& Rating Agencies
|+33 (0)1 58 44 71 68
* Gross written premiums reach EUR 11,316 |bbougon(at)scor.com
million, up 10.4%[1] compared to 2013 (10.8% |
at constant exchange rates). This is driven |
by the Generali US contribution following its|www.scor.com
acquisition by the Group in October 2013, and|Twitter: (at)SCOR_SE
by the growth of both SCOR Global Life in |
Asia and Financial Solutions & Longevity, and|
SCOR Global P&C: |
|
* SCOR Global P&C gross written premiums |
increase by 2.7% at constant exchange |
rates (+1.8% at current exchange rates) |
to EUR 4,935 million; |
* SCOR Global Life gross written premiums |
reach EUR 6,381 million, up by 5.5% at |
both constant and current exchange rates |
on a pro-forma basis. |
|
|
* SCOR Global P&C delivers excellent 2014 |
technical profitability with a net combined |
ratio of 91.4%, compared to 93.9% in 2013. |
|
* SCOR Global Life's 2014 technical margin |
stands at 7.1%, compared to 7.4% on pro-forma|
basis in 2013, reflecting the ongoing |
evolution of the underlying mix, as disclosed|
in "Optimal Dynamics". |
|
* SCOR Global Investments achieves a 2.9% |
return on invested assets thanks to its |
active portfolio management and the evolution|
of its investment portfolio. |
|
* In 2014, the Group generates a strong |
operating cashflow of EUR 894 million, with |
strong contributions from both SCOR Global |
P&C and SCOR Global Life. |
|
* Net income stands at EUR 512 million in |
2014, an increase of 40% compared to 2013, |
excluding an exceptional gain on purchase of |
EUR 183 million linked to Generali US. Return|
on equity (ROE) stands at 9.9%[2]. |
|
* Shareholders' equity reaches EUR 5,729 million at 31 December 2014,
compared to EUR 4,980 million at 31 December 2013. After distribution of
EUR 243 million in cash dividends, book value per share increases by 15%
to EUR 30.60 as at 31 December 2014, compared to EUR 26.64 as at 31
December 2013.
* SCOR's solvency ratio, as defined by the 2014 internal model[3], remains
marginally above the optimal range.
* SCOR's financial leverage stands at 23.1% as at 31 December 2014. The
placement of two perpetual subordinated debts of EUR 250 million and CHF
125 million[4] in 2014 demonstrates the Group's active management of its
liabilities.
* SCOR will propose to the Annual General Meeting an increased dividend of
EUR 1.40 per share for 2014, up from EUR 1.30 for 2013, representing a
payout ratio of 51%. The proposed ex-dividend for 2014 will be set at EUR
1.40 on 5 May 2015 and the dividend will be paid on 7 May 2015.
SCOR Group 2014 results key financial details:
+-----------------------+
| Full year results |
+-----------------------+
In EUR millions (rounded, at current exchange rates)| Variation|
| 2014 2013 |
+----------------------------------------------------+-----------------------+
|Gross written premiums |11,316 10,253 10.4% |
+----------------------------------------------------+-----------------------+
| | |
|Group cost ratio |4.98% 5.07% -0.1 pts |
| | |
+----------------------------------------------------+-----------------------+
|Net return on invested assets | 2.9% 2.6% 0.3 pts |
+----------------------------------------------------+-----------------------+
| Annualized ROE(*) | 9.9% 11.4% -1.5 pts |
+----------------------------------------------------+-----------------------+
| Net income(**) | 512 549 -6.7% |
+----------------------------------------------------+-----------------------+
| Shareholders' equity |5,729 4,980 15.0% |
+----------------------------------------------------+-----------------------+
| P&C Combined ratio |91.4% 93.9% -2.5 pts |
+----------------------------------------------------+-----------------------+
| Life technical margin(***) | 7.1% 7.4% -0.3 pts|
+----------------------------------------------------+-----------------------+
(*) The ROE calculation method was adjusted to take into account material
foreign exchange rate movements that do not occur evenly through the reporting
period. A daily weighted average is applied for the currency or currencies that
experienced such movements and a simple weighted average is applied for the
other currencies. (**) Consolidated net income, Group share; 2013 net income
included an exceptional gain on purchase of EUR 183 million linked to Generali
US. (***) The technical result calculation method was adjusted to include
revenues from Life reinsurance contracts that do not meet the risk transfer
criteria (which had been presented in the investment income line of the
consolidated statements of income of the 2013 DDR). The ratio reported in 2013
was 7.3%.
Denis Kessler, Chairman & CEO of SCOR, comments: "The Group delivers high
quality results in 2014. It has continued to grow and expand its franchise. The
technical profitability of SCOR Global P&C - which delivers a combined ratio of
91.4 % -, and that of SCOR Global Life - which records a technical margin of
7.1 % -, are highly satisfactory. Despite the weakness of interest rates, SCOR
Global Investments records a return on assets of 2.9 %. SCOR once again delivers
solid profitability, and achieves a solvency level in line with its strategic
targets. Having invested in new underwriting and risk modelling tools, the SCOR
group has prepared for the new prudential regime, Solvency II, which will come
into force on
1 January 2016. It is confident in its ability to meet the challenges of a
difficult financial environment, a heightened competitive situation and a
demanding new prudential regime."
*
********
In 2014, SCOR Global P&C delivers excellent technical profitability, with a net
combined ratio of 91.4%
SCOR Global P&C key figures:
+-----------------------------------------------------+
| Full year results |
+-----------------------------------------------------+
In EUR millions | |
(rounded, at current |Full year 2014 Full year 2013 Variation |
exchange rates) | |
+------------------------+-----------------------------------------------------+
|Gross written premiums | 4,935 4,848 1.8% at current FX / |
| | 2.7% at constant FX |
+------------------------+-----------------------------------------------------+
|Combined ratio | 91.4% 93.9% -2.5 pts |
+------------------------+-----------------------------------------------------+
SCOR Global P&C posts gross written premium growth of +2.7% at constant exchange
rates (+1.8% at current exchange rates) to EUR 4,935 million in 2014, with
expected profitability on target.
In 2014, SCOR Global P&C records excellent technical profitability with a net
combined ratio of 91.4%, driven by:
* a net attritional loss ratio of 56.9%, with a year-on-year improvement of
0.8 pts (improvement of
1.5 pts excluding reserve releases conducted in 2013), fully in line with
the assumed trend towards 57% over the three years of the "Optimal Dynamics"
plan.
* a low level of nat cat losses of 4.2% in 2014.
For the full year 2014, the normalized net combined ratio (with a natural
catastrophe budget of 7%) stands at 94.2%.
At 1/1/2015, retrocession efficiency was further improved, leading to more
comfort in the budgeted 7% natural catastrophe ratio and to the confirmation of
the 94% net combined ratio assumption for the second year of "Optimal Dynamics".
In an environment that remains challenging, SCOR Global P&C delivered premium
growth of 2.4% at its 1 January 2015 renewals[5] while maintaining expected
profitability, thereby reflecting the strength of its business model.
For the full year 2015, SCOR Global P&C expects to achieve approximately EUR
5.3 billion in gross written premiums.
SCOR Global Life continues to combine strong technical performance with steady
franchise growth in 2014
SCOR Global Life key figures:
+----------------------------------------------------------+
| Full year results |
| |
+----------------------------------------------------------+
In EUR millions | |
(rounded, at |Full year Full year Full year Published Pro-forma|
current exchange | 2014 2013 2013 Variation Variation|
rates) | pro-forma |
+-------------------+----------------------------------------------------------+
| Gross written | 6,381 5,405 6,050 18.1% 5.5% |
|premiums | |
+-------------------+----------------------------------------------------------+
| Life technical | 7.1% 7.4% 7.4% -0.3 pts -0.3 pts |
|margin(*) | |
+-------------------+----------------------------------------------------------+
(*) The technical result calculation method was adjusted to include revenues
from Life reinsurance contracts that do not meet the risk transfer criteria
(which had been presented in the investment income line of the consolidated
statements of income of the 2013 DDR). The ratio reported in 2013 was 7.3%.
SCOR Global Life gross written premiums stand at EUR 6,381 million in 2014,
representing growth of 18.1% compared to 2013 at both current and constant
exchange rates, and of 5.5% at current and constant exchange rates on a pro-
forma basis.
In 2014, SCOR Global Life's franchise continued to expand with:
* Protection expanding strongly in Asia while leadership positions are
successfully maintained in the US and in key European markets,
* Strong increase in Financial Solutions, with new business growth in Asia and
Latin America, and
* Longevity leveraging its strong UK market position (two new transactions in
the UK) to develop its global offering.
Over 2014, SCOR Global Life records a strong business flow across all markets,
with new business profitability confirmed at or above the return target of
1,000 bps above the risk-free rate.
The profitability of new business, coupled with the performance by the in-force
book, have contributed to SCOR Global Life's robust technical margin of 7.1%,
which is in line with the "Optimal Dynamics" plan assumption of 7%.
SCOR Global Investments delivers a return on invested assets of 2.9%, at the top
of its early 2014 assumption, in an exceptionally low yield environment
SCOR Global Investments key figures:
+---------------------------------------+
| Full year results |
+---------------------------------------+
In EUR millions (rounded, at current | Variation|
exchange rates) |Full year 2014 Full year 2013 |
+--------------------------------------+---------------------------------------+
| Total investments | 24,854 23,086 7.7% |
| | |
| * of which total invested assets(*) | 16,247 14,905 9.0% |
| | |
| * of which total funds withheld by | 8,607 8,181 5.2% |
| cedants | |
+--------------------------------------+---------------------------------------+
| Return on investments(**) | 2.5% 2.4% 0.1 pts |
+--------------------------------------+---------------------------------------+
| Return on invested assets(***) | 2.9% 2.6% 0.3 pts |
+--------------------------------------+---------------------------------------+
((*)) Restated for third party insurance business investments managed by SCOR
Global Investments.
((**)) Annualised, including interest on deposits (i.e. interest on funds
withheld).
((***)) Annualised, excluding interest on deposits (i.e. interest on funds
withheld).
In a still difficult financial context with an exceptionally low yield
environment, SCOR Global Investments continues its policy of progressively
reducing its liquidity in the fourth quarter 2014, while selectively increasing
the duration of the fixed income portfolio, in line with "Optimal Dynamics".
Cash and short-term investments represent 5% of invested assets at 31 December
2014 (excluding funds withheld by cedants), down five percentage points compared
to 30 September 2014 and nine points compared to 31 December 2013. The duration
of the fixed income portfolio stands at 4.0 years (excluding cash) at 31
December 2014, compared to 3.4 years at 31 December 2013. This increase in
duration is mainly due to the USD-denominated portfolios, with a 4.2-year
effective duration at 31 December 2014, compares to a 3.6-year duration for the
EUR-denominated fixed income portfolio at the same date.
The quality of the fixed income portfolio has been maintained with a stable
average rating of AA-. As at 31 December 2014, expected cash flow on the fixed
income portfolio over the next 24 months stands at EUR 5.1 billion (including
cash and short-term investments), facilitating dynamic management of the
reinvestment policy.
During 2014, invested assets generated a financial contribution of EUR 436
million. The active management policy employed by SCOR Global Investments has
enabled the Group to record capital gains of EUR 135 million in 2014.
The return on invested assets stands at 2.9% in 2014 and at 3.0% for the fourth
quarter of 2014. Taking account of funds withheld by cedants, the net rate of
return on investments is 2.5% in 2014 and 2.7% for the fourth quarter of 2014.
Invested assets (excluding funds withheld by cedants) stand at EUR 16,247
million as at 31 December 2014, and are composed as follows: 5% cash, 81% fixed
income (of which 1% are short-term investments),
3% loans, 3% equities, 5% real estate and 3% other investments. Total
investments, including EUR 8,607 million of funds withheld, stand at EUR 24,854
million as at 31 December 2014, compared to EUR 23,086 million at 31 December
2013.
*
* *
APPENDIX
In the 2014 annual results presentation and in this press release, two sets of
financial data are used: published accounts & pro-forma information. Unless
otherwise indicated, press release figures relate to the published accounts.
2013 Audited published accounts: Full year and 4th quarter accounts
* Reflect Q4 2013 figures for Generali US from acquisition date, (01/10-
31/12) i.e. three months of full consolidation
* Audited annual accounts have been prepared reflecting the Generali US from
acquisition date
Unaudited pro-forma information: Full year information
* Following IFRS 3 guidance - an acquirer shall disclose information that
enables users of its financial statements to evaluate the nature and
financial impact of business combinations that were effected during the
period. In addition, in accordance with AMF rules, pro-forma financial
information can be provided on a voluntary basis
The unaudited pro-forma financial information as of 31 December 2013 is
presented to illustrate the effects on SCOR's income statement of the Generali
US acquisition as if the acquisition had taken place on
1 January 2013 and does not purport to be indicative of the results that
actually would have been obtained if the operations had been combined during
this period
1 - P&L Key figures FY 2014 and Q4 2014 (in EUR millions, at current exchange
rates)
+-------------------------+-------------------------+
| YTD | QTD |
+-------------------------+-------------------------+
| | |
|FY 2014 FY 2013 Variation|Q4 2014 Q4 2013 Variation|
| | |
+--------------------------+-------------------------+-------------------------+
|Gross written premiums |11,316 10,253 10.4% | 2,934 2,714 8.1% |
+--------------------------+-------------------------+-------------------------+
|P&C gross written premiums| 4,935 4,848 1.8% | 1,256 1,201 4.6% |
+--------------------------+-------------------------+-------------------------+
|Life gross written | 6,381 5,405 18.1% | 1,678 1,513 10.9% |
|premiums | | |
+--------------------------+-------------------------+-------------------------+
|Net investment income | 576 509 13.2% | 155 127 22.0% |
+--------------------------+-------------------------+-------------------------+
|Operating results | 825 783 5.4% | 231 329 -29.8% |
+--------------------------+-------------------------+-------------------------+
|Net income(1) | 512 549 -6.7% | 135 247 -45.3% |
+--------------------------+-------------------------+-------------------------+
|Earnings per share (EUR) | 2.75 2.96 -7.0% | 0.73 1.32 -45.0% |
+--------------------------+-------------------------+-------------------------+
|Operating cash flow | 894 897 -0.3% | 424 175 142.6% |
+--------------------------+-------------------------+-------------------------+
(1) Consolidated net income, Group share; 2013 net income included an
exceptional gain on purchase of EUR 183 million linked to the Generali US
acquisition.
2 - P&L Key ratios FY 2014 and Q4 2014
+-------------------------+-------------------------+
| YTD | QTD |
+-------------------------+-------------------------+
| | |
|FY 2014 FY 2013 Variation|Q4 2014 Q4 2013 Variation|
| | |
+--------------------------+-------------------------+-------------------------+
|Return on investments( 1) | 2.5% 2.4% 0.1 pts | 2.7% 2.3% 0.4 pts |
+--------------------------+-------------------------+-------------------------+
|Return on invested assets | 2.9% 2.6% 0.3 pts | 3.0% 2.6% 0.4 pts |
|(1,2) | | |
+--------------------------+-------------------------+-------------------------+
|P&C net combined ratio( 3)| 91.4% 93.9% -2.5 pts | 91.1% 93.3% -2.2 pts |
+--------------------------+-------------------------+-------------------------+
|Life technical margin( 4) | 7.1% 7.4% -0.3 pts | 7.0% 7.6% -0.6 pts |
+--------------------------+-------------------------+-------------------------+
|Group cost ratio( 5) | 4.98% 5.07% -0.1 pts | 5.22% 5.35% -0.1 pts|
+--------------------------+-------------------------+-------------------------+
|Return on equity (ROE)(6) | 9.9% 11.4% -1.5 pts | 10.1% 21.5% -11.4 pts|
+--------------------------+-------------------------+-------------------------+
1: Annualised; 2: Excluding funds withheld by cedants; 3: The combined ratio is
the sum of the total claims, the total commissions and the total P&C management
expenses, divided by the net earned premiums of SCOR Global P&C; 4: The
technical margin for SCOR Global Life is the technical result divided by the net
earned premiums of SCOR Global Life; the technical result calculation method was
adjusted to include revenues from Life reinsurance contracts that do not meet
the risk transfer criteria (which had been presented in the investment income
line of the consolidated statements of income of the 2013 DDR). The ratio
reported in 2013 was 7.3%; 5: The cost ratio is the total management expenses
divided by the gross written premiums; 6: Annualised. The ROE calculation method
was adjusted to take into account material foreign exchange rate movements that
do not occur evenly through the reporting period. A daily weighted average is
applied for the currency or currencies that experienced such movements and a
simple weighted average is applied for the other currencies.
3 - Balance sheet Key figures as at 31 December 2014 (in EUR millions, at
current exchange rates)
+---------------------------------------------------+
| Key Figures |
+---------------------------------------------------+
| As at 31 December As at 31 December |
| 2014 2013 Variation|
| |
+--------------------------+--------------------+--------------------+---------+
|Total investments( 1,2) | 24,854 | 23,086 | 7.7% |
+--------------------------+--------------------+--------------------+---------+
|Technical reserves (gross)| 25,839 | 24,337 | 6.2% |
+--------------------------+--------------------+--------------------+---------+
|Shareholders' equity | 5,729 | 4,980 | 15.0% |
+--------------------------+--------------------+--------------------+---------+
|Book value per share (EUR)| 30.60 | 26.64 | 14.9% |
+--------------------------+--------------------+--------------------+---------+
|Financial leverage ratio | 23.1% | 21.2% | 1.9 pts |
+--------------------------+--------------------+--------------------+---------+
|Total liquidity | 940 | 2,120 | -55.6% |
+--------------------------+--------------------+--------------------+---------+
1: Total investment portfolio includes both invested assets and funds withheld
by cedants, accrued interest, cat bonds, mortality bonds and FX derivatives; 2:
Excluding 3rd party net insurance business investments.
4 - Key financial details by entity for the fourth quarter 2014
+-------------------------+
| SCOR Global P&C |
| Quarterly results |
+-------------------------+
In EUR millions (rounded, at current exchange rates)|Q4 2014 Q4 2013 Variation|
+----------------------------------------------------+-------------------------+
|Gross written premiums | 1,256 1,201 4.6% |
+----------------------------------------------------+-------------------------+
|Combined ratio | 91.1% 93.3% -2.2 pts |
+----------------------------------------------------+-------------------------+
+------------------------------------------------------------+
| SCOR Global Life |
| Quarterly results |
+------------------------------------------------------------+
In EUR millions | |
(rounded, at |Q4 2014 Q4 2013 Q4 2013 Published Pro-forma |
current exchange | pro-forma Variation Variation |
rates) | |
+-----------------+------------------------------------------------------------+
| Gross written | 1,678 1,513 1,513 10.9% 10.9% |
|premiums | |
+-----------------+------------------------------------------------------------+
| Life technical | 7.0% 7.6% 7.6% -0.6 pts -0.6 pts |
|margin | |
+-----------------+------------------------------------------------------------+
--------------------------+
SCOR Global Investments |
Quarterly results |
+-------------------------+
In EUR millions (rounded, at current exchange rates)|Q4 2014 Q4 2013 Variation|
+----------------------------------------------------+-------------------------+
| Total investments |24,854 23,086 7.7% |
| | |
| * of which total invested assets(1) |16,247 14,905 9.0% |
| | |
| * of which total funds withheld by cedants | 8,607 8,181 5.2% |
+----------------------------------------------------+-------------------------+
| Return on investments(2) | 2.7% 2.3% 0.4 pts |
+----------------------------------------------------+-------------------------+
| Return on invested assets(3) | 3.0% 2.6% 0.4 pts |
+----------------------------------------------------+-------------------------+
[1] Restated for third party insurance business investments managed by SCOR
Global Investments.
(2) Annualised, including interest on deposits (i.e. interest on funds
withheld).
(3) Annualised, excluding interest on deposits (i.e. interest on funds
withheld).
--------------------------------------------------------------------------------
[1] On a published basis; on a pro-forma basis gross written premium growth is
3.8% (4.2% at constant exchange rates).
[2]The ROE calculation method was adjusted to take into account material foreign
exchange rate movements that do not occur evenly through the reporting period. A
daily weighted average is applied for the currency or currencies that
experienced such movements and a simple weighted average is applied for the
other currencies.
[3] This estimate is based on the 2014 internal model taking into account the
estimated available capital at year-end 2014 divided by the estimated SCR as at
that date, allowing for planned business in 2015. The internal model will be
subject to a review and approval process conducted by the ACPR over the coming
months. The estimate based on the 2015 model will be provided with the Q1 2015
publication.
[4] See press releases of 25 September 2014 and 24 September 2014 respectively.
[5] See press release of 10 February 2015
Forward-looking statements
SCOR does not communicate "profit forecasts" in the sense of Article 2 of (EC)
Regulation n°809/2004 of the European Commission. Thus, any forward-.looking
statements contained in this communication should not be held as corresponding
to such profit forecasts. Information in this communication may include
"forward-looking statements", including but not limited to statements that are
predictions of or indicate future events, trends, plans or objectives, based on
certain assumptions and include any statement which does not directly relate to
a historical fact or current fact. Forward-looking statements are typically
identified by words or phrases such as, without limitation, "anticipate",
"assume", "believe", "continue", "estimate", "expect", "foresee", "intend", "may
increase" and "may fluctuate" and similar expressions or by future or
conditional verbs such as, without limitations, "will", "should", "would" and
"could." Undue reliance should not be placed on such statements, because, by
their nature, they are subject to known and unknown risks, uncertainties and
other factors, which may cause actual results, on the one hand, to differ from
any results expressed or implied by the present communication, on the other
hand.
Please refer to SCOR's Document de référence filed with the AMF on 05 March
2014 under number D. 14-0117 (the "Document de référence"), for a description of
certain important factors, risks and uncertainties that may affect the business
of the SCOR Group. As a result of the extreme and unprecedented volatility and
disruption of the current global financial crisis, SCOR is exposed to
significant financial, capital market and other risks, including movements in
interest rates, credit spreads, equity prices, and currency movements, changes
in rating agency policies or practices, and the lowering or loss of financial
strength or other ratings.
The Group's financial information is prepared on the basis of IFRS and
interpretations issued and approved by the European Union. This financial
information does not constitute a set of financial statements for an interim
period as defined by IAS 34 "Interim Financial Reporting".
SCOR Press Release:
http://hugin.info/143549/R/1899512/674929.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Scor via GlobeNewswire
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