SCOR Global P&C records solid renewals
Press Release
07 February 2013
For more information, please contact:
Jean-Charles Simon / Géraldine Fontaine  +33 (0) 1 58 44 75 58
Communications and Public Affairs
Antonio Moretti                                             +33 (0)
1 58 44 77 15
Investor Relations Director
SCOR Global P&C records solid renewals
* Premium volume up by 9%
* Prices up by around 2%
* Balanced growth between Treaties and Specialties
During the January renewals, SCOR Global P&C combines a 9% increase in gross
written premiums (to EUR 2.507 billion) with an expected 1.3% improvement in
technical profitability for total contracts renewed and a price rise of 1.9% net
of general inflation.
SCOR Global P&C continues to strengthen its competitive position during these
renewals, both with its existing clients and with new cedants. The recent rating
upgrades to "A+" recognise this business franchise and its constant
reinforcement, as well as providing a catalyst for new opportunities that
strengthen SCOR Global P&C's position at the very forefront of the reinsurance
industry.
These renewals constitute one of the final steps before the conclusion of the
strategic plan "Strong Momentum v1.1", and satisfy its profitability objectives
and premium income growth assumptions. They confirm the evolution of premium
income, which is trending towards the EUR 5 billion level.
EUR 2.3 billion of premiums were up for renewal in January, i.e. around half of
SCOR Global P&C's premiums. This proportion is particularly significant for Non-
Life treaty business (71%), and represents more than half of specialty treaty
business (55%).
During these renewals, SCOR Global P&C continues to improve the expected
technical performance of its business thanks to the active management of its
portfolio. Its position as one of the leaders on a number of segments, along
with the long-term relationships it has established with cedants, enable it to
negotiate satisfactory pricing conditions that are higher than those recorded by
the rest of the market. Price increases in the Americas have notably reached
5.1Â %, with P&C prices increasing overall by 1.5% and 3.0% respectively for
proportional and non-proportional contracts.
The main business line developments at the January 2013 renewals are as
follows:
   · For Non-Life Treaties: premiums increase by 9% to EUR 1.890 billion, of
which 6 points relate to a quota share treaty for an Asian cedant. SCOR Global
P&C's ability to seize this opportunity bears witness its benchmark role in this
region of the world. Moreover, the emerging countries record particularly strong
growth overall (+48% in Asia, +16% in Latin America, and +12% in Africa & the
Middle East). This growth accompanies active portfolio management: more than 8%
of business has been cancelled and restructured, while new clients represent
three additional growth points. This growth is taking place in favourable
pricing conditions, which are up by more than 2%.
    · For Specialty Treaties: gross written premiums increase by 9% to EUR 617
million, driven by a good performance in the Marine branch (+11Â %). This branch
benefits from a significant improvement in pricing conditions (notably +14.5%
for non-proportional contracts, of which the portfolio share has increased),
following a year marked by exceptional losses in 2012. The year opened with the
shipwreck of the Costa Concordia, and closed on Hurricane Sandy, which has had a
considerable impact on the Marine branch. Moreover, prices for specialty
treaties have risen by more than 1% overall, showing strong resilience in
branches sensitive to the economic cycle such as credit reinsurance and
construction reinsurance, where rates have remained stable (+0.7% and +0.4%
respectively). Moreover, while conditions remain difficult for the Aviation
reinsurance market, SCOR Global P&C has managed to maintain stable price levels
and premium volume.
Victor Peignet, CEO of SCOR Global P&C, comments: "SCOR Global P&C is achieving
good renewals in a challenging environment. The Group continues to benefit from
a positive commercial and financial dynamic, and we are approaching the
preparation of our new strategic plan with a business franchise that is strong
both in terms of the most sophisticated markets and clients and in emerging
markets. The dynamics of the market confirm the validity of the strategic
initiative launched in September 2012, which aims to better cover the
reinsurance needs of global insurers. The latter are continuing to review their
reinsurance protection structures and the placement of their programmes with a
more global approach. They are turning more towards peak risk and accumulated
loss coverage, in per-event and above all aggregate excess of loss structures,
which can combine several branches and financial years. SCOR Global P&C's
technical expertise and commercial responsiveness enable it to position itself
well in order to understand, anticipate and satisfy demand".
*
*Â Â Â *
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
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"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 8 March 2012
under number D.12-0140 (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.
SCOR Press Release:
http://hugin.info/143549/R/1675987/546301.pdf
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