France’s SCOR Group reported a solid performance for 2012, which it said “continues to combine growth, profitability and solvency.”
Highlights for the year were listed as follows:
•Gross written premiums reach €9.514 billion [$12.063 billion], up by 25.2 percent on a published basis and by 10.8 percent pro-forma, bearing witness to the Group’s enhanced franchise.
•SCOR Global P&C gross written premiums increase by 16.8 percent to €4.65 billion [$6.064 billion], fuelled by very good July 2011 and January, April and July 2012 renewals.
•SCOR Global Life gross written premiums reach €4.864 billion [$6.343 billion], up by 34.4 percent on a published basis and by 5.6 percent pro-forma, supported by the successful integration of ex-Transamerica Re business.
•SCOR Global P&C’s net combined ratio stands at 94.1 percent.
•SCOR Global Life’s technical margin stands at 7.7 percent.
•Operating cash flow stands at €761 million [$992.35 million] thanks to significant contributions from the Group’s two business engines and despite net payments in 2012 of around €300 million [$391.20 million] for 2011 natural catastrophe losses.
•SCOR Global Investments records an on-going return on invested assets of 3.5 percent (before equity impairments), thanks to its active portfolio management, and continues to follow a prudent strategy in a historically low yield environment.
•With a 5.3 percent cost ratio in 2012, SCOR trends towards the rate set out in the Strong Momentum V1.1 plan, actively investing for the future with 24 on-going projects.
•SCOR delivers a net income of €418 million [$545 million], up by 26.7 percent on a published basis and by 13.6 percent pro-forma. ROE stands at 1,002 basis points above the risk-free rate excluding equity impairments (900 basis points including impairments), demonstrating the Group’s capacity to deliver good results in spite of the low-yield and challenging economic environment.
•SCOR’s debt leverage stands at 19.9 percent at 31 December 2012, at the low end of the Strong Momentum V1.1 plan assumptions. In 2012, the Group successfully placed on the Swiss franc market CHF 315 million [$333 million] of perpetual subordinated notes under best in class conditions and continued to actively manage its liabilities, buying back an existing debt for €50 million [$65.20 million] at 80 percent of par value.
•Shareholders’ equity stands at €4.810 billion [$6.272 billion] at 31 December 2012, compared to €4.410 billion [$5.75 billion] at 31 December 2011, after the distribution of €203 million [$265 million] in dividends for 2011. Book value per share stands at €26.18 [$34.14] at 31 December 2012, compared to €23.83 [$31.07] at 31 December 2011.
•Proposed dividend of €1.20 [$1.565] per share for 2012 , representing a payout ratio of 53 percent.
Chairman and CEO Denis Kessler commented: “SCOR achieved solid performances in 2012, despite an economic and financial environment that remains challenging and natural catastrophe costs that are still elevated.
“The Group continues to grow, particularly with further very strong increases during the P&C renewals and the successful integration of the Transamerica Re business, and now conducts around 60 percent of its activities in Asia-Pacific and the Americas.
“The quality of SCOR’s results in terms of profitability, solvency and growth were further recognized in 2012 by the upgrade of the Group’s rating by the four rating agencies following SCOR. The Group’s three-year strategic plan, Strong Momentum V1.1, is due to be completed in the summer of 2013, and SCOR will present its new 3-year strategic plan in September. The whole Group is fully engaged in this project, with a renewed ambition to achieve the best performances for our shareholders and to anticipate and manage the risks of our clients.”
Source: SCOR Group