SCOR’s Nine-Month Income Jumps 93% to $437 Million

November 16, 2007

France’s SCOR Group posted significant earnings gains for the first nine months of 2007, with net income up 93 percent to €299 million ($437 million) and gross written premiums up 62 percent to €3.381 billion ($4.94 billion). The reinsurer appears to have successfully integrated its two major acquisitions, Swiss-based Converium and the German life reinsurer Revios.

Other earnings highlights, cited by the Company, included the following:
— Robust underlying operating performance with a Non-Life combined ratio of 96.4 percent and a Life operating margin of 7.2 percent on a year-to-date basis;
— Prudent asset management policy delivers a consistent investment return on net invested assets of 4.5 percent year-to-date;
— Net operating cash flows of € 519 million [$758 million]
— Earnings per Share stands at € 2.22 [$3.24].
— SCOR’s pre-acquisition platform shows a strong net income of €190 million, [$277 million] up 23 percent compared to the first nine months of 2006 at constant exchange rates;
— The Converium acquisition contributes €52 million [$76 million,] to the year-to-date;
— Group net income, of which an amount of €40 million [$58.4 million] applies to the full consolidation period (8 August – 30 September 2007);
— Shareholder equity reaches €3.646 billion [$5.32 billion] as of 30 September 2007 including minorities. Book value per share stands at €20.05 [$29.28];
— Year-to-date return on average equity (ROE) reaches 15.1 percent;
— On a pro-forma basis, consolidating Converium since 1 January 2007, the Group would record a net income of €344 million [$502 million];
— Swift Converium integration with underwriting teams and plans in place;
— Cancellation procedure of remaining Converium minority shareholders initiated.

Chairman and CEO Denis Kessler commented: “SCOR’s performance during the first nine months of 2007 is very satisfactory. The figures confirm the Group’s earning power, along with its successful integration efforts and twin-engine strategy supported by the pillars of SCOR Global P&C and SCOR Global Life.

“The Group is well on its way to reaching its ‘Dynamic Lift V2’ targets. Today SCOR is clearly recognized as a top-tier reinsurer. We are confident that the 2008 renewals will confirm the ambitions that we have set for ourselves.”

For the full report and further information go to the Group’s web site at: www.scor.com

Source: SCOR

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