PARIS, FRANCE--(Marketwired - Sep 4, 2013) - At its Investors' Day today, 4 September2013, SCOR presents its new three-yearstrategic plan covering the period mid-2013 to mid-2016. Called"OptimalDynamics", this plan respects the four cornerstones of the Group -strongfranchise, high diversification, controlled risk appetite and robustcapitalshield. It reaffirms the demanding profitability and solvency targetsSCOR hasset itself, and achieved, to date.
Continuing on from "Back on Track", "Moving Forward", "Dynamic Lift" and"StrongMomentum", "Optimal Dynamics" is the fifth strategic plan drawn upandimplemented by the Group under the chairmanship of Denis Kessler. Thislatestplan was approved by the Board of Directors during its meeting of 31 July2013.With this, the three-year strategic plan "Strong Momentum",launched inSeptember 2010 and updated following the acquisition of TransamericaRe inAugust 2011, has come to a successful conclusion.
"Strong Momentum" a success; SCOR continues to strengthen its globalreinsurancemarket position
SCOR has delivered on all its three-year plans since 2002,including therecently-concluded
"Strong Momentum". The relevance of its strategy, combined with thequality ofits underwriting policy and the recognised skills of its teams,enabled theGroup to record an ROE of more than 1000bps over the risk-free rateover theperiod of the last plan, while maintaining solvency at the AA level ofsecurity.This has been unanimously recognised by the rating agencies, whichhave allupgraded the Group's ratings over the course of the plan.
At the same time, the Group has strengthened its positioning, notablythroughrobust organic growth marked by expansion into new product lines andmarkets, apolicy of selective external growth with Transamerica Re in 2011 andGenerali USin the first half 2013, and the re-balancing of its businessportfoliotowards the US, Asia-Pacific/rest of the world and emerging markets.Annualgrowth between 2010 and 2012 was 12.3%, significantly faster than the5.4%recorded by peers.
The successful execution of its last three-year strategic plan hasenabled theGroup to record excellent results in terms of profitability,solvency andgrowth. This excellent performance is all the more striking in thatit wasachieved in a challenging economic and financial environment.
"Optimal Dynamics": two main objectives
In the face of a macroeconomic environment that remains highlyuncertain,challenging regulatory developments and evolving trends in thereinsurancemarket, SCOR maintains a steady course with "Optimal Dynamics". Theplanbalances profitability and solvency, together with a strongshareholderremuneration policy.
The two specific targets of "Optimal Dynamics" are:
- An ROE of 1000 basis points above the three-month risk-free rateoverthe cycle;
- A solvency ratio in the 185-220% range (percentage of SCR,according tothe Group Internal Model).
A focus on technical profitability, operational excellence and optimizedcapitalmanagement results in added value for all stakeholders
The "Optimal Dynamics" plan defines a set of key assumptions for eachof theGroup's three engines, including a Group-wide organic growth rate of 7%over thecourse of the plan:
- SCOR Global P&C is well positioned to further extend sustainablegrowththanks to the up-scaling of its core reinsurance business, thedevelopment ofalternative business platforms and the use of its Cat capacity andretrocessionas a strategic leverage tool. It continues to benefit from itsrecognisedexpertise and very positive brand image amongst its clients. On theassumptionof a stable pricing environment, the Group's P&C arm anticipates afurtherimprovement of the combined ratio to 93-94% while projecting annualpremiumgrowth of 8.5%.
- SCOR Global Life pursues growth whilst strengthening its marketposition andbenefits from a dynamic franchise thanks to its status as leader onthe USmarket, the development of its Protection business and the strengtheningof itsLongevity and financial solutions offerings. The Group's Lifereinsurance armanticipates a technical margin of around 7%, which is aligned withits newbusiness mix (the combination of Protection, Longevity and FinancialSolutions),while anticipating annual premium growth of 6%.
- SCOR Global Investments sees upside potential thanks to thecurrentpositioning of the investment portfolio and the progressive rebalancingtowardsboth a new strategic asset allocation and the target effectiveduration. Itexpects a return on invested assets in excess of 3% by 2016.
"Optimal Dynamics" also further refines the Group's risk and capitalmanagement.Retrocession strategy is optimized, ALM strategy enhanced andsolvencygovernance strengthened. Moreover, the Group's structurally longliquidityposition remains strong thanks to significant operating cashflowfrom itsbusiness engines.
With "Optimal Dynamics", SCOR will bring added value to all of itsstakeholders.
Denis Kessler, Chairman & Chief Executive Officer of SCOR, comments: "TodaySCORpublished its new three-year strategic plan, "Optimal Dynamics",which isdesigned to strengthen the Group's positioning on the global reinsurancemarket.In spite of the numerous economic, financial and regulatory uncertaintieswhichhave characterized the industry over the past few years and stillrepresentchallenging variables, the SCOR group can leverage on the success of its"Strong Momentum" plan to set its ambitions towards renewedprofitability,solvency and growth. The entire Group is now mobilized towards theexecution ofthe new plan, to achieve the profitability and solvency objectives it setsout,thereby continuing to create value for all our stakeholders".
A detailed presentation of the "Optimal Dynamics" plan is available onSCOR'swebsite: www.scor.com
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-.lookingstatements contained in this communication should not be held ascorrespondingto such profit forecasts. Information in this communication may include"forward-looking statements", including but not limited to statements thatarepredictions of or indicate future events, trends, plans or objectives,based oncertain assumptions and include any statement which does not directlyrelate toa historical fact or current fact. Forward-looking statements are typicallyidentified by words or phrases such as, without limitation, "anticipate","assume", "believe", "continue", "estimate", "expect", "foresee", "intend","mayincrease" and "may fluctuate" and similar expressions or by future orconditional verbs such as, without limitations, "will", "should", "would"and"could." Undue reliance should not be placed on such statements, because,bytheir nature, they are subject to known and unknown risks, uncertaintiesandother factors, which may cause actual results, on the one hand, to differfromany results expressed or implied by the present communication, on the otherhand.
Please refer to SCOR's Document de référence filed with the AMFon 6 March 2013under number D.13-0106 (the "Document de référence"), for adescription ofcertain important factors, risks and uncertainties that may affect thebusinessof the SCOR Group. As a result of the extreme and unprecedented volatilityanddisruption of the current global financial crisis, SCOR is exposed tosignificant financial, capital market and other risks, including movementsininterest rates, credit spreads, equity prices, and currency movements,changesin rating agency policies or practices, and the lowering or loss of financialstrength or other ratings.
The Group's financial information is prepared on the basis of IFRS andinterpretations issued and approved by the European Union. This financialinformation does not constitute a set of financial statements for aninterimperiod as defined by IAS 34 "Interim Financial Reporting".
Before impairment charges.
 The transaction is subject to regulatory approvals and othercustomaryconditions and is expected to close in the second half of 2013.
This is the ratio of Available Capital over SCR (Solvency CapitalRequirements).
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