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%

SCOR Group 2014 results key financial details:

(*) 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:

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 renewals⁵ 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:

(*) 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:

^(*) 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)

(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

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)

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

              
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).

²The 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

HUG#1899512