##### Table of Contents









UNITED STATES

SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, D.C. 20549


FORM 20-F/A

(Amendment No. 1)

|  |  |                                                                                                                                                                                       |  |  |  | 
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | 
|o |  | REGISTRATION STATEMENT PURSUANT TO
    SECTION 12(b) OR (g)
    OF THE SECURITIES EXCHANGE ACT OF 1934                                                                                |  |  |  | 
|  |  | OR                                                                                                                                                                                    |  |  |  | 
|x |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR
    15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
    For the fiscal year ended December 31, 2003                                          |  |  |  | 
|  |  | OR                                                                                                                                                                                    |  |  |  | 
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR
    15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
    For the transition period
    from        to
    Commission file number: 1-14518 |  |  |  | 

SCOR

(Exact name of registrant as specified in its
charter)


|                                                           |  |                                                                          
|---------------------------------------------------------- |  | -------------------------------------------------------------------------
|N/A(Translation of
    registrants
    name into English) |  | The Republic of France(Jurisdiction of incorporation
    or organization)




1, Avenue du Général de Gaulle,
92074 Paris-La Défense Cedex, France

(Address of principal executive
offices)




---

Securities registered or to be registered
pursuant to Section 12(b) of the Act:

|                                                                                                                        |  |                                          
|----------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------
|Title of each class                                                                                                     |  | Name of each exchange on which registered
|                                                                                                                        |  |                                          
|American Depositary Shares (as evidenced
    by American Depositary Receipts), each
    representing one Ordinary Share |  | New York Stock Exchange                  
|                                                                                                                       
|Ordinary Shares, no par value*                                                                                          |  | New York Stock Exchange                  



|  |                                                                                                                                                                        
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Not for trading, but only in connection with the
    listing of American Depositary Shares, pursuant to the
    requirements of the Securities and Exchange Commission.




Securities registered or to be registered
pursuant to Section 12(g) of the Act:

None



---

Securities for which there is a reporting
obligation pursuant to Section 15(d) of the Act:

None



---

Indicate the number of outstanding shares of each
of the issuers class of capital or common stock as of the
close of the period covered by the annual report:



| |                                                                                                                                                                           | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
| | 136,544,845 Ordinary Shares, including 1,884,444
    American Depositary Shares (as evidenced by American Depositary
    Receipts), each representing one Ordinary Share. | 



---

Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and
(2) has been subject to such filing requirement for the
past 90 days.

x  Yes       o  No


Indicate by check mark which financial statement
item the registrant has elected to follow:

o  Item 17       x  Item 18









This Annual Report on Form 20-F/A dated
October 20, 2004 is being filed by SCOR to amend the Annual
Report on Form 20-F for the fiscal year ended December 31,
2003 filed on June 30, 2004. We have amended Item 9.
The Offer and Listing  A. Offer and Listing
Details  IRP  Mandatory Exchange to
include expanded disclosure of the IRP exchange mechanism and correct
certain computational errors.

Item 9. Exhibits includes the
certifications of the principal executive officer and principal
financial officer of SCOR. Other than the foregoing items and
conforming changes related thereto, and the correction of certain
typographical errors, no part of the Annual Report on Form 20-F
filed on June 30, 2004 is being amended, and the filing of this
Annual Report on Form 20-F/A should not be understood to mean
that any other statements contained therein are true or complete as
of any date subsequent to June 30, 2004.



---



##### Table of Contents



In this Annual Report on Form 20-F, the term
the Company refers to SCOR and the terms
SCOR and the Group, or we,
us and our refer to the Company together
with its consolidated subsidiaries.

As used herein, references to EUR or
 are
to euro and references to dollars, USD
or $ are to U.S. dollars. For your convenience,
this annual report contains translations of certain euro amounts
into dollars at the rate of USD 1.2092 per EUR 1.00,
the noon buying rate in New York for cable transfers in euro as
certified for customs purposes by the Federal Reserve Bank of
New York (the Noon Buying Rate) on June 22,
2004. See Item 3  Selected Financial
Data for certain historical information regarding the Noon
Buying Rate.

CAUTIONARY STATEMENT WITH RESPECT TO
FORWARD-LOOKING STATEMENTS

This annual report contains statements that
constitute forward-looking statements within the
meaning of Section 27A of the U.S. Securities Act of 1933,
as amended, or the Securities Act, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, or the
Exchange Act. In addition, other written or oral statements,
which constitute forward-looking statements, have been made and
may in the future be made by or on behalf of SCOR.

In this annual report, such forward-looking
statements include, without limitation, statements relating to:



| |   |                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------
| |  | the implementation of the Groups Back
    on Track plan described under
    Item 4.  Information on the company;
|
| |  | the implementation of strategic initiatives,
    including the update of information systems;                         
|
| |  | changes in premium revenues;                                                                                          
|
| |  | changes in the balance of lines and class of
    business;                                                            
|
| |  | the development of revenues overall and within
    specific business areas;                                           
|
| |  | the development of expenses;                                                                                          
|
| |  | the direction of insurance and reinsurance rates
    and, the demand for reinsurance products and services;           
|
| |  | the market risks associated with interest and
    exchange rates and equity markets; and                              
|
| |  | other statements relating to SCORs future
    business development and economic performance.                         

The words anticipate,
believe, expect, estimate,
intend, plan and similar expressions
identify certain of these forward-looking statements. Readers
are cautioned not to put undue reliance on forward-looking
statements because actual events and results may differ
materially from the expected results described by such
forward-looking statements.

Many factors may influence SCORs actual
results and cause them to differ materially from expected
results as described in forward-looking statements. Such factors
include:



| |   |                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the frequency and severity of insured loss
    events, including natural and man-made catastrophes, terrorist
    attacks and environmental and asbestos claims;          
|
| |  | mortality and morbidity levels and trends;                                                                                                                                
|
| |  | the underwriting results of primary insurers;                                                                                                                             
|
| |  | the accuracy and overall quality of information
    provided to us by primary insurance companies with which we
    transact, particularly regarding their reserve levels;
|
| |  | the availability of and terms under which we are
    able to enter into retrocessional arrangements;                                                                      
|
| |  | the state of the reinsurance brokerage market;                                                                                                                            
|
| |  | persistency levels;                                                                                                                                                       
|
| |  | interest rate levels;                                                                                                                                                     

2



---



##### Table of Contents





| |   |                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------
| |  | currency exchange rates, including the
    euro  U.S. dollar exchange rate;                                          
|
| |  | economic trends in general;                                                                                           
|
| |  | global debt and equity markets performance;                                                                           
|
| |  | increasing levels of competition in France,
    Europe, North America and other international reinsurance
    markets;
|
| |  | ratings downgrades;                                                                                                   
|
| |  | changes in laws, regulations and case law; and                                                                        
|
| |  | general competitive factors, in each case on a
    global, national and/or regional basis.                            

SCOR disclaims any intention or obligation to
update and revise any forward-looking statements, whether as a
result of new information, future events or otherwise. See
Item 3.D  Risk Factors for certain
risks that may affect the Groups results.

3



---










Table of Contents

|                                                    |  |                                                                                       |           |      |     | 
|--------------------------------------------------- |  | ------------------------------------------------------------------------------------- | --------- | ---- | --- | 
|                                                    |  |                                                                                       |           | Page
|                                                    |  |                                                                                       |           |     
|PART I                                              |  |                                                                                       | 5         |     
|Item 1.                                             |  | Identity of Directors,
    Senior Management and Advisers                             |           |      | 5   | 
|Item 2.                                             |  | Offer Statistics and
    Expected Timetable                                           |           |      | 5   | 
|Item 3.                                             |  | Key Information                                                                       |           |      | 5   | 
|Item 4.                                             |  | Information on the
    Company                                                        |           |      | 17  | 
|Item 5.                                             |  | Operating and Financial
    Review and Prospects                                      |           |      | 41  | 
|Item 6.                                             |  | Directors, Senior Management
    and Employees                                        |           |      | 59  | 
|Item 7.                                             |  | Major Shareholders and
    Related Party Transactions                                 |           |      | 74  | 
|Item 8.                                             |  | Financial Information                                                                 |           |      | 76  | 
|Item 9.                                             |  | The Offer and Listing                                                                 |           |      | 78  | 
|Item 10.                                            |  | Additional Information                                                                |           |      | 83  | 
|Item 11.                                            |  | Quantitative and Qualitative
    Disclosures About Market Risk                        |           |      | 99  | 
|Item 12.                                            |  | Description of Securities
    Other than Equity Securities                            |           |      | 102 | 
|                                                   
|PART II                                             |  |                                                                                       | 103       |     
|Item 13.                                            |  | Default, Dividend Arrearages
    and Delinquencies                                    |           |      | 103 | 
|Item 14.                                            |  | Material Modifications to
    the Rights of Security Holders
    and  Use of Proceeds |           |      | 103 | 
|Item 15.                                            |  | Controls and Procedures                                                               |           |      | 103 | 
|Item 16.                                            |  | A.  Audit
    Committee Financial Expert                                              |           |      | 103 | 
|                                                    |  | B.  Code of Business & Ethics
    and Corporate Governance                            |           |      | 103 | 
|                                                    |  | C.  Principal Accountant Fees and
    Service                                         |           |      | 104 | 
|                                                   
|PART III                                            |  |                                                                                       | 105       |     
|Item 17.                                            |  | Financial Statements                                                                  |           |      | 105 | 
|Item 18.                                            |  | Financial Statements                                                                  |           |      | 105 | 
|Item 19.                                            |  | Exhibits                                                                              |           |      | 105 | 
|                                                   
|CONSOLIDATED FINANCIAL
    STATEMENTS AND SCHEDULES |  |                                                                                       | F-1  S-5 |     
|                                                   
|APPENDIX 1                                          |  |                                                                                       | A-1  A-6 |     
|BYLAWS, AS LAST AMENDED ON 5/18/04                 
|CREDIT LINE AGREEMENT                              
|LIST OF SUBSIDIARIES                               
|CERTIFICATION                                      
|CERTIFICATION                                      
|CERTIFICATION                                      
|CERTIFICATION                                      



4



---



##### Table of Contents






PART I




Item 1. Identity of Directors,
Senior Management and Advisers

Not applicable.




Item 2. Offer Statistics and
Expected Timetable

Not applicable.




Item 3. Key Information

A. SELECTED FINANCIAL DATA

Currency Translations And Exchange
Rates:

The following table sets forth, for the periods
indicated, the high, low, average and end of period Noon Buying
Rates, expressed in U.S. dollars per euro:

|                          |                           |      |      |      |  |         |      |        |  |  |      |      |  |  |      |      | 
|------------------------- | ------------------------- | ---- | ---- | ---- |  | ------- | ---- | ------ |  |  | ---- | ---- |  |  | ---- | ---- | 
|                          |                           |      |      |      |  | Average |      | End of
|Year Ended December 31,   |                           | High |      | Low  |  | Rate(1) |      | Period
|                          |                           |      |      |      |  |         |      |       
|1999                      |                           |      | 1.18 |      |  |         | 1.00 |        |  |  | 1.06 |      |  |  | 1.01 |     
|2000                      |                           |      | 1.03 |      |  |         | 0.83 |        |  |  | 0.92 |      |  |  | 0.94 |     
|2001                      |                           |      | 0.95 |      |  |         | 0.83 |        |  |  | 0.89 |      |  |  | 0.89 |     
|2002                      |                           |      | 1.05 |      |  |         | 0.86 |        |  |  | 0.95 |      |  |  | 1.04 |     
|2003                      |                           |      | 1.26 |      |  |         | 1.04 |        |  |  |      |      |  |  |      |     
|                          | December                  |      |      | 1.26 |  |         |      | 1.20   |  |  |      | 1.14 |  |  |      | 1.26 | 
|2004 (through June 22)(2) |                           |      | 1.29 |      |  |         | 1.18 |        |  |  | 1.22 |      |  |  | 1.21 |     
|                          | January                   |      |      | 1.29 |  |         |      | 1.24   |  |  |      |      |  |  |      |      | 
|                          | February                  |      |      | 1.28 |  |         |      | 1.24   |  |  |      |      |  |  |      |      | 
|                          | March                     |      |      | 1.24 |  |         |      | 1.21   |  |  |      |      |  |  |      |      | 
|                          | April                     |      |      | 1.23 |  |         |      | 1.18   |  |  |      |      |  |  |      |      | 
|                          | May                       |      |      | 1.23 |  |         |      | 1.18   |  |  |      |      |  |  |      |      | 
|                          | June (through June 22)(2) |      |      | 1.23 |  |         |      | 1.20   |  |  |      |      |  |  |      |      | 






|    |                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The average of the Noon Buying Rates on the last
    business day of each month during the relevant period, except
    for the month of June 2004 where June 22, 2004 has been
    used in place of the last day of the month.
|   
|(2) | The Noon Buying Rate on June 22, 2004 was
    USD 1.2092 per EUR 1.00.                                                                                                                                                        

SCOR prepares and publishes its financial
statements in euro. Because a substantial portion of the
Groups revenues and expenses is denominated in dollars and
other currencies, SCOR has a financial reporting translation
exposure attributable to fluctuations in the value of these
currencies against the euro.

See also Item 5  Operating
and Financial Review and Prospects for information
regarding the effects of currency fluctuations on the
Groups results.

Fluctuations in the exchange rate between the
euro and the dollar will affect the dollar amounts received by
holders of American Depositary Shares (ADSs) on conversion by
the Depositary of dividends paid in euro on the Ordinary Shares
underlying the ADSs.

Selected U.S. GAAP Consolidated Financial
Data

The following selected financial data are derived
from the consolidated financial statements of SCOR which have
been audited by Ernst & Young, independent auditors, except
for the financial statements of Commercial Risk Partners
Limited, or CRP, a wholly-owned subsidiary, for the years ended
December 31, 2000 and prior, which financial statements
reflected total assets constituting 10% in 2000 and 9% in 1999,
and total revenues constituting 20% in 2000 and 15% in 1999, of
the related consolidated totals which were audited by other
independent auditors.

5



---



##### Table of Contents



The selected consolidated financial data should
be read in conjunction with the Companys consolidated
financial statements, related Notes and other financial
information included elsewhere in this annual report and in
Item 5  Operating and Financial Review and
Prospects.

The dollar amounts presented in the table below
have been translated solely for convenience at the Noon Buying
Rate on June 22, 2004, which was USD 1.2092 per
EUR 1.00.

6



---



##### Table of Contents



SELECTED U.S. GAAP CONSOLIDATED FINANCIAL
DATA

|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |       |       |  
|---------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ------ | ----- | ----- | ----- | ------ | ----- | ----- | ----- | ------ | ---------- | ------ | - | ------- | ----- | ----- | - | ------- | ----- | ----- | - | ------- | ----- | ----- | -
|                                                                       |                                                                                                                                       |                                                                                                                 
|                                                                       |                                                                                                                                       | As at and for the year ended December 31,                                                                       
|                                                                       |                                                                                                                                       |                                                                                                                 
|                                                                       |                                                                                                                                       |                                                                                                                  |        | 2003 
|                                                                       |                                                                                                                                       | 1999                                                                                                             |        | 2000  |       | 2001  |        | 2002  |       | 2003  |        | Translated
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |           
|                                                                       |                                                                                                                                       | (EUR)                                                                                                            |        | (EUR) |       | (EUR) |        | (EUR) |       | (EUR) |        | (USD)     
|                                                                       |                                                                                                                                       |                                                                                                                 
|                                                                       |                                                                                                                                       | (millions, except per share amounts)                                                                            
|Income Statement                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|Gross premiums written                                                 |                                                                                                                                       |                                                                                                                  | 2,760  |       |       |       | 3,355  |       |       |       | 4,429  |            |        |   | 4,914   |       |       |   | 3,306   |       |       |   | 3,998   |      
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|Net premiums written                                                   |                                                                                                                                       |                                                                                                                  | 2,457  |       |       |       | 2,878  |       |       |       | 3,720  |            |        |   | 4,358   |       |       |   | 2,988   |       |       |   | 3,613   |      
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|Net premiums earned                                                    |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       | Life (net of premiums ceded 63, 109, 101, 97 and
    195)                                                                             |                                                                                                                  |        | 343   |       |       |        | 396   |       |       |        | 546        |        |   |         | 578   |       |   |         | 517   |       |   |         | 625   |      
|                                                                       | Property-casualty (net of premiums ceded totaling
    235, 360, 547, 471 and 292)                                                     |                                                                                                                  |        | 2,019 |       |       |        | 2,281 |       |       |        | 3,107      |        |   |         | 3,575 |       |   |         | 2,807 |       |   |         | 3,394 |      
|Net investment income                                                  |                                                                                                                                       |                                                                                                                  | 236    |       |       |       | 287    |       |       |       | 347    |            |        |   | 381     |       |       |   | 321     |       |       |   | 388     |      
|Net realized gains (losses) on investment                              |                                                                                                                                       |                                                                                                                  | 143    |       |       |       | 413    |       |       |       | 10     |            |        |   | (52     | )     |       |   | 116     |       |       |   | 140     |      
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       |                                                                                                                                       | Total revenues                                                                                                   |        |       | 2,741 |       |        |       | 3,377 |       |        |            | 4,010  |   |         |       | 4,482 |   |         |       | 3,761 |   |         |       | 4,548 |  
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|Expense                                                                |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       | Life claims (net of reinsurance recoveries
    totaling 42, 63, 90, 41 and 172)                                                       |                                                                                                                  |        | 239   |       |       |        | 283   |       |       |        | 451        |        |   |         | 459   |       |   |         | 421   |       |   |         | 509   |      
|                                                                       | Property-casualty claims and loss adjustment
    expenses (net of recoveries reinsurance totaling 191, 381,
    1,051, 139 and 86)(2) |                                                                                                                  |        | 1,552 |       |       |        | 2,204 |       |       |        | 2,962      |        |   |         | 3,361 |       |   |         | 2,697 |       |   |         | 3,261 |      
|                                                                       |                                                                                                                                       | Pre-tax catastrophe losses and loss adjustment
    expenses, net of reinsurance(1)                               |        |       | 134   |       |        |       |       |       |        |            | 215    |   |         |       | 94    |   |         |       | 72    |   |         |       | 87    |  
|                                                                       | Policy acquisition costs and commissions                                                                                              |                                                                                                                  |        | 552   |       |       |        | 661   |       |       |        | 848        |        |   |         | 909   |       |   |         | 742   |       |   |         | 897   |      
|                                                                       | Underwriting and administration expenses                                                                                              |                                                                                                                  |        | 142   |       |       |        | 162   |       |       |        | 209        |        |   |         | 208   |       |   |         | 165   |       |   |         | 199   |      
|                                                                       | Foreign exchange loss (gain), net                                                                                                     |                                                                                                                  |        | 21    |       |       |        | 18    |       |       |        | (8         | )      |   |         | (61   | )     |   |         | (99   | )     |   |         | (120  | )    
|                                                                       | Amortization/ Impairment of goodwill                                                                                                  |                                                                                                                  |        | 14    |       |       |        | 15    |       |       |        | 17         |        |   |         | 17    |       |   |         | 0     |       |   |         | 0     |      
|                                                                       | Other operating expenses (income), net                                                                                                |                                                                                                                  |        | (4    | )     |       |        | 16    |       |       |        | (1         | )      |   |         | 19    |       |   |         | 22    |       |   |         | 27    |      
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       |                                                                                                                                       | Total expenses                                                                                                   |        |       | 2,650 |       |        |       | 3,359 |       |        |            | 4,693  |   |         |       | 5,006 |   |         |       | 4,020 |   |         |       | 4,861 |  
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       |                                                                                                                                       | Income (loss) before taxes, minority
    interests and income investments accounted for by the equity
    method |        |       | 91    |       |        |       | 18    |       |        |            | (683   | ) |         |       | (524  | ) |         |       | (259  | ) |         |       | (313  | )
|Income tax(2)                                                          |                                                                                                                                       |                                                                                                                  | (23    | )     |       |       | 57     |       |       |       | 273    |            |        |   | (28     | )     |       |   | (293    | )     |       |   | (354    | )    
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       |                                                                                                                                       | Income (loss) before minority interests and
    income from investments accounted for by the equity method       |        |       | 68    |       |        |       | 75    |       |        |            | (410   | ) |         |       | (552  | ) |         |       | (552  | ) |         |       | (667  | )
|Minority interest                                                      |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       |                                                                                                                                       | Income (loss) before income from investments
    accounted for by the equity method                              |        |       | (2    | )     |        |       | (1    | )     |        |            | (1     | ) |         |       | (13   | ) |         |       | (26   | ) |         |       | (31   | )
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       |                                                                                                                                       |                                                                                                                  | 66     |       |       |       | 74     |       |       |       | (411   | )          |        |   | (565    | )     |       |   | (578    | )     |       |   | (699    | )    
|Income from investments accounted for by the
    equity method         |                                                                                                                                       |                                                                                                                  | 23     |       |       |       | 3      |       |       |       | 4      |            |        |   | 4       |       |       |   | 1       |       |       |   | 1       |      
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       |                                                                                                                                       | Income (loss) before cumulative effect of
    change in accounting                                               |        |       | 89    |       |        |       | 77    |       |        |            | (407   | ) |         |       | (561  | ) |         |       | (577  | ) |         |       | (698  | )
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       |                                                                                                                                       | Cumulative effect of change in accounting
    principles, net of income taxes(2)                                 |        |       |       |       |        |       |       |       |        |            | 42     |   |         |       |       |   |         |       |       |   |         |       |       |  
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       |                                                                                                                                       | Net income (loss)                                                                                                |        |       | 89    |       |        |       | 77    |       |        |            | (365   | ) |         |       | (561  | ) |         |       | (577  | ) |         |       | (698  | )
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       |                                                                                                                                       | Net income per Ordinary Share, basic(3)                                                                          |        |       | 2.70  |       |        |       | 2.44  |       |        |            | (10.74 | ) |         |       | (4.11 | ) |         |       | (4.23 | ) |         |       | (5.11 | )
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       |                                                                                                                                       | Net income per Ordinary Share,
    diluted(3)                                                                    |        |       | 2.58  |       |        |       | 2.27  |       |        |            | (9.40  | ) |         |       | (4.11 | ) |         |       | (4.23 | ) |         |       | (5.11 | )
|                                                                       |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|Balance sheet data (at end of year)                                    |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|Total investments and cash                                             |                                                                                                                                       |                                                                                                                  | 5,113  |       |       |       | 7,402  |       |       |       | 9,017  |            |        |   | 9,011   |       |       |   | 8,040   |       |       |   | 9,722   |      
|Total assets                                                           |                                                                                                                                       |                                                                                                                  | 9,385  |       |       |       | 12,776 |       |       |       | 16,933 |            |        |   | 15,936  |       |       |   | 13,466  |       |       |   | 16,283  |      
|Total liabilities                                                      |                                                                                                                                       |                                                                                                                  | 8,044  |       |       |       | 11,381 |       |       |       | 15,623 |            |        |   | 14,79l  |       |       |   | 13,038  |       |       |   | 15,765  |      
|Shareholders equity                                                   |                                                                                                                                       |                                                                                                                  | 1,341  |       |       |       | 1,395  |       |       |       | 1,310  |            |        |   | 1,145   |       |       |   | 428     |       |       |   | 517     |      
|Property-casualty                                                      |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       | Loss and LAE reserves, gross                                                                                                          |                                                                                                                  |        | 4,774 |       |       |        | 5,575 |       |       |        | 8,365      |        |   |         | 7,967 |       |   |         | 7,003 |       |   |         | 8,468 |      
|                                                                       | Loss and LAE reserves, net                                                                                                            |                                                                                                                  |        | 4,353 |       |       |        | 5,068 |       |       |        | 6,917      |        |   |         | 6,900 |       |   |         | 6,330 |       |   |         | 7,654 |      
|                                                                       | Unearned premium reserves, gross                                                                                                      |                                                                                                                  |        | 919   |       |       |        | 1,226 |       |       |        | 1,665      |        |   |         | 1,617 |       |   |         | 1,124 |       |   |         | 1,359 |      
|                                                                       | Unearned premium reserves, net                                                                                                        |                                                                                                                  |        | 812   |       |       |        | 1,097 |       |       |        | 1,411      |        |   |         | 1,487 |       |   |         | 1,048 |       |   |         | 1,267 |      
|Life                                                                   |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       | Reserve for future policy benefits, gross                                                                                             |                                                                                                                  |        | 824   |       |       |        | 2,468 |       |       |        | 2,601      |        |   |         | 2,368 |       |   |         | 2,562 |       |   |         | 3,098 |      
|                                                                       | Reserve for future policy benefits, net                                                                                               |                                                                                                                  |        | 761   |       |       |        | 1,798 |       |       |        | 1,953      |        |   |         | 1,857 |       |   |         | 2,161 |       |   |         | 2,613 |      
|Book value per Ordinary Share                                          |                                                                                                                                       |                                                                                                                  | 42     |       |       |       | 44     |       |       |       | 35     |            |        |   | 8       |       |       |   | 3       |       |       |   | 4       |      
|Number of Ordinary Share outstanding at
    December 31 (in thousands) |                                                                                                                                       |                                                                                                                  | 34,629 |       |       |       | 34,794 |       |       |       | 41,244 |            |        |   | 140,285 |       |       |   | 136,545 |       |       |   | 136,545 |      
|Certain financial ratios and operating
    data                        |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|Property-casualty                                                      |                                                                                                                                       |                                                                                                                  |        |       |       |       |        |       |       |       |        |            |        |   |         |       |       |   |         |       |       |   |         |      
|                                                                       | Loss ratio(4)                                                                                                                         |                                                                                                                  |        | 83    | %     |       |        | 96    | %     |       |        | 102        | %      |   |         | 97    | %     |   |         | 99    | %     |   |         | 99    | %    
|                                                                       | Expense ratio(5)                                                                                                                      |                                                                                                                  |        | 31    | %     |       |        | 29    | %     |       |        | 29         | %      |   |         | 27    | %     |   |         | 32    | %     |   |         | 32    | %    
|                                                                       | Combined ratio(6)                                                                                                                     |                                                                                                                  |        | 114   | %     |       |        | 125   | %     |       |        | 132        | %      |   |         | 124   | %     |   |         | 131   | %     |   |         | 131   | %    
|                                                                       | Effect of catastrophe losses on Property-casualty
    ratio (7)                                                                       |                                                                                                                  |        | 6     | %     |       |        |       |       |       |        | 7          | %      |   |         | 3     | %     |   |         | 3     | %     |   |         | 3     | %    






|    |                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | A catastrophe is defined by the
    Company as an event involving multiple insured risks and causing
    pre-tax losses net of reinsurance of EUR 10 million or
    more.                                                                                                                                                                                                                                              
|   
|(2) | The change in accounting principles due to the
    discount of reserves occurred in 2001. The effect of the change
    in 2001 was to increase Property Casualty net income by
    EUR 62 million before tax and EUR 41 million after
    tax, and in 2002 and 2003 if the accounting change was never
    made, the impact would have been to increase Property Casualty
    net income by EUR 17 million before tax and

7



---



##### Table of Contents



|    |                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | EUR 11 million after tax,
    EUR 3 million before tax and EUR 2 million after
    tax, respectively. You should read note 1.14 to our consolidated
    financial statements for additional information about changes in
    accounting principles relating to the discount of reserves.
|   
|(3) | Excluding shares held by SCOR                                                                                                                                                                                                                                                           
|   
|(4) | Loss ratios are calculated on the basis of
    aggregate losses and LAE expressed as a percentage of net
    premiums earned.                                                                                                                                                           
|   
|(5) | Expense ratios are calculated on the basis of
    underwriting and administration expenses expressed as a
    percentage of net premiums earned.                                                                                                                                        
|   
|(6) | Combined ratios are calculated on the basis of
    underwriting and administration expenses and aggregate losses
    and LAE expressed as a percentage of net premiums earned.                                                                                                          
|   
|(7) | The effect of catastrophe losses on
    Property-casualty ratios is calculated on the basis of pre-tax
    catastrophe losses and LAE net of reinsurance expressed as a
    percentage of Property-casualty net premiums earned.                                                        

Dividends

The payment and amount of dividends on
outstanding Ordinary Shares are subject to the recommendation of
the Companys board of directors and the approval by the
Companys shareholders at an ordinary general meeting. The
board of directors also recommends, and the Companys
shareholders determine at the annual general meeting, the
portion, if any, of the annual dividend that each shareholder
will have the option to receive in Ordinary Shares. Since 1996,
dividends have been paid entirely in cash. Future dividends will
depend on the Companys earnings, financial condition and
other factors.

Under French law and the Companys
statuts, or bylaws, net income in each fiscal year (after
deduction for depreciation and reserves), as increased or
reduced, as the case may be, by any profit or loss of the
Company carried forward from prior years, less any contributions
to legal reserves, is available for distribution to the
shareholders of the Company as dividends, subject to other
applicable requirements of French law and the Companys
statuts.

Dividends paid to holders of ADSs are converted
from euro to U.S. dollars, subject to a charge by the Depositary
for any expenses incurred by the Depositary in such conversion.
See Item 10.E  Taxation for a
description of the principal French and U.S. federal income tax
consequences to holders of ADSs and Ordinary Shares.

Dividends for each year are paid in the year
following the approval of such dividend at the annual meeting of
shareholders (generally held in April or May). The aggregate
annual dividends paid with and without the French avoir
fiscal, or tax credit, and before deduction of any French
withholding tax for each of the five years ended
December 31, were as follows:

|     |  |             |         |              |  |                 |      |              |  |                    |      |  |  |  |      |  |  |  |      | 
|---- |  | ----------- | ------- | ------------ |  | --------------- | ---- | ------------ |  | ------------------ | ---- |  |  |  | ---- |  |  |  | ---- | 
|     |  |             |         |              |  | Dividend per    |      |              |  |                   
|     |  |             |         | Dividend per |  | Ordinary        |      |              |  | Dividend per      
|     |  | Ordinary    |         | Ordinary     |  | Share including |      | Dividend per |  | ADS including     
|     |  | Shares      |         | Share        |  | Avoir Fiscal(1) |      | ADS(2)       |  | Avoir Fiscal(1)(2)
|     |  |             |         |              |  |                 |      |              |  |                   
|     |  | (Thousands) |         | (EUR)        |  | (EUR)           |      | (USD)        |  | (USD)             
|1998 |  |             | 34,357  |              |  |                 | 1.70 |              |  |                    | 2.55 |  |  |  | 1.76 |  |  |  | 2.64 | 
|1999 |  |             | 34,629  |              |  |                 | 1.70 |              |  |                    | 2.55 |  |  |  | 1.63 |  |  |  | 2.45 | 
|2000 |  |             | 34,794  |              |  |                 | 1.70 |              |  |                    | 2.55 |  |  |  | 1.52 |  |  |  | 2.28 | 
|2001 |  |             | 41,244  |              |  |                 | 0.30 |              |  |                    | 0.45 |  |  |  | 0.27 |  |  |  | 0.40 | 
|2002 |  |             | 136,545 |              |  |                 | 0.00 |              |  |                    | 0.00 |  |  |  | 0.00 |  |  |  | 0.00 | 
|2003 |  |             | 136,545 |              |  |                 | 0.00 |              |  |                    | 0.00 |  |  |  | 0.00 |  |  |  | 0.00 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Any payment equivalent to the French avoir
    fiscal, or tax credit, less applicable French withholding
    tax, will be made only following receipt by the French tax
    administration of a claim of such payment, and is generally not
    expected to be paid until after the close of the calendar year
    in which the respective dividends are paid. Certain holders of
    Ordinary Shares or ADSs will not be entitled to payments of
    avoir fiscal. See Item 10.E 
    Taxation.
|   
|(2) | Solely for convenience, the dividend per Ordinary
    Share and avoir fiscal amounts have been translated from
    the French francs or euro amounts actually paid into the
    corresponding U.S. dollar amounts at the Noon Buying Rates. The
    Noon Buying Rate may differ from the rate that may be used by
    the Depositary to convert French francs or euro to U.S. dollars
    for purposes of making payments to holders of ADSs.                                                      

8



---



##### Table of Contents



B. CAPITALIZATION AND
INDEBTEDNESS

Not applicable.

C. REASONS FOR THE OFFER AND USE OF
PROCEEDS

Not applicable.

D. RISK FACTORS

The insurance and reinsurance sectors are
cyclical, which may impact our results

The insurance and reinsurance sectors,
particularly in the Non-Life area are cyclical. Historically,
reinsurers have experienced significant fluctuations in
operating results due to volatile and sometimes unpredictable
developments, many of which are beyond the direct control of the
reinsurer, including, notably, competition, frequency or
severity of catastrophic events, levels of capacity and general
economic conditions. Demand for reinsurance is influenced
significantly by underwriting results of primary insurers and
prevailing general economic conditions. The supply of
reinsurance is related to prevailing prices, the levels of
insured losses, levels of sector surplus and utilization of
underwriting capacity that, in turn, may fluctuate in response
to changes in rates of return on investments being earned in the
insurance and reinsurance industries. In addition, claims may be
higher when economic conditions are unfavorable, particularly
for products that provide reinsurance coverage for a risk that
is related to the financial condition of the company that is
being insured. As a result, the reinsurance business has been
cyclical historically, characterized by periods of intense price
competition due to excessive underwriting capacity and periods
when shortages of underwriting capacity permit favorable premium
levels. For example, certain reinsurance sectors in which the
Group does business have, particularly since the terrorist
attack of September 11, 2001, been characterized by a
reduction in subscription capacity on the part of reinsurance
companies, in turn leading to increases in pricing and tightened
reinsurance conditions. These improved market conditions have
led to an increase in supply, including from new entrants in the
reinsurance market, which may limit increases in premiums in the
future. We are unable to determine for how long this trend will
continue.

We can be expected to experience the effects of
such cyclicality and there can be no assurances that changes in
premium rates, the frequency and severity of catastrophes or
other loss events or other factors affecting the insurance or
reinsurance industries generally will not have a material
adverse effect on our results of operations in future periods.

We are exposed to losses from catastrophic
events

Like other reinsurers, our operating results and
financial condition have in the past been, and can be expected
in the future to be, adversely affected by natural and man-made
catastrophes, which may give rise to claims under the
Property-Casualty and Life reinsurance coverage we provide.
Catastrophes can be caused by a variety of events, including
hurricanes, windstorms, earthquakes, hail, explosions, severe
winter weather and fires. Although catastrophes can cause losses
in several of the Groups business lines, most of the
Groups catastrophe related claims in the past have related
to homeowners or commercial property coverage. In the case of
natural catastrophes, this risk exposure arises primarily in
respect of earthquake risk in Turkey, Japan, and Italy, as well
as weather-related risks in North America, Europe and Asia.

The frequency and severity of such events,
particularly natural catastrophes, are by their nature
unpredictable. The inherent unpredictability of these events
makes forecasts and risk evaluations uncertain for any given
year. As a result, our claims experience may vary significantly
from one year to another, which can have a significant impact on
our profitability and financial condition.

We generally seek to manage our exposure to
catastrophe losses through selective underwriting practices,
including the monitoring of risk accumulations on a geographic
basis, and through the purchase of retrocessional catastrophe
reinsurance. There can be no assurance, however, that these
underwriting practices, including the management of risks on a
geographical basis, or the purchase of retrocessional
reinsurance, will be adequate to protect us against material
catastrophe losses, or that retrocessional reinsurance will
continue to be available in

9



---



##### Table of Contents



the future at commercially reasonable rates.
Although we attempt to limit our exposure to acceptable levels,
it is possible that a single or multiple catastrophic events
could have a material adverse effect on our consolidated
financial condition, results of operations and cash flows.


We may be subject to losses due to our
exposure to risks related to terrorist acts

In the context of our business, we may be exposed
to claims arising from the consequences of terrorist acts. These
risks (the potential significance of which can be illustrated by
the September 11, 2001 attack in the United States) can
affect both individuals and property. The September 11,
2001 attack on the World Trade Center resulted in the Group
establishing a total amount of reserves, net of retrocession, of
approximately USD 190 million, based on the assumption
that the attack on the two towers of the World Trade Center was
one single occurrence and not two occurrences under the terms of
the applicable coverage. In the event that, as a result of
currently pending legal proceedings in the United States, it is
determined that the attack constituted two occurrences, this
could have a material adverse impact on our operating results
and financial condition, depending on the final determination of
losses. See Item 8.A Consolidated Statements and
Other Financial Information  Legal Proceedings
for a discussion of the pending World Trade Center litigation.

After the events of September 11, 2001, we
adopted measures designed to exclude or limit our exposure to
risks related to terrorism in our reinsurance contracts (in
particular in those countries and for the risks that are the
most exposed to terrorism). Contracts entered into prior to the
implementation of these measures, however, remain unchanged. In
addition, it has not always been possible to implement these
measures, particularly in our principal markets. For example,
certain European countries do not permit excluding terrorist
risks from insurance policies. Due to these regulatory
constraints, SCOR has actively supported the creation of
insurance and reinsurance pools that involve insurance and
reinsurance companies as well as public authorities in order to
spread the risks of terrorist activity among the members of
these pools. We participate in pools created in France (GAREAT),
in Germany (Extremus), in the United Kingdom and in Austria. In
the United States, although Congress passed the Terrorism Risk
Insurance Act (TRIA) in November 2002, the US insurance market
is nevertheless still subject to significant exposures in
respect of terrorism-related losses. SCOR has decreased its
exposure to the US market by significantly reducing the
underwriting of large national insurers (also see
 Our results may be impacted by the inability
of our reinsurers or other members of pools in which we
participate to meet their obligations). In addition to the
commitments described above, the Group does reinsure, from time
to time, terrorist risks, usually limiting by event and by
period the coverage that ceding companies receive for damage
caused by terrorist acts.

As a result, additional terrorist acts, whether
in the U.S. or elsewhere could cause us to make significant
claims payments and, as a result, could have a significant
effect on our operating income, our financial condition and our
future profitability.

We could be subject to losses as a result of
our exposure to environmental and asbestos related
risks

Like other reinsurance companies, we are exposed
to environmental and asbestos related risks, particularly in the
United States. Insurers are required under their contracts with
us to notify us of any claims or potential claims that they are
aware of. However, we often receive notices from insurers of
potential claims related to environmental and asbestos risks
that are imprecise, as the primary insurer may not have fully
evaluated the risk at the time it notifies us of the claim. Due
to the imprecise nature of these claims, we can, as with other
reinsurers, only give a very approximate estimate of our
potential exposure to environmental and asbestos claims that may
or may not have been reported. We believe that our reserves as
at December 2003 are sufficient to cover our estimated
liabilities relating to environmental and asbestos claims.
During the third quarter of 2003, these reserves were
strengthened for an amount of EUR 9 million, primarily
with respect to latent asbestos-related claims.

In addition, due to the changing legal
environment and changes in tort law, the evaluation of the final
cost of our exposure to asbestos related and environmental
claims appears to be increasing, in uncertain proportions.
Diverse factors could increase our exposure to the consequences
of asbestos related risks, such as an increase in the number of
claims filed or in the number of persons likely to be covered by
these claims. These uncertainties inherent to environmental and
asbestos claims are unlikely to be resolved in the near future.
Evaluation of these

10



---



##### Table of Contents



risks is all the more difficult given that claims
related to asbestos and environmental pollution are often
subject to payments over long periods of time. In these
circumstances, it is difficult for us to estimate the reserves
that should be recorded for these risks and to give any
assurance that the amount reserved will be sufficient.


As a result of these imprecisions and
uncertainties, we cannot exclude the possibility that we could
be exposed to significant additional environmental and asbestos
claims, which could have a material adverse effect on our
results and financial condition.

If our reserves prove to be inadequate, our
results may be adversely affected

We are required to maintain reserves to cover our
estimated ultimate liability for Property-Casualty losses and
loss adjustment expenses with respect to reported and unreported
claims incurred as of the end of each accounting period (net of
estimated related salvage and subrogation claims). Our reserves
are established on the basis of information that we receive from
insurance companies, particularly their own reserving levels.
For our Life business, we are required to maintain reserves for
future policy benefits that take into account expected
investment yields and mortality, morbidity, lapse rate and other
assumptions. In our Non-Life business, our reserves and policy
pricing are also based on a number of assumptions and on
information provided by third parties, which, if proven to be
incorrect, could have an adverse effect on our results.
Similarly, reserving for exposures related to the reinsurance of
credit derivative risks is largely dependent on statistics
provided by third parties and fluctuations in general market
conditions. Even though we have the possibility of auditing some
of the companies with which we do business, and despite our
frequent contacts with these companies, our reserving policy
remains dependent on the risk evaluations of these companies,
particularly in respect of long-tail risks.

The inherent uncertainties in estimating reserves
are compounded for reinsurers by the significant periods of time
that often elapse between the occurrence of an insured loss, the
reporting of the loss to the primary insurer and ultimately to
the reinsurer, the primary insurers payment of that loss
and subsequent indemnification by the reinsurer, as well as by
differing reserving practices among ceding companies and changes
in jurisprudence, particularly in the United States.

Furthermore, we have significant exposures to a
number of business lines in respect of which accurate reserving
is known to be particularly difficult including workers
compensation, liabilities insurance, credit derivative, and
environmental and asbestos-related claims. Our reserves for
these lines of business represent a significant portion of our
technical reserves. In relation to such claims, it has in the
past been necessary to revise our estimated potential loss
exposure and, therefore, the related loss reserves. Changes in
law, evolving judicial interpretations and theories as well as
developments in class action litigation, particularly in the
United States, add to the uncertainties inherent in claims of
this nature.

We periodically review our methods for
establishing reserves and their amounts. To the extent that our
reserves prove to be insufficient, after taking into account
available retrocessional coverage, we increase our reserves and
incur a charge to earnings, which can have a material adverse
effect on our consolidated financial condition, results of
operations and cash flows. We strengthened our reserves on
several occasions in 2002 and 2003 following internal and
external actuarial reviews. The most recent such reserves
strengthening occurred at September 30, 2003, when the
Group increased its loss reserves by EUR 297 million,
EUR 290 million of which was related to adverse trends
in loss experience in the United States with respect to business
underwritten by SCOR US and CRP over the period 1997-2001. These
additional reserves mainly concern lines of business, which have
now been put in run-off or sharply reduced, such as buffer
layers, program business and workers compensation.

Although we have strengthened our Non-Life
reserves to the current best estimates level
(excluding latent claims and reserves for CRP claim management
costs), on the basis of recent reviews made by external
actuaries on those business lines considered to be the most
sensitive and representing more than 74% of the Groups
technical reserves (excluding certain lines of business, notably
short-tail property business and credit derivatives), we cannot
guarantee that even this increased level of reserves will be
sufficient to cover future losses. In particular, our experience
has shown that these measures have not always proven to be
sufficient. In addition, for latent claims, we decided to
increase only progressively our technical reserves, when
circumstances change, in

11



---



##### Table of Contents



order to improve our survival ratio (reserves
divided by average payments in the course of the past three
years) over the coming years.


Our results may be impacted by the inability
of our reinsurers or other members of pools, in which we
participate, to meet their obligations

We transfer a part of our exposure to certain
risks to other reinsurers through retrocession arrangements.
Under these arrangements, other reinsurers assume a portion of
our losses and expenses associated with losses in exchange for a
portion of policy premiums. When we obtain retrocession, we are
still liable for those transferred risks if the reinsurer cannot
meet its obligations. Therefore, the inability of our reinsurers
to meet their financial obligations could materially affect our
operating results. Although we conduct periodic reviews of the
financial condition of our reinsurers, our reinsurers may become
financially unsound by the time they are called upon to pay
amounts due, which may not occur for many years. In addition,
retrocession may prove inadequate to protect against losses or
may become unavailable in the future or unavailable at
commercially reasonable rates. Furthermore, since our reinsurers
do business in the same sector as we do, events that have an
effect on the sector could have an effect on all of the
participants in the reinsurance sector.

We participate in various pools of insurers and
reinsurers in order to spread certain risks (in particular
terrorist risks) among the members of the pool. In case of
default of one of the members of a pool, we could be required to
assume part of the liabilities and obligations of the member in
default, which could affect our operating income.

We operate in a highly competitive
industry

The reinsurance business is highly competitive.
Our position in the reinsurance market is based on many factors,
such as underwriting expertise, reputation and experience in the
lines written, the jurisdictions in which the reinsurer is
licensed or otherwise authorized to do business, premiums
charged, as well as other terms and conditions of the
reinsurance offered, services offered and speed of claims
payment and perceived overall financial strength of the
reinsurer. We compete for business in the French, European,
United States, Asian and other international reinsurance markets
with numerous international and domestic reinsurance companies,
some of which have a larger market share, greater financial
resources and higher ratings from financial ratings agencies
than we do.

When the supply of reinsurance is greater than
the demand from ceding companies, these competitors may be
better positioned to enter into new contracts and to gain market
share at our expense. If we do not reach or maintain a
competitive level in our markets, our business, our financial
condition and our results of operations could be seriously
affected.

Given that all of our relevant competitors hold
higher ratings, our current ratings have in the past and may
continue to significantly hinder our competitive position (See
 Ratings are important to our business).

We are exposed to the impact of changes in
interest rates and developments in the financial and equity
markets

Interest rate fluctuations could have
consequences on our return from fixed maturity securities, as
well as the market values of, and corresponding levels of
capital gains or losses, on the fixed maturity securities in our
investment portfolio.

In addition, the level of or changes in, interest
rates, as well as developments in the capital markets, could
lead to unanticipated changes in the pattern of surrender and
withdrawal of our annuity and other Life reinsurance products,
including the fixed annuities of SCOR Life US Re. These would
result in cash outflows that might require the sale of assets at
a time when the investment portfolio is negatively affected by
increases in interest rates, resulting in losses.

We are also exposed to risks in the fixed-income
securities markets since the financial difficulties of certain
issuers and the deterioration of their credit quality could make
payment of their obligations uncertain and lead to lower market
prices for their fixed-income securities, which would affect the
value of our investment portfolio.

12



---



##### Table of Contents



We are also exposed to equity price risk. While
equity investments accounted for only 5% of our investments as
at December 31, 2003 (by market value), we may need to
record impairments to our equity portfolio as a result of
negative developments in the stock markets. Such depreciation
could affect our results and financial condition.

Ratings are important to our
business

Our ratings are reviewed periodically. Over the
course of 2003, our credit ratings from all the major rating
agencies were revised downwards on several occasions and put on
watch, particularly after we announced we would be increasing
our reserves and announced the amount of our loss for the third
quarter of 2003. Given that our main competitors hold higher
ratings, our current ratings may significantly hinder our
competitive position and there can be no assurance that such
ratings will be increased or maintained in the future. Such
rating downgrades have made it more difficult to renew our
existing contracts (a significant part of which were up for
renewal during the fourth quarter or in particular on
January 1, 2004) or to enter into new contracts and, in
addition, have led or could lead to the cancellation of current
business and/ or an increase of contracted financing costs,
including the letters of credit mentioned below. Our ratings
profile since July 2003 has contributed to a reduction in our
earned premiums in 2004. There can be no assurance that such a
decrease of the premiums volume could be entirely offset by an
improvement of our underwriting result or by a reduction of our
management expenses.

The maintaining of our rating at its current
level during the course of 2004 could as well have a significant
impact on our financial situation. If the rating agencies
decided not to upgrade our rating, we might not be able to renew
a portion of our existing contracts during 2004 (for those being
renewed during the year) or on January 1, 2005 (for those
being renewed at that time), notably for Life reinsurance
business. In that case, the Groups written premiums for
2004 and 2005 could decrease.

Life reinsurance business is particularly
sensitive to the way our ceding companies perceive our financial
strength as well as to our credit ratings. In many countries,
including the U.S., our clients follow our ratings closely. In
the context of the incorporation of the Groups life
reinsurance activities into a new entity called SCOR VIE, we are
endeavoring to obtain a stand-alone A range rating
in order to encourage the development of this business. If we do
not obtain such a rating, this could impact our existing Life
business, including both new business and renewals of existing
business at SCOR VIE.

In addition, given that some of our reinsurance
treaties contain termination clauses triggered by ratings, there
is a risk that our reserves would be reduced as a result of such
termination by our clients, which in turn would be likely to
significantly reduce our future financial margins and to require
us to depreciate some or all of our DAC (see also Our
shareholders equity is highly sensitive to the value of
our intangible assets).

In addition, an important part of our business is
conducted with U.S. ceding companies for whom state insurance
regulations and market practice require that we obtain letters
of credit from banks in order to maintain reinsurance contracts.
If we are unable to honor our financial commitments under our
outstanding credit facilities or if we suffer any further
ratings downgrade, our financial situation and results could be
significantly affected. Downgrading of our ratings has increased
the cost of such letters of credit and has sometimes made it
more difficult for us to renew or obtain letters of credit and,
as a result, to conclude or renew reinsurance contracts.
Moreover, any further downgrading would significantly restrict
our ability to obtain such letters of credit and would affect
our operations. In these circumstances, we could be required to
reduce our business with U.S. ceding companies and our financial
condition could be adversely affected.

A significant portion of our treaties contains
provisions relating to financial strength, which could have an
adverse effect on our financial condition.

A significant portion of our reinsurance
treaties, in particular in our Life reinsurance business,
contains triggers relating to financial strength which entitle
our cedents to terminate the relevant treaty upon the occurrence
of specified events of default, which events include a ratings
downgrade, our net assets falling below a specified threshold or
our carrying out a reduction in share capital. Any such events
could allow some of our cedents to terminate their contractual
undertakings, which would have a material adverse effect on our
financial condition. In addition, our main credit facilities, in
particular those which were renewed in the third and fourth
quarters of

13



---



##### Table of Contents



2003, contain financial undertakings and
provisions with respect to minimum ratings and net consolidated
assets, the breach of which could constitute an event of default
and cause a suspension in the use of these credit facilities and
prevent us from obtaining new credit facilities, either of which
would have a material adverse effect on our business.


SCOR faces a number of significant liquidity
requirements in the short to medium-term

The main sources of revenue from SCORs
reinsurance operations are premiums, revenues from investing
activities, and realized capital gains. The bulk of these funds
are used to pay out claims and related expenses, together with
other operating costs. Our operations generate substantial cash
flows due to the fact that most premiums are received prior to
the date at which claims must be paid out. Historically, these
positive operating cash flows, together with the portion of the
investment portfolio held directly in cash or highly liquid
securities, have allowed us to meet the cash demands entailed by
our operating activities.

However, a number of significant liquidity
requirement arise in the short to medium term, as described
below:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In 1999, SCOR issued approximately
    EUR 233 million in so-called OCEANE bonds
    (convertible or exchangeable for new or existing shares of
    stock). These convertible bonds are repayable on January 1,
    2005 at a price of EUR 65.28 per bond, representing a total
    amount payable (including redemption premium) of
    EUR 263 million. Because SCORs share price is
    currently significantly lower than the redemption value of its
    OCEANE bonds, it will probably be necessary to repay the bonds
    in cash at their maturity date.                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | In 2002, SCOR issued EUR 200 million in
    unsubordinated notes repayable on June 21, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | Pursuant to agreements entered into connection
    with the formation of IRP Holdings Limited (IRP Holdings),
    IRPs minority shareholder has agreed on exit rights
    exercisable during certain defined periods. The agreements
    permit the minority shareholder to exit IRP during the first
    half of 2005 and in any event require an exit no later than
    May 31, 2006. SCOR may acquire the shares held by the
    minority shareholder either with existing or newly-issued SCOR
    shares or with cash. SCOR may, depending on conditions at the
    time of the exit, decide to pay for all or part of these shares
    in cash. For more information on IRP, see Item 9.A
    The Offer and Listing  IRP, and for a
    description of the pending litigations initiated by the minority
    shareholder of IRP, see Item 8.A Consolidated
    Statements and Other Financial Information 
    Litigation.

Despite the level of cash generated by its
ordinary activities, SCOR may be required to seek full or
partial external financing in order to meet some or all of the
foregoing payments.

The extent of any recourse to external financing
will depend in the first place on the Groups available
cash. In that respect, a significant portion of SCORs
assets are collateralized for the purpose of guaranteeing either
letters of credit obtained from banks for the purpose of writing
reinsurance contracts with ceding companies, or payment of loss
claims made by ceding companies. These liabilities amounted to
EUR 3,226 million at December 31, 2003 and
accordingly restrict our capacity to manage our cash by means of
asset disposals. The proportion of assets against which we are
obliged to grant collateral is expected to rise in the short
term as a result of the recent ratings downgrades and the terms
of loan covenants negotiated in the last quarter of 2003.
Moreover, the cash available in Group subsidiaries may not be
transferable to the company, subject to local regulations and
because of these subsidiaries own cash requirements.
Finally, our decision to withdraw from a significant number of
business lines has significantly reduced our premium income,
which may further affect our cash-flow.

Moreover, access to additional outside financing
on top of the recent EUR 751 million capital increase
also depends on a range of other factors, among them general
economic conditions, market conditions, and investor perceptions
of the companys sector of activity and financial
condition. In addition, SCORs ability to raise new
financings depends on clauses in outstanding finance contracts.
SCOR cannot guarantee that it will be in a position to obtain
additional financing, or to do so on acceptable terms. If SCOR
were unable to do so, the pursuit of its business development
strategy and its financial condition would be materially
adversely affected.

14



---



##### Table of Contents



We are exposed to the risk of changes in
foreign exchange rates

We publish our consolidated financial statements
in euros, but a significant part of our income and expenses, as
well as our assets and liabilities, are denominated in
currencies other than the euro.

In particular, the shareholders equity of a
large majority of the SCOR Group entities is stated in a
currency other than the euro. As a result, from year to year,
changes in the exchange rates used to translate foreign
currencies into euros, such as the weakening of the U.S. dollar
against the euro in recent years, may impact our consolidated
net equity. As of December 31, 2003, the decline of the
dollar against the euro resulted in a negative exchange rate
adjustment in the Groups equity of
EUR 136 million. In order to counter the effects of
this exchange rate adjustment, we have entered into hedging
arrangements in the fourth quarter of 2003, which resulted in an
unrealized foreign exchange gain of EUR 37 million
which was recorded in the Groups shareholders
equity. A significant portion of our shareholders equity
is denominated in US dollars and any noticeable change in
exchange rates could have a negative impact on its level.

In addition, the variation of the U.S. dollar
against the euro could have a significant impact on the
Groups results due to significant technical undertakings
denominated in dollars (and not covered by corresponding
dollar-denominated assets) related to the deterioration of the
U.S. business retroceded by SCOR US to SCOR. Nevertheless, at
December 31, 2003, the decline in the U.S. dollar against
the euro resulted in an exchange rate income of
EUR 98 million.

Our Non-Life subsidiaries in the United States
are facing financial difficulties and certain of our American
subsidiaries are subject to a regulatory review by U.S.
insurance regulators.

The operations of our Non-Life subsidiaries in
the U.S. have deteriorated principally as a result of losses
stemming from the underwriting years 1997 to 2001, the impact of
the terrorist attack of September 11, 2001 and the claims
experience of the health insurance and credit markets. Based on
U.S. risk-based capital requirements, we recapitalized our U.S.
subsidiaries in 2000, 2001 and 2002, through capital investments
or by the issuance of surplus notes, for a total amount of
approximately USD 400 million. In early 2004, SCOR
made a capital contribution in an amount of
USD 207 million to SCOR US. The level of risk-based
capital of our U.S. subsidiaries was slightly below acceptable
levels for regulators at the end of 2003. The operations of our
U.S. subsidiaries and in particular the level of their
risk-based capital, is still being monitored by insurance
regulators in the U.S.

SCORs U.S. reinsurance and insurance
subsidiaries are required to file financial reports in the
states in which they are licensed or authorized, prepared in
accordance with the accounting principles and methods prescribed
by the New York State Insurance Department (NYID) and other
state regulators. On February 25, 2004, SCOR Reinsurance
Company (SCOR Re) notified the NYID that it had incorrectly
accounted for a loss portfolio transfer reinsurance treaty
signed in 2000 with three reinsurers unaffiliated to the Group
in its 2000, 2001 and 2002 financial statements. The application
by SCOR Re of the correct accounting principles and methods
during this period would have had no material impact on
SCORs US GAAP consolidated financial condition. The
NYID is currently reviewing this matter and has not advised SCOR
Re as to its conclusion.

We face risks from changes in government
regulations and certain litigation matters.

We are subject to detailed, comprehensive
regulation and supervision in all the countries in which we do
business. Changes in existing laws and regulations may affect
the way in which we conduct our business and the products we may
offer. Moreover, we are involved in legal and arbitration
proceedings in certain European, and other (including U.S.)
jurisdictions. In particular, we are subject to proceedings
initiated by the minority shareholder of IRP Holdings. See
Item 8.A Consolidated Statements and Other Financial
Information  Litigation. An adverse outcome of
this proceeding could have a material adverse affect on our
liquidity, financial condition and results of operations.

15



---



##### Table of Contents



A significant part of our business is
conducted with a limited number of brokers

As is the case with many reinsurance companies,
an important part of our Non-Life business comes through
reinsurance brokers. The Non-Life reinsurance brokerage market
is dominated by a limited number of participants with whom we do
business.

As a result of our recent rating downgrades,
several large brokers had decided to suspend us from the list of
reinsurers that they propose to their clients. Nevertheless,
certain clients could request of these brokers to maintain their
commercial relationship with us, which several of them have
done. The completion of the capital increase at the beginning of
2004 allowed SCOR to be put back on the lists of reinsurers put
forward by the brokers to their clients. However, any decision
taken by some brokers to stop all business with us would affect
our volume of written premiums, which could significantly impact
our operating result as well as our financial situation.

If we do not successfully implement our
recovery plan or if such plan is not effective, our financial
condition and business would be adversely affected

Our Board of Directors formulated a recovery plan
entitled Back on Track in November 2002 and took
several effective decisions concerning new underwriting
priorities, the resulting adjustments in allocation of capital
and financial goals and constraints for 2003-2005. Additional
measures were adopted with respect to the initial strategy of
our recovery plan, namely relating to the run-off of CRP in
January 2003 and the implementation of a strategy for certain of
the SCOR US operations.

The implementation and the success of this
recovery plan are based on a certain number of assumptions and
factors that are not under our control. If economic conditions,
our competitive position, our rating level, our financial
condition or our internal organization are not consistent with
these assumptions or our objectives, or if the measures
envisaged by the recovery plan are insufficient, it is possible
that our recovery plan would fail and that we would not achieve
our objectives, including our return to profitability in 2004.
In this case, our business and financial condition could
deteriorate and new measures would need to be devised.

The successful implementation of our recovery
plan also greatly depends on our ability to properly manage the
run-off of certain of our lines of business in the United
States, including those of CRP and SCOR US.

In January 2003, we put CRP operations in
run-off. In addition, we have determined to withdraw from
certain lines of our business at SCOR US operations. We are
currently studying the possible options regarding the future
management of such operations, but have not yet finalized our
analysis. The costs and liabilities associated with these
run-off businesses and other contingent liabilities could cause
the Group to take additional charges that could be material to
the Groups results of operations.

In addition, a significant part of our strategy
regarding the run-off of certain of our operations in the United
States includes the commutation of the risks held by our
American subsidiaries (including CRP). There can be no assurance
that any such commutation could be made on attractive terms for
the Group.

Our shareholders equity is highly
sensitive to the value of our intangible assets.

A significant portion of our assets is comprised
of intangible assets, the value of which is to a large extent
dependent on our future operating performance. The valuation of
intangible assets also requires us to make subjective and
complex judgments about matters that are inherently uncertain.
If there is a change in the assumptions supporting our
intangible assets, we may be required to write them down in
whole or in part, thereby further reducing our capital base.

The amount of goodwill we carry in our
consolidated accounts may be impacted by business and market
conditions. In particular, we currently carry an amount of
EUR 202 million in goodwill primarily related to our
United States operations, as a result of the acquisition of
Partner Re Life in 2002, Sorema North America in 2001 and
Allstate Re in 1996.

16



---



##### Table of Contents



According to FAS 142, the Group performs the
required annual assessment of goodwill during the fourth quarter
(annual closing); however, this norm requires for an additional
test to be performed during the year in the occurrence of some
events or circumstances change that would more likely than not
reduce the fair value of a reporting unit below its carrying
amount. Thanks to the Groups successful capital increase
completed in January 2004, which restored the Groups
positive financial situation and convinced the insurance
brokers, at the end of 2003, to place the Group back on the list
of reinsurers that their clients should use, the Group has
managed to maintain its various ratings to an appropriate level
to support a significant portion of the Groups business.
Should any adverse significant change occur during 2004, the
Group would need to perform an impairment assessment of its
goodwill before the regular fourth quarter assessment. If the
goodwill is determined to be impaired, the amount of the
goodwills write off will impact the Groups results.

Other assets we carry are subject to review. For
example, as of December 31, 2003 we had a total of
EUR 17 million in deferred tax assets and
EUR 56 million in deferred tax liabilities compared to
a total of EUR 438 million in deferred tax assets and
EUR 224 million in deferred tax liabilities at
December 31, 2002. The calculation of deferred tax assets
and liabilities is based on applicable tax legislation and
accounting standards and the future recoverability of these
deferred tax assets depend on the performance of each entity. At
each annual financial statement closing, we are required to
assess the need for a valuation allowance of our deferred tax
assets. Because we have experienced three consecutive annual
losses, the criteria are more severe and future taxable income
cannot be used. As a result at December 31, 2003, we had to
write down all of the deferred tax assets related to SCOR US and
SCOR Paris, resulting in a charge of EUR 385 million.

The costs of acquiring new business, including
commissions and underwriting expenses, are deferred and
amortized as deferred acquisition costs, or DAC. In general, DAC
are amortized in proportion to the profits expected to be
generated over the life of the underlying contracts. The
assumptions we make with respect to the recoverability of DAC
are therefore affected by such factors as operating performance,
market conditions and persistency of underlying life policies.
If the assumptions on which recoverability of DAC is based prove
to be incorrect, it could become necessary to accelerate its
amortization, which could have a material adverse impact on our
financial condition and results of operations.




Item 4. Information on the
Company

A. BUSINESS OVERVIEW

General

SCOR is a French société anonyme with
its registered office at 1, avenue du Général de
Gaulle, 92074 Paris-La Défense Cedex, France, phone
number : 33.(0)1.46.98.70.00

SCOR provides treaty and facultative reinsurance
on a worldwide basis to Property-Casualty and Life insurers. In
2003, the Group had net written premiums of
EUR 2,988 million, which management believes makes it
the largest French reinsurer, one of the five largest European
reinsurers and one of the worlds ten largest reinsurers,
in each case based on managements estimate of the 2003 net
written premiums of other major international reinsurers and
excluding intra-group business.

SCOR operates in 19 countries through its
subsidiaries, branches and representative offices.

17



---



##### Table of Contents



Recent Developments

In June 2003, the SCOR Group acquired a 6.67%
stake in IRP Holdings, thus increasing its ownership interest in
IRP Holdings from 46.68% as of March 31, 2003 to 53.35% as
of June 30, 2003.

In accordance with the shareholders agreement
dated December 28, 2001 entered into upon the creation of
IRP Holdings, the exit of IRPs minority shareholder will
be completed by May 31, 2005. However, under certain
circumstances, the minority shareholder may elect to delay the
exit for one year. SCOR may acquire the shares held by the
minority shareholder either with existing or newly-issued SCOR
shares or with cash.

For more information on IRP, see
Item 9.A The Offer and Listing  IRP
and Item 8.A Consolidated Statements and Other
Financial Information  Legal Proceedings.

18



---



##### Table of Contents



INDUSTRY OVERVIEW

Principles

Reinsurance is an arrangement in which a company,
the reinsurer, agrees to indemnify an insurance company, the
ceding company, against all or a portion of the primary
insurance risks underwritten by the ceding company under one or
more insurance contracts. Reinsurance can provide a ceding
company with several benefits, including a reduction in net
liability on individual risks, catastrophe protection from large
or multiple losses and assistance in maintaining acceptable
financial ratios. Reinsurance also provides a ceding company
with additional underwriting capacity by permitting it to accept
larger risks and write more business than would be possible
without a concomitant increase in capital and surplus.
Reinsurance, however, does not discharge the ceding company from
its liability to policyholders.

Reinsurance provides three essential functions,
as well as a number of additional services to customers.



| |   |                                                                                                                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | First, reinsurance helps to stabilize direct
    insurers earnings when unusual and major events occur, by
    assuming the high layers of these risks or relieving them of
    accumulated individual exposures.                                                                                                                                      
|
| |  | Reinsurance allows insurers to increase the
    maximum amount they can insure for a given loss or category of
    losses-by enabling them to underwrite a greater number of risks,
    or larger risks, without unduly over-burdening their
    administrative expenses or their need to cover their solvency
    margin, and hence their capital base.
|
| |  | Reinsurance makes substantial quantities of
    liquidity available to insurers in the event of major loss
    events, which enables the latter to manage their assets more
    predictably and thus more profitably.                                                                                                                                   

In addition, reinsurers also:



| |   |                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | help ceding companies define their reinsurance
    needs and devise the most effective reinsurance plan;                                                              
|
| |  | supply a wide array of support services,
    particularly in terms of technical training, organization,
    accounting and information technology;                    
|
| |  | provide expertise in certain highly specialized
    areas such as the analysis of complex risks and risk pricing;                                                     
|
| |  | enable ceding companies to build up their
    business even if they are undercapitalized, particularly in
    order to launch new products requiring heavy investment.

Types of Reinsurance

Treaty and Facultative
Reinsurance

The two basic types of reinsurance arrangements
are treaty and facultative reinsurance. In treaty reinsurance,
the ceding company is obligated to cede and the reinsurer is
obligated to assume a specified portion of a type or category of
risks insured by the ceding company. Treaty reinsurers,
including the SCOR Group, do not separately evaluate each of the
individual risks assumed under their treaties and, consequently,
after a review of the ceding companys underwriting
practices, are largely dependent on the original risk
underwriting decisions made by the ceding primary policy
writers. Such dependence subjects reinsurers in general,
including the Group, to the possibility that the ceding
companies have not adequately evaluated the risks to be
reinsured and, therefore, that the premiums ceded in connection
therewith may not adequately compensate the reinsurer for the
risk assumed. The reinsurers evaluation of the ceding
companys risk management and underwriting practices as
well as claims settlement practices and procedures, therefore,
will usually impact the pricing of the treaty.

In facultative reinsurance, the ceding company
cedes and the reinsurer assumes all or part of the risk under a
single insurance contract. Facultative reinsurance is negotiated
separately for each insurance contract that is reinsured.
Facultative reinsurance normally is purchased by ceding
companies for individual risks not covered by their reinsurance
treaties, for amounts in excess of the monetary limits of their
reinsurance treaties and for unusual risks. Underwriting
expenses and, in particular, personnel costs, are higher
relative to premiums written on facultative business because
each risk is individually underwritten and administered. The
ability to separately

19



---



##### Table of Contents



evaluate each risk reinsured, however, increases
the probability that the underwriter can price the contract to
more accurately reflect the risks involved.


Proportional and Non-Proportional
Reinsurance

Both treaty and facultative reinsurance can be
written on a proportional, or pro rata, basis or a
non-proportional, or excess of loss, basis. With respect to
proportional or pro rata reinsurance, the reinsurer, in return
for a predetermined portion or share of the insurance premium
charged by the ceding company, indemnifies the ceding company
against a predetermined portion of the losses and loss
adjustment expenses (LAE) of the ceding company under the
covered insurance contract or contracts. In the case of
reinsurance written on a non-proportional, or excess of loss
basis, the reinsurer indemnifies the ceding company against all
or a specified portion of losses and LAE in excess of a
specified amount, known as the ceding companys retention
or reinsurers attachment point, subject to a negotiated
reinsurance contract limit.

Although the frequency of losses under a pro rata
reinsurance contract is usually greater than on an excess of
loss contract, generally the loss experience is more predictable
and the terms and conditions of a pro rata contract can be
structured to limit aggregate losses from the contract. A pro
rata reinsurance contract therefore does not necessarily require
that a reinsurance company assume greater risk exposure than on
an excess of loss contract. The predictability of the loss
experience may better enable underwriters to price such business
accurately in light of the risk assumed, therefore reducing the
volatility of results.

Excess of loss reinsurance is often written in
layers. One or a group of reinsurers accepts the risk just above
the ceding companys retention up to a specified amount, at
which point that reinsurer or another reinsurer or a group of
reinsurers accepts the excess liability up to an additional
specified amount or such liability reverts to the ceding
company. The reinsurer taking on the risk just above the ceding
companys retention layer is said to write working layer or
low layer excess of loss reinsurance. A loss that reaches just
beyond the ceding companys retention will create a loss
for the lower layer reinsurer, but not for the reinsurers on the
higher layers. Loss activity in lower layer reinsurance tends to
be more predictable than that in higher layers due to a greater
historical frequency, and therefore, like pro rata reinsurance,
better enables underwriters and actuaries to more accurately
price the underlying risks.

Premiums payable by the ceding company to a
reinsurer for excess of loss reinsurance are not directly
proportional to the premiums that the ceding company receives
because the reinsurer does not assume a direct proportionate
risk. In contrast, premiums that the ceding company pays to the
reinsurer for pro rata reinsurance are proportional to the
premiums that the ceding company receives, consistent with the
proportional sharing of risk. In addition, in pro rata
reinsurance the reinsurer generally pays the ceding company a
ceding commission. The ceding commission is usually based on the
ceding companys cost of acquiring the business being
reinsured (commissions, premium taxes, assessments and
miscellaneous administrative expense) and also may include a
profit factor for producing the business.

Retrocession

Reinsurers typically purchase reinsurance to
cover their own risk exposure or to increase their capacity.
Reinsurance of a reinsurers business is called a
retrocession. Reinsurance companies cede risks under
retrocessional agreements to other reinsurers, known as
retrocessionaires, for reasons similar to those that cause
primary insurers to purchase reinsurance: to reduce net
liability on individual risks, protect against catastrophic
losses, stabilize financial ratios and obtain additional
underwriting capacity.

Broker vs. Direct Reinsurance

Reinsurance can be written through professional
reinsurance brokers or directly from ceding companies. From a
ceding companys perspective, both the broker market and
the direct market have advantages and disadvantages. A ceding
companys selection of one market over the other will be
influenced by its perception of such advantages and
disadvantages relative to the reinsurance coverage being placed.
For example, broker coverages usually involve a number of
participating reinsurers that have been assembled by a broker,
each assuming a specified portion of the risk being reinsured. A
ceding company may find it easier to arrange such coverage in a

20



---



##### Table of Contents



difficult underwriting environment where risk
capacity is constrained and reinsurers are seeking to limit
their risk exposure. In contrast, direct coverage usually are
structured by ceding companies directly with one or a limited
number of reinsurers. The relative amount of brokered and direct
business written by the Groups subsidiaries varies
according to local market practice.


21



---



##### Table of Contents



PRODUCTS AND MARKETS

General

Our operations are organized in the following
four business segments: Non Life, Life/Accident &
Health, Alternative Reinsurance and Credit, Surety &
Political Risks. Non Life is further organized into two
sub-segments: Property-Casualty Treaty and Large Corporate
Accounts written on a facultative basis (SCOR Business Solutions
or SBS). Within each segment, we write various classes of
business, as indicated below. Responsibilities and reporting
within the Group are established based on this structure, and
our consolidated financial statements reflect the activities of
each segment.

The following table sets forth our gross premiums
written by segment and class of business:

|                                 |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |     | 
|-------------------------------- | ------------------------------ | ----------------------- | ----- | ----- |  | ---- | -- | --- |  | --- | ----- | ----- |  |  | -- | --- |  |  | ----- | ----- |  |  | -- | --- | 
|                                 |                                |                        
|                                 |                                | Year Ended December 31,
|                                 |                                |                        
|                                 |                                |                         |       |       |  |     
|                                 |                                | 2001                    |       | 2002  |  | 2003
|                                 |                                |                         |       |       |  |     
|                                 |                                | EUR                     |       | %     |  | EUR  |    | %   |  | EUR |       | %    
|                                 |                                |                         |       |       |  |      |    |     |  |     |       |      
|                                 |                                |                        
|                                 |                                | (EUR, in millions)     
|By segment of business           |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |    
|Non Life                         |                                |                         | 2,480 |       |  |      | 56 |     |  |     | 3,106 |       |  |  | 63 |     |  |  | 2,259 |       |  |  | 68 |    
|Life/Accident Health             |                                |                         | 1,062 |       |  |      | 24 |     |  |     | 1,218 |       |  |  | 25 |     |  |  | 983   |       |  |  | 30 |    
|Alternative Reinsurance          |                                |                         | 712   |       |  |      | 16 |     |  |     | 467   |       |  |  | 10 |     |  |  | (1    | )     |  |  |    |    
|Credit, Surety & Political Risks |                                |                         | 175   |       |  |      | 4  |     |  |     | 123   |       |  |  | 3  |     |  |  | 65    |       |  |  | 2  |    
|                                 |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |    
|                                 | Total                          |                         |       | 4,429 |  |      |    | 100 |  |     |       | 4,914 |  |  |    | 100 |  |  |       | 3,306 |  |  |    | 100 | 
|                                 |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |    
|By segment and class of business |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |    
|Property-Casualty Treaty         |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |    
|Property                         |                                |                         | 796   |       |  |      | 41 |     |  |     | 1,139 |       |  |  | 52 |     |  |  | 972   |       |  |  | 58 |    
|Casualty                         |                                |                         | 1,039 |       |  |      | 55 |     |  |     | 920   |       |  |  | 42 |     |  |  | 609   |       |  |  | 36 |    
|Marine, Space and Transportation |                                |                         | 61    |       |  |      | 3  |     |  |     | 77    |       |  |  | 4  |     |  |  | 63    |       |  |  | 4  |    
|Construction                     |                                |                         | 26    |       |  |      | 1  |     |  |     | 40    |       |  |  | 2  |     |  |  | 46    |       |  |  | 2  |    
|                                 |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |    
|                                 | Total Property-Casualty Treaty |                         |       | 1,922 |  |      |    | 100 |  |     |       | 2,176 |  |  |    | 100 |  |  |       | 1,690 |  |  |    | 100 | 
|                                 |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |    
|Large Corporate Accounts (SBS)   |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |    
|Property                         |                                |                         | 266   |       |  |      | 48 |     |  |     | 437   |       |  |  | 47 |     |  |  | 329   |       |  |  | 58 |    
|Casualty                         |                                |                         | 181   |       |  |      | 32 |     |  |     | 278   |       |  |  | 30 |     |  |  | 85    |       |  |  | 15 |    
|Marine, Space and Transportation |                                |                         | 38    |       |  |      | 7  |     |  |     | 79    |       |  |  | 8  |     |  |  | 36    |       |  |  | 6  |    
|Construction                     |                                |                         | 73    |       |  |      | 13 |     |  |     | 136   |       |  |  | 15 |     |  |  | 119   |       |  |  | 21 |    
|                                 |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |    
|                                 | Total Large Corporate Accounts |                         |       | 558   |  |      |    | 100 |  |     |       | 930   |  |  |    | 100 |  |  |       | 569   |  |  |    | 100 | 
|                                 |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |    
|Total Non Life                   |                                |                         | 2,480 |       |  |      |    |     |  |     | 3,106 |       |  |  |    |     |  |  | 2,259 |       |  |  |    |    
|Life/Accident & Health           |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |    
|Annuity-based                    |                                |                         | 121   |       |  |      | 11 |     |  |     | 182   |       |  |  | 15 |     |  |  | 198   |       |  |  | 18 |    
|Individual & group life          |                                |                         | 527   |       |  |      | 50 |     |  |     | 493   |       |  |  | 40 |     |  |  | 384   |       |  |  | 46 |    
|Accident                         |                                |                         | 81    |       |  |      | 8  |     |  |     | 100   |       |  |  | 8  |     |  |  | 132   |       |  |  | 12 |    
|Disability                       |                                |                         | 57    |       |  |      | 5  |     |  |     | 56    |       |  |  | 5  |     |  |  | 50    |       |  |  | 4  |    
|Health                           |                                |                         | 229   |       |  |      | 22 |     |  |     | 200   |       |  |  | 16 |     |  |  | 105   |       |  |  | 9  |    
|Unemployment                     |                                |                         | 12    |       |  |      | 1  |     |  |     | 14    |       |  |  | 1  |     |  |  | 28    |       |  |  | 3  |    
|Long-term care                   |                                |                         | 35    |       |  |      | 3  |     |  |     | 173   |       |  |  | 14 |     |  |  | 86    |       |  |  | 8  |    
|                                 |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |    
|                                 | Total Life/Accident & Health   |                         |       | 1,062 |  |      |    | 100 |  |     |       | 1,218 |  |  |    | 100 |  |  |       | 983   |  |  |    | 100 | 
|                                 |                                |                         |       |       |  |      |    |     |  |     |       |       |  |  |    |     |  |  |       |       |  |  |    |    

Non Life

The Non Life segment is divided into two
operational subsegments: Property Casualty Treaty and
Large Corporate Accounts.

22



---



##### Table of Contents



The Property-Casualty Treaty sub-segment includes
the proportional (pro rata) and non-proportional (excess of loss
and stop loss) treaty classes of property, marine, space and
transportation, and construction reinsurance.

Property.The
Groups proportional property treaty business provides
reinsurance coverage for underlying insured property damage or
business interruption losses resulting from fire or other perils
in the homeowners, personal auto, industrial and general
commercial property lines.

Non-proportional property treaty business covers
the same lines and risks, but some specialized excess of loss
covers provide primarily catastrophe loss protection to cedents.

Casualty.The
Groups casualty proportional and non-proportional treaty
reinsurance includes auto liability and general third party
liability coverage, as well as the liability components of both
homeowners and general commercial coverage. Auto liability
reinsurance covers bodily injury and third party property and
other liability risks arising from both private passenger and
commercial fleet auto coverage.

Marine, Space and
Transportation.The Groups
marine, space and transportation treaty business relates
primarily to ocean and inland marine risk, as well as a limited
amount of commercial aviation and space coverage.

Construction.The
Groups construction treaty business, primarily written on
a proportional basis, includes inherent defect insurance covers,
also known as decennial insurance. As required by French law,
decennial insurance covers major structural defects and collapse
for ten years after completion of construction of a building.

The second sub-segment of the Non Life segment is
Large Corporate Accounts (which we refer to as SCOR Business
Solutions or SBS). The Groups large facultative business
is written by specialized underwriting teams organized under
SCOR Business Solutions. This structure was reorganized in 2000
around the activities of corporate buyers seeking global risk
financing solutions that combine traditional risk covers and
alternative financing. It shares risks with cedents for large,
complex industrial or technical risks, such as automotive
assembly lines, semiconductor manufacturing plants, oil and gas
or chemical facilities, oil and gas exploration and production
sites, energy facilities, and boiler and machinery installations.

Large facultative business is primarily written
in property, as well as, to a lesser degree, in the liability,
transportation, space and construction classes of business.
Casualty facultative also encompasses commercial fleet auto
coverage, workers compensation, fraud and commercial third party
liabilities.

Space and transportation facultative coverage is
written particularly in the areas of space and offshore risks,
and requires the application of sophisticated, highly technical
risk analysis and underwriting criteria. Offshore business
relates to offshore oil and gas exploration and operations,
while space business relates to satellite assembly, launch and
coverage for commercial space programs.

Construction facultative coverage is typically
provided against risk of loss due to physical damage caused
during the construction period as well as, in certain cases,
business interruption or other financial losses incurred as a
result of completion delays for large and complex construction
and industrial projects. The Group has acted or is acting as
lead or principal reinsurer on several world scale
infrastructure projects. For these leading projects, SCOR takes
an active role in all phases of the development, and works with
cedents, brokers, insureds, risk managers and project sponsors
in optimizing the combination of risk management techniques and
insurance solutions.

Life/Accident & Health

Life/Accident & Health reinsurance
includes life reinsurance products, as well as personal casualty
reinsurance, namely accident, disability, health, unemployment
and long-term care.

Life.The
Groups Life business, written primarily on a proportional
and non-proportional treaty basis, provides life reinsurance
coverage with respect to individual and group life, reinsurance
of annuity-based products, and longevity reinsurance, to primary
life insurers and pension funds.

Accident, disability, health, unemployment and
long-term care.The personal segments
of this business are written primarily on a proportional treaty
basis.

23



---



##### Table of Contents



Alternative Risk Transfer (ART)

The Groups alternative reinsurance business
was conducted primarily out of CRP, the Groups
Bermuda-based subsidiary. It focused on three distinct products:



| |   |                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------
| |  | workers compensation, motor insurance and
    general liability claims in the U.S. market;                                                         
|
| |  | using alternative insurance techniques primarily
    temperature-based derivatives;                                                                 
|
| |  | developing single integrated risk transfer
    instruments to protect against combinations of fortuitous
    uncertainties with financial exposures.

Reported incurred loss ratios on CRPs
prospective workers compensation portfolio for accident years
1999 and 2000 began to deteriorate during the first half of 2002
and this trend continued for the remainder of 2002.
Consequently, a decision was made in the latter part of 2002 to
cease underwriting. In January 2003, the Group decided to
transfer CRP to run-off status and in April 2003, explored the
sale of CRP. In June 2003, SCOR began the process of commuting
CRPs portfolio and had completed commutations by
December 31, 2003 on about 60% of the portfolio, compared
to year-end 2002, and is still seeking further commutations.

Credit, Surety and Political Risks

SCORs credit, surety and political risks
business is conducted by teams based primarily in Europe and to
a lesser extent in the United States. In credit insurance
contracts, the insurer covers risks of loss due to non-payment
of debts, while in surety insurance contracts, the insurer acts
as guarantor to pay (or make pay) a debt. Political risks
insurance covers risks of loss as a result of measures taken by
governments or governmental entities jeopardizing a sales
contract or an obligation.

Distribution by geographic area

In 2003, SCOR generated approximately 58% of its
gross premiums written in Europe, with significant market
positions in France, Germany, Spain and Italy, 25% of its gross
premiums written in North America, including Bermuda and the
Caribbean region and 17% of its gross premiums written in Asia.

The following table shows the distribution of the
Groups gross premiums written by geographic area:

Gross Premiums Written by Geographic
Area(1)

|                                     |  |                           |       |      |  |      |      |   |  |     |       |   |  |  |      |  |  |  |       |  |  |  |      | 
|------------------------------------ |  | ------------------------- | ----- | ---- |  | ---- | ---- | - |  | --- | ----- | - |  |  | ---- |  |  |  | ----- |  |  |  | ---- | 
|                                     |  |                          
|                                     |  | Year ended December 31,  
|                                     |  |                          
|                                     |  |                           |       |      |  |     
|                                     |  | 2001                      |       | 2002 |  | 2003
|                                     |  |                           |       |      |  |     
|                                     |  | EUR                       |       | %    |  | EUR  |      | % |  | EUR |       | %
|                                     |  |                           |       |      |  |      |      |   |  |     |       |  
|                                     |  |                          
|                                     |  | (EUR figures in millions)
|France                               |  |                           | 586   |      |  |      | 13%  |   |  |     | 840   |   |  |  | 17%  |  |  |  | 720   |  |  |  | 22%  | 
|Europe (Outside of France)           |  |                           | 1,083 |      |  |      | 24%  |   |  |     | 1,377 |   |  |  | 28%  |  |  |  | 1,205 |  |  |  | 36%  | 
|Total Europe                         |  |                           | 1,669 |      |  |      | 37%  |   |  |     | 2,217 |   |  |  | 45%  |  |  |  | 1,925 |  |  |  | 58%  | 
|North America                        |  |                           | 2,229 |      |  |      | 51%  |   |  |     | 1,934 |   |  |  | 39%  |  |  |  | 822   |  |  |  | 25%  | 
|Asia-Pacific and Other International |  |                           | 531   |      |  |      | 12%  |   |  |     | 763   |   |  |  | 16%  |  |  |  | 559   |  |  |  | 17%  | 
|                                     |  |                           |       |      |  |      |      |   |  |     |       |   |  |  |      |  |  |  |       |  |  |  |      | 
|Total                                |  |                           | 4,429 |      |  |      | 100% |   |  |     | 4,914 |   |  |  | 100% |  |  |  | 3,306 |  |  |  | 100% | 
|                                     |  |                           |       |      |  |      |      |   |  |     |       |   |  |  |      |  |  |  |       |  |  |  |      | 






|    |                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Premiums are allocated by geographic area based
    on information received by the Group from its cedents concerning
    the primary location of the cedents underlying insured
    risks.

24



---



##### Table of Contents



RATINGS

Our current Group ratings by A.M. Best Co.
(A.M. Best), Fitch Ratings, and S&P are as
follows:

|                   |  |                           |  |       |  |                
|------------------ |  | ------------------------- |  | ----- |  | ---------------
|A.M. Best          |  | Financial Strength rating |  | B++   |  | Very Good      
|(January 4, 2004)  |  | Long-term debt            |  | bb+   |  | Speculative    
|                   |  | Short-term debt           |  | AMB-2 |  | Adequate       
|S&P                |  | Financial strength rating |  | BBB+  |  | Good           
|(December 2, 2003) |  | Long-term debt            |  | BBB+  |  | Adequate       
|                   |  | Short-term debt           |  | A-2   |  | Satisfactory   
|Fitch Ratings      |  | Financial strength rating |  | BB+   |  | Moderately weak
|(January 12, 2004) |  | Long-term debt            |  | BB    |  | Speculative    
|                   |  | Short-term debt           |  | B     |  | Speculative    

On January 4, 2004, A.M. Best changed the
implications of the under review status of the B++ (Very Good)
financial strength rating of SCOR and its core subsidiaries from
developing to stable.

On December 2, 2003, Standard &
Poors Ratings Services raised its long-term counterparty
credit and insurer financial strength ratings on SCOR and
subsidiaries to BBB+ from BBB-. In
addition, Standard & Poors raised its short-term
counterparty credit and commercial paper ratings on SCOR to
A-2 from A-3. All ratings were removed
from CreditWatch, where they had been placed originally on
June 17, 2003. The outlook on all Group entities is
currently stable.

On January 12, 2004, Fitch Ratings affirmed
the rating of SCOR Groups Insurer Financial Strength (IFS)
at BB+ and the long-term and short-term ratings of
SCOR at BB and B, respectively, removing
them from Fitchs Rating Watch Negative. The outlooks for
these ratings are currently stable. Since January 2004, the
Fitch rating has been unsolicited.

25



---



##### Table of Contents



UNDERWRITING, RISK MANAGEMENT AND
RETROCESSION

Underwriting

Consistent with its strategy of selective market
and business segment development, the Group seeks to maintain a
portfolio of business risks that is well diversified both
geographically and by line and class of business. In addition,
the Company has centrally established underwriting guidelines
for its subsidiary companies to ensure the diversification and
management of risk with respect to its business by line and
class of business.

The Groups underwriting is conducted
through Property-Casualty treaty and facultative, and Life
underwriting teams, with the support of technical departments
such as actuarial, claims, legal, retrocession and accounting.

Both underwriting and support staffs are located
in the Groups Paris headquarters as well as in local
subsidiaries and branches, although some support functions, like
retrocession, have been centralized at the head office level.
While underwriting is carried out at decentralized (subsidiary
or division) level, the Groups overall exposure to
particular risks and in particular geographic zones is centrally
monitored from Paris.

Facultative underwriters belong to the
Groups SCOR Business Solutions integrated division,
which operates on a worldwide basis, from four underwriting
centers (in Paris, London, New York and Singapore) and with
underwriting entities located in the Groups subsidiaries
and branches. This division is dedicated to large corporation
business and is geared to provide its clients with solutions for
the conventional and/or alternative transfer of their risks.

Life underwriting within the Group is under the
worldwide responsibility of SCOR VIE. Our Life clients are life
or accident and health insurance companies worldwide. They are
served by specialized Life underwriters familiar with the
specific features of each of the markets in which they operate,
including mortality tables, morbidity risks, disability and
pension coverage, product development, financing and specific
market coverage and policy conditions. Life underwriting
consists of the consideration of many factors, including the
type of risks to be covered, ceding company retention levels,
product and pricing assumptions and the ceding companys
underwriting standards and financial strength.

Life underwriters worldwide are supported by the
Life Underwriting Department (LUD), which
coordinates underwriting activities at the group level and
conducts underwriting audits in the operating units, and by the
Technical and Development Department (TDD),
responsible for pricing tools, reserving rules, product
development and retrocession. These two departments set in
common the underwriting guidelines, which are approved by the
Underwriting Innovation Committee, comprising SCOR Vie General
Management, and the heads of underwriting units LUD and TDD.
This Committee periodically reviews and updates the level of
underwriting authority (there are four levels) delegated to each
underwriter.

Property-Casualty treaty underwriters manage
client relationships and offer reinsurance support after a
careful review and assessment of the cedents underwriting
policy, portfolio profile, exposures and management procedures.
They are responsible for writing treaty business as well as
small facultative risks in their respective territories within
the limits of their delegated underwriting authority and the
scope of underwriting guidelines approved by the Group General
Management.

The underwriting teams are supported by a
technical underwriting unit based in the Group head office. The
technical underwriting unit is providing worldwide treaty and
small facultative underwriting guidelines, the delegation of
capacity, underwriting support to specific classes or individual
risks when required, ceding company portfolio analyses and risk
surveys.

The underwriting teams are also supported by a
Group actuarial unit responsible for pricing and reserving
methods and tools to be applied by the actuarial units based in
the treaty operating units. The Group audit department conducts
frequent underwriting audits in the operating units.

Catastrophe Risk and Exposure
Controls

Like other reinsurance companies, SCOR is exposed
to multiple insured losses arising out of a single occurrence,
whether a natural event such as a hurricane, flood or an
earthquake, or another man-made catastrophe such as an

26



---



##### Table of Contents



explosion or fire at a major industrial facility
or an act of terrorism. Any such catastrophic event could
generate insured losses in one or many of SCORs lines of
business.


In 2003, SCOR experienced no major natural
catastrophe losses, the largest one being the storms in the
midwest of the U.S. for a net cost of
EUR 30 million.

During the summer of 2002, the catastrophic
floods in Central Europe affecting the Czech Republic, Germany
and Austria produced a pre-tax catastrophe loss for the Group,
net of retrocession, of EUR 95 million. Typhoon Rusa
in Korea in August 2002, the flooding in the south-east of
France in September 2002 and the windstorm Jeannet in northern
Europe in October 2002 did not have a material impact on SCOR.

The consequences of the earthquakes, which
occurred in January 2001 in El Salvador and in India, in
February 2001 in the state of Washington, U.S., and in March
2001 in Japan, were limited due to either a relatively low
involvement of the Group in the damaged regions or limited
overall insured and reinsured losses.

SCOR carefully evaluates its potential natural
event and other risk accumulation for its entire property
portfolio at the head office level, including exposures
underwritten by its subsidiaries worldwide. Pursuant to overall
guidelines and procedures established from the Paris
headquarters, each subsidiary monitors its own accumulation for
the relevant country or region, and the Accumulation Department
based in Paris centrally consolidates the results for the Group.

SCOR employs various techniques, depending upon
the region and peril, to assess and manage its accumulated
exposure to property natural catastrophe losses in any one
region of the world and quantifies that exposure in terms of its
potential maximum loss. SCOR defines this as its anticipated
maximum loss, taking into account contract limits, caused by a
single catastrophe affecting a broad contiguous geographic area,
such as that caused by a windstorm, a hurricane or an
earthquake, occurring within a given return period. SCOR
estimates that its current Group-wide potential maximum loss
from natural catastrophe events, before retrocessional
reinsurance, with the most significant exposures relating to
earthquake risks are located in Japan, Italy, Israel and Turkey
and that its wind and other weather-related risks are
concentrated in Europe and Japan.

The following table summarizes the main Group
identified natural catastrophe exposures by geographic area:

|                                           |  |                                                           
|------------------------------------------ |  | ----------------------------------------------------------
|Range of Potential Catastrophe Exposure(1) |  | Subject countries as of December 2003                     
|                                           |  |                                                           
|(EUR, in millions)                         |  |                                                           
|100 to 200                                 |  | Canada, Colombia, Greece, Peru, United States             
|200 to 300                                 |  | Chile, Israel, Italy, Mexico, Portugal, Taiwan,
    Turkey
|300 and over                               |  | Japan, Europe                                             






|    |                                                                                               
|--- | ----------------------------------------------------------------------------------------------
|(1) | Calculated on a potential maximum loss basis for
    a given return period before reinsurance.

The results are based on proprietary software.

For more than 15 years, SCOR has been using
its own internally developed and regularly updated software
program for evaluating earthquake potential maximum losses for
20 countries. The methods utilized for the simulation of the
events and of their consequential damages have been upgraded
into SERN (Système dEvaluation des Risques
Naturels or Natural Risks Evaluation System), an
enhancement of existing models initiated in 1997 by SCOR and
partners from prominent research institutes and recognized
private IT companies. This software program is directly linked
to our worldwide database and available to all of SCORs
subsidiaries and operating units. As of December-end 2003, SERN
is operational for earthquake exposure in Australia, Algeria,
Canada, Chile, Colombia, Greece, Indonesia, Israel, Jordan,
Italy, Japan, Mexico, New Zealand, Peru, Philippines, Portugal,
Taiwan, the United States and Venezuela. SERN modeling
development for Turkey is in progress and estimates of
earthquake exposure and related potential maximum losses are
obtained from SCORs older proprietary system. For
countries such as Japan and the United States, SCORs
analyses are compared with other calculations performed using
programs developed by specialized independent consultants.

The potential accumulation due to hurricanes in
the United States is analyzed in a similar fashion, using
third-party software and simulation tools. The potential
accumulation due to typhoons in Japan is analyzed using maximum
liability for non proportional treaties and scenario based on
Mireille (major typhoon in Japan in 1991)

27



---



##### Table of Contents



for prorata treaties. European windstorm
accumulation in the treaty portfolio is also assessed by SERN,
which has been adapted to analyze windstorm events and is now
operational in eight European countries, reproducing past
events. SCOR continues to refine its loss estimation
methodologies internally with the assistance of outside
consultants.


The following table sets forth certain data
regarding the Groups catastrophe loss experience in each
of the three years ended December 31, 2003:

|                                                                   |  |                    |     |      |  |      |    |     |  |  |    |    
|------------------------------------------------------------------ |  | ------------------ | --- | ---- |  | ---- | -- | --- |  |  | -- | ---
|                                                                   |  |                   
|                                                                   |  | Year Ended        
|                                                                   |  | December 31,      
|                                                                   |  |                   
|                                                                   |  | 2001               |     | 2002 |  | 2003
|                                                                   |  |                    |     |      |  |     
|                                                                   |  |                   
|                                                                   |  | (EUR, in millions)
|Number of catastrophes(1)                                          |  |                    | 1   |      |  |      | 1  |     |  |  | 4  |    
|Incurred losses and LAE from catastrophes, gross                   |  |                    | 670 | (2)  |  |      | 95 | (3) |  |  | 78 | (4)
|Incurred losses and LAE from catastrophes, net of
    retrocession |  |                    | 215 | (2)  |  |      | 94 | (3) |  |  | 72 | (4)
|Group loss ratio(5)                                                |  |                    | 102 | %    |  |      | 97 | %   |  |  | 99 | %  
|Group loss ratio excluding catastrophes                            |  |                    | 95  | %    |  |      | 94 | %   |  |  | 96 | %  






|    |                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | A catastrophe is defined by SCOR as an event
    involving multiple insured risks causing pre-tax losses, net of
    reinsurance, of EUR 10 million or more.
|   
|(2) | World Trade Center.                                                                                                                                         
|   
|(3) | Catastrophic floods in Central Europe.                                                                                                                      
|   
|(4) | Floods in Italy and Southwestern France, storms
    in the midwest (USA) and typhoon Maemi in South Korea.                                                  
|   
|(5) | Loss incurred prior to discount on workers
    compensation reserves on North American operations expressed as
    a percentage of premiums earned.         

Claims

SCORs Group Claims Division, created in
April 2003, has the mission to implement a general claims
handling policy for the Group and to put in place worldwide
control and reporting procedures.

The claims handling function is performed by the
Group Claims Division supported by the subsidiaries claims
departments, which initially process and monitor individual
reported claims. In addition to managing claims, periodic audits
are conducted on specific claims and lines of business;
procedures and claims processing are reviewed at the offices of
ceding companies with the aim to evaluate adjusting techniques,
reserves valuation and adequacy, quality of the staff. Technical
and legal assistance is provided to underwriters before and
after accepting certain risks. Following these audit and
assistance missions, when needed, recommendations are given to
underwriters, claims adjusters and management.

The Group Large Claims Committee chaired by the
Group General Manager reviews on a monthly basis all large
claims, including litigation claims and asbestos and
environmental claims. Its main objectives are to review the
consolidated impact of such claims and to strengthen the
monitoring of large claims management across the lines of
business and countries.

Retrocessional Reinsurance

The Group retrocedes a portion of the risks it
underwrites in order to control its exposures and losses, and
pays premiums based upon the risks and exposures of its
facultative and treaty acceptances, subject to such retrocession
reinsurance. Retrocession reinsurance is subject to
collectibility in all cases where the original business accepted
by the Group suffers from a loss. The Group remains primarily
liable to the direct insurer on all risks reinsured although the
retrocessionaire is liable to SCOR to the extent of the
reinsurance limits purchased. SCOR then monitors the financial
condition of retrocessionaires on an ongoing basis. In recent
years, the Group has not experienced any material difficulties
in collecting recoverable amounts from its retrocessional
reinsurers. SCOR reviews its retrocession arrangements
periodically, to ensure that they fit closely to the development
of its business.

28



---



##### Table of Contents



The Group utilizes a variety of retrocession
agreements with non-affiliated retrocessionaires to control its
exposures to large property losses. The overall program set in
place on an annual basis provides coverage for up to three major
events within one occurrence year. A major event is likely to be
a natural catastrophe such as an earthquake, a windstorm, a
hurricane or a typhoon in a region where the Group has aggregate
exposures stemming from the business written.

Had a major catastrophe occurred resulting in a
loss equal to the Groups natural perils potential maximum
exposure in 2003, management estimates that the net loss before
tax for SCOR in 2003, including the cost of reinstatement
retrocession premium (excluding any reinstatement premium
collected from ceding companies) would have been EUR
200 million.

IRP was established in December 2001 to reinsure
(as a retrocessionaire) certain of SCORs non-Life
reinsurance business on a quota share basis from 2002 forward.
The retrocession rate in 2003 was 25%. SCORs initial
ownership interest in IRP was 41.68%, and was increased to
53.35% in 2003. IRP was fully consolidated from fiscal year 2001.

In January 2002, the Group purchased a USD
150 million multi-year reinsurance cover, to provide
coverage against the occurrence of an earthquake in the U.S or
in Japan, or a severe windstorm in Europe, subject to a limit of
USD 100 million per occurrence. The contract, provided
by Atlas Reinsurance II p.l.c., protects SCORs
property and construction portfolio for a period of
three years. Atlas Reinsurance II p.l.c. issued two
classes of notes for a total of USD 150 million with
principal reduction contingent on the parametric model designed
by Risk Management Solutions (RMS) based on SCORs
exposure. This cover will expire on December 31, 2004.

29



---



##### Table of Contents



RESERVES

Significant periods of time may elapse between
the occurrence of an insured loss, the reporting of the loss to
the ceding company and the reinsurer and the ceding
companys payment of that loss and subsequent payments to
the ceding company by the reinsurer. To recognize liabilities
for unpaid losses, LAE and future policy benefits, insurers and
reinsurers establish reserves, which are balance sheet
liabilities representing estimates of future amounts needed to
be paid in respect of reported and not yet reported claims and
related expenses on losses that have already occurred.

The Group maintains reserves to cover its
estimated ultimate liability for losses and LAE with respect to
reported and not yet reported claims. Because reserves are
estimates of ultimate losses and LAE, management monitors
reserve adequacy over time, evaluating new information, as it
becomes known and adjusting reserves, as necessary. Management
considers many factors when setting reserves, including the
following:



| |   |                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------
| |  | information from ceding companies,                                                                                
|
| |  | historical trends, such as reserving patterns,
    loss payments, pending levels of unpaid claims and product mix,
|
| |  | internal methodologies that analyze the
    Groups experience with similar cases,                                
|
| |  | current legal interpretations of coverage and
    liability, and                                                  
|
| |  | economic conditions.                                                                                              

Based on these considerations, management
believes that adequate provision has been made for the
Groups Non-Life loss and LAE reserves, which totaled
EUR 6,330 million (net of retrocession) as of
December 31, 2003. Actual loss and LAE paid may deviate,
perhaps significantly, from such reserves. To the extent
reserves prove to be insufficient to cover actual losses and LAE
after taking into account available retrocessional coverage, the
Group would have to augment such reserves and incur a charge to
earnings which could have a material adverse effect on the
Groups consolidated financial condition, results of
operations and cash flows.

The Group Chief Reserving Actuary conducted an
appraisal of the technical reserves as at December 31,
2003, based on reports by internal and external actuaries. As a
result, and considering the strengthening of reserves recorded
during the third quarter of 2003, losses reserves at
December 31, 2003 were confirmed and adjusted only in order
to take into account developments in the fourth quarter.

General

As part of the reserving process, insurers and
reinsurers review historical data and anticipate the impact of
various factors such as legislative enactments and judicial
decisions that may tend to affect potential losses from casualty
claims, changes in social and political attitudes that may
increase exposure to losses, mortality and morbidity trends and
trends in general economic conditions. This process assumes that
past experience, adjusted for the effects of current
developments, is an appropriate basis for anticipating future
events. The reserving process implicitly recognizes the impact
of inflation and other factors affecting losses by taking into
account changes in historical claim patterns and perceived
trends. There is no precise method, however, for subsequently
evaluating the impact of any specific item on the adequacy of
reserves, because the eventual deficiency or redundancy of
reserves is affected by many factors.

The Group periodically reviews and updates its
methods of determining estimates for incurred but not yet
reported (IBNR) losses and establishing resulting reserves,
and such adjustments are currently reflected in income.
Estimation of loss reserves is a difficult process, however,
especially in view of changes in the legal and tort environment
that may impact the development of loss reserves. While the
reserving process is difficult and subjective for the ceding
companies, the inherent uncertainties of estimating such
reserves are even greater for the reinsurer, due primarily to
the longer time between the date of an occurrence and the
reporting of any attendant claims to the reinsurer, the
diversity of development patterns among different types of
reinsurance treaties or facultative contracts, the necessary
reliance on the ceding companies for information regarding
reported claims and differing reserving practices among ceding
companies. In addition, trends that have affected development of

30



---



##### Table of Contents



liabilities in the past may not necessarily occur
or affect liability development to the same degree in the
future. Thus, actual losses, LAE and future policy benefits may
deviate, perhaps significantly, from estimates of reserves
reflected in the Groups consolidated financial statements.


When a claim is reported to the ceding company,
its claims personnel establishes a case reserve for the
estimated amount of the ultimate settlement, if any, with
respect to such claim. The estimate reflects the judgment of the
ceding companys claims personnel, based on its reserving
practices. The ceding company reports the claim to the Group
entity from which it obtained the reinsurance, together with the
ceding companys suggested estimate of the claims
cost. SCOR records the ceding companys suggested reserve
and may establish additional reserves based on review by the
Groups claims department and internal actuaries. Such
additional reserves are based upon the consideration of many
factors, including coverage, liability, severity and the
Groups assessment of the ceding companys ability to
evaluate and handle the claim.

In accordance with industry practice, the Group
maintains IBNR reserves. IBNR reserves are actuarially
determined and reflect the ultimate loss amount which may have
to be paid by the Group on claims for events and circumstances
which have occurred but which have not yet been reported either
to the ceding company or to the Group, and the expected change
in the value of those claims, which have already been reported
to the Group.

In its actuarial determination of IBNR reserves,
the Group uses generally accepted actuarial reserving techniques
that take into account quantitative loss experience data,
together with, where appropriate, qualitative factors. IBNR
reserves are also adjusted to reflect changes in the volume of
business written, reinsurance contract terms and conditions, the
mix of business and claims processing that can be expected to
affect the Groups liability for losses over time. With the
exception of reserves associated with workers compensation
and CRP finite reinsurance contracts that are discounted, the
Group does not discount Non-Life reserves.

In the Life area, reserves for future policy
benefits and claims are established based upon the Groups
best estimates of mortality, morbidity, persistency and
investment income, with appropriate provision for adverse
deviation. The liabilities for future policy benefits
established by the Group with respect to individual risks or
classes of business may be greater or less than those
established by ceding companies due to the use of different
mortality and other assumptions. Reserves for policy claims and
benefits include both mortality and morbidity claims in the
process of settlement and claims that have been incurred but not
yet reported. Actual experience in a particular period may be
worse than assumed experience and, consequently, may adversely
affect the Groups operating results for such period.

In addition to loss, LAE, future policy benefits
and IBNR reserves, under French GAAP and pursuant to
applicable French insurance regulations, and in the case of
certain non-French subsidiaries, pursuant to applicable local
regulations, SCOR is required to establish certain catastrophe
equalization reserves for future catastrophes and other losses.
These reserves are generally established by setting aside in
each year a specified portion of underwriting gains, if any, for
such year, subject to specified aggregate limits based on
premium volumes in lines of business affected by catastrophes or
other events. These reserves are not recorded as liabilities in
the financial statements prepared in accordance with
U.S. GAAP. The U.S. GAAP financial statements do,
however, include an allocation of retained earnings to a
catastrophe reserve recorded as an account in
shareholders equity. Retained earnings allocated to the
catastrophe reserve represent amounts expensed as catastrophe
coverage premium expense under French GAAP but not under
U.S. GAAP. Because such amounts have been expensed for
French accounting purposes, these amounts are not distributable
as dividends and consequently have been shown as an allocation
of retained earnings in the U.S. GAAP financial statements.

Changes in Historical Reserves

The table below shows changes in historical loss
reserves, on a U.S. GAAP basis for the Groups
Property-Casualty operations for 1994 and subsequent years, net
of retrocessional reinsurance. The Groups reinsurance
contracts are generally written on an underwriting year basis
and the Group maintains its records on this same basis. As
compared to loss development tables presented on an accident
year basis by U.S. registrants, presentation on an
underwriting year basis accelerates the timing of the
presentation of loss reserve development by moving development
of losses that actually occur in an accident year subsequent to
the end of the applicable underwriting year back into such
underwriting year. As discussed in the third paragraph below,
the Companys

31



---



##### Table of Contents



underwriting year loss development data is, as a
result, not fully comparable with accident year data presented
by U.S. registrants.


The top line of the table shows the initial
estimated reserves for unpaid losses and LAE recorded at each
year-end date, as well as the amount of such initial reserve net
of amounts retroceded to reinsurers. The upper (paid) portion of
the table presents the cumulative amounts paid through each
subsequent year on those claims for which reserves were carried
as of each specific year-end. The lower (liability re-estimated)
portion shows the re-estimated amount of the previously recorded
reserves, net of retrocession, based on experience as of the end
of each succeeding year. The estimate changes as more
information becomes known about the actual claims for which the
initial reserves were carried. The cumulative
redundancy/deficiency line represents the cumulative change in
estimates since the initial reserve was established. It is equal
to the latest liability re-estimated amount less the initial
reserve.

An underwriting year reinsurance contract
reinsures losses incurred on underlying insurance policies that
begin at any time during the reinsurance contract term. This
means that, if both the underlying insurance contracts and the
reinsurance contract have twelve-month terms, the reinsurance
contract will cover underlying losses occurring over a
twenty-four month period. For example, if an underwriting year
reinsurance contract term was from January 1 to
December 31, 2003, it would cover underlying policies with
terms beginning on both January 1, 2003 and
December 31, 2003. Losses incurred on underlying policies
beginning on January 1, 2002 could occur as early as
January 1, 2003 while losses incurred on underlying
policies beginning on December 31, 2003 could occur as late
as December 30, 2004. For purposes of the loss reserve
development table, the Group has assigned all losses incurred
under reinsurance contracts written in a particular year to that
year, even though some of those losses may not have been
incurred until twelve months after the end of the year.

Since losses have been so assigned, the
reserve re-estimated x years later set
forth in the table includes all those losses incurred during the
x years following the reference year, but related to
an underwriting year prior to and including the reference year.
As a result, the amounts on the line labeled cumulative
redundancy/(deficiency) before premium development in
the loss development tables are not a precise indication of the
adequacy of the initial reserves that appear on the first and
third lines of the tables

This has been partially corrected by inclusion in
the line labeled premium development of all the
premiums attributable to the underwriting year and which are
earned in subsequent years. Such earned premiums are comprised
primarily of amounts included in the unearned premium reserves
at the end of a given reference year and which are progressively
earned during the years following such reference year, but also
include experience rated premiums received under certain
reinsurance contracts written in such underwriting year. The
Group does not specifically segregate experience rated premiums
in its accounting systems, but management does not believe such
amounts are material. This presentation permits a comparison of
the reserves for claims and claims expenses as initially
established with the re-estimated reserves for claims and claims
expenses, which have been adjusted for the effect of claims and
claims expenses incurred subsequent to the reference year-end.
While the resulting adjusted cumulative redundancy/deficiency is
not a precise measurement and is not fully comparable to the
amounts that would be determined using accident year data,
management believes it to be a reasonable indication of the
adequacy of the Groups loss and loss adjustment expense
reserves as recorded in its consolidated financial statements as
of the referenced year ends.

The following tables present ten-year loss
development on a U.S. GAAP basis and a three-year
reconciliation of beginning and ending reserve balances on a
U.S. GAAP basis. The U.S. GAAP loss development data
is presented on an underwriting year basis, while the reserve
reconciliation data represents the Companys allocation of
incurred and paid losses and LAE between current and prior years
on a calendar year basis. See also Note 16 to the
consolidated financial statements.

32



---



##### Table of Contents



Ten-Year Loss Development Table Presented Net
of

Reinsurance with Supplemental Gross Data (U.S.
GAAP)(1)


|                                                                         |                   |                    |       |       |  |      |       |       |  |      |       |       |  |      |       |       |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       |  | 
|------------------------------------------------------------------------ | ----------------- | ------------------ | ----- | ----- |  | ---- | ----- | ----- |  | ---- | ----- | ----- |  | ---- | ----- | ----- |  | ---- | ------ | ----- |  |  | ------ | ----- |  |  | ------ | ----- |  |  | ------ | ----- |  |  | ------ | ----- |  |  | ----- |  | 
|                                                                         |                   |                   
|                                                                         |                   | December 31,      
|                                                                         |                   |                   
|                                                                         |                   | 1994               |       | 1995  |  | 1996 |       | 1997  |  | 1998 |       | 1999  |  | 2000 |       | 2001  |  | 2002 |        | 2003 
|                                                                         |                   |                    |       |       |  |      |       |       |  |      |       |       |  |      |       |       |  |      |        |      
|                                                                         |                   |                   
|                                                                         |                   | (EUR, in millions)
|Initial gross reserves for unpaid loss and LAE                           |                   |                    | 2,760 |       |  |      | 2,600 |       |  |      | 3,361 |       |  |      | 3,723 |       |  |      | 3,942  |       |  |  | 4,774  |       |  |  | 5,575  |       |  |  | 8,365  |       |  |  | 7,967  |       |  |  | 7,003 | 
|Initial retroceded reserves                                              |                   |                    | 351   |       |  |      | 234   |       |  |      | 316   |       |  |      | 306   |       |  |      | 337    |       |  |  | 421    |       |  |  | 507    |       |  |  | 1,448  |       |  |  | 1,068  |       |  |  | 673   | 
|                                                                         |                   |                    |       |       |  |      |       |       |  |      |       |       |  |      |       |       |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       | 
|Initial net reserves(2)                                                  |                   |                    | 2,409 |       |  |      | 2,366 |       |  |      | 3,045 |       |  |      | 3,417 |       |  |      | 3,605  |       |  |  | 4,353  |       |  |  | 5,068  |       |  |  | 6,917  |       |  |  | 6,899  |       |  |  | 6,330 | 
|Paid (cumulative)(3)as of:                                               |                   |                    |       |       |  |      |       |       |  |      |       |       |  |      |       |       |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       | 
|                                                                         | One year later    |                    |       | 354   |  |      |       | 420   |  |      |       | 654   |  |      |       | 874   |  |      |        | 1,040 |  |  |        | 1,399 |  |  |        | 1,807 |  |  |        | 2,514 |  |  |        | 2,627 |  |  |       |  | 
|                                                                         | Two years later   |                    |       | 717   |  |      |       | 901   |  |      |       | 1,136 |  |      |       | 1,440 |  |      |        | 1,570 |  |  |        | 2,294 |  |  |        | 3,163 |  |  |        | 3,614 |  |  |        |       |  |  |       |  | 
|                                                                         | Three years later |                    |       | 1,054 |  |      |       | 1,188 |  |      |       | 1,405 |  |      |       | 1,778 |  |      |        | 1,946 |  |  |        | 3,046 |  |  |        | 4,390 |  |  |        |       |  |  |        |       |  |  |       |  | 
|                                                                         | Four years later  |                    |       | 1,292 |  |      |       | 1,368 |  |      |       | 1,599 |  |      |       | 2,015 |  |      |        | 2,356 |  |  |        | 3,606 |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       |  | 
|                                                                         | Five years later  |                    |       | 1,431 |  |      |       | 1,505 |  |      |       | 1,731 |  |      |       | 2,306 |  |      |        | 2,626 |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       |  | 
|                                                                         | Six years later   |                    |       | 1,542 |  |      |       | 1,590 |  |      |       | 1,953 |  |      |       | 2,488 |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       |  | 
|                                                                         | Seven years later |                    |       | 1,613 |  |      |       | 1,779 |  |      |       | 2,073 |  |      |       |       |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       |  | 
|                                                                         | Eight years later |                    |       | 1,777 |  |      |       | 1,871 |  |      |       |       |  |      |       |       |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       |  | 
|                                                                         | Nine years later  |                    |       | 1,853 |  |      |       |       |  |      |       |       |  |      |       |       |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       |  | 
|Reserves re-estimated as of:                                             |                   |                    |       |       |  |      |       |       |  |      |       |       |  |      |       |       |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       | 
|                                                                         | One year later    |                    |       | 2,595 |  |      |       | 2,630 |  |      |       | 3,458 |  |      |       | 3,690 |  |      |        | 4,057 |  |  |        | 4,996 |  |  |        | 5,938 |  |  |        | 8,030 |  |  |        | 8,112 |  |  |       |  | 
|                                                                         | Two years later   |                    |       | 2,665 |  |      |       | 2,733 |  |      |       | 3,411 |  |      |       | 3,772 |  |      |        | 4,082 |  |  |        | 5,278 |  |  |        | 6,352 |  |  |        | 8,699 |  |  |        |       |  |  |       |  | 
|                                                                         | Three years later |                    |       | 2,767 |  |      |       | 2,702 |  |      |       | 3,401 |  |      |       | 3,810 |  |      |        | 4,117 |  |  |        | 5,446 |  |  |        | 7,385 |  |  |        |       |  |  |        |       |  |  |       |  | 
|                                                                         | Four years later  |                    |       | 2,758 |  |      |       | 2,692 |  |      |       | 3,404 |  |      |       | 3,807 |  |      |        | 4,209 |  |  |        | 5,952 |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       |  | 
|                                                                         | Five years later  |                    |       | 2,748 |  |      |       | 2,675 |  |      |       | 3,379 |  |      |       | 3,887 |  |      |        | 4,479 |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       |  | 
|                                                                         | Six years later   |                    |       | 2,722 |  |      |       | 2,653 |  |      |       | 3,429 |  |      |       | 4,002 |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       |  | 
|                                                                         | Seven years later |                    |       | 2,711 |  |      |       | 2,711 |  |      |       | 3,522 |  |      |       |       |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       |  | 
|                                                                         | Eight years later |                    |       | 2,777 |  |      |       | 2,792 |  |      |       |       |  |      |       |       |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       |  | 
|                                                                         | Nine years later  |                    |       | 2,834 |  |      |       |       |  |      |       |       |  |      |       |       |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       |  | 
|Cumulative redundancy/ (deficiency) before
    premium development       |                   |                    | (425  | )     |  |      | (426  | )     |  |      | (477  | )     |  |      | (585  | )     |  |      | (874   | )     |  |  | (1,599 | )     |  |  | (2,317 | )     |  |  | (1,782 | )     |  |  | (1,213 | )     |  |  |       | 
|Percentage before premium development                                    |                   |                    | (18   | )%    |  |      | (18   | )%    |  |      | (16   | )%    |  |      | (17   | )%    |  |      | (24    | )%    |  |  | (37    | )%    |  |  | (46    | )%    |  |  | (26    | )%    |  |  | (18    | )%    |  |  |       | 
|Premium development(4)                                                   |                   |                    | 244   |       |  |      | 228   |       |  |      | 359   |       |  |      | 343   |       |  |      | 390    |       |  |  | 491    |       |  |  | 938    |       |  |  | 1,214  |       |  |  | 639    |       |  |  |       | 
|                                                                         |                   |                    |       |       |  |      |       |       |  |      |       |       |  |      |       |       |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       | 
|Cumulative redundancy/ (deficiency) after premium
    development        |                   |                    | (181  | )     |  |      | (198  | )     |  |      | (118  | )     |  |      | (242  | )     |  |      | (484   | )     |  |  | (1,108 | )     |  |  | (1,379 | )     |  |  | (568   | )     |  |  | (574   | )     |  |  |       | 
|Percentage after premium development                                     |                   |                    | (8    | )%    |  |      | (8    | )%    |  |      | (4    | )%    |  |      | (7    | )%    |  |      | (13    | )%    |  |  | (25    | )%    |  |  | (27    | )%    |  |  | (8     | )%    |  |  | (8     | )%    |  |  |       | 
|Gross re-estimated liability at December 31,
    2002                    |                   |                    | 2,877 |       |  |      | 2,992 |       |  |      | 3,719 |       |  |      | 4,325 |       |  |      | 5,282  |       |  |  | 7,162  |       |  |  | 8,634  |       |  |  | 12,755 |       |  |  | 10,713 |       |  |  |       | 
|Reinsurance recoverables at December 31, 2002                            |                   |                    | 43    |       |  |      | 200   |       |  |      | 197   |       |  |      | 323   |       |  |      | 803    |       |  |  | 1,210  |       |  |  | 1,249  |       |  |  | 4,056  |       |  |  | 2,601  |       |  |  |       | 
|                                                                         |                   |                    |       |       |  |      |       |       |  |      |       |       |  |      |       |       |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       | 
|Net re-estimated liability at December 31,
    2002                      |                   |                    | 2,834 |       |  |      | 2,792 |       |  |      | 3,522 |       |  |      | 4,002 |       |  |      | 4,479  |       |  |  | 5,952  |       |  |  | 7,385  |       |  |  | 8,699  |       |  |  | 8,112  |       |  |  |       | 
|Gross cumulative redundancy/ (deficiency) before
    premium development |                   |                    | (117  | )     |  |      | (392  | )     |  |      | (358  | )     |  |      | (602  | )     |  |      | (1,340 | )     |  |  | (2,388 | )     |  |  | (3,059 | )     |  |  | (4,390 | )     |  |  | (2,746 | )     |  |  |       | 
|Gross premium development                                                |                   |                    | 340   |       |  |      | 311   |       |  |      | 454   |       |  |      | 449   |       |  |      | 474    |       |  |  | 684    |       |  |  | 1,077  |       |  |  | 1,402  |       |  |  | 854    |       |  |  |       | 
|                                                                         |                   |                    |       |       |  |      |       |       |  |      |       |       |  |      |       |       |  |      |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |        |       |  |  |       | 
|Gross redundancy/ (deficiency) after premium
    development             |                   |                    | 223   |       |  |      | (81   | )     |  |      | 96    |       |  |      | (153  | )     |  |      | (866   | )     |  |  | (1,704 | )     |  |  | (1,982 | )     |  |  | (2,988 | )     |  |  | (1,892 | )     |  |  |       | 
|Percentage                                                               |                   |                    | 8%    |       |  |      | (3    | )%    |  |      | 3%    |       |  |      | (4    | )%    |  |      | (22    | )%    |  |  | (36    | )%    |  |  | (35    | )%    |  |  | (36    | )%    |  |  | (24    | )%    |  |  |       | 






|    |                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Paid (cumulative) amounts and reserves
    re-estimated amounts are shown on an underwriting year basis,
    consistent with the reporting practices of the Company and its
    cedents, particularly in the European market.
|   
|(2) | For 1994, SCORs initial reserves have been
    adjusted by EUR 86 million to include historical amounts
    for CRP.                                                                                                        

33



---



##### Table of Contents





|    |                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Cash commutation payments (i) received in
    1993 of EUR 60 million and in 1994 of EUR 129 million
    and (ii) paid in 1994 of EUR 48 million have been
    excluded from the paid (cumulative) amounts presented. The
    North American portfolio acquired in 1996 of EUR 260
    million has been excluded from the paid (cumulative) amount
    presented for the years concerned.
|   
|(4) | Re-estimated gross claims reserves for a given
    underwriting year are reduced by the amount of any premiums
    earned subsequent to but related to that underwriting year,
    including experience-rated premiums received and accrued from
    the ceding insurers as assumed losses were incurred.                                                                               

Reconciliation of Reserves for Losses and LAE
(U.S. GAAP)

|                                                                    |              |                               |       |       |       |      |       |       |       |  |       |       |       | 
|------------------------------------------------------------------- | ------------ | ----------------------------- | ----- | ----- | ----- | ---- | ----- | ----- | ----- |  | ----- | ----- | ----- | 
|                                                                    |              |                              
|                                                                    |              | Year ended December 31,      
|                                                                    |              |                              
|                                                                    |              | 2001                          |       | 2002  |       | 2003
|                                                                    |              |                               |       |       |       |     
|                                                                    |              |                              
|                                                                    |              | (EUR, in millions)           
|Reserves for losses and LAE at beginning of year,
    net           |              |                               | 5,068 |       |       |      | 6,917 |       |       |  | 6,899 |      
|Effect of changes in foreign currency exchange
    rates            |              |                               | 133   |       |       |      | (738  | )     |       |  | (657  | )    
|Effect of claims portfolio transfer and other
    reclassifications |              |                               | 1,071 |       |       |      | 73    |       |       |  | 35    |      
|                                                                    |              |                               |       |       |       |      |       |       |       |  |       |      
|Incurred related to:                                                |              |                               |       |       |       |      |       |       |       |  |       |      
|                                                                    | Current year |                               |       | 3,076 |       |      |       | 2,785 |       |  |       | 1,596 |      
|                                                                    | Prior years  |                               |       | 101   |       |      |       | 671   |       |  |       | 1,173 |      
|                                                                    |              |                               |       |       |       |      |       |       |       |  |       |      
|                                                                    |              | Total incurred losses and LAE |       |       | 3,177 |      |       |       | 3,456 |  |       |       | 2,769 | 
|                                                                    |              |                               |       |       |       |      |       |       |       |  |       |      
|Change in accounting principle                                      |              |                               | (62   | )     |       |      |      |       |       |  |      |      
|Paid related to:                                                    |              |                               |       |       |       |      |       |       |       |  |       |      
|                                                                    | Current year |                               |       | 738   |       |      |       | 450   |       |  |       | 68    |      
|                                                                    | Prior years  |                               |       | 1,732 |       |      |       | 2,358 |       |  |       | 2,648 |      
|                                                                    |              |                               |       |       |       |      |       |       |       |  |       |      
|                                                                    |              | Total paid losses and LAE)    |       |       | 2,470 |      |       |       | 2,808 |  |       |       | 2,716 | 
|                                                                    |              |                               |       |       |       |      |       |       |       |  |       |      
|Reserves for losses and loss expenses at end of
    year  net      |              |                               | 6,917 |       |       |      | 6,900 |       |       |  | 6,330 |      
|Reinsurance recoverable on unpaid losses                            |              |                               | 1,448 |       |       |      | 1,067 |       |       |  | 673   |      
|                                                                    |              |                               |       |       |       |      |       |       |       |  |       |      
|Reserves for losses and loss expenses at end of
    year  gross    |              |                               | 8,365 |       |       |      | 7,967 |       |       |  | 7,003 |      
|                                                                    |              |                               |       |       |       |      |       |       |       |  |       |      

Asbestos and environmental

The Groups reserves for losses and LAE
include an estimate of its ultimate liability for asbestos and
environmental claims for which an ultimate value cannot be
estimated using traditional reserving techniques and for which
there are significant uncertainties in estimating the amount of
the Groups potential losses. SCOR and certain of its
subsidiaries, of which principally SCOR Paris and SCOR U.S.,
have received and continue to receive notices of potential
reinsurance claims from ceding insurance companies which have in
turn received claims asserting environmental and asbestos losses
under primary insurance policies, in part reinsured by Group
companies. Such claims notices are frequently merely
precautionary in nature and generally are unspecific, and the
primary insurers often do not attempt to quantify the amount,
timing or nature of the exposure. Given the lack of specificity
in these notices, SCOR cannot fully quantify its total potential
exposure regarding the claims reported. In addition, due to the
changing legal and regulatory environment and changes in tort
law, in our evaluation, the final cost of our exposure to
asbestos related and environmental claims appears to be
increasing, but we are unable to determine to what degree.
Diverse factors could increase our exposure to the consequences
of asbestos related risks, such as an increase in the number of
claims filed or in the number of persons likely to be covered by
these claims. These uncertainties inherent to environmental and
asbestos claims are unlikely to be resolved in the near future.
Evaluation of these risks is all the more difficult given that
claims related to asbestos and environmental pollution are often
subject to payments over long periods of time. In these
circumstances, it is difficult for us to estimate the reserves
that should be recorded for these risks and to guarantee that
the amount reserved will be sufficient.

As a result of these imprecisions and
uncertainties, we cannot exclude the possibility that we could
be required to pay significant additional claims in these areas
and these payments would have a material effect on our results
and financial conditions. Case reserves have been established
when sufficient information has been developed to indicate the
involvement of a specific reinsurance contract. In addition,
incurred but not reported reserves have

34



---



##### Table of Contents



been established to provide for additional
exposure on both known and unasserted claims. These reserves are
reviewed and updated continually. In establishing liabilities
for asbestos and environmental claims, management considers
facts currently known and the current legal and tort
environment. The Group may be required to increase the reserves
in future periods if evidence becomes available indicating that
the latent claims will develop above the recorded amounts.


|                                                                     |  |                         |     |                  |  |      |     |      |  |      |     |      |  |  |     |   |  |  |     |   |  |  |     |  
|-------------------------------------------------------------------- |  | ----------------------- | --- | ---------------- |  | ---- | --- | ---- |  | ---- | --- | ---- |  |  | --- | - |  |  | --- | - |  |  | --- | -
|                                                                     |  |                        
|                                                                     |  | Year ended December 31,
|                                                                     |  |                        
|                                                                     |  |                         |     |                 
|                                                                     |  | Asbestos(1)             |     | Environmental(1)
|                                                                     |  |                         |     |                 
|                                                                     |  | 2001                    |     | 2002             |  | 2003 |     | 2001 |  | 2002 |     | 2003
|                                                                     |  |                         |     |                  |  |      |     |      |  |      |     |     
|                                                                     |  |                        
|                                                                     |  | (EUR, in millions)     
|Gross claims reserves, including IBNR reserves                       |  |                         | 124 |                  |  |      | 157 |      |  |      | 109 |      |  |  | 92  |   |  |  | 88  |   |  |  | 59  |  
|% of total loss and LAE reserves                                     |  |                         | 1.5 | %                |  |      | 2   | %    |  |      | 1.3 | %    |  |  | 1.1 | % |  |  | 1.1 | % |  |  | 0.7 | %
|Claims and LAE paid                                                  |  |                         | 15  |                  |  |      | 7   |      |  |      | 15  |      |  |  | 17  |   |  |  | 71  |   |  |  | 13  |  
|% of the Groups total net property-casualty
    claims and LAE paid |  |                         | 0.6 | %                |  |      | 0.2 | %    |  |      | 0.5 | %    |  |  | 0.7 | % |  |  | 2.5 | % |  |  | 0.4 | %






|    |                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Asbestos and environmental (A&E) reserve data
    includes SCORs estimated A&E exposures in respect of
    its participation in the Anglo French Reinsurance Pool, for
    which A&E exposures for the years shown were as follows:



| |   |                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 2001 reserves are EUR 38 million and EUR
    35 million for asbestos and environmental, respectively.
    2001 paid claims and LAE are EUR 2.4 million and EUR
    2.2 million for asbestos and environmental, respectively.
|
| |  | 2002 reserves are EUR 30 million and EUR
    28 million for asbestos and environmental, respectively.
    2002 paid claims and LAE are EUR 0.8 million and EUR
    0.7 million for asbestos and environmental, respectively.
|
| |  | 2003 reserves are EUR 19 million and EUR
    18 million for asbestos and environmental, respectively.
    2003 paid claims and LAE are EUR 0.6 million and EUR
    0.9 million for asbestos and environmental, respectively.



|    |                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------
|(2) | The significant change in the EUR/USD exchange
    rate from 2002 to 2003 of 17% resulted in a decrease of gross
    claims reserves.

SCORs exposure to environmental risks has
significantly decreased over the past two years due to the
settlement of large claims and the commutation by the Company of
several policies related to one block of pollution-related
business covering prior years.

More generally, SCOR has developed a policy of
buying back its longstanding liabilities on asbestos and
environmental exposures whenever the possibility exists to do so
on a commercially reasonable basis, i.e., whenever SCOR
determines, based on its assessment of the potential exposure of
the Group based on actuarial techniques and market practices,
that the terms of the final negotiated settlement are attractive
in light of the possible development of future liabilities.
Preference is given to selected treaties with regard to specific
circumstances such as the maturity of claims, the level of
claims information available, the status of cedents and market
settlements. It is the intention of management that this
commutation policy be further pursued and developed in 2004 and
in subsequent years. It is anticipated that the policy will
affect settlement patterns to a limited degree in future years,
although these changes in settlement patterns are not expected
to have a material adverse effect on the Groups financial
condition, results of operations or cash flows.

SCORs exposure to asbestos and
environmental liabilities stems from its participation in both
proportional and non-proportional treaties and in facultative
contracts, which have generally been in run-off for many years.

Proportional treaties typically provide claims
information on a global treaty basis, and as a result specific
claims data is rarely available. With respect to
non-proportional treaties and facultative contracts, normal
market practice is to provide a specific proof of loss for each
individual claim, making it possible to record total claims
notified for such contracts. With respect to environmental
exposures, most of SCORs identified claims stem from its
U.S. subsidiary operations, with less significant amounts
recorded by its European subsidiaries. When applicable, LAE are
part of the claims submitted by cedents and as such are included
in the figures above for both asbestos and environmental
exposures.

35



---



##### Table of Contents



|                                                                                                       |  |                              |           |               |  |  |           | 
|------------------------------------------------------------------------------------------------------ |  | ---------------------------- | --------- | ------------- |  |  | --------- | 
|                                                                                                       |  |                             
|                                                                                                       |  | Year Ended December 31, 2003
|                                                                                                       |  |                             
|                                                                                                       |  | Asbestos                     |           | Environmental
|                                                                                                       |  |                              |           |              
|Number of claims notifications with respect to
    non-proportional treaties and facultative contracts |  |                              | 7,389     |               |  |  | 6,962     | 
|Average cost per claim(1)                                                                              |  |                              | EUR 9,819 |               |  |  | EUR 2,726 | 






|    |                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------
|(1) | Not including claims that were settled at no
    cost, and claims of a precautionary nature not quantified in
    amount.

36



---



##### Table of Contents



INVESTMENTS

General

SCORs overall investment strategy is to
achieve satisfactory returns on managed assets with minimal
exposure to risk. This investment strategy also reflects the
structure of SCORs liability profile, and the duration of
the assets of each subsidiary is generally established based
upon the expected duration of liabilities. At December 31,
2003, the weighted average duration of the Groups fixed
maturity portfolio was approximately 6.2 years. As a
general practice, the Group does not invest in derivative
securities for the purpose of managing the relative duration of
its assets and liabilities. See  Changes in
Historical Reserves for a discussion of the expected
duration of the Groups reinsurance liabilities, and the
tabular summary of the Groups fixed maturities by
remaining contract maturity, set forth in Note 2 to the
consolidated financial statements, for information concerning
the duration of the Groups assets. Similarly, assets are
generally invested in currencies corresponding to those in which
the related liabilities are denominated in order to minimize
exposure to currency fluctuations. In addition, to a limited
extent, the Group uses currency spot and forward contracts, as
well as swap and other derivative contracts, to manage its
foreign currency exposure.

SCORs investment policy is largely
centralized. Investment guidelines are established annually and
regularly reviewed and updated by the Investment Committee,
subject to supervision by the Companys board of directors.
Regular meetings of the Investment Committee are held to review
portfolio performance and monitor market and portfolio
developments.

The Groups portfolio consists primarily of
government and government-guaranteed bonds with medium term
maturities. The remainder of the portfolio is divided among
equity securities, real estate and liquid and short-term assets.
The Company manages its investment portfolio to maximize income
and generally does not manage such portfolio for the purpose of
generating capital gains, but seeks to realize capital gains or
losses when and as they become available as a result of its
normal investing activities.

The following table summarizes net investment
income of the SCOR Groups portfolio for 2001, 2002 and
2003. See also Note 2 to the consolidated financial
statements.

Consolidated Net Investment Income

|                          |                                                                   |                         |     |          |     |          |      |          |  |          |     |          |  |        |     |          |     |          |      |  |  |  |      |   |  |  |     |     |     |  |      |  |  |  |    |  |     | 
|------------------------- | ----------------------------------------------------------------- | ----------------------- | --- | -------- | --- | -------- | ---- | -------- |  | -------- | --- | -------- |  | ------ | --- | -------- | --- | -------- | ---- |  |  |  | ---- | - |  |  | --- | --- | --- |  | ---- |  |  |  | -- |  | --- | 
|                          |                                                                   |                        
|                          |                                                                   | Year ended December 31,
|                          |                                                                   |                        
|                          |                                                                   |                         |     |          |     |         
|                          |                                                                   | 2001                    |     | 2002     |     | 2003    
|                          |                                                                   |                         |     |          |     |         
|                          |                                                                   |                         |     | Realized |     |          |      | Realized |  |          |     | Realized
|                          |                                                                   |                         |     | Pre-tax  |     | Gains    |      |          |  | Pre-tax  |     | Gains    |  |        |     | Pre-tax  |     | Gains   
|                          |                                                                   | Income                  |     | Yield(1) |     | (Losses) |      | Income   |  | Yield(1) |     | (Losses) |  | Income |     | Yield(1) |     | (Losses)
|                          |                                                                   |                         |     |          |     |          |      |          |  |          |     |          |  |        |     |          |     |         
|                          |                                                                   |                        
|                          |                                                                   | (EUR in millions)      
|Fixed maturity securities |                                                                   |                         | 379 |          |     |          | 6.7% |          |  |          | 69  |          |  |        | 332 |          |     |          | 5.6% |  |  |  | 72   |   |  |  | 283 |     |     |  | 4.8% |  |  |  | 93 | 
|Equity securities         |                                                                   |                         | 26  |          |     |          | 4.7% |          |  |          | (66 | )        |  |        | 6   |          |     |          | 4.0% |  |  |  | (217 | ) |  |  | 3   |     |     |  | 1.1% |  |  |  | 13 | 
|Trading equity securities |                                                                   |                         | (56 | )        |     |          |      |          |  |          |     |          |  |        | 53  |          |     |          |      |  |  |  |      |   |  |  | 9   |     |     |  |      |  |  |  |    | 
|Short term and other(2)   |                                                                   |                         | 92  |          |     |          | 3.6% |          |  |          | 7   |          |  |        | 122 |          |     |          | 2.6% |  |  |  | 93   |   |  |  | 137 |     |     |  | 4.7% |  |  |  | 10 | 
|Less investment expense   |                                                                   |                         |     |          |     |          |      |          |  |          |     |          |  |        |     |          |     |          |      |  |  |  |      |   |  |  |     |     |     |  |      |  |  |  |    | 
|                          | Swap interest                                                     |                         |     | (13      | )   |          |      |          |  |          |     |          |  |        |     | (17      | )   |          |      |  |  |  |      |   |  |  |     | (8  | )   |  |      |  |  |  |    |  |    
|                          | Commercial paper expense                                          |                         |     | (3       | )   |          |      |          |  |          |     |          |  |        |     | (8       | )   |          |      |  |  |  |      |   |  |  |     |    |     |  |      |  |  |  |    |  |    
|                          | Administration expense                                            |                         |     | (13      | )   |          |      |          |  |          |     |          |  |        |     | (16      | )   |          |      |  |  |  |      |   |  |  |     | (29 | )   |  |      |  |  |  |    |  |    
|                          | Other (including convertible debenture interest
    and discount) |                         |     | (65      | )   |          |      |          |  |          |     |          |  |        |     | (91      | )   |          |      |  |  |  |      |   |  |  |     | (74 | )   |  |      |  |  |  |    |  |    
|                          |                                                                   |                         |     |          |     |          |      |          |  |          |     |          |  |        |     |          |     |          |      |  |  |  |      |   |  |  |     |     |     |  |      |  |  |  |    | 
|                          |                                                                   | Total                   |     |          | 347 |          |      |          |  |          |     |          |  |        |     |          | 381 |          |      |  |  |  |      |   |  |  |     |     | 321 |  |      |  |  |  |    |  | 116 | 
|                          |                                                                   |                         |     |          |     |          |      |          |  |          |     |          |  |        |     |          |     |          |      |  |  |  |      |   |  |  |     |     |     |  |      |  |  |  |    | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Pre-tax yield is calculated as investment income
    (including dividends in the case of equities) divided by the
    average of the beginning and end of year investment balances.
    Investment balances were at fair value, except for equities for
    which cost was used. To the extent applicable, investment
    balances were converted into euro from local currencies at
    year-end exchange rates.
|   
|(2) | Includes swap income of EUR 13 million in
    2000, and 10 million in 2001, and 10 million in 2002.
    Other swap-related net income is included in realized and
    unrealized capital gains (and losses).                                                                                                                                                                                                     

37



---



##### Table of Contents



Portfolios

The following table details the distribution by
category of investment of SCOR Groups insurance investment
portfolio by net book value:

Consolidated Investment Position

|                                                   |       |                                   |       |       |  |      |    |     |   |  |       |       |  |  |    |     |   |  |       |       |  |  |    |     |  
|-------------------------------------------------- | ----- | --------------------------------- | ----- | ----- |  | ---- | -- | --- | - |  | ----- | ----- |  |  | -- | --- | - |  | ----- | ----- |  |  | -- | --- | -
|                                                   |       |                                  
|                                                   |       | Net book value as of December 31,
|                                                   |       |                                  
|                                                   |       |                                   |       |       |  |     
|                                                   |       | 2001                              |       | 2002  |  | 2003
|                                                   |       |                                   |       |       |  |     
|                                                   |       |                                   |       |       |  |      |    |     |   | 
|                                                   |       |                                  
|                                                   |       | (EUR in millions)                
|Fixed maturities available for sale, at fair value |       |                                   | 5,582 |       |  |      | 62 | %   |   |  | 6,107 |       |  |  | 68 | %   |   |  | 5,698 |       |  |  | 70 | %  
|Equity securities, available for sale              |       |                                   | 646   |       |  |      | 7  | %   |   |  | 573   |       |  |  | 6  | %   |   |  | 269   |       |  |  | 3  | %  
|Equity securities, held for trading                |       |                                   | 56    |       |  |      | 1  | %   |   |  | 0     |       |  |  | 0  | %   |   |  | 34    |       |  |  | 0  | %  
|Short-term investments                             |       |                                   | 448   |       |  |      | 5  | %   |   |  | 198   |       |  |  | 2  | %   |   |  | 0     |       |  |  | 0  | %  
|Other long-term investments                        |       |                                   | 358   |       |  |      | 4  | %   |   |  | 345   |       |  |  | 4  | %   |   |  | 295   |       |  |  | 4  | %  
|Cash and cash equivalents                          |       |                                   | 1,927 |       |  |      | 21 | %   |   |  | 1,788 |       |  |  | 20 | %   |   |  | 1,824 |       |  |  | 22 | %  
|                                                   |       |                                   |       |       |  |      |    |     |   |  |       |       |  |  |    |     |   |  |       |       |  |  |    |    
|                                                   | Total |                                   |       | 9,017 |  |      |    | 100 | % |  |       | 9,011 |  |  |    | 100 | % |  |       | 8,120 |  |  |    | 100 | %
|                                                   |       |                                   |       |       |  |      |    |     |   |  |       |       |  |  |    |     |   |  |       |       |  |  |    |    

See Note 2 to the consolidated financial
statements for a breakdown of amortized costs and estimated fair
values of fixed maturity investments by major type of security,
including fixed maturities held to maturity and available for
sale as of December 31, 2001, 2002 and 2003.

The following table presents the Groups
fixed maturities by counterparty credit quality as of
December 31, 2003:

|                                                                                              |       |                         |       |                |  |  |       |        |  
|--------------------------------------------------------------------------------------------- | ----- | ----------------------- | ----- | -------------- |  |  | ----- | ------ | -
|                                                                                              |       |                        
|                                                                                              |       | As of December 31, 2003
|                                                                                              |       |                        
|                                                                                              |       |                         |       | % of total net
|Rating                                                                                        |       | Net book value          |       | book value    
|                                                                                              |       |                         |       |               
|                                                                                              |       |                        
|                                                                                              |       | (EUR, in millions)     
|Guaranteed by the French or European government
    or its agencies, or the European Union(1) |       |                         | 123   |                |  |  | 2.16  | %     
|AAA                                                                                           |       |                         | 4,214 |                |  |  | 73.96 | %     
|AA                                                                                            |       |                         | 435   |                |  |  | 7.63  | %     
|A                                                                                             |       |                         | 533   |                |  |  | 9.35  | %     
|BBB                                                                                           |       |                         | 280   |                |  |  | 4.91  | %     
|Below BBB                                                                                     |       |                         | 1     |                |  |  | 0.02  | %     
|Unrated                                                                                       |       |                         | 112   |                |  |  | 1.97  | %     
|                                                                                              |       |                         |       |                |  |  |       |       
|                                                                                              | Total |                         |       | 5,698          |  |  |       | 100.00 | %
|                                                                                              |       |                         |       |                |  |  |       |       






|    |                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Debt securities issued or guaranteed by the
    French government, by another European government or by the
    European Union, none of which are rated.

See Note 2 to the consolidated financial
statements for a breakdown of fixed maturities included in the
Groups portfolio by remaining maturity as of
December 31, 2003.

38



---



##### Table of Contents



INFORMATION TECHNOLOGY

All branches and subsidiaries of the SCOR Group
use the same information systems both for reinsurance and
non-reinsurance functions. In reinsurance, the OMEGA system was
developed in-house and was designed to allow for Group- wide
relationship follow-up of clients and insureds, worldwide
on-line facultative clearance, analysis of the technical
profitability of contracts, and quarterly closings based on
ultimate result estimates. SCOR has also developed modeling and
simulation tools for evaluating impacts of natural catastrophes
or for capital allocation and contract profitability. In
addition, for non-reinsurance functions, software packages,
among which the PeopleSoft solutions for human resources and
finance, are now used throughout the Group.

Thanks to the use of one global system, SCOR can
provide its services in essentially the same way worldwide.
Moreover, administration processes have been simplified and
optimized. The imaging system launched in Europe last year has
been extended to Asia and North America in 2003, allowing our
SBS division to share and work on the same documents worldwide.
Paperless administration is also reinforced by our continued
efforts in developing standard electronic exchanges with our
business partners worldwide.

Security improvement is a permanent concern. In
2003, Internet security has been enhanced and audited, and
Disaster Recovery procedures have been tested. In addition, In
2002, SCOR completed its Information System 2005 study,
concerning the strategic alignment between SCORs
information system and its businesses.

REGULATION OF THE REINSURANCE
INDUSTRY

French corporations exclusively engaged in
reinsurance business are subject to reporting requirements and
are controlled by the French Insurance Control Commission
(Commission de Contrôle des Assurances or C.C.A.) in
application of the French August 8, 1994 Act (Law
no. 94-879). This regime has been modified significantly by
the May 15, 2001 New Economic Regulation Act
(Law no. 2001-420), which institutes a system of prior
authorization. This regime applies equally to companies already
engaged in the reinsurance business at the time of entry into
force. However, pending publication of the enabling decrees,
this new regime has not come into effect.

Under the new regime, reinsurance companies will
be required to file an application with the C.C.A., which will
have authority to issue and revoke operating licenses. Within
the framework of its supervisory mission, which has been
enhanced by the New Economic Regulation Act, the
C.C.A. will in particular have the power to conduct onsite
inspections, to place reinsurers whose solvency is impaired
under special surveillance, and to impose sanctions on
reinsurers found to be in breach of the regulations applicable
to them. The New Economic Regulation Act has
broadened the range of sanctions, which now include revocation
of a companys license to engage in reinsurance operations.

There is no European regulatory framework, at
present, harmonizing the supervision of reinsurance. The
European Commission has been working closely with the member
states of the European Union since 2001 on a draft directive
aimed at instituting solvency ratios and mutual recognition of
reinsurance companies in the EU member states. It is expected
that this draft directive will be adopted in 2005.

In the United States, the Groups
reinsurance and insurance subsidiaries are regulated primarily
by the insurance regulators in the State in which they are
domiciled, but they are also subject to regulation in each State
in which they are licensed or authorized. SCOR Reinsurance
Company, the Groups principal Non-Life subsidiary in the
United States, is domiciled in New York State and SCOR Life U.S.
Re Insurance Company, the principal Life subsidiary in the
United States, is domiciled in Texas.

The other subsidiaries in the United States are
domiciled in Arizona, Delaware, Texas and Vermont, and one
subsidiary is also commercially domiciled in California.

39



---



##### Table of Contents



B. ORGANIZATIONAL STRUCTURE

OPERATIONS

General

The Groups reinsurance operations are
conducted through the treaty Property-Casualty reinsurance,
Life/ Accident & Health reinsurance, and large industrial
risks operating divisions of SCOR, respectively known as
Division SCOR Non-Vie, SCOR Vie and Division SCOR Business
Solutions, as well as through ten European, North-American and
Asian subsidiaries, each of which operates primarily in its
regional market. The life, accident, disability, health,
unemployment and long-term care operations of the Group are
conducted mainly through SCOR Vie, which was made a subsidiary
on December 1, 2003. SCOR Vie operates mainly through its
branches in Italy and Germany as well as through SCOR Life U.S.
Re, which also provides support in these segments of reinsurance
to Group subsidiaries. SCOR, SCOR Vie and SCOR U.S. accounted
for 69% of the Groups gross written premiums in 2003. IRP
reinsures (as a retrocessionaire) some of SCORs non-Life
reinsurance business on a quota share basis. The following sets
forth the Groups primary reinsurance subsidiaries as of
December 31, 2003, their respective country of
incorporation, and between parentheses, the main markets served
by each entity and SCORs ownership percentage:

SCOR  Mother company (France and
worldwide)



|  |                                                                                             
|- | --------------------------------------------------------------------------------------------
| | SCOR VIE (France  100%)                                                                    
| 
| | SCOR Life US Re, United States (United
    States  100%)                                   
| 
| | SCOR US, United States (United States, Mexico,
    the Caribbean and Central America  100%)
| 
| | SCOR Canada, Canada (Canada  100%)                                                         
| 
| | Commercial Risk Partners, Bermuda (100%)                                                    
| 
| | SCOR Italia, Italy (Italy  100%)                                                           
| 
| | SCOR Asia Pacific, Singapore (North-east Asia,
    South-east Asia and Australasia  100%)  
| 
| | SCOR Deutschland, Germany (Germany and
    Austria  100%)                                  
| 
| | Irish Reinsurance Partners, Ireland (53%)                                                   
| 
| | SCOR UK, United Kingdom (United Kingdom, Ireland
    and Iceland  100%)                    

The current Group structure has been developed to
facilitate access to domestic markets through local subsidiaries
and branch offices, to provide for clearly identified profit
centers in each major primary reinsurance market, and to develop
local management and underwriting expertise in order to better
attract, service and maintain relationships with local cedents
and better understand the unique nature of local risks.

The Groups headquarters operations in Paris
provide claims, actuarial, accounting, legal, administrative,
systems, internal audit, investment, human resources and other
support to the Group subsidiaries. The Groups worldwide
offices are connected through a backbone network and
application, data and exchange systems, allowing local access to
centralized risk analysis, underwriting or pricing databases,
while at the same time allowing information on local market
conditions to be shared among the Groups offices
worldwide. In addition, through regular exchanges of personnel
between Group headquarters in Paris and its non-French
subsidiaries and branch offices, the Group encourages
professional development and training across its various
geographic markets and business lines.

40



---



##### Table of Contents



C. PROPERTY, PLANTS AND
EQUIPMENT

In 2003, SCOR sold the Groups headquarters,
consisting of 30,000 square meters of offices located in the
business district of Paris La Defense. The Group remains a
tenant of these headquarters offices and also rents space
separate from its head-office for the purpose of safeguarding
its data handling capability in case of emergency. The Group
also owns properties in Hanover (Germany), Milan (Italy) and
Singapore, where its local subsidiaries have their head offices,
and rents space for other subsidiaries. SCOR U.S.s
headquarters, located at the WTC in New York, were destroyed in
the attacks of September 11, 2001 and have since been
relocated to other facilities in lower Manhattan. SCOR believes
that the Groups facilities are adequate for its present
needs in all material respects. SCOR also holds other investment
properties in connection with its reinsurance operations.




Item 5. Operating and Financial
Review and Prospects

A. OPERATING RESULTS

Overview

In recent years, SCOR, along with many other
insurance and reinsurance companies suffered a series of
unprecedented setbacks both with respect to their assets and
their liabilities. Leaving aside the direct economic cost of at
least USD 40 billion to the worlds insurers and
reinsurance, the September 11, 2001 terrorist attacks
deeply affected the industry in terms of capacity and the cost
of insurance covers. Other disasters, such as the explosion at
the AZF chemical plant in Toulouse on September 21, 2001,
and the floods in central Europe in the summer of 2002, have
also had a serious impact on the industry. In addition, insurers
under-estimated risks taken on in the late-1990s, which is
demonstrated by the low prices at which risks were underwritten
at the time. As a consequence, in 2002, many insurers were
required to set aside additional reserves to cover prior-year
writings.

At the same time, companies assets and
surplus were adversely impacted by the stock market crisis in
2001 and 2002, as the worlds major stock markets lost
between 40% and 60% of their value and interest rates continued
to fall. Historically, financial and underwriting cycles have
been asynchronous, with investment income offsetting technical
losses, and vice versa. In recent years, however, insurance and
reinsurance companies liabilities have increased
significantly, but their assets have decreased simultaneously.

As a result of these developments, major
insurance companies have revised their underwriting policies and
developed measures to improve risk analysis and selection, and
adjust rates. They have also refocused their investment
portfolio in light of falling equity markets and interest rates.

The unprecedented loss that hit the industry over
the past three years led to pricing adjustments that were needed
and expected by reinsurers. Although rates did not reach the
level of 2002, the reinsurance market continued to harden in
2003. This was true for the Property-Casualty business overall,
and more particularly for some Casualty lines like general
liability and workers compensation in the U.S. which, due
to persistent poor developments over recent years, were first in
need of pricing reevaluations. Rates, terms and conditions of
the Property Casualty lines also showed significant improvements
in the European and Asian markets.

The Life and Accident and Health developments
were also in line with expectations for the majority of the
European markets. In France, the consolidation of the insurance
industry continued in 2003, offering reinsurance opportunities
to respond to new needs of new operational structures. In the
United States, after two difficult years due to weakened
financial markets, life insurance showed first signs of recovery
following slight improvements in companies investment
yields and balance sheets.

41



---



##### Table of Contents



Exchange Rate Fluctuations

The following table sets forth the value of one
euro in our subsidiaries main functional currencies, used
in the preparation of the Groups consolidated financial
statements for balance sheet items (year-end exchange rates) and
income statement items (average yearly rates).

|                 |  |                                    |       |                                 |  |      |       |      |  |      |       |      |  |  |       |  |  |  |       |  |  |  |       | 
|---------------- |  | ---------------------------------- | ----- | ------------------------------- |  | ---- | ----- | ---- |  | ---- | ----- | ---- |  |  | ----- |  |  |  | ----- |  |  |  | ----- | 
|                 |  |                                   
|                 |  | Value of one euro in each currency
|                 |  |                                   
|                 |  |                                    |       |                                
|                 |  | Year-end exchange rates            |       | Average annual exchange rates  
|                 |  | as of December 31,                 |       | for the year ended December 31,
|                 |  |                                    |       |                                
|                 |  | 2001                               |       | 2002                            |  | 2003 |       | 2001 |  | 2002 |       | 2003
|                 |  |                                    |       |                                 |  |      |       |      |  |      |       |     
|U.S. Dollar      |  |                                    | 0.882 |                                 |  |      | 1.042 |      |  |      | 1.263 |      |  |  | 0.892 |  |  |  | 0.950 |  |  |  | 1.141 | 
|Canadian Dollar  |  |                                    | 1.413 |                                 |  |      | 1.638 |      |  |      | 1.623 |      |  |  | 1.386 |  |  |  | 1.487 |  |  |  | 1.587 | 
|British Pound    |  |                                    | 0.609 |                                 |  |      | 0.650 |      |  |      | 0.705 |      |  |  | 0.620 |  |  |  | 0.629 |  |  |  | 0.693 | 
|Singapore Dollar |  |                                    | 1.636 |                                 |  |      | 1.809 |      |  |      | 2.145 |      |  |  | 1.604 |  |  |  | 1.693 |  |  |  | 1.986 | 

SCOR books its operations in approximately 100
local currencies. All these currencies are then converted into
euro. The fluctuation of the main transaction currencies of the
Group in comparison to the euro has an important impact on
income statement items and main balance sheet items. In
particular, when a currency is not matching (i.e. there is a
surplus in assets or liabilities in one currency), the variation
of exchange rate from one period to another has a direct impact
on the foreign exchange result.

Consolidated Results of Operations

We recorded a net loss of
EUR 577 million for the year ended December 31,
2003 compared to a net loss of EUR 561 million in 2002
and a net loss of EUR 365 million in 2001. The
following discussion addresses the principal components of our
revenues, expenses and other components of our net losses in
each of those years.

42



---



##### Table of Contents



Premiums

The following table sets forth the Groups
premium revenues for the years ended December 31, 2001,
2002 and 2003:

|                       |                                  |                         |  |       |       |      |  |       |       |  |  |       |       | 
|---------------------- | -------------------------------- | ----------------------- |  | ----- | ----- | ---- |  | ----- | ----- |  |  | ----- | ----- | 
|                       |                                  |                        
|                       |                                  | Year ended December 31,
|                       |                                  |                        
|                       |                                  | 2001                    |  | 2002  |       | 2003
|                       |                                  |                         |  |       |       |     
|                       |                                  |                        
|                       |                                  | (EUR, in millions)     
|Gross premiums written |                                  |                         |  |       |       |      |  |       |       |  |  |      
|                       | Treaty Property-Casualty         |                         |  | 1,922 |       |      |  | 2,176 |       |  |  | 1,690 |      
|                       | Large Corporate accounts         |                         |  | 558   |       |      |  | 930   |       |  |  | 569   |      
|                       |                                  |                         |  |       |       |      |  |       |       |  |  |      
|                       | Total Non-life                   |                         |  | 2,480 |       |      |  | 3,106 |       |  |  | 2,259 |      
|                       | Life/ Accident & Health          |                         |  | 1,062 |       |      |  | 1,218 |       |  |  | 983   |      
|                       | Alternative Reinsurance          |                         |  | 712   |       |      |  | 467   |       |  |  | (1    | )    
|                       | Credit, Surety & Political Risks |                         |  | 175   |       |      |  | 123   |       |  |  | 65    |      
|                       |                                  |                         |  |       |       |      |  |       |       |  |  |      
|                       |                                  | Total                   |  |       | 4,429 |      |  |       | 4,914 |  |  |       | 3,306 | 
|                       |                                  |                         |  |       |       |      |  |       |       |  |  |      
|Net premiums written   |                                  |                         |  |       |       |      |  |       |       |  |  |      
|                       | Treaty Property-Casualty         |                         |  | 1,737 |       |      |  | 1,982 |       |  |  | 1,580 |      
|                       | Large Corporate accounts         |                         |  | 216   |       |      |  | 757   |       |  |  | 461   |      
|                       |                                  |                         |  |       |       |      |  |       |       |  |  |      
|                       | Total Non-life                   |                         |  | 1,953 |       |      |  | 2,739 |       |  |  | 2,041 |      
|                       | Life/ Accident & Health          |                         |  | 896   |       |      |  | 1,045 |       |  |  | 885   |      
|                       | Alternative Reinsurance          |                         |  | 710   |       |      |  | 466   |       |  |  | (1    | )    
|                       | Credit, Surety & Political Risks |                         |  | 161   |       |      |  | 108   |       |  |  | 63    |      
|                       |                                  |                         |  |       |       |      |  |       |       |  |  |      
|                       |                                  | Total                   |  |       | 3,720 |      |  |       | 4,358 |  |  |       | 2,988 | 
|                       |                                  |                         |  |       |       |      |  |       |       |  |  |      
|Net premiums earned    |                                  |                         |  |       |       |      |  |       |       |  |  |      
|                       | Treaty Property-Casualty         |                         |  | 1,704 |       |      |  | 2,016 |       |  |  | 1,670 |      
|                       | Large Corporate accounts         |                         |  | 263   |       |      |  | 559   |       |  |  | 504   |      
|                       |                                  |                         |  |       |       |      |  |       |       |  |  |      
|                       | Total Non-life                   |                         |  | 1,967 |       |      |  | 2,575 |       |  |  | 2,174 |      
|                       | Life/ Accident & Health          |                         |  | 852   |       |      |  | 901   |       |  |  | 869   |      
|                       | Alternative Reinsurance          |                         |  | 671   |       |      |  | 524   |       |  |  | 159   |      
|                       | Credit, Surety & Political Risks |                         |  | 163   |       |      |  | 153   |       |  |  | 122   |      
|                       |                                  |                         |  |       |       |      |  |       |       |  |  |      
|                       |                                  | Total                   |  |       | 3,653 |      |  |       | 4,153 |  |  |       | 3,324 | 
|                       |                                  |                         |  |       |       |      |  |       |       |  |  |      

Gross premiums written decreased by 33% in 2003
from EUR 4,914 million in 2002 to
EUR 3,306 million in 2003. In 2002, gross premiums
increased by 11% from EUR 4,429 million in 2001 to
EUR 4,914 million in 2002.

The one-third reduction in the volume of gross
written premiums in 2003 compared to 2002 resulted from the
combination of the following three constraining factors: the
implementation of the Back on Track plan; the
negative impact of the fluctuations in exchange rates; and the
lowering of the Groups financial strength ratings.

Implementation of the Back on
Track plan:by implementing this
2002 restructuring plan effective for 2003 renewals, SCOR took
several steps to optimize its business portfolios. In particular:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Group determined to exit a number of
    unprofitable lines of business in the U.S., as well as to
    discontinue writing alternative risk transfer and credit
    derivatives business, and to focus on property and casualty
    treaty business, Large Corporate Accounts facultatives business
    and Life and Accident & Health reinsurance. Furthermore,
    reinsurance assumed was more oriented toward short tail business
    coverage. Excluding such exited business lines, our gross
    premium written in 2002, gross written premiums would have
    decreased by 18% in 2003 compared to 2002.
|
| |  | From a geographical point of view, SCOR decided
    to focus on two key regions, Europe and Asia Pacific and to
    reduce exposure to North America business. As a consequence, the
    share of premiums originating                                                                                                                                                                                                                                                                                                                                                                                               

43



---



##### Table of Contents



| |  |                                                                                                                                                                                                                                                                                             
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | from Europe increased to 58% in 2003 from 45% in
    2002 and 37% in 2001. The share of Asia Pacific decreased to 4%
    in 2003 from 7% in 2002 and 4% in 2001. On the other hand, the
    weight of the North America declined to 25% in 2003 compared to
    39% in 2002 and 50% in 2001.

Fluctuations in exchange rates.The fluctuations in exchanges rates
used to translate foreign currencies into Euro, and particularly
the depreciation of the US dollar against the Euro by 17% have
had an adverse impact of 7% on the development of premium income
year over year. On a constant exchange rate basis, the
Group gross written premiums decreased by 23% in 2003
compared to 2002.

Lowering of the Group financial strength
rating.Finally, the successive
downgrading of SCORs financial strength ratings, despite
an improvement to BBB+ from Standard & Poors on
December 2, 2003, affected SCORs business development
during 2003.

The increase in total gross premiums written in
2002 compared to 2001 was due to a 13% increase in gross premium
written in Treaty Property-Casualty, our largest segment, and to
a 67% increase in gross premium written in Large Corporate
Accounts. This increase was partially offset by a decrease in
gross premiums written in Alternate Risk Transfer (ART) and
the suspension of credit derivatives reinsurance underwriting,
where the Company decided to reduce its risk exposure. The
significant increase in premiums in the Treaty Property-Casualty
and Large Corporate Accounts lines was mainly due to improved
pricing as a result of the events of September 11, 2001 as
well as an increase in the volume of premiums written, offset in
part by changes in exchange rates. In 2003, the NonLife
segment (which does not include Alternative Reinsurance and
Credit and Surety) represented 66% of our overall gross premiums
written, compared to 63% in 2002 and 56% in 2001. Within the
Non-Life segment, Treaty Property-Casualty accounted for 49% of
overall gross premiums written in 2003, compared to 44% in 2002
and 43% in 2001, while Large Corporate Accounts represented 17%
in 2003, compared to 19% in 2002 and 13% in 2001. Life and
Accident & Health represented 32% of overall gross premiums
written in 2003, compared to 25% in 2002 and 24% in 2001.
Alternative Reinsurance decreased from 16% in 2001 to 10% in
2002 and 0% in 2003 following the Groups decision to
commute businesses underwritten by CRP. Credit, Surety and
Political Risks share was reduced to 2% compared to 3% in
2002 and 4% in 2001 following the steps taken to exit the credit
derivatives market.

Net premiums written decreased by 31% in 2003,
from EUR 4,358 million in 2002 to EUR 2,988 million in
2003, reflecting the decrease in gross premiums written. During
2002, net premiums written increased by 17%, from EUR
3,720 million in 2001 to EUR 4,358 million in 2002,
reflecting the increase in gross premiums written and a higher
retention rate than in 2001.

In 2003, our overall retention level was 90%,
compared to 89% in 2002 and 84% in 2001. The increase to 90% in
2003 from 89% in 2002 is due to an increase in our Life Accident
& Health retention level from 86% in 2002 to 90% in 2003 and
by an increase in our Non-Life retention rate from 88% in 2002
to 90% in 2003. The 5-points retention increase between 2001 and
2002 was due to the exceptional cost of retrocession in 2001
because of reinstatement premiums paid following the AZF and
World Trade Center losses. This increase was mainly due to
significantly increased retention levels for Large Corporate
accounts (from 39% to 81%) and increased retention levels for
Life Accident & Health (from 84% to 86%) offset by a
decrease in the retention level for Credit, Surety &
Political Risks (from 92% to 88%) and a stability for Treaty
Property-Casualty (from 90% to 91%) and Alternative Risks (100%
for each of 2001 and 2002).

Revenues

Our consolidated total revenues decreased by 16%
to EUR 3,761 million in 2003 compared to EUR
4,482 million in 2002, reflecting a 20% decrease in net
premiums earned, a 16% decrease in net investment income, offset
by a significant net realized gain on investments.

In 2002, our consolidated total revenues
increased by 12%, from EUR 4,010 million in 2001 to
EUR 4,482 million in 2002.

44



---



##### Table of Contents



Net premiums earned

Net premiums earned decreased by 20% in 2003 from
EUR 4,153 million in 2002 to EUR 3,324 million in
2003. Net premiums earned represented 86% of our consolidated
total revenues in 2003 compared to 93% in 2002. The overall
decrease in net premiums earned resulted from decreases of 17%
in Treaty Property-Casualty, 4% in Large Corporate Accounts, 10%
in Life-Accident & Health, 70% in Alternative
Reinsurance and 20% in Credit, Surety & Political Risks. The
20% decrease in net premiums earned was due to a 30% decrease in
gross written premiums in 2003 offset in part by underwritings
in Alternative Reinsurance and Non Life businesses in 2002 and
prior years, for which premiums were earned in 2003.

In 2002, net premiums earned represented 93% of
our consolidated total revenues. The overall increase in net
premiums earned resulted from increases in the Treaty
Property-Casualty, Life-Accident &Health and Large Corporate
Accounts segments of 18%, 6% and 113%, respectively, while
Alternative Reinsurance and Credit, Surety & Political Risks
net premiums earned were down 22% and 6%, respectively.

Net Income from investments

Our net income from investments increased by 33%
in 2003 from EUR 329 million in 2002 to EUR
437 million in 2003 due to a net realized gain on
investments of EUR 116 million in 2003 compared to a net
loss of EUR 52 million in 2002, partially offset by
decreased net investment income of EUR 321 million in 2003
compared to EUR 381 million in 2002.

Realized capital gains on investment in 2003
amounted EUR 116 million and resulted from the capital gain
of EUR 93 million from the sale of fixed securities, EUR
13 million from the sale of equity securities and
EUR 10 million from the sale of real estate.

The realized capital gain on the sale of
SCORs head office that took place in December 2003 for EUR
69 million is not included in the realized capital gain
recorded in 2003. Under FASB 13, 66 and 98, because SCOR has a
continuing involvement in the property, the sale and leaseback
transaction has not been treated as a sale. Therefore the sale
is not currently recognized and the asset remains on SCORs
books. In addition, the sale proceeds are considered as
financing and part of SCORs debt as of December 31,
2003. Under the financing method, lease payments (EUR 10.3
million per year over 9 years) will reduce the debt over
the lease and property will be amortized. The transaction will
be recognized as a sale at the end of the lease at the latest.
Our net investment income decreased in 2003 to EUR
321 million in 2003 compared to 381 million in 2002
due to lower interest rates in 2003. The main portion of net
investment income is derived from fixed-income securities, which
accounted for EUR 283 million of our net investment income
in 2003 compared to EUR 332 million in 2002.

Financial expenses (net of interest expenses on
swaps) amounted to EUR 70 million in 2003, reflecting a 2%
decrease compared to 2002. In 2003, financial expenses included
EUR 34.7 million of interest on outstanding debt securities
we issued, a 4% decrease over the EUR 36.3 million recorded
in 2002 mainly due to a decrease in the Eurolibor and US Libor
rates and a significant reduction of our short-term debt
securities due to the issuance of EUR 200 million 5-year
senior notes in May 2002.

In 2002, our income from investments increased to
EUR 329 million compared to EUR 357 million in 2001
due to a realized loss on investments of EUR 52 million in
2002 compared to a realized gain of EUR 10 million in 2001,
only partially offset by increased net investment income of EUR
381 million in 2002 compared to EUR 347 million
in 2001.

Our realized loss on investments of EUR
52 million in 2002 was due to a loss of EUR 98 million
resulting from the subscription to the capital increase of Swiss
Life and to further capital losses in an amount of EUR
57 million on the sale of certain other equity securities
in accordance with our strategy of reducing our equity exposure
due to the generally weak financial markets, partially offset by
capital gains of EUR 93 million realized on the sale in
July 2002 of our 35.26% stake in Coface to Natexis-Banques
Populaires for a price of EUR 62 per share.

The increase in our net investment income in 2002
was mainly due to trading equity securities (Swiss Life). When
excluding Swiss Life securities (EUR 53 million), our net
investment income decreased 18% from EUR 400 million
in 2001 to EUR 328 million in 2002, reflecting the 2002
worldwide slow-down of financial

45



---



##### Table of Contents



markets. These changes are also reflected by the
increase in our provisions for portfolio depreciation and in our
financial expenses.


Financial expenses in 2002 included EUR
36.3 million of interest on outstanding debt securities we
issued, a 14% increase over the EUR 31.9 million recorded
in 2001. This significant increase reflects the increased amount
of our short-term debt securities issued and outstanding during
2002, which carried a higher interest rate. At the end of May
2002, we issued 5-year senior notes for EUR 200 million to
consolidate part of our short-term debt.

Swap interest, net of swap income, was EUR
5.3 million for 2003, EUR 6.5 million for 2002 and
EUR 3 million for 2001.

Expenses

In 2003, the Groups consolidated total
expenses decreased by 20% to EUR 4,020 million, compared to
EUR 5,006 million in 2002, or five percentage points
more than total revenues. In 2002, the Groups consolidated
total expenses increased by 7% to EUR 5,006 million,
compared to EUR 4,693 million in 2001.

Total claims decreased by 18% in 2003,
notwithstanding the reserve increases noted below, while the
volume of premiums decreased by 20%. In 2002, total claims
increased by 8%, while the growth in the volume of premiums was
14%, reflecting a slower loss increase and improved underwriting
conditions in 2002.

Property-Casualty claims decreased by 20% in
2003, resulting in a loss ratio of 99% in 2003 compared to 97%
in 2002, as premium volumes also declined. Losses were impacted
in 2003 and 2002 by the US treaty reserve strengthening in an
amount of EUR 272 million and EUR 340 million,
respectively. In 2002, Property-Casualty claims increased by 9%,
with a loss ratio of 97% in 2002 compared to 102% in 2001.

Life claims decreased by 8% to EUR
421 million in 2003 compared to EUR 459 million in
2002. This decrease was 3 percentage points lower than the
reduction in Life earned premiums in 2003. In 2002, Life claims
increased by 2% to EUR 459 million in 2002 compared to EUR
451 million in 2001.

Policy acquisition costs and commissions
decreased by 18% to EUR 742 million in 2003, compared to
EUR 909 million in 2002. This decrease is in line with
the decrease of 20% in earned premiums. Underwriting and
administration expenses decreased by 21% in 2003 to EUR
165 million compared to EUR 208 million in 2002. In
2002, policy acquisition costs and commissions increased by 7%
to EUR 909 million in 2002, compared to
EUR 848 million in 2001, representing only
approximately one half of the 14% increase in premiums earned,
mainly due to the development of the non-proportional business
and SCOR Business Solutions, which have lower commission rates.
Underwriting and administration expenses decreased to EUR
208 million in 2002 compared to EUR 209 million in
2001.

Foreign exchange gain increased by 62% to EUR
99 million in 2003 compared to a gain of EUR
61 million in 2002 due to the strengthening of the Euro
against the US Dollar of 16.8% between 2002 and 2003, based on
average annual exchange rates. In 2002, foreign exchange
movements accounted for EUR 61 million of expenses compared
to EUR 8 million in 2001 due to a corresponding revaluation
of the Euro against the US Dollar of 6.5% between 2001 and 2002.

No impairment of goodwill in 2003 had been made
compared to an impairment of EUR 17 million made in 2002
with respect to CRP. Amortization of goodwill in 2002 was
consistent with 2001.

Other operating expenses were EUR 22 million
in 2003 compared to expenses of EUR 19 million in 2002 and
an income of EUR 1 million in 2001. The level of other
operating expenses in 2003 and 2002 was due to reclassification
of the amortization of intangible assets of SCOR Life Re.

In 2003, the ratio of underwriting and
administration expenses to gross premiums written was 4.8%,
compared to 4.2% in 2002 and 4.7% in 2001.

46



---



##### Table of Contents



Income taxes

In 2003 and 2002, income taxes paid by French
corporations were subject to a statutory surcharge of 3% and to
an additional statutory surcharge of 3.3%, which resulted in a
total rate of income tax on French corporations of 35.43%.

In 2003, French tax law changed and thus
authorizing unlimited carry forward of tax losses compared to
5 years previously.

In 2001, income taxes paid by French corporations
were subject to a surcharge of 6% and to an additional surcharge
of 3.3%, which resulted in a total rate of income tax on French
corporations of 36.43%.

In 2003, the Group recorded a net income tax
expense of EUR 293 million compared to EUR 28 million
in 2002 and a benefit of EUR 273 million in 2001.

At December 31, 2003, the most significant
factor affecting net income tax expense was a tax loss resulting
from an additional impairment of EUR 385 million of
deferred tax assets in accordance with SFAS 109 due to a
net loss of SCOR U.S. and SCOR on a consolidated basis for three
consecutive years. At December 31, 2002, the most
significant factors affecting net income tax benefit were a tax
profit relating to loss carry forwards for
EUR 131 million and an impairment loss of EUR
138 million based on deferred tax assets recorded in
accordance with SFAS 109 due to a net loss result of SCOR
U.S. and SCOR on a consolidated basis for two consecutive years.
See Note 7 (Income Tax) to the consolidated financial
statements.

The 2003 net income tax expense was due to a tax
loss computed at the statutory rate of EUR (299) million,
including write off of deferred tax assets resulting from tax
loss carry forwards. This net income tax expense was also due to
certain tax-exempt expenses (EUR (9) million) and the
reduction in French Corporate tax rates for 2003 (EUR
4 million). The 2002 net income tax expense resulted
primarily from a tax benefit computed at the statutory rate of
EUR 37 million including deferred tax benefits resulting of
tax loss carry forwards, compared to EUR 219 million
in 2001. This net income tax expense was also due to certain tax
exempt revenues (EUR 24 million), resulting in tax
loss carry forwards that are greater than GAAP losses, and from
the reduction in French corporate tax rates for 2002
(EUR 40 million).

Minority interests

Minority interests expenses were EUR
26 million in 2003 compared to 13 million in 2002 and
to EUR 1 million in 2001. This increase was due to the
incorporation of IRP, which started to subscribe business on
January 1, 2002, and the increase in SCORs stake in
IRP to 53.35% as of December 31, 2003.

Income from investments accounted for under
the equity method

Income from investments accounted for under the
equity method totaled EUR 1 million in 2003 and
EUR 4 million in both 2002 and in 2001.

On March 29, 2002 we sold our 35.26% stake
in Coface, which is no longer included in our accounts, and the
capital gain realized in this transaction was recorded in the
first half of 2002. Cofaces contribution to our net income
was EUR 1 million in both 2002 and 2001.

Changes in accounting
standards

During 2001, SCOR U.S. adopted the practice of
discounting tabular workers compensation claims for
statutory and U.S. GAAP using an interest rate of 5%. Management
believes that discounting such claims is preferable since it
more closely matches revenues and expenses, better reflects the
economic reality of paying the fixed amounts over a long period
of time and represents a method commonly used in the industry.
The effect of the change in 2001 was to increase net income by
EUR 62 million before tax, and EUR 41 million after
tax. To be able to compare figures, the effect of this change in
2002 would have been EUR 17 million before tax and
EUR 11 million after tax.

47



---



##### Table of Contents



Underwriting Results

Non-Life

The Non Life segment is divided into two
operational sub-segments: Property Casualty Treaty (including
the proportional and non-proportional treaty classes of
property, marine, space and transportation, and construction
reinsurance) and Large Corporate Accounts or SCOR Business
Solutions (including the Groups large faculative business).

The following table sets forth premium, loss and
expense data, and related ratios, for our Non-Life segment for
the periods indicated:

|                                |  |                         |       |      |  |      |       |   |  |  |       |  
|------------------------------- |  | ----------------------- | ----- | ---- |  | ---- | ----- | - |  |  | ----- | -
|                                |  |                        
|                                |  | Year ended December 31,
|                                |  |                        
|                                |  | 2001                    |       | 2002 |  | 2003
|                                |  |                         |       |      |  |     
|                                |  |                        
|                                |  | (EUR, in millions)     
|Gross premiums written          |  |                         | 2,481 |      |  |      | 3,106 |   |  |  | 2,259 |  
|Net premiums written            |  |                         | 1,953 |      |  |      | 2,738 |   |  |  | 2,042 |  
|Net premiums earned             |  |                         | 1,966 |      |  |      | 2,575 |   |  |  | 2,175 |  
|Net loss and LAE                |  |                         | 2,117 |      |  |      | 2,259 |   |  |  | 2,042 |  
|Net commissions and expenses(1) |  |                         | 646   |      |  |      | 730   |   |  |  | 584   |  
|Underwriting profit (loss)      |  |                         | (797  | )    |  |      | (414  | ) |  |  | (451  | )
|Loss ratio                      |  |                         | 108%  |      |  |      | 88%   |   |  |  | 94%   |  
|Expense ratio(1)                |  |                         | 33%   |      |  |      | 28%   |   |  |  | 27%   |  
|Combined ratio                  |  |                         | 141%  |      |  |      | 116%  |   |  |  | 121%  |  






|    |                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Expenses include direct charges of each business
    segment and indirect charges allocated by business segment pro
    rata according to direct expenses.

Gross premiums written decreased by 27% in 2003
compared to 2002. This decrease reflected the implementation of
the Back on Track plan announced in November 2002, that resulted
in the Groups underwriters taking significant actions in
2003 to cancel unprofitable or non-core businesses and, when
necessary, adjusting pricing or improving terms and conditions
in order to achieve targeted profitability.

In 2003, the premium rates and renewal terms and
conditions remained, as a whole, in line with expectations and
SCOR continued to focus on profitable activities, particularly
on short-to-medium tail business. As a consequence, the Property
Treaty premiums in 2003 increased by 7 percentage points to
44%, while Casualty Treaty business and Large Corporate Accounts
decreased by 3 and 5 percentage points to respectively
represent 31% and 25% of the Non-Life segment.

The retention level of the Non-Life segment
increased by 2 percentage points to 90% in 2003. Net
premium earned showed a 16% decrease in 2003 compared to 2002,
reflecting premiums earned in 2003 from 2002, while gross and
net written premiums decreased by 27% and 25%, respectively.

The combined ratio of the Non-Life segment was
121% in 2003 compared to 116% in 2002. The loss ratio remained
quite unsatisfactory mainly due to a further increase in loss
reserves regarding our North American casualty operations for
accident years 1997 to 2001. The increase in our loss reserves,
based on a comprehensive review of our claims reserves at best
estimate in September 2003, amounted to EUR 233 million and
contributed 11 percentage points to our Non-Life loss ratio
of 94% in 2003. The amount of claims related to natural
catastrophes represented a net charge of
EUR 72 million in 2003 (storms in the Midwest
(USA) for EUR 31 million, typhoon Maemi (South
Korea) for EUR 18 million, floods in Italy for
EUR 12 million and floods in the Southwestern France
for EUR 11 million) compared to a net charge of
EUR 94 million in 2002 (floods in Central Europe).

Gross premiums written increased by 25% in 2002
compared to 2001 due to improved pricing and underwriting
conditions, and reflecting a strict underwriting approach and a
focus on short-to-medium tail business lines particularly on the
Large Corporate Accounts side. Property and Casualty business
accounted for 70% of the

48



---



##### Table of Contents



Non-Life segment in 2002 compared to 77% in 2001,
while Large Corporate Accounts accounted for 30% in 2002
compared to 23% in 2001.


Net premiums earned in 2002 increased by 31%
compared to 2001, reflecting the increase of premium volume in
property, transportation and construction businesses, as well as
higher retention levels on short tail risks, particularly on the
facultative side.

The Non-Life combined ratio improved from 141% in
2001 to 116% in 2002 mostly due to a significant improvement of
both loss and expense ratios.

The Non-Life loss ratio decreased by
20 percentage points from 108% in 2001 to 88% in 2002. This
significant improvement was due to a better loss experience
regarding property business, offset in part by the occurrence of
the floods in Central Europe resulting in a net charge of EUR
94 million, and to the strengthening of
EUR 154 million for the SCOR US reserves to
adjust our liabilities regarding accident years between 1997 and
2001. We also added EUR 15 million to our
environmental reserves in order to reflect adverse developments
in U.S. case law. The loss ratio of the Large Corporate
Accounts improved from 161% in 2001 to 83% in 2002. In 2001, the
claims in connection with the World Trade Center tragedy and the
explosion at the AZF plant particularly affected our large
corporate risks business, while in 2002, both major industrial
and natural catastrophe losses were comparatively low.

Non-Life commissions and expenses ratio decreased
from 33% in 2001 to 28% in 2002, reflecting the continuing
positive effects of the hardening of the reinsurance market.

Life/Accident & Health

The following table sets forth premium, loss and
expense data, and related ratios, for the Groups
Life/Accident & Health segment for the years indicated:

|                                |  |                         |       |      |  |      |       |   |  |  |      |  
|------------------------------- |  | ----------------------- | ----- | ---- |  | ---- | ----- | - |  |  | ---- | -
|                                |  |                        
|                                |  | Year ended December 31,
|                                |  |                        
|                                |  | 2001                    |       | 2002 |  | 2003
|                                |  |                         |       |      |  |     
|                                |  |                        
|                                |  | (EUR, in millions)     
|Gross premiums written          |  |                         | 1,062 |      |  |      | 1,218 |   |  |  | 983  |  
|Net premiums written            |  |                         | 896   |      |  |      | 1,045 |   |  |  | 885  |  
|Net premiums earned             |  |                         | 852   |      |  |      | 901   |   |  |  | 869  |  
|Net loss and LAE                |  |                         | 687   |      |  |      | 663   |   |  |  | 653  |  
|Net commissions and expenses(1) |  |                         | 266   |      |  |      | 312   |   |  |  | 315  |  
|Underwriting profit (loss)      |  |                         | (101  | )    |  |      | (74   | ) |  |  | (100 | )
|Loss ratio                      |  |                         | 81%   |      |  |      | 73%   |   |  |  | 75%  |  
|Expense ratio(1)                |  |                         | 31%   |      |  |      | 35%   |   |  |  | 36%  |  
|Combined ratio                  |  |                         | 112%  |      |  |      | 108%  |   |  |  | 112% |  






|    |                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Expenses include direct charges of each business
    segment and indirect charges allocated by business segment pro
    rata according to direct expenses.

The Life and Accident & Health gross written
premiums decreased by 19% in 2003 compared to 2002. This
reduction, which impacted the Accident & Heath segment
resulted from a significant withdrawal from the French medical
welfare business initiated by the Group in the last quarter of
2002.

In 2003, net premiums written decreased by 16%
compared to 2002. As a result, the retention level for 2003
decreased to 80% from 86% in 2002. This 6 percentage points
decrease in the overall retention level of the Life and Accident
& Health segment was principally due to the withdrawal from
the French medical welfare business on which we had a strong
retention level in 2002. The 4% decrease in net earned premium
in 2003 compared to 2002 was less pronounced than the decrease
in net written premiums in the same period, due to the writing
of a contract in the last quarter of 2002 that generated strong
retained earned premiums in 2003.

In the Life and Accident & Health
activity, results are more reliable at the operating result
level, since the technical performance may vary from one year to
another according to the termination or renewal of certain

49



---



##### Table of Contents



important contracts under different terms and
conditions. This was particularly true for SCOR in 2003, a year
where the global Life and Accident & Health
activity showed a weaker technical result but a higher
investment related income.


Gross premiums written in 2002 were
EUR 1,218 million, a 15% increase from 2001. Much of
the increase in premiums derived from the new product Long Term
Care developed in France and the continuing development of
Provident products.

Net premiums written increased by 17% in 2002
from 2001, reflecting the proportionate increase in gross
premiums written. The retention rate level in 2002 was 86%
compared to 84% in 2001. In 2002, as in 2001, the retention rate
level increase was due to the underwriting of new large
contracts with a high retention rate.

Net premiums earned increased by 6% in 2002 from
2001. This lower increase registered in net earned premiums
compared to net written premiums mainly reflected the
development of Long Term Care and Provident products where
unearned premium reserves increased significantly between 2001
and 2002.

The net loss ratio in 2002 was 73% compared to
81% in 2001. This decrease was partly due to the cessation in
underwriting of U.S. Health business and the significant
reduction of Health underwriting outside the United States, and
to the exceptional losses in 2001 due to the World Trade Center
tragedy.

In 2002, commissions and expenses increased 17%
from 2001 in line with the increase in net premiums written.

Alternative Reinsurance

The following table sets forth premium, loss and
expense data, and related ratios, for the Groups
Alternative Reinsurance segment, conducted through CRP, for the
years indicated:

|                                |  |                         |      |      |  |      |      |   |  |  |       | 
|------------------------------- |  | ----------------------- | ---- | ---- |  | ---- | ---- | - |  |  | ----- | 
|                                |  |                        
|                                |  | Year ended December 31,
|                                |  |                        
|                                |  | 2001                    |      | 2002 |  | 2003
|                                |  |                         |      |      |  |     
|                                |  |                        
|                                |  | (EUR, in millions)     
|Gross premiums written          |  |                         | 712  |      |  |      | 467  |   |  |  | (1)   | 
|Net premiums written            |  |                         | 710  |      |  |      | 466  |   |  |  | (1)   | 
|Net premiums earned             |  |                         | 671  |      |  |      | 524  |   |  |  | 159   | 
|Net loss and LAE                |  |                         | 655  |      |  |      | 714  |   |  |  | 339   | 
|Net commissions and expenses(1) |  |                         | 92   |      |  |      | 61   |   |  |  | (4)   | 
|Underwriting profit (loss)      |  |                         | (76  | )    |  |      | (251 | ) |  |  | (176) | 
|Loss ratio                      |  |                         | 98%  |      |  |      | 136% |   |  |  | 213%  | 
|Expense ratio(1)                |  |                         | 14%  |      |  |      | 12%  |   |  |  | (2)%  | 
|Combined ratio                  |  |                         | 111% |      |  |      | 148% |   |  |  | 211%  | 






|    |                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Expenses include direct charges of each business
    segment and indirect charges allocated by business segment pro
    rata according to direct expenses.

Commercial Risk Partners, the ART Bermuda-based
subsidiary of SCOR ceased writing business in January 2003.
During the same quarter, SCOR began Commercial Risk
Partners sales negotiations and started commutation
negotiations with its largest ceding companies. By year-end, the
sale of CRP was no longer pursued, but SCOR had succeeded in
commuting approximately 60% of its alternative risk transfer
portfolio.

Due to the termination of activity, there were no
gross premiums written in 2003. Net premiums earned from the
run-off operations was EUR 159 million in 2003,
compared to EUR 524 million in 2002, reflecting the run-off
status of CRP.

Losses and LAE in 2003 was
EUR 339 million, which primarily reflected the ongoing
deterioration of our workers compensation contracts
underwritten in accident years 1999 and 2000. This incurred loss
amount included, as from September 2003, reserves strengthening
of EUR 49 million.

50



---



##### Table of Contents



Gross premiums written in 2002 decreased by 34%
to EUR 467 million compared to EUR 712 million in
2001, reflecting our strategy to stop underwriting of this class
of business in January 2003 after reducing it since the first
half of 2002.

The loss ratio increased to 136% in 2002 compared
to 98% in 2001. In November 2002, we announced an increase in
reserves for CRP of EUR 141 million, chiefly in
respect of finite prospective workers compensation
business written in 1999 and 2000. An additional allowance of
USD 54 million had previously been established at
September 30, 2002 for underwriting years prior to 2002.

Net commissions and expenses decreased by 34% to
EUR 61 million in 2002 compared to
EUR 92 million in 2001 reflecting the decrease in
premiums written of 34% and the impact of the reduction in
business on the CRP organization which reduced management
expenses by 26%.

Credit, Surety & Political
Risks

The following table sets forth premium, loss and
expense data, and related ratios, for the Groups Credit,
Surety & Political Risks segment for the years indicated:

|                                |  |                         |      |      |  |      |      |   |  |  |      |  
|------------------------------- |  | ----------------------- | ---- | ---- |  | ---- | ---- | - |  |  | ---- | -
|                                |  |                        
|                                |  | Year ended December 31,
|                                |  |                        
|                                |  | 2001                    |      | 2002 |  | 2003
|                                |  |                         |      |      |  |     
|                                |  |                        
|                                |  | (EUR, in millions)     
|Gross premiums written          |  |                         | 175  |      |  |      | 123  |   |  |  | 65   |  
|Net premiums written            |  |                         | 161  |      |  |      | 108  |   |  |  | 63   |  
|Net premiums earned             |  |                         | 163  |      |  |      | 153  |   |  |  | 122  |  
|Net loss and LAE                |  |                         | 115  |      |  |      | 278  |   |  |  | 157  |  
|Net commissions and expenses(1) |  |                         | 52   |      |  |      | 39   |   |  |  | 33   |  
|Underwriting profit (loss)      |  |                         | (4   | )    |  |      | (164 | ) |  |  | (68  | )
|Loss ratio                      |  |                         | 71%  |      |  |      | 182% |   |  |  | 129% |  
|Expense ratio(1)                |  |                         | 32%  |      |  |      | 25%  |   |  |  | 27%  |  
|Combined ratio                  |  |                         | 103% |      |  |      | 208% |   |  |  | 156% |  






|    |                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Expenses include direct charges of each business
    segment and indirect charges allocated by business segment pro
    rata according to direct expenses.

Our credit and surety business consists primarily
of our surety business outside of the United States, which
consists of insuring commitments of financial institutions
against the risk of default of their borrowers. The Group
stopped the underwriting of credit derivatives business in
November 2001.

In both 2003 and 2002, the Group significantly
reduced its Credit and Surety gross premium income. Gross
written premiums were reduced by 47% in 2003 and by 30% in 2002.
These reductions mainly reflected share reductions in existing
portfolios as well as the continuing impact of the reduction of
the Group surety book in the United States.

At the earned premium level, there was a less
pronounced decrease of 20% in 2003 compared to 2002 due to the
continuing spread out of the credit derivatives premiums.

On December 1, 2003, SCOR removed its credit
derivative exposures by entering into an agreement with Goldman
Sachs to hedge the Group entirely against all credit events that
occur on or subsequent to that date, representing a maximum loss
amount of USD 2.5 billion. The overall cost for SCOR,
including a related commutation transaction that took place at
the beginning of the fourth quarter of 2003, amounted to
EUR 45 million.

Credit, surety and political risks written
premiums decreased by 30% to EUR 123 million in 2002
compared to EUR 175 million in 2001, as a result of a
reduction in our U.S. surety book, the economic slowdown in
the United States, and the decision to stop underwriting in
credit derivatives in November 2001. Although loss experience
was much higher than the earlier years, in the wake of a number
of bankruptcies, in particular Swissair and Enron, our credit
portfolio suffered relatively little from the business failures
recorded, and thus

51



---



##### Table of Contents



posted positive results. In November 2002,
EUR 30 million was added to the reserves to cover
reinsurance for credit derivatives.




|   |                                
|-- | -------------------------------
|B. | LIQUIDITY AND CAPITAL RESOURCES

Liquidity and Capital Resources (see also
section C. Off Balance-Sheet
Transactions)

The following table sets forth the Groups
summarized cash flows statements:

|                                                              |  |                         |       |      |  |      |       |   |  |  |       |  
|------------------------------------------------------------- |  | ----------------------- | ----- | ---- |  | ---- | ----- | - |  |  | ----- | -
|                                                              |  |                        
|                                                              |  | Year ended December 31,
|                                                              |  |                        
|                                                              |  | 2001                    |       | 2002 |  | 2003
|                                                              |  |                         |       |      |  |     
|                                                              |  |                        
|                                                              |  | (EUR, in millions)     
|Net cash flows provided by (used in) operating
    activities |  |                         | 9     |      |  |      | 269   |   |  |  | (101  | )
|                                                              |  |                         |       |      |  |      |       |   |  |  |       |  
|Net cash flows provided by (used in) investing
    activities |  |                         | 846   |      |  |      | (523  | ) |  |  | 273   |  
|                                                              |  |                         |       |      |  |      |       |   |  |  |       |  
|Net cash flows provided by (used in) financing
    activities |  |                         | 742   |      |  |      | 307   |   |  |  | (38   | )
|                                                              |  |                         |       |      |  |      |       |   |  |  |       |  
|Effect of exchange rate changes on cash                       |  |                         | (7    | )    |  |      | (57   | ) |  |  | 21    |  
|Cash and cash equivalents at beginning of year                |  |                         | 247   |      |  |      | 1,927 |   |  |  | 1,788 |  
|Effect of changes in exchange rates on cash
    beginning     |  |                         | 6     |      |  |      | (135  | ) |  |  | (195  | )
|Changes in consolidation scope                                |  |                         | 84    |      |  |      |      |   |  |  |      |  
|                                                              |  |                         |       |      |  |      |       |   |  |  |       |  
|Cash and cash equivalents at end of year                      |  |                         | 1,927 |      |  |      | 1,788 |   |  |  | 1,824 |  
|                                                              |  |                         |       |      |  |      |       |   |  |  |       |  

In the insurance and reinsurance industries,
liquidity generally relates to the ability of a company or a
group to generate adequate amounts of cash from its normal
operations, including from its investment portfolio, in order to
meet its financial commitments, which are principally
obligations under its insurance or reinsurance contracts. Future
catastrophe claims, the timing and amount of which are
inherently unpredictable, may create increased liquidity
requirements for the Group.

The principal sources of funds for the
Groups reinsurance operations are premiums, net investment
income and realized capital gains, while the major uses of these
funds are to pay claims and related expenses, and other
operating costs. The Group generates substantial cash flow from
operations as a result of most premiums being received in
advance of the time when claim payments are required. These
positive operating cash flows, along with that portion of the
investment portfolio that is held in cash and highly liquid
securities, have historically met the liquidity requirements of
the Groups operations.

The Groups liquidity requirements are met
on both a short and long-term basis by funds provided by
reinsurance premiums collected, investment income and collected
retrocessional reinsurance receivable balances, and from the
sale and maturity of investments. The Group also has access to
the commercial paper, medium-term note and other credit
facilities described below as additional sources of liquidity.

The Groups balance of cash and cash
equivalents was EUR 1,824 million at
December 31,2003 compared to EUR 1,788 million at
December 31, 2002 and EUR 1,927 million at
December 31, 2001.

Net cash used by operations was
EUR 101 million in 2003 compared to a net cash
provided of EUR 269 million in 2002, and
EUR 9 million in 2001.

In 2003, the non-life technical provisions
decrease for claims (EUR (199) million) and unearned
premiums (EUR (375) million) was a result of the
decrease in our activities in accordance with the Back on
Track plan which we started during the fourth quarter of
2002. In 2003, we increased our reserves related to certain
reinsurance contracts in the United States prior to 2002 by
EUR 272 million and commuted business underwritten by our
Bermudan subsidiary CRP. Excluding EUR 799 million of cash
used in connection with CRPs activities, primarily
commutation transactions, our operating cash flow would have
been net cash provided of EUR 698 million, or an increase
of EUR 429 million compared to 2002.

In 2002, the technical provisions increase for
claims (EUR 467 million) and unearned premiums
(EUR 192 million) was a result of developments in our
activities. In particular, the higher increase in losses and LAE
reserves than in unearned premium reserves was due to the high
loss ratios in Alternative Reinsurance and

52



---



##### Table of Contents



in Credit, Surety and Political Risks. We
readjusted our reserves related to certain reinsurance contracts
in the United States prior to 2001. Likewise, we readjusted our
reserves, due particularly to an increase in claims related to
certain credit derivatives reinsurance contracts largely caused
by the worsening of the condition of certain debtors, to certain
events related to the Program Business of SCOR U.S. and to
the high claims rate of certain contracts covering workers
compensation in the United States underwritten by our Bermudan
subsidiary CRP.


Changes in assets and liabilities created net
cash provided of EUR 140 million in 2003 compared to
net cash used of EUR 116 million in 2002. This cash
provided in 2003 was mainly due to the combined effect of the
30% reduction in premiums and a decrease of the claims payments.

In 2002, changes in assets and liabilities
created net cash used of EUR 116 million. This was due to a
strong increase (EUR 525 million) in deposits with
ceding companies (mainly due to Life deposits and a stronger
need of guarantees from the cedent due to the downgrade of our
ratings) and in receivable on sundry debtors and creditors,
compensated by a decrease in accrued reinsurance balance payable
(EUR 409 million) due to a decrease of our estimates
taking into consideration the ceding accounts receipt.

In 2001, the components of operating cash-flows
reflected the rise in Property-Casualty, Alternative Reinsurance
and Large Corporate Accounts premiums offset by the increase in
paid claims due to major losses occurred in 2001. The increase
in reserves, mainly for the World Trade Center and AZF
catastrophes and very high losses on industrial risks and in
treaty reserves due to additional reserves made on
U.S. business for underwriting years 1998 and prior,
reflects an increase in loss and LAE reserves, net, of
EUR 772 million. The increase in Property-Casualty and
Alternative Reinsurance and Large Corporate Accounts premiums
written was reflected through a change in accrued reinsurance
balance, gross, of EUR 306 million.

Net cash provided by investing activities was
EUR 273 million in 2003 compared to cash used of
EUR 523 million in 2002. For 2003, our investing
activities consisted of a net sale of fixed maturities for
EUR 33 million, short-term investments for
EUR 169 million and a sale of real estate for
EUR 46 million.

Net cash used by investing activities was
EUR 523 million in 2002, compared to cash provided of
EUR 846 million in 2001. For 2002, transactions in
fixed maturities resulted in a net purchase of
EUR 1,227 million while transactions in equity
securities resulted in a net sale of EUR 253 million.
The sales of our shares of Coface led to an inflow, net of
expenses, of EUR 275 million.

In 2001, transactions in fixed maturities
resulted in a net sale of EUR 1,261 million. The sales were
made to raise liquidity for future payments for the World Trade
Center claims. Transactions in equity securities resulted in a
net sale of EUR 465 million. Investments in
reinsurance companies resulted in a net purchase, representing
the purchase of Sorema SA.

Net cash used by the Groups financing
activities was EUR 38 million in 2003, compared to net
cash provided of EUR 307 million in 2002. This was due
primarily to a net proceed of long-term borrowings of
EUR 194 million and our acquisition of minority
interests in our company IRP for EUR 40 million.

Cash provided by the Groups financing
activities was EUR 307 million in 2002, compared to
EUR 742 million in 2001. The 2002 cash provided is
mainly explained by the issuance of new shares due to the
December 2002 company capital increase, which resulted in an
increase of our resources of EUR 363 million.

As part of its ongoing short and medium term debt
management strategy, SCOR finalized the placement of a 5-year,
5.25% senior notes issue in May 2002. The Group sold
EUR 200 million of notes, due on June 21, 2007,
at a yield to maturity of 5.395%, i.e. with a spread of
45 basis points over Mid-swap. This offering lengthened the
average duration of SCORs outstanding debt. The issue was
used entirely to consolidate part of SCORs existing
commercial paper program and did not alter the Groups
overall debt ratio.

In 2001, proceeds from borrowings of
EUR 774 millions, net of repayments of
EUR 491 million, represented principally the issuance
in 2001 of commercial paper for future payments of World Trade
Center related claims. Additionally, an amount of
EUR 174 million was invested by minority shareholders
of IRP.

On April 17, 2002, SCOR issued
USD 112 million index-linked securitization of
liabilities designed to lower its risk profile in Credit
Reinsurance. This securitization is fully backed by Aaa-rated
assets. This coverage is linked

53



---



##### Table of Contents



to Moodys A and Baa ratings indices,
which comprise weighted credit risk populations rated between A1
and Baa3. The indices were picked for their match with the
credit exposures SCOR is seeking to protect in terms of quality,
geographic diversity and range of sectors.


At December 31, 2003, the Group had
approximately EUR 50 million available in unused short and
long-term credit lines, compared to EUR 100 million
for 2002 and EUR 640 million for 2001. For additional
information, see below under  Off Balance Sheet
Transaction. EUR 381 million of this amount
consisted of confirmed back-up credit lines related to the
commercial paper program provided by several French and German
banks at a commitment fee not higher than 1/16th of 1% and a
drawing cost not higher than 3/16th of 1% over EURIBOR, subject
to certain limited exceptions. At the same dates,
EUR 250 million was represented by back-up credit
facilities with several banks at commitment fees ranging from
1/10th to 5/32nd of 1% and at drawing costs of 3/16th of 1% over
EURIBOR.

Taking into consideration the companys
equity and guaranties given to the financial institutions, SCOR
believes that its working capital is sufficient for its present
requirements.

The extraordinary shareholders meeting held
on December 1, 2003 authorized the Board of Directors to
increase the share capital. Pursuant to this authorization,
682,724,225 shares were issued at a subscription price of
EUR 1.10. Since this operation was completed on
January 7, 2004, the 2003 cash flow from financing
activities does not reflect this capital increase.

C. OFF-BALANCE SHEET
TRANSACTIONS

We enter into off-balance-sheet arrangements in
the ordinary course of business both on our own behalf and on
behalf of our customers. Off-balance-sheet arrangements we enter
into for our own behalf generally consist of OTC and other
derivative instruments, and are described in Note 13 to the
Consolidated Financial Statements.

Off-balance-sheet arrangements we enter into for
our clients consist of letter of credit (LOC) transactions where
we provide LOC coverage for all or part of our reinsurance
obligations to ceding companies, or where similar coverage is
provided to us by our retrocessionaires. These transactions are
entered into in the ordinary course to comply with ceding
companies credit or regulatory requirements. We also
pledge some securities as collateral in order to guarantee the
payment of cedents reserves. The following table sets
forth our off-balance-sheet engagements at December 31,
2001, 2002 and 2003:

|                          |       |                         |       |       |  |      |       |       |  |  |       |       | 
|------------------------- | ----- | ----------------------- | ----- | ----- |  | ---- | ----- | ----- |  |  | ----- | ----- | 
|                          |       |                        
|                          |       | Year ended December 31,
|                          |       |                        
|                          |       | 2001                    |       | 2002  |  | 2003
|                          |       |                         |       |       |  |     
|                          |       |                        
|                          |       | (EUR, in millions)     
|Commitments received      |       |                         |       |       |  |      |       |       |  |  |       |      
|Unused credit lines       |       |                         | 640   |       |  |      | 100   |       |  |  | 50    |      
|Endorsements and sureties |       |                         | 2     |       |  |      | 1     |       |  |  | 68    |      
|Finance leases            |       |                         |      |       |  |      | 59    |       |  |  | 60    |      
|Letters of Credit         |       |                         | 78    |       |  |      | 1,262 |       |  |  | 1,285 |      
|Other commitments         |       |                         |      |       |  |      | 1     |       |  |  |      |      
|                          |       |                         |       |       |  |      |       |       |  |  |       |      
|                          | Total |                         |       | 720   |  |      |       | 1,423 |  |  |       | 1,463 | 
|                          |       |                         |       |       |  |      |       |       |  |  |       |      
|Commitments given         |       |                         |       |       |  |      |       |       |  |  |       |      
|Endorsements and sureties |       |                         | 2     |       |  |      | 1     |       |  |  | 90    |      
|Finance leases            |       |                         | 5     |       |  |      | 120   |       |  |  | 102   |      
|Letters of Credit         |       |                         | 1,459 |       |  |      | 1,085 |       |  |  | 594   |      
|Repos and equivalents     |       |                         |      |       |  |      |      |       |  |  |      |      
|Collateralized securities |       |                         | 795   |       |  |      | 2,584 |       |  |  | 3,226 |      
|Other commitments         |       |                         | 27    |       |  |      | 23    |       |  |  | 139   |      
|                          |       |                         |       |       |  |      |       |       |  |  |       |      
|                          | Total |                         |       | 2,288 |  |      |       | 3,813 |  |  |       | 4,151 | 
|                          |       |                         |       |       |  |      |       |       |  |  |       |      

54



---



##### Table of Contents



We are not aware of factors relating to the
foregoing off-balance-sheet arrangements that are reasonably
likely to adversely affect liquidity trends or the availability
of or requirements for capital resources. As of
December 31, 2003, there were no material additional
financial commitments required from Group companies in respect
of such arrangements.

At the end of December 2003, SCOR Group had
access to bank facilities, which included a credit line of
EUR 50 million and letters of credit of EUR 1,285
million.

In December 2003, SCOR entered into amended bank
facilities as follows:

EUR 50 million short term credit
line

On November 5, 2003, the Board of Directors
of SCOR authorized the extension and amendment of a contract
signed on December 11, 2002 concerning the opening of a
EUR 100 million short-term credit line between SCOR
and a syndicate of banks. Pursuant to a December 8, 2003
amendment, the global commitment under the short-term credit
line was reduced to EUR 50 million and one bank left
the syndicate. The credit line was terminated by SCOR on
February 24, 2004.

SCOR Credit Line

On November 5, 2003, the Board of Directors
of SCOR authorized the signature of an amendment extending and
modifying the terms of the credit agreement between SCOR and a
banking syndicate entered into on December 26, 2002,
relating to the issuance of letters of credit in an aggregate
amount of up to USD 900 million. This amendment was
signed on November 13, 2003 with the same banking syndicate
as in the December 26, 2002 agreement, excluding one bank,
for an amended aggregate amount of up to
USD 842 million. This maximum amount was subsequently
reduced to USD 822 million in December 2003, and was
further reduced to USD 582 million in April 2004.

In addition to covenants, events of default, and
other provisions, the credit facility is guaranteed by
collateral given to the banking syndicate in the form of French
Government OAT Bonds for an aggregate amount equal to 105% of
the amounts drawn and outstanding.

In addition, SCOR VIE has granted an indemnity
bond (caution personnelle, solidaire et indivisible) to
guarantee all sums due in respect of the letters of credit
issued in respect of Life business. This guarantee is entirely
released.

SCOR VIE Credit Line

On November 14, 2003, in the context of the
contribution of the Life business of SCOR to SCOR VIE, SCOR VIE
entered into a EUR 110 million-credit facility agreement
with a banking syndicate, utilizable by the issuance of letters
of credit.

As in the case of the SCOR credit facility, this
credit facility is guaranteed by collateral given to the banking
syndicate in the form of French Government OAT Bonds for an
aggregate amount equal to 105% of the amounts drawn and
outstanding.

In addition, SCOR has granted an indemnity bond
(caution personnelle, solidaire et indivisible) to
guarantee all sums due in respect of the SCOR VIE credit
agreement.

55



---



##### Table of Contents



D. CONTRACTUAL OBLIGATIONS

The following table sets forth the schedule of
repayments of SCORs long-term debt as of December 31,
2003:

|           |                      |                    |     |     |    
|---------- | -------------------- | ------------------ | --- | --- | ---
|Year       |                      | Payment           
|           |                      |                   
|           |                      | (EUR, in millions)
|2004       |                      |                    | 14  |    
|2005       |                      |                    | 257 |    
|2006       |                      |                    |    |    
|2007       |                      |                    | 224 |    
|2008       |                      |                    |    |    
|Thereafter |                      |                    | 240 |    
|           |                      |                    |     |    
|           | Total long-term debt |                    |     | 735 | (1)
|           |                      |                    |     |    






|    |                                                                        
|--- | -----------------------------------------------------------------------
|(1) | Excluding EUR 150 million related to
    the sale of the SCOR building.

|                            |       |                       |     |           |  |           |    |           |  |         |     |     |  |  |     |     |  |  |     |     | 
|--------------------------- | ----- | --------------------- | --- | --------- |  | --------- | -- | --------- |  | ------- | --- | --- |  |  | --- | --- |  |  | --- | --- | 
|                            |       |                      
|                            |       | Payment due by period
|                            |       |                      
|                            |       |                       |     | Less than |  |           |    | More than
|Contractual obligations     |       | Total                 |     | 1 year    |  | 1-3 years |    | 3-5 years |  | 5 years
|                            |       |                       |     |           |  |           |    |           |  |        
|Long term debt              |       |                       | 735 |           |  |           | 14 |           |  |         | 257 |     |  |  | 224 |     |  |  | 240 |    
|Capital lease               |       |                       |    |           |  |           |   |           |  |         |    |     |  |  |    |     |  |  |    |    
|Operating lease             |       |                       |    |           |  |           |   |           |  |         |    |     |  |  |    |     |  |  |    |    
|Purchase                    |       |                       |    |           |  |           |   |           |  |         |    |     |  |  |    |     |  |  |    |    
|Other long term liabilities |       |                       |    |           |  |           |   |           |  |         |    |     |  |  |    |     |  |  |    |    
|                            |       |                       |     |           |  |           |    |           |  |         |     |     |  |  |     |     |  |  |     |    
|                            | Total |                       |     | 735       |  |           |    | 24        |  |         |     | 247 |  |  |     | 224 |  |  |     | 240 | 
|                            |       |                       |     |           |  |           |    |           |  |         |     |     |  |  |     |     |  |  |     |    

For more information, see Note 6 to the financial
statements. See Item 3.D. Key Information 
Risk Factors  SCOR faces a number of significant
liquidity requirements in the short to medium-term.

E. RESEARCH AND DEVELOPMENT, PATENTS,
LICENSES

See Item 4.B Business overview
Information technology.

F. TREND INFORMATION

See Item 4.B Business overview
and Item 5.A Operating results.

G. CRITICAL ACCOUNTING POLICIES

SCORs consolidated financial statements
included in this annual report have been prepared in accordance
with accounting principles generally accepted in the United
States (U.S. GAAP). The preparation of financial statements
in conformity with U.S. GAAP requires management to make
estimates and assumptions. The following presents those
accounting policies that management believes are the most
critical to its operations and those policies that require
significant judgment on the part of management. These critical
accounting policies are those which involve the most complex or
subjective decisions or assessments, and relate to the
recognition of premium income, the establishment of technical
insurance reserves, the recording of deferred acquisition costs,
goodwill, deferred taxes and the determination of the fair value
of financial assets. In each case, the determination of these
items is fundamental to our financial condition and results of
operations, and requires management to make complex judgments
based on information and financial data that may change in
future periods. As a result, determinations regarding these
matters necessarily involve the use of assumptions and
subjective judgments as to future events and are subject to
change, as the use of different assumptions or data could
produce materially different results.

56



---



##### Table of Contents



Technical Reserves.

Our insurance provisions, or technical reserves,
represent estimates of future payouts that we will make in
respect of our Property-Casualty and Life reinsurance claims,
including expenses relating to such claims. Such estimates are
made on a case-by-case basis, based on the facts known to us at
the time provisions are established, and are periodically
adjusted to recognize the estimated ultimate cost of a claim. As
a reinsurance company, our reserve estimates are largely based
on information received from our ceding companies, which are in
turn dependent on information received from their underlying
insured, with the result that a significant amount of time can
lapse between the assumption of risk on our part, and the
ultimate payment of a claim on a covered loss event. In
addition, we establish IBNR reserves in our
Property-Casualty business to recognize the estimated cost of
losses that have occurred but about which we do not yet have
notice. The establishment of our technical reserves is an
inherently uncertain process, involving assumptions as to
factors such as court decisions, changes in laws, social,
economic and demographic trends, inflation and other factors
affecting claim costs. Reserves are calculated on the basis of
their ultimate cost undiscounted, except for workmens
compensation which is discounted. In our Life reinsurance
business, the technical reserves for life benefits that we
establish are based on information received from our ceding
companies, together with actuarial estimates concerning
mortality and morbidity trends. We have assessed that, as far as
the evaluation of our technical reserves was concerned, the
World Trade Center tragedy was considered as one event only. See
also Item 3.D. Key Information  Risk
Factors  We may be subject to losses due to our
exposure to risks related to terrorist acts.,
Item 8  Financial Information 
Legal Proceedings and Note 1.14 to the consolidated
financial statements.

Premiums.

Management must make judgments about the ultimate
premiums written by the Group. Due to lags in the reporting of
premium data by our ceding company clients, our reported
premiums written are based on reports received from ceding
companies, supplemented by our own estimates of premiums written
for which ceding company reports have not been received.
Property-Casualty and Life premiums recorded in the year
correspond to the estimated premiums anticipated at the time of
writing the contract. This is regularly reviewed in the course
of the year to adjust for possible modifications in premiums
paid under the contract. An unearned premium reserve is
calculated, either on a time apportioned contract-by-contract
basis, or using a statistical method when this yields as a
result close to that obtained via the contract-by-contract
method. See also Note 1.7 to the consolidated financial
statements.

Amortization of Deferred Policy Acquisition
Costs.

We amortize our deferred policy acquisition costs
(DAC) for life business based on a percentage of our expected
gross profits (EGPs) over the life of the policies. Our
estimated EGPs are computed based on assumptions related to the
underlying policies written, including the lives of the
underlying policies, and, if applicable, growth rate of the
assets supporting the liabilities. We amortize deferred policy
acquisition costs by estimating the present value of the EGPs
over the lives of the insurance policies and then calculate a
percentage of the policy acquisition cost deferred as compared
to the present value of the EGPs. That percentage is used to
amortize the deferred policy acquisition cost such that the
amount amortized over the life of the policies results in a
constant percentage of amortization when related to the actual
and future gross profits.

Because the EGPs are only estimates of the
profits we expect to recognize from these policies, the EGPs are
adjusted at each balance sheet date to take into consideration
the actual gross profits to date and any changes in the
remaining expected future gross profits. When EGPs are adjusted,
we also adjust the amortization of the DAC amount, if
applicable, either to maintain a constant amortization
percentage over the entire life of the policies (FAS 97
products), or to take into account the absence of future profits
(FAS 60). For 2003, we have not materially changed the weighted
average expected life of the policies. The present value of the
future profits acquired in the context of the purchase of SCOR
Life Re US is determined in a similar manner. See Note 1.8
to the consolidated financial statements.

57



---



##### Table of Contents



In our Property-Casualty business, deferred
acquisition costs represent the portion of commissions
pertaining to contracts in force at year-end over the period for
which premiums are not yet earned, and are written down over the
residual duration of the contracts in question.

Fair Values.

Fair value determinations for financial assets
are based generally on listed market prices or broker or dealer
price quotations. If prices are not readily determinable, fair
value is based on either internal valuation models or
managements estimate of amounts that could be realized
under normal market conditions, assuming an orderly liquidation
over a reasonable period of time. Certain financial instruments,
including OTC derivative instruments, are valued using pricing
models that consider, among other factors, contractual and
market prices, correlations, time value, credit, yield curve
volatility factors and/or prepayment rates of the underlying
positions. The use of different pricing models and assumptions
could produce materially different estimates of fair value.

Deferred Tax.

The deferred tax assets and liabilities on the
consolidated balance sheets reflect timing differences between
the carrying amount of assets and liabilities for financial
reporting and income tax purposes. See Note 7 (Income Tax)
to the consolidated financial statements for significant
components of the Groups deferred tax assets and
liabilities.

SFAS 109 requires the establishment of a
valuation allowance for deferred income tax benefits if, based
on the weight of available evidence, it is more likely than not
that some portion or all of the deferred tax assets will not be
realized. As of December 31, 2003, for the third year, the
Group has shown high losses arising mainly from SCOR and SCOR
US companies. Therefore, according to SFAS 109, this
situation does not allow the Group to maintain the deferred tax
benefits (mainly due to deficits carried forward) previously
reflected in its balance sheet. Accordingly, on
December 31, 2003, the Group had booked an additional
impairment on SCOR and SCOR US deferred taxes of
EUR 385 million, after an impairment of
EUR 138 million in 2002.

Goodwill.

The excess of purchase price over the fair value
of the net assets acquired of a company restated to fair value
at the date of purchase, is recorded as goodwill. Under
FASB 142 (Goodwill and other intangible
assets), goodwill is not amortized but is subject to an
assessment for impairment on an annual basis, or more frequently
if circumstances indicate that a possible impairment has
occurred. If the goodwill is higher than its fair value, an
impairment is recorded in the statement of income. During 2002,
Commercial Risk Partners goodwill, which is included in
the Alternative Risk Transfer segment, was determined to be
fully impaired.

58



---



##### Table of Contents






Item 6. Directors, Senior Management
and Employees

A. DIRECTORS AND SENIOR
MANAGEMENT

In accordance with French law governing a
société anonyme, the principal responsibility
of the board of directors is to determine the guiding principles
of the companys business plan and strategy and to monitor
their application. The Chairman and Chief Executive Officer has
full executive authority to manage the affairs of the Company,
subject to the prior authorization of the board of directors or
of the Companys shareholders for certain decisions as
required by law.

Board of Directors

Under French law, the board of directors prepares
and presents the year-end accounts of the Company to the
shareholders and convenes shareholders meetings. In
addition, the board of directors reviews and monitors
SCORs economic, financial and technical strategies. French
law provides that the board of directors be composed of no fewer
than three and no more than eighteen members. The actual
number of directors must be within such limits and may be
provided for in the statuts, or articles of association,
or determined by the shareholders at the annual general meeting
of shareholders. The board of directors cannot increase the
number of members of the board.

At December 31, 2002, the Companys
Board of Directors consisted of fifteen members, including
two employee directors. At its meeting on March 31, 2003,
SCORs board of directors decided to submit to the general
shareholders meeting proposals regarding changes in the
membership of the board, as recommended in January by Allan
Chapin, a non-executive director. The Companys
shareholders meeting held on May 15, 2003, approved
the proposals and adopted resolutions reducing the
Companys employee-elected directors from two to one,
nominating two non-voting directors, and electing new directors.
Under the Companys statuts, each director must own
at least one share in the Company throughout his entire term of
office. Under French law a director, other than an employee
director, may be an individual or a corporation, but the
Chairman must be an individual. Currently, each of the
Companys directors is an individual. The employee director
is currently elected for a three-year term by the Companys
and its French subsidiaries employees and each voting
director is elected for a six-year term. Directors may not hold
office after the age of 72 under the Companys
statuts. A director reaching the age of 72 while in
office has to retire at the expiry of the term of office, as
determined at the general meeting of shareholders. Non-employee
directors are elected by the shareholders and serve until the
expiration of their respective term, or until their resignation,
death or removal, with or without cause, by the shareholders.
Vacancies, which exist in the Board of Directors, may, under
certain conditions, be filled by the Board of Directors, pending
the next shareholders meeting.

Directors are required to comply with applicable
law and SCORs statuts. Under French law, directors
are liable for violations of French legal or regulatory
requirements applicable to sociétés anonymes,
violation of the Companys statutsor mismanagement.
Directors may be held liable for such actions both individually
and jointly with the other directors.

59



---



##### Table of Contents



The following table sets forth the Directors of
the Company, currently and as at December 31, 2003 (unless
otherwise indicated) as appointed by the combined
Shareholders meeting of May 15, 2003, their positions
with SCOR and their principal business activities performed
outside SCOR, the dates of their initial appointment as
directors and the original expiration dates of their term in
office.

|                          |  |     |    |                                      |  |                                                                                                                                                    |  |           |          |  |  |  |      | 
|------------------------- |  | --- | -- | ------------------------------------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------- | -------- |  |  |  | ---- | 
|                          |  |     |    |                                      |  |                                                                                                                                                    |  | Proposed 
|                          |  |     |    | Current position at SCOR             |  | Initially                                                                                                                                          |  | term     
|Name                      |  | Age |    | and business activities outside SCOR |  | appointed                                                                                                                                          |  | to expire
|                          |  |     |    |                                      |  |                                                                                                                                                    |  |          
|Denis Kessler(1)          |  |     | 51 |                                      |  | Chairman and Chief Executive Officer; Director of
    BNP Paribas S.A. (France)                                                                    |  |           | 11/4/02  |  |  |  | 2007 | 
|Carlo Acutis(5)           |  |     | 64 |                                      |  | Director; Vice-Chairman, La Vittoria
    Assicurazioni (Italy)                                                                                     |  |           | 5/15/03  |  |  |  | 2009 | 
|Michèle Aronvald          |  |     | 44 |                                      |  | Employee  elected Director                                                                                                                        |  |           | 8/30/01  |  |  |  | 2006 | 
|Jean Baligand(2)          |  |     | 54 |                                      |  | Chairman of the board of Caisse Centrale des
    Assurances Mutuelles Agricoles (CCAMA) (France)                                                   |  |           | 9/4/01   |  |  |  | 2009 | 
|Antonio Borges(3)(5)      |  |     | 54 |                                      |  | Director; Vice-Chairman, Goldman Sachs
    International, Investment Banker Dean of INSEAD                                                         |  |           | 5/15/03  |  |  |  | 2007 | 
|Allan Chapin, Esq. (2)(4) |  |     | 62 |                                      |  | Director; Partner, Compass Advisers LLP
    (New York, U.S.A.)                                                                                     |  |           | 5/12/97  |  |  |  | 2005 | 
|Daniel Havis(5)           |  |     | 48 |                                      |  | Director; Chairman and Chief Executive Officer,
    MATMUT (Mutuelle Assurance de Travailleurs Mutualistes) (France)                               |  |           | 11/18/96 |  |  |  | 2005 | 
|Yvon Lamontagne(5)        |  |     | 64 |                                      |  | Director; Non-executive director of several
    companies, including Hydro Quebec, etc., former Chairman, Boreal
    Assurance                     |  |           | 5/15/03  |  |  |  | 2007 | 
|Daniel Lebègue(2)(3)(5)   |  |     | 61 |                                      |  | Director; Former Chief Executive, Caisse des
    Dépôts et Consignations                                                                           |  |           | 5/15/03  |  |  |  | 2009 | 
|André Lévy-Lang(2)(3)(4)  |  |     | 66 |                                      |  | Director; Teacher at the Paris University of
    Dauphine, former Chairman of the Management Board, Paribas                                        |  |           | 5/15/03  |  |  |  | 2009 | 
|Herbert Schimetschek(5)   |  |     | 66 |                                      |  | Director; Chairman of the Management Board and
    Chief Executive Officer Austria Versicherungsverein auf
    Gegenseitigkeit (holding) (Austria) |  |           | 5/15/03  |  |  |  | 2007 | 
|Jean-Claude Seys(2)       |  |     | 65 |                                      |  | Director; Chief Operating Officer, COVEA (France)                                                                                                  |  |           | 5/15/03  |  |  |  | 2009 | 
|Jean Simonnet(5)          |  |     | 67 |                                      |  | Director; Chairman, La MACIF and subsidiaries of
    La MACIF (France)                                                                             |  |           | 3/2/99   |  |  |  | 2005 | 
|Claude Tendil(2)(5)       |  |     | 58 |                                      |  | Director; Chairman and Chief Executive Officer,
    Generali (France) and Chairman, Group Europ Assistance                                         |  |           | 5/15/03  |  |  |  | 2007 | 
|Daniel Valot(2)           |  |     | 59 |                                      |  | Director; Chairman and Chief Executive Officer,
    Technip-(France)                                                                               |  |           | 5/15/03  |  |  |  | 2007 | 






|    |                                             
|--- | --------------------------------------------
|(1) | Chairman of the Strategic Committee         
|   
|(2) | Member of the Strategic Committee           
|   
|(3) | Member of the Accounting and Audit Committee

60



---



##### Table of Contents





|    |                                                         
|--- | --------------------------------------------------------
|(4) | Member of the Compensation and Nominations
    Committee
|   
|(5) | Member of the Risks Committee                           

In addition, two non-voting directors were
elected for a two-year term:



| |   |                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Georges Chodron de Courcel, 54, President and
    Chief Operating Officer, BNP-Paribas, who was also appointed as
    member of the Compensation and Nominations Committee and the
    Risks Committee.
|
| |  | Helman Le Pas de Secheval, 38, Group Chief
    Financial Officer, Groupama, who was also appointed as member of
    the Accounting and Audit Committee and the Risks Committee.                        

As recommended in the evaluation carried out in
January 2003, the new board of directors comprises:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a majority of non-executive directors. The newly
    elected board considers eleven of its fifteen members to be
    independent, namely Messrs. Acutis, Borges, Chapin, Havis,
    Lamontagne, Lebègue, Lévy-Lang, Schimetschek,
    Simonnet, Tendil and Valot. This evaluation was based on the
    criteria laid down in the 2002 Bouton Report in France and the
    recommendations of the NYSE in the United States;
|
| |  | a greater diversity of expertise. In addition to
    experts drawn from the insurance and reinsurance sector, the
    newly-elected board of directors has more members representing
    the world of finance and industry;                                                                                                                                                                                                
|
| |  | a more international perspective, with directors
    from Italy, Portugal, Austria, Canada and the United States, and
    directors with extensive international experience.                                                                                                                                                                                                                                               

The following sets forth the business experience
of SCORs newly elected board of directors:

Denis Kessler

After seven years in the insurance field, as
Chairman of the Fédération Française des
Sociétés dAssurance (FFSA), then Managing
Director and member of the Executive Committee of AXA, Denis
Kessler worked for the MEDEF (French Business Confederation),
where he was First Vice-Chairman from 1998 to 2002 while
continuing to serve as Chairman of the FFSA. He then joined SCOR
as Chairman and Chief Executive Officer of the Group on
November 4, 2002.

Carlo Acutis

The principal position of Carlo Acutis is as Vice
Chairman of Vittoria Assicurazioni S.p.A. Most of his other
responsibilities as Chairman or Member of the Board are based in
Italy, where he lives. Moreover, he is active in the
international insurance market, notably as member of the
Comité Européen des Assurances and member of the Board
of the Geneva Association.

Michèle Aronvald

Michèle Aronvald has been employed with SCOR
for twenty-five years in the Finance Department.
Mrs. Aronvald has served as an employee-elected director on
SCORs Board of Directors since 2001.

Jean Baligand

Jean Baligands main position over the last
five years was Chairman of the Board of directors of la Caisse
Centrale des Assurances Mutuelles Agricoles (CCAMA). Among other
responsibilities, Mr. Baligand also serves as
Chairman/Member of the Supervisory Board of some Groupama
branches and Director of the Caisse Centrale de Réassurance
(CCR).

Antonio Borges

Antonio Borges is currently Vice Chairman of
Goldman Sachs International in London. Among other positions, he
is member of the Supervisory Board of CNP Assurances and
member of the Fiscal Committee of two banks in Portugal.

61



---



##### Table of Contents



Allan Chapin, Esq.

After being a partner at Sullivan & Cromwell
and Lazard Frères, New York, for a number of years, Allan
Chapin has been a partner at Compass Partners International LLP,
New York since June 2002. He is also a Director of Interbrew of
the Pinault Printemps Redoute Group and of SCOR Reinsurance
Company and certain of its subsidiaries.

Daniel Havis

The principal position of Daniel Havis is as
Chairman and Chief Executive Officer of the Mutuelle Assurance
de Travailleurs Mutualistes (MATMUT). Among other appointments,
Mr. Havis is also Chairman of SMAC (Mutuelle Accidents
Corporels) and certain OFIVALMO branches, and holds
non-executive positions in finance or insurance companies.

Yvon Lamontagne

Yvon Lamontagne served as President and Chief
Executive Officer of Boreal Assurances (now AXA) before he
retired in 1995. Mr. Lamontagne lives in Montréal and
holds various non-executive positions and is director of local
companies, notably in Canadian branches of insurance/reinsurance
companies (such as SCOR and AXA). He also serves as Director of
Hydro-Québec and Gaz Métro.

Daniel Lebègue

From 1988 to 2002, Daniel Lebègue was Chief
Operating Officer of la Caisse des Dépôts et
Consignations, Chairman of the Supervisory Board of CDC IXIS and
Chairman of Eulia. He currently is Director of various
industrial companies. He has also been named Chairman of the
French Institute of Directors (IFA) in France.

André Lévy-Lang

André Lévy-Lang was Chairman of the
Management Board of Paribas from 1990 to 1999 and is now
Director of various companies, notably Assurances
Générales de France (AGF) and Schlumberger. He
currently teaches at the Paris University of Dauphine.

Herbert Schimetschek

From 1997 to 2000, Herbert Schimetschek was
President of the Conseil Européen des Assureurs; until June
2000 he was Vice President Chairman of the Austrian Insurance
Association, before also multiple President of the Association.
He retired as Chairman of the Management Board and Chief
Executive Officer of UNIQA Versicherungen AG (the holding
company of UNIQA Group Austria) in the end of 2001. He currently
has numerous non-executive positions in insurance or bank
companies in Austria, where he lives, and also abroad. He is
President of the Federal Reserve Bank of Austria
Österreichische Nationalbank. He still is
(since 1970) Chairman of the Management Board and CEO of the now
non-operational Mutual Austria Versicherungsverein auf
gegenseitigkeit, a major shareholder of UNIQA
Versicherungen AG.

Jean-Claude Seys

Jean-Claude Seys has worked mainly in the
insurance field. He was appointed Chairman and Chief Executive
Officer of MAAF in 1992, Chief Executive Officer of the
Mutuelles du Mans (MMA) in 1998 and Chief Executive Officer
of COVEA since June 2003. Mr. Seys currently holds numerous
non-executive positions in France and abroad, notably in
companies like MMA, MAAF or OFIVALMO.

Jean Simonnet

Joined MACIF in 1963, becoming Chief
Administrative Officer in 1982. Named Chief Executive Officer in
1987, Jean Simonnet was elected Chairman of MACIF in 1997.

62



---



##### Table of Contents



Claude Tendil

Claude Tendil started his career at UAP in 1972
and worked since 1989 for AXA, where he became Vice Chairman of
the Management Board in 2001. He currently is Chairman and CEO
of Groupe Generali in France (since April 2002) and Chairman of
Groupe Europ Assistance since April 2003. Claude Tendil also
holds numerous non-executive positions as a director of French
insurance companies.

Daniel Valot

From 1995 to 1999, Daniel Valot was Chief
Operating Officer of Total Exploration Production, then worked
for Technip, where he was appointed Chairman and Chief Executive
Officer in September 1999. His other positions as Director
are mainly held in the industry field, in France and abroad.

Georges Chodron de Courcel

Georges Chodron de Courcel is Chief Operating
Officer of BNP Paribas in Paris and holds non-executive
positions for the BNP Group in some of their foreign
subsidiaries. Moreover, he has been appointed Director of
significant groups such as Bouygues S.A, Alstom, Lagardére,
Nexans S.A. and Sagem.

Helman Le Pas de Sécheval

From 1998 to 2001, Helman le Pas de Sécheval
directed the corporate finance department of the COB
(Commission des opérations de bourse, now
Autorité des Marchés Financiersor AMF), before
being joining Groupama as Group Chief Financial Officer in
November 2001. He holds various non-executive positions as a
representative of Groupama in France and abroad.

The first meeting of the newly elected board of
directors was held on May 15, 2003.

In connection with the Crédit Lyonnais/
Executive Life matter, Jean-Claude Seys was sentenced in January
2004 in U.S. federal court to five years of probation,
during which time he will be barred from entering the United
States, and was ordered to pay a USD 250,000 criminal fine.
Insurance regulatory authorities in the United States have been
informed of the foregoing.

Executive Officers

Under French law and the Companys
statutsand pursuant to a decision of the board of
directors, the Chairman and Chief Executive Officer has full
executive authority to manage the affairs of SCOR. The Chairman
and Chief Executive Officer has authority to act on behalf of
SCOR and to represent SCOR in dealings with third parties,
subject only to those powers expressly reserved by law to the
board of directors or the shareholders. The Chairman and Chief
Executive Officer determines, and is responsible for the
implementation of the goals, strategies and budgets of SCOR,
which are reviewed and monitored by the Board of Directors. The
board of directors has the power to appoint and remove, at any
time, the Chairman and Chief Executive Officer, as well as to
appoint separate persons to hold the positions of Chairman and
Chief Executive Officer. Upon a proposal made by the Chairman
and Chief Executive Officer, the Board of Directors may also
appoint a Chief Operating Officer to assist the Chairman and
Chief Executive Officer in managing the Companys affairs.

The following table sets forth the Companys
executive officers at December 31, 2003, their positions
with SCOR and the first dates as of which they served as
executive officers of SCOR.

63



---



##### Table of Contents



|                             |  |     |    |                  |  |                                                |  |  |      | 
|---------------------------- |  | --- | -- | ---------------- |  | ---------------------------------------------- |  |  | ---- | 
|                             |  |     |    |                  |  | Executive Officer                             
|Name                         |  | Age |    | Current Position |  | Since                                         
|                             |  |     |    |                  |  |                                               
|Denis Kessler                |  |     | 51 |                  |  | Chairman and Chief Executive Officer           |  |  | 2002 | 
|Patrick Thourot              |  |     | 54 |                  |  | Chief Operating Officer                        |  |  | 2003 | 
|Pierre-Denis Champvillard(1) |  |     | 56 |                  |  | Group Deputy Chief Operating Officer           |  |  | 1994 | 
|François Terren(2)           |  |     | 50 |                  |  | Chief Financial Officer                        |  |  | 2003 | 
|Jean-Luc Besson              |  |     | 57 |                  |  | Chief Reserving Actuary                        |  |  | 2003 | 
|Jérôme Faure(3)              |  |     | 45 |                  |  | Managing Director, Non-Life Treaties           |  |  | 2002 | 
|Romain Durand                |  |     | 45 |                  |  | Managing Director, Life Division               |  |  | 1997 | 
|Renaud de Pressigny(4)       |  |     | 44 |                  |  | Managing Director, Business Solutions Division |  |  | 2003 | 






|    |                                                                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Pierre-Denis Champvillard retired on July 1st,
    2003 and was replaced by Jérôme Faure.                                                                                                                                                                                            
|   
|(2) | François Terren left the company on
    April 14, 2004. He was replaced by Marcel Kahn.                                                                                                                                                                                              
|   
|(3) | Jérôme Faure ceased to be a member of
    the Executive Committee on November 19, 2003 and left SCOR
    Group on December 31, 2003. Henry Klécan replaced
    Jérôme Faure as President and Chief Executive of SCOR
    US and remains President and Chief Executive of SCOR Canada.
|   
|(4) | Renaud de Pressigny left the company on
    May 1, 2004. He was replaced by Victor Peignet who was
    previously Deputy Managing Director of SCOR Business Solutions.                                                                                                               

Arnaud Chneiweiss serves as Secretary to the
Executive Committee and the Board of Directors.

Business experience of SCORs executive
officers:

Denis Kessler

See above under Board of Directors.

Patrick Thourot

Patrick Thourot worked for ten years with the
French Ministry of Finance, before spending most of his career
in insurance companies or confederations since 1983: FFSA, PFA
IARD and AXA, where he was Executive Vice President of the
Group, Group Technical Director and member of the Executive
Committee. He then served as Chief Executive Officer of
Zürich France before being appointed Chief Operating
Officer of SCOR Group in January 2003. Patrick Thourot teaches
on a part-time basis at Paris University of Dauphine and at the
Ecole Nationale des Assurances.

Pierre-Denis Champvillard

Pierre-Denis Champvillard joined SCOR in 1971 and
was named Managing Director of SCOR activities in the United
Kingdom in 1973 and in Hong Kong in 1983. In 1988 he was
appointed Managing Director of SCOR Vie and since 1993 he has
been concurrently Managing Director of SCOR Réassurance and
responsible for the non-Life activities of the Group in Europe.
He became a member of the Group Executive Committee in 1994 and
retired from SCOR on July 1, 2003.

François Terren

François Terren was Vice President,
Financing and Treasury at the Air Liquide Group from 1981 to
1991, and then Chief Administrative and Financial Officer, CORA
Group. In 1993, he was named Assistant Chief Investment Officer
of GAN, before going on to advise Morgan Stanleys real
estate investment funds in 1996. He joined the Taittinger Group
in 1997 as Senior Vice President, Financial Affairs for the
Compagnie Financière Taittinger, and as a member of the
Executive Board and Chief Financial Officer of Société
du Louvre. He was appointed Chief Financial Officer of SCOR on
February 28, 2003 and left SCOR on April 14, 2004.

64



---



##### Table of Contents



Marcel Kahn

Marcel Kahn, 47, actuary, chartered accountant
and MBA from the ESSEC business school, spent several years as
an external auditor and chartered accountant before joining the
AXA group in 1988 as Group Controller. From 1991 to 2001, he was
successively Chief Financial Officer (CFO) of AXA France,
International Director for Europe, the Axa Groups Director
for Strategy and Development, Deputy Managing Director of AXIVA
(Life insurance), and Director of Procurement for AXA France. In
2001, he was appointed Chief Financial Officer of PartnerRe
Global and Managing Director for PartnerRe France. Marcel Kahn
has been appointed Chief Financial Officer of the SCOR Group and
member of the Group Executive Committee.

He replaces François Terren who has left the
Group.

Jean-Luc Besson

Jean-Luc Besson, an actuary, joined the FFSA in
1985 and was since July 2001 Senior Vice President, Research,
Statistics and Information Systems at the FFSA. He is a member
of the Board of Directors, the Scientific Committee and the
Admissions Jury of the French Institute of Actuaries and is a
member of the International Actuarial Association. He teaches
Property-Casualty insurance at the University of Paris Institute
of Statistics (ISUP) and Property-Casualty actuarial science at
the Conservatoire National des Arts et Métiers (CNAM).
Mr. Besson was named Chief Reserving Actuary of SCOR Group
on January 23, 2003.

Jérôme Faure

Jérôme Faure started his career as an
engineer and quickly joined SCOR in 1988 as a property
facultative underwriter in Paris. He then was appointed Chief
Representative of SCOR in Tokyo in 1989 and Managing Director of
SCOR UK in 1994, before joining SCOR U.S. in 1997, where he was
named Chief Executive Officer in 2001. Effective
February 28th, 2003, Jérôme Faure became Managing
Director of Non-Life Treaties Division. Mr. Faure left SCOR
Group on December 31, 2003 and was replaced as President
and Chief executive of SCOR US by Henry Klécan.

Romain Durand

Romain Durand is a graduate of HEC business
school (Ecole des Hautes Etudes Commerciales) and Sciences Po
(Political Sciences faculty in Paris). He began his career in
insurance in 1983, at GMF-Vie, joined Norwich Union Life in 1986
and then was appointed Chairman of Baloise Group France. Romain
Durand joined SCOR in January 1997 and became a member of the
Group Executive Committee. He was named Chief Operating Officer
of the SCOR Life Division in April 1998 and is currently Chief
Executive Officer and Director of SCOR VIE.

Victor Peignet

Victor Peignet, 46, is an engineer who graduated
from the Ecole Nationale Supérieure des Techniques
Avancées (ENSTA) and joined the SCOR Group in 1984 as
an underwriter in the Technical Risks Department. He then
successively held the posts of Manager of the Offshore/
Transportation Department and Manager of the Energy Sector.
Deputy Managing Director of SCORs Large Corporate Accounts
Division (SCOR Business Solutions) since January 2000, Victor
Peignet was appointed Managing Director of SCOR Business
Solutions and became a member of the Group Executive Committee
on April 1, 2004.

Renaud de Pressigny

Renaud de Pressigny has spent 17 years in
the insurance brokerage industry, working with Diot, CECAR and
Aon in Saudi Arabia, Paris and New York. He joined SCOR in
January 2000 and was appointed Managing Director of Business
Solutions Division, the business unit dedicated to large
corporate accounts. Mr. de Pressigny left SCOR on May 1,
2004.

65



---



##### Table of Contents



B. COMPENSATION



| |   |                           
| | - | --------------------------
| |  | Directors attendance fees

The Ordinary General Meeting of Shareholders on
April 18, 2002 increased the annual amount payable in
attendance fees to EUR 600,000 with effect from fiscal
2002. At its May 15, 2003 meeting, the Board of Directors
decided to allocate these fees among the directors, split
equally between an equivalent fixed portion and a variable
portion (each one amounting to EUR 20,000) depending on the
attendance of each director. The non-voting directors receive a
share of the attendance fees according to the same procedure.
Besides, an amount of EUR 1,700 is paid for each attendance
at one of the Board Committees. However, no attendance fee is
paid to the Chairman and Chief Executive Officer or to the Chief
Operating Officer. These fees are paid at the end of each
quarter.

Attendance fees for 2003 were paid as listed
below (Mssrs. Chabannes, Giraud, Harbour, Peugeot, Rougé,
Tempelaere and Torri left the Board in May/June 2003):

|                               |  |  |        | 
|------------------------------ |  |  | ------ | 
|(In euro)                      |  |  |        | 
|Mr. Carlo Acutis               |  |  | 20,100 | 
|Mrs. Michèle Aronvald(1)       |  |  | 41,700 | 
|Mr. Jean Baligand              |  |  | 41,700 | 
|Mr. Antonio Borges             |  |  | 23,925 | 
|Mr. Jean-Antoine Chabannes     |  |  | 8,100  | 
|Mr. Allan Chapin               |  |  | 35,419 | 
|Mr. Georges Chodron de Courcel |  |  | 46,800 | 
|Mr. Jacques Giraud             |  |  | 8,100  | 
|Mr. John Harbour               |  |  | 6,075  | 
|Mr. Daniel Havis               |  |  | 40,000 | 
|Mr. Yvon Lamontagne            |  |  | 23,288 | 
|Mr. Helman le Pas de Sécheval  |  |  | 31,900 | 
|Mr. Daniel Lebègue             |  |  | 38,700 | 
|Mr. André Lévy Lang            |  |  | 35,300 | 
|Mr. Patrick Peugeot            |  |  | 8,100  | 
|Mr. Luc Rougé(1)               |  |  | 8,100  | 
|Mr. Herbert Schimetschek       |  |  | 20,100 | 
|Mr. Jean-Claude Seys           |  |  | 28,500 | 
|Mr. Jean Simonnet              |  |  | 40,000 | 
|Mr. Alain Tempelaere           |  |  | 9,800  | 
|Mr. Claude Tendil              |  |  | 25,100 | 
|Mr. Francesco Torri            |  |  | 2,250  | 
|Mr. Daniel Valot               |  |  | 35,300 | 






| |                                          
| | -----------------------------------------
| | (1)         Employee-elected
    Director

Besides, some Directors of SCOR attend or
attended the Board of Directors of some of the Groups
subsidiaries and received consequently some attendance fees for
2003 as follows:

SCOR US:

Mr. Chapin: 23,000 USD

Mr. Lebègue: 12,600 USD


Mr. Lévy-Lang: 4,725 USD


SCOR Canada:

Mr. Lamontagne: 35,000 CAD

2003 Compensation for Members of the Executive
Committee

66



---



##### Table of Contents



The aggregate amount of compensation of all
members of SCORs Executive Committee present in the
Company on December 31, 2003, for the year ended
December 31, 2003 (fixed compensation for 2003 and variable
compensation relating to 2003 paid during the first-half of
2004) amounted to EUR 2,202,429. The compensation terms of the
directors and executive officers are similar to what was applied
to their predecessors.

There is no employment contract between
Mr. Kessler and SCOR. The terms and conditions of his
appointment are described in the minutes to the
December 19, 2002 meeting of the Board of Directors. The
Compensation and Nominations committee decided that the
compensation of the Chairman and Chief Executive be made up as
follows:



| |   |                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a fixed sum of EUR 500,000,                                                                                                                                                                                                                     
|
| |  | a variable portion for a maximum amount of EUR
    500,000; 70% of which consists of a portion of 2.75 per thousand
    consolidated net result for SCOR, the other 30% being linked to
    the achievement of objectives decided for each year.

In addition, SCOR meets part of the cost of Denis
Kesslers rent for his apartment, for an amount of EUR
58,124 for 2003.

As for the Chief Operating Officer, there is no
employment contract between Mr. Thourot and SCOR. His
compensation was decided by the Board of Directors of
January 22, 2003, as follows:



| |   |                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a fixed amount of EUR 410,000,                                                                                                                                                                                                                  
|
| |  | a variable portion for a maximum amount of EUR
    410,000; 70% of which consists of a portion of 1.50 per thousand
    consolidated net result for SCOR, the other 30% being linked to
    the achievement of objectives decided for each year.

|                     |  |                                   |  |              |         |                  |  |                  |        |               |  |                  |         |               |  |  |         |  |  |  |         |  |  |  |         | 
|-------------------- |  | --------------------------------- |  | ------------ | ------- | ---------------- |  | ---------------- | ------ | ------------- |  | ---------------- | ------- | ------------- |  |  | ------- |  |  |  | ------- |  |  |  | ------- | 
|                     |  |                                   |  |             
|                     |  |                                   |  | Compensation
|                     |  |                                   |  |             
|                     |  |                                   |  |              |         | Variable paid in |  |                 
|                     |  | Period                            |  | Fixed in     |         | Fixed in         |  | Variable paid in |        | Total paid in |  | 2004 relating to |         | Total paid in
|                     |  |                                   |  |             |         | USD              |  | 2003 in         |        | 2003 in      |  | 2003 in         |         | 2002 in     
|                     |  |                                   |  |              |         |                  |  |                  |        |               |  |                  |         |              
|Mr. Denis Kessler(1) |  | From
    01/01/03 to
    12/31/03 |  |              | 500,000 |                  |  |                  |       |               |  |                  | 150,000 |               |  |  | 650,000 |  |  |  | 150,000 |  |  |  | 81,464  | 
|Mr. Patrick Thourot  |  | From
    01/27/03 to
    12/31/03 |  |              | 383,261 |                  |  |                  |       |               |  |                  |        |               |  |  | 383,261 |  |  |  | 123,000 |  |  |  |        | 
|Mr. Serge Osouf(2)   |  | From
    01/01/03 to
    01/22/03 |  |              | 189,041 |                  |  |                  | 15,000 |               |  |                  |        |               |  |  | 200,917 |  |  |  |        |  |  |  | 428,000 | 






|    |                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------
|(1) | Denis Kessler joined SCOR on November 4,
    2002.                                                     
|   
|(2) | Mr. Osoufs term of office ended on
    January 22, 2003 before his retirement on November 1,
    2003.

The Compensation and Nominations committee
decides of the variable compensation attributed to the other
members of the Executive Committee on proposal of the Chairman.
The variable portion of the compensation presented in the
following table depends on one hand on the achievement of
individual objectives and on the other hand on the achievement
of the Groups results objectives (ROE: Return On Equity).

|                                 |  |              |         |              |  |                  |         |              |  |  |        |  |  |  |         | 
|-------------------------------- |  | ------------ | ------- | ------------ |  | ---------------- | ------- | ------------ |  |  | ------ |  |  |  | ------- | 
|                                 |  |              |         |              |  | Variable         |         |             
|                                 |  | Fixed        |         | Fixed        |  | compensation     |         | Total       
|                                 |  | compensation |         | compensation |  | relating to 2003 |         | compensation
|                                 |  | in          |         | in USD       |  | paid in 2004     |         | in         
|                                 |  |              |         |              |  |                  |         |             
|Mr. François Terren(1)           |  |              | 235,667 |              |  |                  |        |              |  |  |       |  |  |  | 235,667 | 
|Mr. Jean-Luc Besson(2)           |  |              | 118,136 |              |  |                  |        |              |  |  | 27,600 |  |  |  | 145,736 | 
|Mr. Romain Durand                |  |              | 180,000 |              |  |                  |        |              |  |  | 54,000 |  |  |  | 234,000 | 
|Mr. Renaud de Pressigny          |  |              | 135,000 |              |  |                  |        |              |  |  |       |  |  |  | 135,000 | 
|Mr. Jérôme Faure(3)              |  |              | 27,400  |              |  |                  | 338,944 |              |  |  |       |  |  |  | 295,765 | 
|Mr. Pierre-Denis Champvillard(4) |  |              | 97,500  |              |  |                  |        |              |  |  |       |  |  |  | 97,500  | 

67



---



##### Table of Contents








|    |                                                                                                                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | François Terren joined SCOR on
    February 27, 2003, as Chief Financial Officer and left the
    Group on April 14, 2004.                                                                                                            
|   
|(2) | Jean-Luc Besson joined SCOR on February 17,
    2003 as Chief Reserving Actuary.                                                                                                                                                      
|   
|(3) | Jérôme Faure resigned on
    December 31, 2003 and was replaced as Chairman of SCOR US
    by Henry Klecan, who is also Chairman of SCOR Canada. Severance
    payment (no notice given and paid holidays) amounts to
    EUR 151,756.
|   
|(4) | Pierre-Denis Champvillard retired on July 1,
    2003.                                                                                                                                                                                

Like all Group senior executives, members of the
Group Executive Committee are entitled to a guaranteed capped
pension plan conditioned by a 10-year length of service in the
Group, based on their average compensation over the last five
years at SCOR. They also benefit from the use of a vehicle for
professional transportation.

The members of the Executive Committee do not
receive directors fees in respect of their directorships
of companies in which SCOR holds more than 20% of the capital.
They are reimbursed for justified business expenses.

C. BOARD PRACTICES

Board Committees

At its meeting on May 15, 2003, the Board of
Directors of SCOR set up four advisory committees to prepare the
Boards proceedings and make recommendations to it on
specific subjects.



| |   |                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Strategic Committeeis comprised of
    Denis Kessler, Chairman, Jean Baligand, Allan Chapin*, Daniel
    Lebègue*, André Lévy-Lang*, Jean-Claude Seys,
    Claude Tendil*, and Daniel Valot*.

Its mission is to scrutinize the Groups
development strategies and to decide on major Group acquisition
and disposal plans.

The Strategic Committee met once in 2003, and in
particular reviewed the terms of the transfer of the Life &
Accident reinsurance business to SCOR VIE.



| |   |                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Accounts and Audit Committeeis
    comprised of Daniel Lebègue*, Chairman, André
    Lévy-Lang*, Antonio Borges*, and Helman le Pas de
    Sécheval**.

Its mission is to scrutinize the fairness of the
Groups financial statements, compliance with internal
procedures, together with the controls and inspections carried
out by the statutory auditors and by the internal audit division.

In the course of its four meetings in 2003, the
Accounts and Audit Committee discussed the following subjects:
the 2002 annual financial statements, the 2003 quarterly and
half-year financial statements; monitoring of audits decided by
the Board of Directors; review of the internal audit plan; the
budget for external auditors fees; missions entrusted to
the Group auditors; review of replies to calls for tender
concerning disposal of the credit derivatives portfolio; framing
of Audit Committee standing rules.



| |   |                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Compensation and Nominations Committeeis comprised of Allan Chapin*, Chairman, André
    Lévy-Lang*, and Georges Chodron de Courcel**.

Its missions are to make recommendations on the
compensation of Group directors and officers and of senior
executives, pension plans and stock options, and to make
proposals regarding the membership, organization and workings of
the Board of Directors and its committees.

This Committee met three times in 2003 and
notably discussed the following points: opinion on the terms of
departure of Mr. Serge Osouf; review of the compensation of
Mr. Patrick Thourot; opinion on the introduction of stock
option plans for all Group employees and for senior managers.





---

|  |                     
|- | --------------------
|* | Independent director

|   |                    
|-- | -------------------
|** | Non-voting director

68



---



##### Table of Contents





| |   |                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Risks Committeeis comprised of Carlo
    Acutis*, Antonio Borges*, Daniel Havis*, Yvon Lamontagne*,
    Daniel Lebègue*, Herbert Schimetschek*, Jean Simonnet*,
    Claude Tendil*, Georges Chodron de Courcel**, and Helman le Pas
    de Sécheval**.

Its mission is to identify the major risks to
which the Group is exposed on both the assets and liabilities
sides, and to ensure that means are in place to monitor and
manage these risks; it scrutinizes the main technical and
financial risks to which the Group is exposed. The committee did
not meet in 2003.

Accounts and Audit Committee

The Accounts and Audit Committee has established
standing rules that emphasize two essential missions:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | accounting missions, notably comprising scrutiny
    of periodic financial documents, review of the appropriateness
    of choices and proper application of accounting methods, review
    of the accounting treatment of all significant transactions,
    review of off-balance sheet liabilities, management of the
    selection and remuneration of the statutory auditors, control of
    all accounting and financial disclosure documents prior to their
    release to the public;                                             
|
| |  | ethical and internal control missions. The
    Accounts and Audit Committee has a duty to ensure that internal
    procedures for the gathering and verification of data guarantee
    the quality and reliability of SCORs financial statements.
    Further, it is the duty of the Accounts and Audit Committee to
    review related-party transactions, to analyze and reply to
    employees questions with respect to internal control,
    preparation of the financial statements, and the treatment of
    accounting entries.

D. EMPLOYEES

As of December 31, 2003, the Group employed
1,162 people, including 639 at its headquarters facility in
Paris, 287 in North America, 58 in the Asia-Pacific region, 159
in other European countries, and 19 in other regions. In
addition to the provisions of the French labor code, SCORs
employees in France are covered by various collective bargaining
agreements relating to working conditions that are negotiated
periodically with the employees representatives. SCOR
believes that its relations with its employees are good.

The following is the distribution of the persons
employed:

|                                                       |  |                    |       |      |  |      |       |  |  |  |       | 
|------------------------------------------------------ |  | ------------------ | ----- | ---- |  | ---- | ----- |  |  |  | ----- | 
|                                                       |  |                   
|                                                       |  | As of December 31,
|                                                       |  |                   
|                                                       |  | 2001               |       | 2002 |  | 2003
|                                                       |  |                    |       |      |  |     
|Number of employees                                    |  |                    | 1,345 |      |  |      | 1,256 |  |  |  | 1,162 | 
|Breakdown by geographic location                       |  |                    |       |      |  |      |       |  |  |  |       | 
|France                                                 |  |                    | 686   |      |  |      | 653   |  |  |  | 639   | 
|North America                                          |  |                    | 405   |      |  |      | 346   |  |  |  | 287   | 
|Asia-Pacific region                                    |  |                    | 64    |      |  |      | 70    |  |  |  | 58    | 
|Other European countries                               |  |                    | 166   |      |  |      | 168   |  |  |  | 159   | 
|Other regions                                          |  |                    | 24    |      |  |      | 19    |  |  |  | 19    | 
|Breakdown by main category of activity                 |  |                    |       |      |  |      |       |  |  |  |       | 
|Property-Casualty reinsurance                          |  |                    | 464   |      |  |      | 432   |  |  |  | 351   | 
|Life reinsurance                                       |  |                    | 184   |      |  |      | 213   |  |  |  | 227   | 
|Alternative reinsurance                                |  |                    | 43    |      |  |      | 38    |  |  |  | 11    | 
|Credit, Surety and Political Risks                     |  |                    | 13    |      |  |      | 14    |  |  |  | 13    | 
|SCOR Business Solutions  Large Corporate
    accounts |  |                    | 166   |      |  |      | 188   |  |  |  | 163   | 
|Management, Investment and other                       |  |                    | 475   |      |  |      | 371   |  |  |  | 397   | 

69



---



##### Table of Contents



E. SHARE OWNERSHIP

A total of 4,475,900 options were granted by the
board of directors in 1992, 1994, 1995, 1996, 1997, 1998, 1999,
2000 and 2001 under plans adopted pursuant to such resolutions,
readjusted to a total of 15,924,979 after the capital increase
of January 7, 2004.

Based on the number of shares after the capital
increase, at January 7, 2004, unexercised share
subscription options at December 31, 2003, if exercised,
would lead to the creation of 7,639,565 shares representing
approximately 0.93% of the capital.

The following table sets forth certain
information relating to the various option plans as of
December 31, 2003:

|                                                                      |       |            |  |                 |              |                 |            |                                                              |  |                |               |             |  |               |           |  |  |  |           |  |  |  |         |  |  |  |         | 
|--------------------------------------------------------------------- | ----- | ---------- |  | --------------- | ------------ | --------------- | ---------- | ------------------------------------------------------------ |  | -------------- | ------------- | ----------- |  | ------------- | --------- |  |  |  | --------- |  |  |  | ------- |  |  |  | ------- | 
|                                                                      |       |            |  |                 |              |                 |            |                                                              |  |                |               |             |  | Of which     
|                                                                      |       | Date of    |  |                 |              |                 |            |                                                              |  |                |               |             |  | ten first    
|                                                                      |       | Board of   |  |                 |              |                 |            |                                                              |  |                |               | Of which to |  | beneficiaries
|                                                                      |       | Directors |  | Date of options |              |                 |            | Number of                                                    |  | Number of      |               | the Groups |  | employed     
|Option Plan                                                           |       | Resolution |  | availability    |              | Expiration date |            | beneficiaries                                                |  | shares granted |               | executives  |  | by SCOR      
|                                                                      |       |            |  |                 |              |                 |            |                                                              |  |                |               |             |  |              
|                                                                      | 1992  |            |  |                 | September 28 |                 |            | Expired                                                      |  |                | Expired       |             |  |               | 76        |  |  |  | 318,800   |  |  |  | 42,000  |  |  |  | 54,000  | 
|                                                                      | 1994  |            |  |                 | May 9        |                 |            | May 9, 1995 (30%) May 9, 1996 (30%)
    May 9, 1997 (40%)    |  |                | May 8, 2004   |             |  |               | 104       |  |  |  | 429,000   |  |  |  | 59,000  |  |  |  | 64,000  | 
|                                                                      | 1995  |            |  |                 | May 15       |                 |            | May 15, 1996 (30%) May 15, 1997 (30%)
    May 15, 1998 (40%) |  |                | May 14, 2005  |             |  |               | 99        |  |  |  | 430,000   |  |  |  | 82,000  |  |  |  | 68,000  | 
|                                                                      | 1996  |            |  |                 | September 5  |                 |            | Sept. 5, 1997 (30%) Sept. 5, 1998 (30%)                      |  |                | Sept. 4, 2006 |             |  |               | 122       |  |  |  | 480,000   |  |  |  | 83,000  |  |  |  | 70,000  | 
|                                                                      |       |            |  |                 |              |                 |            | Sept. 5, 1999 (40%)                                          |  |                |               |             |  |               |           |  |  |  |           |  |  |  |         |  |  |  |         | 
|                                                                      | 1997  |            |  |                 | September 4  |                 |            | September 4, 2002                                            |  |                | Sept. 3, 2007 |             |  |               | 113       |  |  |  | 481,500   |  |  |  | 112,000 |  |  |  | 72,000  | 
|                                                                      | 1998  |            |  |                 | September 3  |                 |            | September 4, 2003                                            |  |                | Sept. 3, 2008 |             |  |               | 134       |  |  |  | 498,000   |  |  |  | 130,000 |  |  |  | 71,500  | 
|                                                                      | 1999  |            |  |                 | September 2  |                 |            | September 3, 2004                                            |  |                | Sept. 2, 2009 |             |  |               | 145       |  |  |  | 498,500   |  |  |  | 130,000 |  |  |  | 71,000  | 
|                                                                      | 2000  |            |  |                 | May 4        |                 |            | May 5, 2004                                                  |  |                | May 3, 2010   |             |  |               | 1,116     |  |  |  | 111,600   |  |  |  | 600     |  |  |  | 1,000   | 
|                                                                      | 2000  |            |  |                 | August 31    |                 |            | September 1, 2005                                            |  |                | Aug. 30, 2010 |             |  |               | 137       |  |  |  | 406,500   |  |  |  | 110,000 |  |  |  | 63,000  | 
|                                                                      | 2001  |            |  |                 | September 4  |                 |            | September 4, 2005                                            |  |                | Sept. 3, 2011 |             |  |               | 162       |  |  |  | 560,000   |  |  |  | 150,000 |  |  |  | 77,000  | 
|                                                                      | 2001  |            |  |                 | October 3    |                 |            | October 4, 2005                                              |  |                | Oct. 2, 2011  |             |  |               | 1,330     |  |  |  | 262,000   |  |  |  | 1,200   |  |  |  | 2,000   | 
|                                                                      |       |            |  |                 |              |                 |            |                                                              |  |                |               |             |  |               |           |  |  |  |           |  |  |  |         |  |  |  |         | 
|                                                                      | TOTAL |            |  |                 |              |                 |            |                                                              |  |                |               |             |  |               |           |  |  |  | 4,475,900 |  |  |  | 899,800 |  |  |  | 613,500 | 
|                                                                      |       |            |  |                 |              |                 |            |                                                              |  |                |               |             |  |               |           |  |  |  |           |  |  |  |         |  |  |  |         | 
|Readjusted total after the capital increase,
    at December 31, 2002 |       |            |  |                 |              |                 | 7,615,337  |                                                              |  |                | 1,530,928     |             |  |               | 1,043,814 | 
|                                                                      | 2003  |            |  |                 | February 28  |                 |            | February 28, 2007                                            |  |                | Feb. 27, 2013 |             |  |               | 65        |  |  |  | 986,000   |  |  |  | 450,000 |  |  |  | 170,000 | 
|                                                                      | 2003  | (1)        |  |                 | June 3       |                 |            | June 3, 2007                                                 |  |                | June 2, 2013  |             |  |               | 1,161     |  |  |  |          |  |  |  |        |  |  |  |        | 
|                                                                      |       |            |  |                 |              |                 |            | Without any condition                                        |  |                |               |             |  |               | 1,556,877 |  |  |  | 288,750   |  |  |  | 122,100 | 
|                                                                      |       |            |  |                 |              |                 |            | With condition of 12% on ROE on year 2004                    |  |                | 778,439       |             |  |               | 144,375   |  |  |  | 61,050    | 
|                                                                      |       |            |  |                 |              |                 |            |                                                              |  |                |               |             |  |               |           |  |  |  |           |  |  |  |         |  |  |  |         | 
|TOTAL at December 31, 2003                                            |       |            |  |                 |              |                 |            |                                                              |  |                | 10,936,653    |             |  |               | 2,414,053 |  |  |  | 1,396,964 | 
|                                                                      |       |            |  |                 |              |                 |            |                                                              |  |                |               |             |  |               |           |  |  |  |           |  |  |  |         |  |  |  |         | 
|Readjusted total after the capital increase,
    at December 31, 2003 |       |            |  |                 |              |                 | 15,924,979 |                                                              |  |                | 3,515,129     |             |  |               | 2,034,134 | 
|                                                                      |       |            |  |                 |              |                 |            |                                                              |  |                |               |             |  |               |           |  |  |  |           |  |  |  |         |  |  |  |         | 






|    |                                                                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Some of the options granted in June 2003 depended
    on the profitability of the Groups shareholders
    equity to be superior to 10% for 2003. This condition being
    unrealized, these options have been cancelled (to be confirmed
    by the validation of the accounts by the General Assembly of
    May 15, 2004).

Following the capital increase on
December 31, 2002, the Company has adjusted the price of
the shares covered by options granted and the number of shares
under option, pursuant to Section L208-5 of the French
July 24, 1966 Act and Article D174-8 of the
March 23, 1967 Decree.

70



---



##### Table of Contents



The price of shares under option, as set prior to
this operation, has been reduced by an amount equal to the
product of this price multiplied by the ratio between
(a) the value of the preferential subscription right and
(b) the value of the share prior to removal of this right,
i.e.:

| |  |                                                                                                                                                                                      |  | 
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | 
| |  | Previous offer price × value of preferential
    subscription right (average listed opening
    price during the subscription period)                                                |  | 
| |  |                                                                                                                                                                                      |  | 
| |  | Value of share after removal of preferential
    subscription right (average listed opening
    price during the subscription period)
    + value of preferential subscription right |  | 

Because the initial value of the option is
supposed to remain constant, the new number of shares eligible
for subscription is equal to the initial value of the option
divided by the new offer price, i.e.:

| |  |                                                      |  | 
| |  | ---------------------------------------------------- |  | 
| |  | Initial number of options × previous offer
    price |  | 
| |  |                                                      |  | 
| |  | New offer price as defined below                     |  | 

These calculations have been performed
individually and by-plan, and rounded up to the nearest unit.
The same calculations have been applied after the capital
increase of January 7, 2004.

The table below summarizes the status of the
various option plans:

|                               |       |                             |  |                             |       |                |  |            |           |                |  |             |         |  |  |  |           |  |  |  |       |  |  |  |            | 
|------------------------------ | ----- | --------------------------- |  | --------------------------- | ----- | -------------- |  | ---------- | --------- | -------------- |  | ----------- | ------- |  |  |  | --------- |  |  |  | ----- |  |  |  | ---------- | 
|                               |       |                             |  |                             |       |                |  |            |           |               
|                               |       | Situation after the capital
|Situation at December 31, 2003 |       | increase of January 7, 2004
|                               |       |                            
|                               |       | Options                     |  | Number of                   |       | Options        |  |           
|                               |       | outstanding                 |  | rights cancelled            |       | outstanding at |  |           
|                               |       | Exercise price              |  | at the end of               |       | at the end of  |  | the end of |           | Exercise price |  | Options    
|Option Plan                    |       | (in EUR)                    |  | 2002                        |       | 2003           |  | 2003       |           | (in EUR)       |  | outstanding
|                               |       |                             |  |                             |       |                |  |            |           |                |  |            
|                               | 1994  |                             |  |                             | 10.22 |                |  |            | 78,165    |                |  |             | 9       |  |  |  | 78,156    |  |  |  | 7.02  |  |  |  | 113,809    | 
|                               | 1995  |                             |  |                             | 9.59  |                |  |            | 157,577   |                |  |             | 4,782   |  |  |  | 152,795   |  |  |  | 6.59  |  |  |  | 222,498    | 
|                               | 1996  |                             |  |                             | 17.04 |                |  |            | 520,781   |                |  |             | 10,256  |  |  |  | 510,525   |  |  |  | 11.70 |  |  |  | 743,406    | 
|                               | 1997  |                             |  |                             | 21.88 |                |  |            | 638,612   |                |  |             | 18,765  |  |  |  | 619,847   |  |  |  | 15.03 |  |  |  | 902,587    | 
|                               | 1998  |                             |  |                             | 33.08 |                |  |            | 707,501   |                |  |             | 34,934  |  |  |  | 672,567   |  |  |  | 22.72 |  |  |  | 979,358    | 
|                               | 1999  |                             |  |                             | 27.05 |                |  |            | 698,145   |                |  |             | 45,130  |  |  |  | 653,015   |  |  |  | 18.58 |  |  |  | 950,886    | 
|                               | 2000  |                             |  |                             | 28.23 |                |  |            | 169,461   |                |  |             | 26,505  |  |  |  | 142,956   |  |  |  | 19.39 |  |  |  | 208,164    | 
|                               | 2000  |                             |  |                             | 26.46 |                |  |            | 616,520   |                |  |             | 47,675  |  |  |  | 568,845   |  |  |  | 18.17 |  |  |  | 828,330    | 
|                               | 2001  |                             |  |                             | 28.23 |                |  |            | 908,190   |                |  |             | 63,009  |  |  |  | 845,181   |  |  |  | 19.39 |  |  |  | 1,230,713  | 
|                               | 2001  |                             |  |                             | 19.99 |                |  |            | 420,794   |                |  |             | 73,656  |  |  |  | 347,138   |  |  |  | 13.73 |  |  |  | 505,946    | 
|                               |       |                             |  | Options distributed in 2003 |       |                |  |            |           |                |  |             |         |  |  | 
|                               | 2003  |                             |  |                             | 4.16  |                |  |            | 986,000   |                |  |             | 30,000  |  |  |  | 956,000   |  |  |  | 2.86  |  |  |  | 1,392,042  | 
|                               | 2003  |                             |  |                             | 5.74  |                |  |            | 3,113,754 |                |  |             | 184,867 |  |  |  | 2,928,887 |  |  |  | 3.94  |  |  |  | 4,265,223  | 
|                               |       |                             |  |                             |       |                |  |            |           |                |  |             |         |  |  |  |           |  |  |  |       |  |  |  |            | 
|                               | Total |                             |  |                             |       |                |  |            | 9,015,500 |                |  |             | 539,588 |  |  |  | 8,475,912 |  |  |  |       |  |  |  | 12,342,962 | 
|                               |       |                             |  |                             |       |                |  |            |           |                |  |             |         |  |  |  |           |  |  |  |       |  |  |  |            | 

The option plans for the years 1994 to 1997 are
share subscription plans giving rise to an increase in capital.
Starting with the 1998 plan, all plans provide for the purchase
of existing shares.

There are no stock option plans providing for the
purchase of or subscription to shares in Group subsidiaries.

Following the authorization decided by the
Shareholders meeting on April 18 2002, the Board of
Directors approved, on February 28, 2003, a plan for senior
officers providing for a total of 986,000 options
(1,435,725 options after the capital increase of
January 7, 2004), granted without discount, at a price of
EUR 4.16 per option (EUR 2.86 after capital increase).
Options can be exercised all at once or separately but with a
minimum of 100 shares each time, from February 28,
2007 to February 27, 2013. After February 27, 2013,
not yet exercised options are null and void.

SCORs Board of Directors decided on
June 3, 2003, in accordance with the delegation received
from the extraordinary shareholders meeting of
May 15, 2003, to set up two new stock subscription plans
for (i) all the

71



---



##### Table of Contents



employees of the SCOR Group and (ii) two
officers, namely Mr. Denis Kessler (Chairman and CEO of
SCOR) and Mr. Patrick Thourot (Vice-President of SCOR) and
certain senior executives of the Group. In both plans, the stock
subscription price amounts to EUR 5.74 per share
(EUR 3.94 after capital increase of January 7, 2003).
The 3,113,754 options (4,534,061 after the capital increase
of January 7, 2004) may be exercised on one or several
occasions between June 3, 2007 and June 2, 2013,
included.


Options are granted to officers and senior
executives according to the following procedure: an
unconditional first amount corresponding to half of the total
grant, a second amount corresponding to a quarter of the total
grant subject to Group consolidated net income for the 2003
fiscal year greater than 10% compared to the average Group
consolidated net equity (such average being deemed to be net
equity at the opening of the fiscal year plus net equity at the
end of the fiscal year divided by two), and a third amount
corresponding to a quarter of the total grant subject to the
Group consolidated net income for the 2004 fiscal year greater
than 12% compared to the average Group consolidated net equity
(such average being deemed to be net equity at the opening of
the fiscal year plus net equity at the end of the fiscal year
divided by two).

Taking into account the loss recorded for 2003,
the quarter of subscription options granted to the directors and
officers were cancelled.

72



---



##### Table of Contents



The table below shows the subscription plans for
members of the Executive Committee, as at January 7, 2004,
taking into account the capital increase:

|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|------------------- |  | --------- | --- | ------------ |  |  | --------- | ------- |  | ---------------- | ---------------- | ------------- |  |  | ----- |  |  |  | --------- |  |  |  | - | 
|                    |  | Exercised |     | Options to   |  |  |           |         |  | Potential volume |                  |              
|                    |  | options   |     | be exercised |  |  |           | Price   |  | of transaction   |                  | Exercise date
|                    |  |           |     |              |  |  |           |         |  |                  |                  |              
|                    |  |           |     |              |  |  |           | (euros) |  | (euros)          |                  |              
|Kessler Denis       |  |           | Nil |              |  |  | 364,019   |         |  |                  | POS(1)02/28/2003 |               |  |  | 2.86  |  |  |  | 1,041,094 |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 240,254   |         |  |                  | POS 06/03/2003   |               |  |  | 3.94  |  |  |  | 946,599   |  |  |  |  | 
|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|TOTAL               |  |           |     |              |  |  | 604,273   |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|Thourot Patrick     |  |           | Nil |              |  |  | 72,804    |         |  |                  | POS 02/28/2003   |               |  |  | 2.86  |  |  |  | 208,219   |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 90,096    |         |  |                  | POS 06/03/2003   |               |  |  | 3.94  |  |  |  | 354,978   |  |  |  |  | 
|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|TOTAL               |  |           |     |              |  |  | 162,900   |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|Durand Romain       |  |           | Nil |              |  |  | 19,809    |         |  |                  | POS 09/04/1997   |               |  |  | 15.03 |  |  |  | 297,729   |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 29,713    |         |  |                  | POA(2)09/03/1998 |               |  |  | 22.72 |  |  |  | 675,079   |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 32,188    |         |  |                  | POA 09/02/1999   |               |  |  | 18.58 |  |  |  | 598,053   |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 249       |         |  |                  | POA 05/04/2000   |               |  |  | 19.39 |  |  |  | 4,828     |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 37,140    |         |  |                  | POA 08/31/2000   |               |  |  | 18.17 |  |  |  | 674,834   |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 49,520    |         |  |                  | POA 09/04/2001   |               |  |  | 19.39 |  |  |  | 960,193   |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 497       |         |  |                  | POA 10/03/2001   |               |  |  | 13.73 |  |  |  | 6,824     |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 43,683    |         |  |                  | POS 02/28/2003   |               |  |  | 2.86  |  |  |  | 124,933   |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 60,065    |         |  |                  | POS 06/03/2003   |               |  |  | 3.94  |  |  |  | 236,654   |  |  |  |  | 
|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|TOTAL               |  |           |     |              |  |  | 272,864   |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|Besson Jean-Luc     |  |           | Nil |              |  |  | 43,683    |         |  |                  | POS 02/28/2003   |               |  |  | 2.86  |  |  |  | 124,933   |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 60,065    |         |  |                  | POS 06/03/2003   |               |  |  | 3.94  |  |  |  | 236,654   |  |  |  |  | 
|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|TOTAL               |  |           |     |              |  |  | 57,500    |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|Terren François     |  |           | Nil |              |  |  | 43,683    |         |  |                  | POS 02/28/2003   |               |  |  | 2.86  |  |  |  | 124,933   |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 48,051    |         |  |                  | POS 06/03/2003   |               |  |  | 3.94  |  |  |  | 189,321   |  |  |  |  | 
|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|TOTAL               |  |           |     |              |  |  | 91,734    |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|De Pressigny Renaud |  |           | Nil |              |  |  | 249       |         |  |                  | POA 05/04/2000   |               |  |  | 19.39 |  |  |  | 4,828     |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 19,808    |         |  |                  | POA 08/31/2000   |               |  |  | 18.17 |  |  |  | 359,911   |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 22,824    |         |  |                  | POA 09/04/2001   |               |  |  | 19.39 |  |  |  | 442,557   |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 497       |         |  |                  | POA 10/03/2001   |               |  |  | 13.73 |  |  |  | 6,824     |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 43,863    |         |  |                  | POS 02/28/2003   |               |  |  | 2.86  |  |  |  | 125,448   |  |  |  |  | 
|                    |  |           | Nil |              |  |  | 60,065    |         |  |                  | POS 06/03/2003   |               |  |  | 3.94  |  |  |  | 236,654   |  |  |  |  | 
|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|TOTAL               |  |           |     |              |  |  | 147,306   |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 
|GRAND TOTAL         |  |           |     |              |  |  | 1,382,823 |         |  |                  |                  |               |  |  |       |  |  |  | 7,982,083 |  |  |  |   | 
|                    |  |           |     |              |  |  |           |         |  |                  |                  |               |  |  |       |  |  |  |           |  |  |  |   | 






|    |                                  
|--- | ---------------------------------
|(1) | Share options subscription plans.
|   
|(2) | Share options purchase plan      

Taking into account the loss recorded in 2003,
the subscription options of the June 2003 option plan, subject
to a ROE superior to 10%, were cancelled.

73



---



##### Table of Contents






Item 7. Major Shareholders and
Related Party Transactions

A. MAJOR SHAREHOLDERS

The following sets forth entities or persons
known to the Company to be the direct or indirect owners of 5%
or more of the Companys Ordinary Shares as of
March 17, 2004:

|                |  |                             |                     |              |  |         |             |        |  |  |       |  |  |  |       | 
|--------------- |  | --------------------------- | ------------------- | ------------ |  | ------- | ----------- | ------ |  |  | ----- |  |  |  | ----- | 
|                |  |                             |                     |              |  | Percent |             | Voting
|Title of Class  |  | Identity of Person or Group |                     | Number Owned |  | Owned   |             | Rights
|                |  |                             |                     |              |  |         |             |       
|Ordinary Shares |  |                             | Groupama/Gan Groupe |              |  |         | 155,260,343 |        |  |  | 19.0% |  |  |  | 19.0% | 
|Ordinary Shares |  |                             | Silchester          |              |  |         | 70,375,992  |        |  |  | 8.6%  |  |  |  | 8.6%  | 
|Ordinary Shares |  |                             | Marathon AM         |              |  |         | 58,297,987  |        |  |  | 7.1%  |  |  |  | 7.1%  | 

Two surveys of all shares outstanding carried out
by the Company in 2003, aimed at identifying the owners of
bearer shares, revealed the existence of more than
34,000 shareholders.

To the best of the Companys knowledge, no
other shareholder or group of shareholders holds more than 5% of
SCORs share capital.

There are no shareholders agreements or
agreement to act in concert. There have been no transactions
between senior managers, directors or officers, and shareholders
holding more than 2.5% of the share capital (or of the company
controlling them) and the Company on terms other than market
terms.

Groupama is the largest shareholder of SCOR.
Mr. Baligand (Chairman of Groupama S.A.) is a director of
SCOR and Mr. Le Pas de Sécheval (Chief Financial
Officer of Groupama S.A) is a non-voting Director on the Board
of Directors. SCOR has business links with Groupama, since it
conducts reinsurance transactions with it.

Groupama has provided two guarantees within the
framework of the acquisition of Sorema S.A. and Sorema N.A.,
under which Groupama will indemnify SCOR in case of adverse
developments concerning substantial employee or tax liabilities
or in connection with technical reserves for 2000 and prior
underwriting years, as such will be valuated at
December 31, 2006.

There is no covenant or clause thereof
stipulating preferential terms for the sale or purchase of
shares eligible for trading, or for which application is
pending, on a regulated stock market and representing 0.5% or
more of the share capital or voting rights of the Company
issuing said shares that has been notified to the Conseil
des Marchés Financiers.

At December 31, 2003, SCOR held 489,500 of
its own shares.

To the best of the Companys knowledge, the
total number of shares held by all members of SCORs
administrative, management and supervisory bodies is 0.05%.

The total number of voting rights at
January 1, 2004 was 136,055,345. It increased to
818,779,570 following the capital increase completed on
January 7, 2004.

B. RELATED PARTY TRANSACTIONS

Several directors of the Company are also
officers or directors of companies with whom SCOR has arms
length transactions in the regular course of business.
Specifically, COFACE and Euler have entered and regularly enter
into reinsurance transactions with SCOR on ordinary commercial
terms.

SCOR continues to enter into reinsurance
transactions with GROUPAMA in the regular course of business.

As part of the transaction for the acquisition of
SOREMA S.A. and SOREMA N.A., GROUPAMA in May 2001, has provided
two guarantees for a period of six years, pursuant to which it
may be required to indemnify SCOR for negative developments
concerning material social and tax liabilities and liabilities
in respect of technical reserves for the 2000 and previous
underwriting years as assessed at December 31, 2006. As of
December 31, 2003, the amount of such obligations was
estimated by SCOR at EUR 240 million.

74



---



##### Table of Contents



C. INTERESTS OF EXPERTS AND
COUNSEL

Not applicable.

75



---



##### Table of Contents






Item 8. Financial
Information

A. CONSOLIDATED STATEMENTS AND OTHER
FINANCIAL INFORMATION

Legal Proceedings

We are involved in several legal proceedings
concerning past environmental claims. Based on information
currently available to us, we believe that the provisions we
have booked as of today are sufficient to cover these matters.

In addition, we are involved in the following
litigation matters:

In March, 2003, General Security Insurance
Company (GSIC), a former subsidiary of SCOR, and General
Security National Insurance Company (GSNIC), a US subsidiary of
SCOR, initiated a declaratory judgment action in Missouri State
court seeking a decision concerning whether an
USD 5 million excess insurance policy issued to
Pinnacle Realty Management Company (Pinnacle) provided coverage
for punitive damages. In response, Pinnacle initiated litigation
in a State court in Washington State, asking that court to
compel coverage. Pinnacle, which incurred a judgment in a
Missouri State court of USD 18 million in damages
(USD 16 million of which were punitive damages) in
connection with the death of a child, is asking for coverage of
the punitive damages, as well as additional treble damages and
fees. The Missouri State court has held that the policy insuring
Pinnacle does not cover punitive damages. Shortly thereafter,
Pinnacle obtained a contrary interim ruling from a Washington
State court. Both Pinnacle on the one hand and GSIC and GSNIC on
the other hand, have appealed the decisions of the Missouri and
Washington courts, respectively. The briefs for the appeals are
currently being prepared. In the interim, we have learned that
the underlying case has been settled for USD 5 million
or less.

In December, 2002, a petition was filed by Dock
Resins Corporation and Landec Corporation before a US Federal
District Court in New Jersey against SCORs subsidiary
Sorema North America Reinsurance Company (now General Security
National Insurance Company or GSNIC) for an alleged bad faith
denial of coverage by GSNIC concerning business interruption
suffered by the plaintiffs. GSNIC filed a cross claim for fraud
before the Federal District Court of New Jersey. This cross
claim protects GSNICs right to recover the costs incurred
in litigating the case in the event the court determines that
the plaintiffs perpetrated a fraud. The plaintiffs claim an
unspecified amount of damages in excess of policy limits for the
contents and business interruption coverage, which are capped
under the insurance policy at an aggregate total of
USD 15 million. The policy has been retroceded at 70%
outside of the SCOR Group. The settlement conference having
failed, the pre-trial investigation is being conducted in
preparation for trial. Plaintiff continues to demand excess of
policy limits in settlement.

In September, 2002, SCOR Reinsurance Company
(SCOR Re) was served with a complaint for breach of contract in
a US District Court in Oklahoma by the National American
Insurance Company (NAICO) with respect to sums they allege
are due to them for reinsurance for two underlying surety bonds.
The plaintiff demands a minimum amount of
USD 6.3 million in damages. SCOR Res motion to
dismiss filed Oklahoma District Court was denied. SCOR Res
appeal of that decision was granted by a US Court of Appeals and
the matter is now proceeding in arbitration, which is currently
at the initial stage of selecting the arbitration panel.

Beginning in October 2001, various lawsuits have
been brought and counterclaims made in US Federal Court in New
York concerning the question of whether the terrorist attack on
the World Trade Center on September 11, 2001 constitutes
one or two occurrences under the terms of the applicable
property insurance coverage. While SCOR is not a party to such
lawsuits, a company that provided a part of the property
insurance coverage on the World Trade Center program as a
fronting company for SCOR is a party.

In our calculations for our technical reserves,
we have treated the World Trade Center tragedy as one occurrence
for purposes of the underlying insurance coverage since the
terrorist attack on September 11, 2001 was a single,
coordinated occurrence.

The first phase of the trial has been completed.
In that phase, nine of the twelve insurers involved in that
phase were found to be bound by the definition of the term
occurrence that as a matter of law has been found to mean that
the attack on the World Trade Center constituted one occurrence.
The fronting company did not participate in that first phase,
but will participate in a second phase of the trial that is
expected to commence in October 2004.

76



---



##### Table of Contents



In this second phase, it will be decided whether
the attack on the World Trade Center constitutes one or two
occurrences under coverages issued by the remaining insurers.
SCORs fronting company has instituted an arbitration
proceeding against the Company in order to clarify the extent of
the Companys obligations under the reinsurance contract
entered into with such ceding company. SCORs reinsurance
exposure will be ultimately resolved only after the World Trade
Center litigation is completed, a separate damages appraisal
process is completed and any appeals are resolved.


The Group is also involved or soon will be
involved in various arbitration proceedings relating to the
subscription of business, currently in run off, mainly
concerning bonds. The global amount of these claims is estimated
at USD 21 million.

SCOR is involved as the reinsurer of CAIXA in
connection with a life insurance policy in the amount of
approximately EUR 4.5 million. The beneficiary of the
policy was killed in 1992. In June 2001, a Spanish court ordered
CAIXA to pay approximately EUR 16 million under the
policy, which amount included accumulated interest since 1992 as
well as punitive damages. Following this decision, SCOR booked a
provision of EUR 17.7 million in its accounts for the
2001 fiscal year. In May 2002, the Barcelona Court of Appeals
found in favor of CAIXA. The representatives of the deceased
have now appealed the case to the Spanish Supreme Court. The
provision was maintained at December 31, 2003.

In December 2003, the minority shareholders of
IRP Holdings, Highfields Capitals filed a petition with the High
Court of Dublin seeking injunctive relief, including: (i) a
declaration that, as a result of SCORs actions, the
affairs of IRP Holdings have been conducted in a way that is
oppressive and/or in disregard of Highfields interests;
(ii) an order directing or declaring the termination of the
quota share agreements between Irish Reinsurance Partners, as
retrocessionaire, and SCOR, from such date as the Court may
direct; (iii) an injunction that certain existing
arrangements between SCOR and IRP Holdings under the quota share
agreement, pursuant to which SCOR currently withholds certain
funds of IRP Holdings, be terminated and such funds be returned
to IRP Holdings; and (iv) an order for the reduction of IRP
Holdings capital and the corresponding return of capital
to the shareholders of IRP Holdings. The minority shareholder
also applied for the dissolution of IRP Holdings on equitable
grounds. In March 2004, the minority shareholder filed a related
complaint against SCOR in the U.S. District Court for the
District of Massachusetts. The complaint alleges fraud and
related state law claims in connection with the minority
shareholders investment in IRP and seeks unspecified
compensatory and exemplary damages as well as interest and costs.

Other than the proceedings mentioned above, to
our knowledge, there are no other litigation matters that are
likely to have a material impact on the Groups financial
position, activities or results of operations.

Administrative proceeding

The Commission des Opérations de Bourse (now
the Autorité des Marchés Financiers, or AMF) initiated
an administrative proceeding at the end of the year 2002 with
respect to the financial information and the market in the
Companys shares and all derivatives as of
December 31, 2001. The AMF concluded in January 2004 that
there would be no legal proceeding against SCOR and has advised
the Group to take into account the volatility of the reinsurance
activity in the future in order to communicate on its results on
a more cautious basis.

B. SIGNIFICANT CHANGES

None.

77



---



##### Table of Contents








|        |                      
|------- | ---------------------
|Item 9. | The Offer and Listing



|   |                          
|-- | -------------------------
|A. | OFFER AND LISTING DETAILS

The following tables set forth the highest and
lowest sales price of the Ordinary Shares on the Paris Bourse,
as reported by Euronext Paris, and the highest and lowest sales
price of the ADSs, as reported on the NYSE composite tape, for
time periods indicated:

|               |                |                          |           |                         |  |                    |           |                 |  |     |             |                |  |  |           |          |  |  |           |          |  |  |             |            | 
|-------------- | -------------- | ------------------------ | --------- | ----------------------- |  | ------------------ | --------- | --------------- |  | --- | ----------- | -------------- |  |  | --------- | -------- |  |  | --------- | -------- |  |  | ----------- | ---------- | 
|               |                |                          |           |                        
|               |                | Paris Bourse             |           | New York Stock Exchange
|               |                |                          |           |                        
|               |                |                          |           |                         |  |                   
|               |                |                          |           | Average Monthly         |  | Price Per American |           | Average Monthly
|               |                | Price Per Ordinary Share |           | Trading Volume          |  | Depositary Share   |           | Trading Volume 
|               |                |                          |           |                         |  |                    |           |                
|               |                |                          |           | Shares                  |  |                    |           | ADSs           
|               |                | High                     |           | Low                     |  | (in thousands)     |           | High            |  | Low |             | (in thousands)
|               |                |                          |           |                         |  |                    |           |                 |  |     |             |               
|1998           |                |                          | EUR 62.62 |                         |  |                    | EUR 41.47 |                 |  |     | 2,359       |                |  |  | USD 73.00 |          |  |  | USD 46.00 |          |  |  | 66          |           
|1999           |                |                          | EUR 58.90 |                         |  |                    | EUR 41.55 |                 |  |     | 2,145       |                |  |  | USD 68.50 |          |  |  | USD 42.94 |          |  |  | 110         |           
|2000           |                |                          | EUR 60.00 |                         |  |                    | EUR 40.05 |                 |  |     | 2,598       |                |  |  | USD 53.63 |          |  |  | USD 38.38 |          |  |  | 86          |           
|2001           |                |                          | EUR 58.20 |                         |  |                    | EUR 24.47 |                 |  |     | 1,679       |                |  |  | USD 53.75 |          |  |  | USD 27.89 |          |  |  | 89          |           
|2002           |                |                          | EUR 46.80 |                         |  |                    | EUR 3.42  |                 |  |     | 43,246      |                |  |  | USD 40.80 |          |  |  | USD 5.28  |          |  |  | 632         |           
|First Quarter  |                |                          | EUR 46.80 |                         |  |                    | EUR 31.50 |                 |  |     | 2,753       |                |  |  | USD 40.80 |          |  |  | USD 27.75 |          |  |  | 31          |           
|Second Quarter |                |                          | EUR 40.90 |                         |  |                    | EUR 18.00 |                 |  |     | 2,734       |                |  |  | USD 36.95 |          |  |  | USD 27.95 |          |  |  | 46          |           
|Third Quarter  |                |                          | EUR 31.00 |                         |  |                    | EUR 6.50  |                 |  |     | 3,721       |                |  |  | USD 31.00 |          |  |  | USD 7.05  |          |  |  | 72          |           
|Fourth Quarter |                |                          | EUR 11.71 |                         |  |                    | EUR 3.42  |                 |  |     | 34,038      |                |  |  | USD 11.52 |          |  |  | USD 5.28  |          |  |  | 483         |           
|2003           |                |                          | EUR 6.48  |                         |  |                    | EUR 1.14  |                 |  |     | 313,568,011 |                |  |  | USD 7.80  |          |  |  | USD 1.62  |          |  |  | 15,934,021  |           
|First Quarter  |                |                          | EUR 5.44  |                         |  |                    | EUR 2.61  |                 |  |     | 25,587,345  |                |  |  | USD 5.75  |          |  |  | USD 3.35  |          |  |  | 200,482     |           
|Second Quarter |                |                          | EUR 6.48  |                         |  |                    | EUR 3.35  |                 |  |     | 43,907,560  |                |  |  | USD 7.80  |          |  |  | USD 4.00  |          |  |  | 451,077     |           
|Third Quarter  |                |                          | EUR 5.65  |                         |  |                    | EUR 4.39  |                 |  |     | 53,016,958  |                |  |  | USD 6.30  |          |  |  | USD 5.07  |          |  |  | 583,577     |           
|               | July 2003      |                          |           | EUR 5.00                |  |                    |           | EUR 4.39        |  |     |             | 13,899,852     |  |  |           | USD 5.70 |  |  |           | USD 5.07 |  |  |             | 108,792    | 
|               | August 2003    |                          |           | EUR 5.44                |  |                    |           | EUR 4.51        |  |     |             | 18,614,106     |  |  |           | USD 6.00 |  |  |           | USD 5.18 |  |  |             | 228,592    | 
|               | September 2003 |                          |           | EUR 5.65                |  |                    |           | EUR 4.89        |  |     |             | 20,503,000     |  |  |           | USD 6.30 |  |  |           | USD 5.36 |  |  |             | 246,193    | 
|Fourth Quarter |                |                          | EUR 5.55  |                         |  |                    | EUR 1.14  |                 |  |     | 191,056,148 |                |  |  | USD 6.50  |          |  |  | USD 1.62  |          |  |  | 14,698,885  |           
|               | October 2003   |                          |           | EUR 5.55                |  |                    |           | EUR 4.97        |  |     |             | 11,399,522     |  |  |           | USD 6.50 |  |  |           | USD 5.85 |  |  |             | 87,890     | 
|               | November 2003  |                          |           | EUR 5.48                |  |                    |           | EUR 3.16        |  |     |             | 48,851,686     |  |  |           | USD 6.26 |  |  |           | USD 3.72 |  |  |             | 551,094    | 
|               | December 2003  |                          |           | EUR 1.71                |  |                    |           | EUR 1.14        |  |     |             | 130,804,940    |  |  |           | USD 4.11 |  |  |           | USD 1.62 |  |  |             | 14,059,901 | 
|2004           |                |                          | EUR 1.80  |                         |  |                    | EUR 1.20  |                 |  |     | 672,606,238 |                |  |  | USD 2.37  |          |  |  | USD 1.52  |          |  |  | 103,708,999 |           
|First Quarter  |                |                          | EUR 1.80  |                         |  |                    | EUR 1.20  |                 |  |     | 672,606,238 |                |  |  | USD 2.37  |          |  |  | USD 1.52  |          |  |  | 103,708,999 |           
|               | January 2004   |                          |           | EUR 1.74                |  |                    |           | EUR 1.20        |  |     |             | 309,490,923    |  |  |           | USD 2.24 |  |  |           | USD 1.52 |  |  |             | 48,682,102 | 
|               | February 2004  |                          |           | EUR 1.80                |  |                    |           | EUR 1.47        |  |     |             | 217,995,421    |  |  |           | USD 2.37 |  |  |           | USD 1.87 |  |  |             | 37,362,797 | 
|               | March 2004     |                          |           | EUR 1.72                |  |                    |           | EUR 1.31        |  |     |             | 145,119,894    |  |  |           | USD 2.11 |  |  |           | USD 1.62 |  |  |             | 17,664,100 | 




Note: Following the capital increase of December
2002, all numbers related to the share price shown before
December 2002 must be retreated by a correcting coefficient to
adjust to new shares. This coefficient is 0,621545.

Note: Following the capital increase of December
2003, all numbers related to the share price shown before
December 2003 must be retreated by a correcting coefficient to
adjust to new shares. This coefficient is 0,45046. For
quotations and volumes before December 2002 (First capital
increase), the applicable coefficient is: 0,293495 (i.e.
0,45046*0,621545)

On March 31, 2004, the last reported sale
price of the Ordinary Shares on the Paris Bourse was EUR 1,43
and the last reported sale price of the ADSs on the NYSE was
USD 1.77.

As of March 31, 2004, there were 819,269,070
Ordinary Shares outstanding, of which 31,831,619 or 3.9%, were
held in the form of ADSs.

On June 15, 1999, SCOR launched a
EUR 233 million issue of convertible bonds redeemable
in new or existing shares (OCEANE), represented by
4,025,000 bonds with a nominal value of EUR 58 each. The
OCEANE bear interest at a rate of 1% per annum, payable annually
on January 1, of each year, and are redeemable in full at
maturity on January 1, 2005 at EUR 65.28 per bond.
Early redemption in whole or in part is possible, at the option
of the Company by:



| |    |                                                                                                                                                                                                                                
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. | purchases on the market or public offers,                                                                                                                                                                                      
|
| | 2. | at any time from January 1, 2003 until
    December 31, 2004, at an early redemption price equivalent
    to the yield to maturity if the product of the conversion ratio
    and the arithmetic means of the closing prices of

78



---



##### Table of Contents



| |    |                                                                                                                                                                                                                                       
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    | the SCOR Ordinary Share over 20 consecutive
    trading days of the 40 consecutive trading days preceding the
    publication of a notice concerning such redemption, exceeds 120%
    of the early redemption price of each bond, and
|
| | 3. | when less than 10% of the bond issue remains
    outstanding.                                                                                                                                                                         

Bondholders may request conversion at any time
from June 28, 1999. The Company may, at its option, deliver
new shares and/or existing shares. As of April 22, 2002,
all 4,025,000 OCEANE are outstanding.

The OCEANE and the shares to be issued upon
conversion or delivered upon exchange have not been and will not
be registered under the U.S. Securities Acts of 1933, as amended
or the Securities Exchange Act of 1934, as amended, and subject
to certain restrictions, may not be sold in the U.S.

IRP

General

In December 2001, SCOR, in partnership with other
investors, created IRP and Irish Reinsurance Partners Limited
(Irish Reinsurance Partners) in partnership with
private investors. Irish Reinsurance Partners serves as the sole
operating company of and is wholly owned by IRP. From
January 1, 2002, IRP has been principally used, through
Irish Reinsurance Partners, to reinsure part of SCORs
worldwide Non-Life business. At the end of December 31,
2003, IRPs net income amounted to EUR 56 million
with tax income of EUR 8 million.

SCOR contributed 41.70% of the
EUR 300 million initially invested in IRP. On
March 20, 2003 SCOR acquired from certain of the original
investors in IRP 4.98% of its outstanding share capital for a
total consideration of EUR 17.2 million, thereby
increasing its participation to 46.68% of IRPs outstanding
share capital. In June 2003, the SCOR Group acquired an
additional 6.67% stake in IRP Holdings, previously held by
certain other original investors, thus increasing its ownership
in IRP Holdings from 46.68% (as of March 31, 2003) to
53.35% (as of June 30, 2003).

In a shareholders agreement, dated
December 28, 2001, entered into upon the creation of IRP
Holdings, SCOR committed to purchase from the minority
shareholders IRP Holdings shares not yet held by SCOR. This
purchase must in principle take place after December 28,
2004, but may in certain cases be delayed until after
December 28, 2005.

Mandatory Exchange

As contemplated at the creation of IRP, the exit of IRPs minority shareholder
will be completed by May 31, 2005. However, the minority shareholder may elect
to postpone its exit until the first half of 2006 if the simple average of (a)
the ratio of the weighted average price of the SCOR shares from October 1, 2004
to December 31, 2004 to the net asset value per share of SCOR as at September
30, 2004, and (b) the ratio of the weighted average price of the SCOR shares
from January 1, 2005 to March 31, 2005 to the net asset value per share of SCOR
as at December 31, 2004, is less than one. Any reference to the net asset
value of either SCOR or IRP in this section is to their net assets as
calculated based on their respective financial statements prepared in
accordance with U.S. GAAP.

For the purposes of these agreed exit arrangements, SCOR would acquire the IRP
shares either in exchange for its own treasury shares, or newly issued SCOR
shares (after approval by SCOR shareholders) or in cash or through a
combination of these options, as determined in SCORs discretion.

Should SCOR decide to exchange SCOR shares for shares of IRP, the exchange
ratio would be calculated by dividing the net asset value per IRP share on
December 31 preceding the date of the exchange and the net asset value per SCOR
share (calculated according to U.S. GAAP) on the same date, if during the
relevant reference period the ratio of the weighted average price of SCOR
shares to the net asset value per share of SCOR is equal to or greater than
one. If the ratio is less than one, the exchange ratio would be calculated by
dividing the net asset value per IRP share on December 31 preceding the date of
the exchange by the weighted average of the SCOR share price on the day prior
to the date of the exchange.

If the exchange were to be made in whole or in part in cash, the cash portion
would be calculated by multiplying the net asset value per share of IRP by the
ratio of the weighted average market price of SCOR shares to the net asset
value per share of SCOR, when this ratio is greater than or equal to one. If
the ratio were less than one, the calculation for purposes of an exchange
taking place either in 2005 or 2006 would be made solely on the basis of the
net asset value per share of IRP.

79



---



##### Table of Contents



For illustrational purposes only, based on 2003 data with respect to IRPs net
asset value, as well as SCORs net asset value and share price (and with
adjustments to give full effect to the rights offering launched by SCOR in
December 2003 and completed in January 2004), SCOR would have to offer IRPs
minority shareholders approximately 156,200,000 SCOR shares, or approximately
16% of SCORs currently outstanding share capital, under the exchange
mechanism. (This reflects among other things that during the relevant
reference period the weighted average price of SCOR shares to the net asset
value per share of SCOR was equal to or greater than one.) The actual number
of SCOR shares that SCOR may eventually have to offer to the other IRP
shareholders may differ materially from such estimates as such number would
depend on the future net asset value of IRP, as well as the future net asset
value and share price of SCOR, which could fluctuate significantly and differ
materially from their current values.

Exchange Upon Change of
Control

An exchange of IRP shares may also be triggered
in the event of a tender offer or exchange offer by a third
party to purchase 100% of SCORs shares which results in
such party owning at least 33.3% of SCORs shares, or in
the case of a merger where SCOR is not the surviving entity, or
if a third party becomes the owner of SCOR assets exceeding
33.3% of SCORs net asset value. This provision could
discourage third parties from launching a bid to acquire or
merge with SCOR, and/or could make successful completion of any
such bids more difficult to achieve.

The remaining minority shareholder in IRP,
Highfields Capital, has initiated litigation against SCOR in
Ireland and in the United States. See Item 8.A.
Consolidated Statements and Other Financial
Information  Litigation. This litigation
affects the terms and conditions of Highfields exit from
IRP.



|   |                     
|-- | --------------------
|B. | PLAN OF DISTRIBUTION

Not applicable.



|   |        
|-- | -------
|C. | MARKETS

The primary market for the Companys
Ordinary Shares is the Paris Bourse, the French integrated
national dealing system through which all French listed
securities are exchanged. The Companys American Depositary
Shares (ADSs) are listed on the New York Stock
Exchange (NYSE). Each ADS represents one Ordinary
Share. The Ordinary Shares are also traded on the Frankfurt
over-the-counter market (the Freiverkehrshandel).

The Companys Ordinary Shares have been
listed on the Paris Bourse since 1989. The Ordinary Shares are
traded on the premier marché, of the Paris Bourse.

The Companys ADSs have been traded in the
U.S. since October 11, 1996, the date of their listing on
the NYSE under the symbol SCO. The Companys
ADSs are issued and exchanged by The Bank of New York, as
Depositary.

The Ordinary Shares are included in the
SBF 120, 250 and 80 Indexes, consisting of the 120 and 250
most actively traded French stocks and the 80 stocks from the
SBF 120 not included in the CAC 40 Index, respectively. The
Ordinary Shares are also in:



| |   |                                                                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Euronext Top 150, which comprises the
    150 next largest stocks following the selection of the 100
    largest and most liquid stocks traded on Euronext. The
    Top 150 Index represents the large to mid capitalization
    segment of listed stocks on Euronext. Bloomberg Euro Insurance
    Index also includes the Ordinary Shares.
|
| |  | The Euronext Paris Financials Index, which
    comprises stocks included in the SBF 250 index and
    classified as members of the Financials Economic Group as per
    FTSE classification.                                                                                                                                                    
|
| |  | The Euronext NextPrime Index, which comprises
    eligible stocks listed on the NextPrime segment of the Euronext
    market.                                                                                                                                                                                                                   

80



---



##### Table of Contents



The Paris Bourse

Effective September 22, 2000, Euronext was
formed from the merger of Paris Bourse SBF S.A. (which changed
its name to Euronext Paris), the Amsterdam Stock Exchange and
the Brussels Exchange, and saw the introduction of Portugal
Exchange in January 2002. Euronext operates four subsidiary
holding companies, in each of the four member countries. Each
subsidiary continues to hold an exchange license for the local
capital market. Listed companies remain listed on their original
exchange but all shares are traded on a single integrated
trading platform and listing requirements have been harmonized.
Trading is regulated with a single rulebook and the take-over
rules continue to be imposed domestically. Euronext provides
integrated trading, clearing and settlement on all four markets,
and a central counter party, netting and clearing house for all
executed trades via Clearnet.

Official trading of listed securities on the
Paris Bourse is transacted through providers of investment
services or prestataires de services
dinvestissements (investment companies and other
financial institutions), and takes place continuously on each
business day from 9:00 a.m. through 5:25 p.m. (Paris
time), with a pre-closing session from 5:25 p.m. to
5:30 p.m. during which transactions are recorded but not
executed, with a closing auction at 5:30 p.m. During a
pre-opening session from 7:15 a.m. through 9:00 a.m.
transactions are recorded but not executed. Any trade effected
after the close of a stock-exchange session is recorded, on the
next Paris Bourse trading day, at the closing price for the
relevant security at the end of the previous days session.
Euronext Paris is a market enterprise (entreprise de
marché) to which is entrusted the operation of
regulated markets, including the admission of financial
instruments. Euronext Paris publishes a daily Official Price
List that includes price information on each listed security.
Euronext Paris provides continuous trading by computer during
trading hours for all listed securities.

Securities Listed on the Paris Bourse Are
Traded on One of Five Markets

The securities of most large public companies,
including the Ordinary Shares, are listed on the premier
marché, of Euronext Paris. The second marchéis available for small- and medium-sized companies, the
nouveau marché, for companies seeking development
capital, and the EDR market for European Depositary Receipts.
Shares of certain other companies are traded on the
marché libre-OTC, an unregulated over-the-counter
type of market. In addition, shares listed on the Paris Bourse
are placed in one of four categories depending on the volume of
transactions. The Ordinary Shares are listed in the category
known as Continu A, which includes the most actively traded
shares (i.e., a minimum daily trading volume of
EUR 38,112 or twenty trades).

Trading in the listed securities of an issuer may
be reserved or suspended by Euronext Paris if changes in quoted
prices exceed certain price limits defined by its regulations.
In particular, if the quoted price of a security varies by more
than 10% from the reference price, Euronext Paris may restrict
trading in that security for up to four minutes
(réservation à la hausse ou à la baisse).
The reference price is usually the opening price, or, with
respect to the first quoted price of a given trading day, the
last traded price of the previous trading day, as adjusted if
necessary by Euronext Paris. Further suspensions for up to four
minutes are also possible if the price again varies by more than
10% from a new reference price equal to the price that caused
the first trading suspension. Euronext Paris may also reserve
trading for a four-minute period if the quoted price of a
security varies by more than 2% from the last traded price.
However, subject to trading conditions and appropriate and
timely information, Euronext Paris may modify the reservation
period and may accept broader fluctuation ranges than above
mentioned. Euronext Paris may also suspend trading of a listed
security in certain other limited circumstances, including, for
example, the occurrence of unusual trading activity in such
security. In addition, in exceptional cases, the Conseil des
marches financiersand the Commission des operations de
boursemay also suspend trading.

Effective September 25, 2000, trades of
equity securities listed on the premier marché, of
Euronext Paris are settled on a cash-settlement basis on the
third trading day following the execution. All equity securities
included in the SBF 120 index, or equity securities with a
market capitalization of EUR 1,000 million or more or minimum
daily trading volume of EUR 1 million, are eligible for a
deferred settlement service (service de règlement
différéSRD) in which the intermediary settles the
trade with the seller in lieu of the investor. The investor may
elect, for

81



---



##### Table of Contents



a fee, to decide on the determination date (date
de liquidation), which is the fifth trading day prior to the end
of the month either:




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | to settle the trade no later than on the last
    trading day of such month, or                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | upon payment of an additional fee, to extend to
    the determination date of the following month the option either
    to settle no later than the last trading day of such month or to
    postpone further the selection of a settlement date until the
    next determination date (a procedure known as a report).
    Such purchaser may decide to renew its option on each subsequent
    determination date upon payment of an additional fee.

The transfer of ownership of equity securities
traded on the premier marchéof Euronext Paris
occurs at the time of registration of the securities in the
appropriate shareholders account. The majority of
transactions in equity securities on the Paris Bourse are
settled on the premier marché, of Euronext Paris. In
accordance with French securities regulations, any sale of
equity securities executed on the monthly settlement market
during the month of a dividend payment date is deemed to occur
after payment of the dividend, and the purchasers account
is credited with an amount equal to the dividend paid and the
sellers account is debited in the same amount. Prior to
any transfer of securities held in registered form on the
premier marchéof Euronext Paris, the securities
must be converted into bearer form and accordingly inscribed in
an account maintained by an accredited intermediary with
Euroclear France S.A., a registered clearing agency. Trades of
securities listed on the premier marché are cleared
and settled through Euroclear France S.A. using a continuous net
settlement system. A fee or commission is payable to the
broker-dealer or other agent involved in the transaction.



|   |                     
|-- | --------------------
|D. | SELLING SHAREHOLDERS

Not applicable.



|   |         
|-- | --------
|E. | DILUTION

Not applicable.



|   |                      
|-- | ---------------------
|F. | EXPENSES OF THE ISSUE

Not applicable.

82



---



##### Table of Contents






Item 10. Additional
Information

A. SHARE CAPITAL

Not applicable.

B. MEMORANDUM AND ARTICLES OF
ASSOCIATION

The following summarizes certain material rights
of holders of SCORs ordinary shares under the material
provisions of our articles of association
(Statuts) and French law. A copy of the
Statuts, as of May 18, 2004, has been filed as an
exhibit to this annual report on Form 20-F.

As set forth in Article 3 of the
Statuts, SCORs objects include the following:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | insurance, reinsurance, cession or retrocession
    business of any nature in all classes and in all countries;
    transfer in any form of reinsurance contracts or liabilities of
    any French or foreign company, organization, entity or
    association; creation, acquisition, rental lease, installation
    and operation of any undertaking for the purpose of carrying on
    such business;
|
| |  | construction, rental, operation or purchase of
    any building;                                                                                                                                                                                                                                                                                                                                        
|
| |  | acquisition and management of all securities and
    other equity rights by any means including but not limited to
    subscription for, transfer or acquisition of shares, bonds,
    interests in private companies or partnerships and other equity
    rights;                                                                                                                                      
|
| |  | acquisition of equity investments or interests in
    any industrial, commercial, agricultural, financial, realty and
    personalty company or other undertaking, formation of any
    company, participation in any rights issues, mergers, break-ups
    and partial conveyances; and                                                                                                                
|
| |  | administration, management, and control of any
    company or other undertaking, direct or indirect participation
    in all transactions carried out by such companies or
    undertakings by any means and including but not limited to
    direct or indirect participation in any company or equity
    investment.                                                                                 

Changes in Share Capital

The share capital of SCOR may be increased only
with the approval of the shareholders at an extraordinary
general meeting, following a recommendation of the Board of
Directors. Increases in share capital may be effected either by
the issuance of additional Ordinary Shares, by an increase in
the nominal value of existing Ordinary Shares or by the creation
of a new class of shares. Additional Ordinary Shares may be
issued for cash, in satisfaction of indebtedness incurred by
SCOR or for assets contributed in kind, upon the conversion,
exchange or redemption of debt securities previously issued by
SCOR or by capitalization of reserves, profits or share premium,
or upon the exercise of share warrants or other similar
securities comprising rights to subscribe for Ordinary Shares or
of stock options. An increase in share capital effected by
capitalization of reserves, profits or share premium requires a
simple majority of the votes cast. French law permits different
classes of shares to have different liquidation, voting and
dividend rights. Any decision to increase the share capital
require the shareholders, at an extraordinary shareholders
meeting, to decide upon a capital increase reserved to
employees, it being understood that such capital increase does
not have to be voted. Share dividends may be distributed in lieu
of payment of cash dividends, as described under
 Dividend and Liquidation Rights.

The share capital of SCOR may be decreased only
with the approval of the shareholders at an extraordinary
general meeting. Share capital may be reduced either by
decreasing the nominal value of the Ordinary Shares or by
reducing the number of outstanding Ordinary Shares. The
conditions under which the capital may be reduced will vary
depending upon whether the reduction is attributable to losses
incurred by SCOR. Under French company law all shareholders must
be treated equally. If the reduction is not attributable to
losses incurred by SCOR, each shareholder will be offered an
opportunity to participate in such capital reduction and may
decide whether or not to participate therein (unless the
reduction is effected by cancellation of shares repurchased
pursuant to a buy-back program). The number of outstanding
Ordinary Shares may be reduced either by an exchange of Ordinary
Shares or by the repurchase and cancellation by SCOR of Ordinary
Shares. If, as a

83



---



##### Table of Contents



consequence of losses, the net assets
(capitaux propres) of the Company are reduced below
one-half of the share capital of the Company, the Board of
Directors must, within four months from the approval of the
accounts showing this loss, convene an extraordinary general
meeting of shareholders in order to decide whether the Company
ought to be dissolved before its statutory term. If the
dissolution is not declared, the share capital must, at the
latest at the end of the second fiscal year following the fiscal
year during which the losses were established, and subject to
the legal provisions concerning the minimum capital of
sociétés anonymes, be reduced by an amount at
least equal to the losses which could not be charged against
reserves, if during that period the net assets have not been
restored up to an amount at least equal to one-half of the share
capital.


Additional Ordinary Shares Issuances
Authorized

Under French law, the shareholders can delegate
to the Board of Directors, within certain limits of time defined
by law, and within a maximum amount to be defined by the
shareholders meeting, the power to issue new Ordinary
Shares, bonds convertible, exchangeable or redeemable into
Ordinary Shares or warrants to subscribe to Ordinary Shares.

The extraordinary shareholders meeting held
on December 1, 2003 authorized the Board of Directors to
increase the share capital according to the following procedure:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | through the issuance of securities giving access
    to the share capital with preservation of preferential
    subscription rights or by incorporation of reserves, profits or
    share premiums. The maximum total number of shares that may be
    issued for this purpose amounts to 800 million, whereas the
    total principal amount of debt securities that may be issued by
    the Company shall not exceed an upper limit of
    EUR 700 million.
|
| |  | through the issuance of securities giving access
    to the capital without preservation of preferential subscription
    rights. In this case the limits described in the previous
    paragraph are 150 million shares and EUR 350 million,
    respectively.                                                                                                                                                                                               

Pursuant to this authorization, the Board of
Directors, at its meeting of December 1, 2003, decided to
carry out a share capital increase with preservation of
preferential subscription rights and subdelegated such authority
to its Chairman. Pursuant to such authorization,
Mr. Kessler decided on the same day to issue 682,724,225
shares at a subscription price of EUR 1.10. This share
capital increase was completed on January 7, 2004 in an
amount of EUR 682,724,225 with a share premium of
EUR 68,272,422.50.

Preferential Subscription Rights

Holders of Ordinary Shares have preferential
rights to subscribe for additional Ordinary Shares issued by
SCOR for cash on a pro ratabasis. Shareholders may waive
such preferential subscription rights at an extraordinary
general meeting under certain circumstances. Preferential
subscription rights, if not previously waived, are transferable
during the subscription period relating to a particular offering
of Ordinary Shares.

The shareholders meeting may also decide to
withdraw the preferential rights of shareholders with respect to
any issuance of new Ordinary Shares, of bonds convertible,
exchangeable or redeemable into Ordinary Shares or of warrants
to subscribe to Ordinary Shares. In such case, however, the
Shareholders meeting has the power to grant to
shareholders a non-transferable priority right to subscribe all
or part of the issuance of Ordinary Shares, of bonds
convertible, exchangeable or redeemable into Ordinary Shares or
of warrants to subscribe to Ordinary Shares.

Attendance and voting at Shareholders
Meetings

In accordance with French law, there are two
types of shareholders general meetings, ordinary and
extraordinary.

Ordinary general meetings of shareholders are
required for matters such as the election, replacement and
removal of directors, the appointment of statutory auditors, the
approval of the annual report prepared by the board of directors
and of the annual accounts, the declaration of dividends and the
issuance of bonds. The board of

84



---



##### Table of Contents



directors is required to convene an annual
ordinary general meeting of shareholders, which must be held
within six months of the end of SCORs fiscal year. This
period may be extended by an order of the President of the
French Commercial Court.


Extraordinary general meetings of shareholders
are required for approval of matters such as amendments to
SCORs statuts, modification of shareholders
rights, approval of mergers, increases or decreases in share
capital, the creation of a new class of capital stock and the
authorization of the issuance of investment certificates or
notes convertible or exchangeable into capital stock. In
particular, shareholder approval will be required for any and
all mergers in which the Company is not the surviving entity or
in which the Company is the surviving entity but in connection
with which the Company is issuing a portion of its share capital
to the shareholders of the acquired entity.

Special meetings of shareholders of a certain
class of shares (such as shares with double voting rights or
preferred shares without voting rights) are required for any
modification of the rights associated with such class of shares.
The resolution of the shareholders general meeting
affecting these rights are effective only after approval by the
relevant special meeting.

Other ordinary or extraordinary meetings may be
convened at any time during the year. Meetings of shareholders
may be convened by the Board of Directors or, if the Board of
Directors fails to call such a meeting, by SCORs statutory
auditors, by its liquidators in case of bankruptcy in some
instances, by shareholders owning the majority of the
Companys Ordinary Shares or voting rights after having
launched a takeover bid or by an agent appointed by a court. The
court may be requested to appoint an agent either by
shareholder(s) holding at least 5% of SCORs share capital,
or a duly authorized association of shareholders holding their
Ordinary Shares in registered form for at least two years and
holding together a certain percentage of the Companys
voting power (determined on the basis of a formula related to
capitalization) or by any interested party in cases of urgency,
including the Workers Council (Comité
dentreprise). The notice calling such meeting must
state the agenda for such meeting.

At least 15 days before the date set for any
general meeting on first call, and at least six days before any
second call, notice of the meeting must be sent by mail to
holders of Ordinary Shares who have held such Ordinary Shares in
registered form for at least one month prior to the date of the
notice and for all other holders of Ordinary Shares notice of
the meeting is given by publication in a journal authorized to
publish legal announcements in the
département in which SCOR is registered
and in the Bulletin des annonces légales obligatoires(BALO), with prior notice given to the
Autorité des Marchés Financiers (AMF)
resulting from the merger of the Commission des opérations
de bourse, the Conseil des marches financiers and the
Conseil de discipline de la gestion financière. At
least 30 days prior to the date set for any ordinary or
extraordinary general meeting, a preliminary written notice
(avis de réunion), containing, among other things,
the agenda for the meeting and a draft of the resolutions to be
considered, must also be published in the BALO. Prior to such
publication, a copy of the preliminary written notice must be
sent to the AMF. The AMF also recommends that such preliminary
written notice be published in a newspaper of French national
circulation. One or several shareholder(s), the Workers
council or a duly authorized association of shareholders holding
their Ordinary Shares in registered form for at least two years
and holding together a certain percentage of the Companys
voting power (determined on the basis of a formula related to
capitalization) may, within 10 days after such publication,
propose resolutions to be submitted for approval by the
shareholders at the meeting.

Attendance and exercise of voting rights at
ordinary general meetings and extraordinary general meetings of
shareholders are subject to certain conditions. In accordance
with French law and the Companys statuts, in order
to have the right to attend or be represented at a general
meeting of shareholders and vote, a holder of Ordinary Shares
held in registered form or, under certain conditions for holders
who are not French residents, its intermediary, must have them
registered in its name in a shareholder account maintained by or
on behalf of SCOR within one day fixed by the Board of
Directors. A holder of Ordinary Shares (or its intermediary,
where applicable) held in bearer form must deposit with the
Company, within one day fixed by the Board of Directors, a
certificate (certificat dimmobilisation de titres au
porteur) issued by an accredited financial intermediary
(French broker, bank or authorized financial institution)
evidencing the holding of the Ordinary Shares until the time
fixed for the meeting.

85



---



##### Table of Contents



All shareholders who have properly registered
their Ordinary Shares or have duly deposited at the
Companys registered office a certificate of an accredited
financial intermediary have the right to participate in general
meetings, either in person, by proxy, or by mail, and to vote
according to the number of Ordinary Shares they hold. Each
Ordinary Share confers on the shareholder the right to one vote.
Under French company law, Ordinary Shares held by entities
controlled directly or indirectly by SCOR are not entitled to
any voting rights. Proxies may be granted by a shareholder or,
under certain conditions, by its intermediary, to his or her
spouse, to another shareholder or to a legal representative, in
the case of a corporation, or by sending a proxy in blank to the
Company without nominating any representative. In the latter
case, the chairman of the meeting of shareholders will vote the
Ordinary Shares covered by such blank proxy in favor of all
resolutions proposed by the Board of Directors and against all
others.

The presence in person (including those voting by
correspondence) or by proxy of shareholders holding not less
than 25% (in the case of an ordinary general meeting or an
extraordinary general meeting where an increase in our share
capital is proposed through incorporation of reserves, profits
or share premium) or one-third (in the case of any other
extraordinary general meeting) of the Ordinary Shares entitled
to vote is necessary for a quorum. If a quorum is not present at
any meeting, then the meeting is adjourned. Upon recommencement
of an adjourned meeting, there is no quorum requirement in the
case of an ordinary general meeting or an extraordinary general
meeting where an increase in our share capital is proposed
through incorporation of reserves, profits or share premium and
the presence in person (including those voting by
correspondence) or by proxy of shareholders holding not less
than 25% of the Ordinary Shares entitled to vote is necessary
for a quorum in the case of any other extraordinary general
meeting.

At an ordinary general meeting, a simple majority
of the votes cast is required to pass a resolution. At an
extraordinary general meeting, a two-thirds majority of the
votes cast is required. However, a unanimous vote is required to
increase liabilities of shareholders. Abstention by those
present in person or by correspondence or represented by proxy
is deemed a vote against the resolution submitted to a vote.

The rights of a holder of shares of a class of
capital stock of SCOR, including the Ordinary Shares, can be
amended only after an extraordinary general meeting of all
shareholders of such class has taken place and the proposal to
amend such rights has been approved by a two-thirds majority
vote of shares of such class present in person (including those
voting by correspondence) or represented by proxy. The Ordinary
Shares constitute the Companys only class of capital stock.

In addition to rights to certain information
regarding SCOR, any shareholder may, during the two-week period
preceding a shareholders meeting, submit to the Board of
Directors written questions relating to the agenda for the
meeting. The Board of Directors is required to respond to such
questions during the meetings, subject to confidentiality
concerns.

Dividend and Liquidation Rights

Net income in each fiscal year (after deduction
for legal reserves), as increased or reduced, as the case may
be, by any net income or loss of SCOR carried forward from prior
years, is available for distribution to the shareholders of SCOR
as dividends, subject to the requirements of French law and
SCORs statuts. Dividends may also be distributed
from reserves of the Company, subject to approval by the
shareholders and certain limitations.

SCOR is required by law to establish and maintain
a legal reserve at a level equal to 10% of the aggregate nominal
value of its share capital and, if necessary to maintain such
legal reserve, to make a minimum transfer of 5% of such net
income each year to the legal reserve. The legal reserve is
distributable only upon the liquidation of SCOR. SCORs
statutsalso provide that distributable profits of SCOR
(after deduction of any amounts required to be allocated to the
legal reserve) can be allocated to one or more special purpose
reserves or distributed as dividends, as may be determined by
the general meeting of shareholders.

The payment of dividends is fixed by the ordinary
general meeting of shareholders at which the annual accounts are
approved following recommendation of the Board of Directors. The
determination of the portion, if any, of the annual dividend
that each shareholder will have the option to receive in
Ordinary Shares is also made at the ordinary general meeting of
shareholders following a recommendation by the board of
directors. Dividends are

86



---



##### Table of Contents



distributable to shareholders pro rata their
respective holdings of Ordinary Shares. Dividends are payable to
holders of Ordinary Shares outstanding on the date of the
shareholder meeting approving the distribution of dividends or,
in the case of interim dividends, on the date of the meeting of
the Board of Directors approving the distribution of interim
dividends. The actual dividend payment date is determined by the
shareholders at the ordinary general meeting approving the
declaration of the dividends or by the Board of Directors in the
absence of such determination by the shareholders. The payment
of the dividends must occur within nine months of the end of
SCORs fiscal year. Dividends not claimed within five years
of the date of payment revert to the French State. The
statutsof the Company authorize the shareholders, in an
ordinary general meeting to authorize the grant to each
shareholder of an option to receive all or part of any annual or
interim dividends in either cash or Ordinary Shares.


If net income (as shown on an interim income
statement certified by SCORs statutory auditors) is
sufficient, the Board of Directors has the authority, subject to
French law and regulations, without the approval of
shareholders, to distribute interim dividends.

In the event that SCOR is liquidated, the assets
of SCOR remaining after payment of its debts, liquidation
expenses and all of its remaining obligations will be
distributed first to repay in full the nominal value of the
Ordinary Shares, then the surplus, if any, will be distributed
pro rata among the holders of Ordinary Shares in proportion to
the nominal value of their shareholdings and subject to any
special rights granted to holders of priority shares, if any.

Repurchase of Ordinary Shares

Under French law, SCOR may not acquire its own
shares, except:



| |    |                                                                                                                                                                                                                                                                                                      
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. | to reduce its share capital under specified
    circumstances with the approval of the shareholders at an
    extraordinary general meeting;                                                                                                                                                         
|
| | 2. | to provide shares for distribution to employees
    under a profit-sharing or stock option plan after obtaining
    approval of the shareholders at an extraordinary general
    meeting; and                                                                                                        
|
| | 3. | for a specific purpose (including stabilization
    of the market of its shares) approved by the shareholders at an
    ordinary general meeting, such shareholders authorization
    being given for a period to be decided by the shareholders
    resolution and which may not exceed 18 months.

The amounts repurchased under (2) and
(3) may not, in either case, result in SCOR holding more
than 10% of its own shares. In the event that such repurchases
result in the Company holding more than 10% of its issued
shares, we are required to transfer any shares in excess of the
10% threshold within one year. French law requires that the
Company cancel any shares in excess of this 10% limit that have
not been transferred within the one-year period. Shares
repurchased under (3) may be cancelled by an extraordinary
general shareholders meeting, although no more than 10% of
our registered capital may be cancelled in any 24-month period.
When the Company holds its own shares, such shares are deemed to
be outstanding under French law, but are not entitled to any
dividend or voting rights and the Company may not exercise
preferential subscription rights.

French law requires SCOR to prepare a prospectus
(note dinformation), for which it would
have to obtain a AMF visa, prior to a shareholders meeting
authorizing the repurchase of shares under (3) above. SCOR
must notify the AMF in advance and on a monthly basis of its
trading program in its own shares. SCOR must also report all
trading made in its own shares promptly to the AMF and, the AMF
makes this information publicly available.

When SCOR purchases its own shares, the shares
must be fully paid. SCOR must hold repurchased shares in
registered form. Repurchased shares are deemed to be outstanding
under French law, but are not entitled to any dividends or
voting rights, and SCOR may not exercise preferential
subscription rights. The shareholders, at an extraordinary
general meeting, may decide not to take these shares into
account in determining the preferential subscription rights
attached to the other shares. In the absence of such a decision,
the rights attached to any shares held by SCOR must either be
sold on the market before the end of the subscription period or
distributed to other shareholders on a pro rata basis.

87



---



##### Table of Contents



On May 15, 2003, SCORs shareholders
approved a repurchase program for SCORs own shares as well
as their possible cancellation. The shareholders approval
of this program was a condition to the closing of the
acquisition transaction. This authorization was valid until the
May 18, 2004 shareholders meeting that approved the
annual financial statements for 2003 and was limited to a number
of shares representing 10% of its share capital. On May 15,
2003, the ordinary general meeting had fixed the intervention
price of the maximum buying price for one share to Euro 15,
and the minimum selling price to Euro 4.

The Company intends to use the repurchased
shares, in order of preference, for:



| |   |                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | sales or purchases of the Companys shares
    by any means, depending on market conditions or with a view to
    diversify the Companys shareholder base,                               
|
| |  | the holding or the transfer of the shares by any
    means, in particular by exchange of shares,                                                                                          
|
| |  | the stabilization of the share price by making
    sales and purchases against the share price trend,                                                                                     
|
| |  | the implementation of stock option plans,                                                                                                                                                 
|
| |  | the pursuit of external growth transactions,                                                                                                                                              
|
| |  | the cancellation of shares, within the limits set
    forth by law and subject to authorization by an extraordinary
    shareholders meeting, in order to improve earnings per
    share.

The ordinary and extraordinary shareholders
meeting held on May 15, 2003 authorized the Company to buy
back or cancel shares representing 10% of its capital stock. In
consideration of this authorization, SCOR decided to purchase in
2003 a total of 489,500 shares representing an amount of
EUR 2,235,641.

Form, Holding and Transfer of Ordinary
Shares

Form of
Shares.SCORs statutsprovide that Ordinary Shares may be held in registered or
bearer form.

Holding of Ordinary
Shares.In accordance with French
law concerning dématérialisation of
securities, the ownership rights of holders of the Ordinary
Shares are not represented by share certificates but by book
entries. Equity securities, such as the Ordinary Shares, may be
held in either bearer or registered form, and a holder of equity
securities may change from one form of holding to the other.

The Company maintains a share account with
Euroclear France in respect of all Ordinary Shares in registered
form (the Company Share Account), which, in France,
is administered by BNP Paribas(BNP) acting
on behalf of the Company as its agent. Ordinary Shares held in
registered form are inscribed in the name of each shareholder
(either directly, or, at the shareholders request, through
such shareholders accredited intermediary) in separate
accounts (the Shareholder Accounts) maintained by
BNP on behalf of the Company. Each Shareholder Account shows the
name of the holder and such shareholders shareholdings
and, in the case of Ordinary Shares inscribed through an
accredited intermediary, shows that they are so held. BNP, as a
matter of course, issues confirmations as to holdings of
Ordinary Shares inscribed in the Shareholder Accounts to the
persons in whose names the shareholdings are inscribed, but
these confirmations do not constitute documents of title.

In the case of Shares held in bearer form, the
Ordinary Shares are held on the Shareholders behalf by an
accredited intermediary and are inscribed in an account
maintained by such accredited intermediary with Euroclear France
separately from the Company Share Account. Ordinary Shares held
in this manner are referred to as being in bearer form. Each
accredited intermediary maintains a record of Ordinary Shares
held through it and will issue certificates of inscription in
respect thereof. Transfers of Ordinary Shares held in bearer
form may only be effected through accredited intermediaries.
SCORs statutspermit it to request Euroclear France
at any time to provide it with the identity, address and
citizenship of the holders of bearer shares.

The Ordinary Shares held by non-French residents
are required to be inscribed in an account, either maintained by
an accredited intermediary or the Company, under the name of
their intermediary, who can represent several holders.

88



---



##### Table of Contents



Under a French statute dated May 15, 2001,
shares may be registered in the name of intermediaries who act
on behalf of one or more investors residing outside France.
These intermediaries, acting on behalf of shareholders living
outside of France, are obliged to spontaneously declare their
capacity as intermediaries as soon as the account is opened ;
they also have to provide, if required by SCOR, the identity of
the actual shareholder(s). Also, SCOR may request any legal
person who holds more than 2.5% of our shares, to disclose the
name of any person who owns, directly or indirectly, more than a
third of its share capital or of its voting rights. A person not
providing the complete requested information in time might be
deprived by a French court of either its voting rights or its
dividends or both for a period of up to five years.

Requirements for Holdings Exceeding Certain
Percentages.French law provides
that any individual or entity, directly or indirectly, acting
alone or in concert with others, that becomes the owner of more
than 5%, 10%, 20%, 33 1/3%, 50%, 66 2/3% of the
outstanding shares or the voting rights thereof of the Company,
or whose holding decreases below any such percentage, must
notify the Company, within 5 calendar days of the date such
threshold has been crossed, of the number of Ordinary Shares it
holds and the voting rights attached thereto. Such individual or
entity must also notify the AMF, within five Paris Bourse
trading days of the date such threshold has been crossed. In the
event of failure to comply with such notification requirement,
the Ordinary Shares in excess of the relevant threshold will be
deprived of voting rights for all shareholders meetings until
the end of a two-year period following the date on which the
owner thereof has complied with such notification requirements.
In addition, any shareholder who fails to comply with the above
requirements may have all or part of its voting rights suspended
for up to five years by the commercial court at the request of
the Companys chairman, any shareholder or the AMF, and may
be subject to criminal penalties.

To permit shareholders to comply with these
requirements, SCOR must publish in the BALO, within 15 calendar
days after its annual meeting, information regarding the total
number of votes available as of the date of its annual meeting.
In addition, if the number of available votes changes by 5% or
more between two ordinary meetings, SCOR must publish the
revised number of available votes in the BALO within
15 calendar days of the change and notify the AMF.

French law also requires any individual or
entity, acting alone or in concert with others, that acquires
more than 10% or 20% of SCORs voting rights, to file a
report with SCOR, the AMF, disclosing its intentions for the
12-month period following the acquisition. The acquirer must
disclose first whether it is acting alone or in concert with
other persons, and whether it intends to continue purchasing
shares, acquire control, or seek nomination to SCORs Board
of Directors. The acquirer must file the report within 10
calendar days of crossing either threshold. The AMF will publish
the notice, and the acquirer must publish a press release
stating its intention in a financial newspaper of French
national circulation. A shareholder who fails to comply with
these requirements will lose the voting rights attached to the
shares exceeding the 10 or 20% threshold and will only regain
them two years after complying with the notification
requirements.

Regulations of the AMF generally require, subject
to limited exemptions granted by the AMF, any individual or
entity that acquires, alone or in concert with others, shares
resulting in a holding of one-third or more of SCORs share
capital or voting rights, to initiate a public tender offer for
all remaining outstanding shares of SCOR (including, for these
purposes, all securities convertible into or exchangeable for
equity securities).

In addition, Article 7 of the Companys
statutsprovides that every shareholder (including a
holder of ADSs) who, directly or indirectly, acting alone or in
concert with others, becomes the owner of Ordinary Shares
resulting in the clearing of a 2.5% threshold of the
Companys share capital shall be required to notify the
Company of such fact by registered letter with return receipt
requested within five Paris Bourse trading days of the date of
the registration of the Ordinary Shares causing such shareholder
acting alone or in concert with others to reach or exceed such
percentage. In the event of failure to comply with such
notification and only upon request of one or several
shareholder(s) holding a percentage of at least 2.5% of the
Companys share capital of the Ordinary Shares in excess of
the threshold will be deprived of voting rights for all
shareholders meetings until the end of a two-year period
following the date on which the owner thereof has complied with
such notification requirements.

Transfer of Ordinary
Shares.An owner of Ordinary
Shares residing outside France may trade such shares on the
Paris Bourse. Should such owner, or the broker or other agent
through whom a sale is effected, require assistance in this
connection, an accredited intermediary should be contacted.

89



---



##### Table of Contents



Prior to any transfer of Ordinary Shares held in
registered form on the Paris Bourse, such shares must be
inscribed in an account maintained by an accredited
intermediary. Dealings in Ordinary Shares are initiated by the
owner giving instructions (through an agent, if appropriate) to
the relevant accredited intermediary. For dealing on the Paris
Bourse, a tax on stock exchange transactions, or tax assessed on
the price at which the securities were traded, is payable, at a
rate of 0.3% on transactions up to EUR 153,000 and at a
rate of 0.15% thereafter. The tax is subject to a rebate of
EUR 23 per transaction (so that there is an exemption from
the first EUR 7,667 of the transaction) and to a maximum
assessment of EUR 610 per transaction. Non-residents of France
are not subject to this tax.

A fee or commission is payable to the
société de bourse, or French broker, accredited
intermediary or other agent involved in the transaction (whether
within or outside France).

No registration duty is normally payable in
France, unless a transfer instrument has been executed in France.

Trading by the Company in Ordinary
Shares

Under Regulation No 90-04 of
the AMF, as amended, we may not trade in our own shares for the
purpose of manipulating the market. There are three general
requirements for trades by a company in its own shares to be
deemed valid:



| |   |                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | These trades must be executed on our behalf by
    only one intermediary in each trading session, except during the
    issues period of any securities if the trades are made to ensure
    the success of the issuance,
|
| |  | Any block trades may not be made at a price above
    the current market price, and                                                                                                                                      
|
| |  | Each trade must be made at a price that falls
    between the lowest and the highest trading price of the trading
    session during which it is executed.                                                               

If a companys shares, like our shares, are
continuously quoted (cotation en continu), then a trade
must meet three further requirements to be deemed valid:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The trade must not influence the determination of
    the quoted price before the opening of trading, at the first
    trade of the shares, at the reopening of trading following a
    suspension or reservation of securities, or, as applicable, in
    the last half-hour of any trading session or at the fixing of
    the closing price,                                                                                                                                                                                                 
|
| |  | The trade must not be carried out in order to
    influence the price of a derivative instrument relating to the
    companys shares, and                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | The trade must not account for more than 25% of
    the average total daily trading volume on Euronext Paris in the
    shares during a certain reference period immediately preceding
    the trade. In the case of shares eligible for the deferred
    settlement service, like our shares, this reference period is
    three days. This 25% limit does not apply to off-market block
    trades or to acquisitions made by an investment service provider
    on our behalf pursuant to a liquidity agreement meeting certain
    criteria.

However, there are two periods during which we
are not permitted to trade in our own securities other than
through an investment service provider acting on our behalf
pursuant to a liquidity agreement meeting certain criteria: the
15-day period before the date on which we make our consolidated
or annual accounts public, and the period beginning on the date
at which we become aware of information that, if disclosed,
would have a significant impact on the market price of our
securities and ending on the date this information is made
public.

After making an initial purchase of our own
share, we must file monthly reports with the AMF that contain
specified information about subsequent transactions. The AMF
makes this information publicly available.

Ownership of Shares by Non-French
Persons

Under current French law, there is no limitation
on the right of non-residents or non-French shareholders to own
or to vote securities of a French company.

A French law dated February 14, 1996
abolished the requirement that a person who is not a resident of
the European Union obtain an autorisation préalableor preliminary authorization prior to acquiring a controlling

90



---



##### Table of Contents



interest in a French company, except under
certain circumstances. Under current French foreign direct
investment regulations, a notice (déclaration
administrative) must be filed, however, with the French
Ministry of the Economy in connection with the acquisition of an
interest in the Company by any person not residing in France or
any group of non-French residents acting in concert or by any
foreign controlled resident if such acquisition would result in
(i) the acquisition of a controlling interest in the
Company or (ii) the increase of a controlling interest in
the Company unless such person not residing in France or group
of non-French residents already controls more than one-third of
the Companys share capital or voting rights prior to such
increase. Ownership of 33 1/3% or more of a listed
companys share capital or voting rights is regarded as a
controlling interest, but a lower percentage may be held to be a
controlling interest in certain circumstances (depending upon
such factors as the acquiring partys intentions, its
ability to elect directors or financial reliance by the French
company on the acquiring party).


C. MATERIAL CONTRACTS

No material contract existed in 2003 outside the
ordinary course of business, except for IRP purchase of minority
interests, see Item 4. Information on the Company
 Underwriting. For our agreement with certain banks
concerning certain credit lines and letters of credit, see
Item 5. Operating and Financial Review and Prospects
 C. Off Balance Sheet transactions. and for GROUPAMA
guarantees, see Item 7. Major Shareholders and
Related Party Transactions  B. Related Party
Transactions.

D. EXCHANGE CONTROLS

Exchange Controls

Under current French exchange control
regulations, there are no limitations on the amount of payments
that may be remitted by a French company to non-residents. Laws
and regulations concerning foreign exchange controls do require,
however, that all payments or transfers of funds made by a
French resident to a non-resident be handled by an accredited
intermediary. In France, all registered banks and substantially
all credit establishments are accredited intermediaries.

E. TAXATION

The following describes the principal French and
United States federal income tax consequences of the ownership
of Ordinary Shares or ADSs by a U.S. Holder (as defined below).
This summary does not purport to address all potential tax
consequences of the ownership of Ordinary Shares or ADSs, and
does not apply to special classes of holders subject to special
rules, including tax-exempt entities, Life insurance companies,
dealers in currencies or securities, traders in securities that
elect a mark-to-market method of accounting, investors liable
for alternative minimum tax, investors that actually or
constructively own 10% or more of the capital of the Company,
investors that hold Ordinary Shares or ADSs as part of a
straddle or a hedging or conversion transaction or investors
whose functional currency is not the U.S. dollar.

This section is based in part upon the
representations of the Depositary and the assumption that each
obligation in the Deposit Agreement and any related agreement
will be performed in accordance with its terms. In addition,
this section is based on the tax laws of the United States
(including the Internal Revenue Code of 1986, as amended, its
legislative history, existing and proposed regulations there
under, published rulings and court decisions) and France as in
effect on the date hereof, as well as on the Convention Between
the United States of America and France for the Avoidance of
Double Taxation and the Prevention of Fiscal Evasion with
Respect to Taxes on Income and Capital dated August 31,
1994 (the Treaty), all of which are subject to
change (or changes in interpretation), possibly with retroactive
effect.

The discussion does not address any aspects of
United States taxation other than federal income taxation or any
aspects of French taxation other than income taxation, gift and
inheritance taxation, transfer taxation, and wealth taxation.
U.S. Holders (as defined below) are urged to consult their tax
advisors regarding the United States federal, state and local
and the French and other tax consequences of owning and
disposing of Ordinary Shares and ADSs in their particular
circumstances. In particular, U.S. Holders are urged to confirm
their status as

91



---



##### Table of Contents



Eligible U.S. Holders (as defined below) with
their advisors and to discuss with their advisors any possible
consequences of their failure to qualify as Eligible U.S.
Holders.


For purposes of this discussion, a U.S.
Holder is any beneficial owner of Ordinary Shares or ADRs
that is:



| |   |                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a citizen or resident of the United States,                                                                                                                                                                                                     
|
| |  | a corporation organized under the laws of the
    United States or any State or other entity treated as a United
    States domestic corporation for United States federal income tax
    purposes.                                             
|
| |  | an estate the income of which is subject to
    United States federal income tax without regard to its source, or                                                                                                                               
|
| |  | a trust if a court within the United States is
    able to exercise primary supervision over the administration of
    the trust and one or more United States persons have the
    authority to control all substantial decisions of the trust.

In general, and taking into account the earlier
assumptions, holders of ADRs evidencing ADSs will be treated as
the owners of the Ordinary Shares represented by such ADSs and
exchanges of Ordinary Shares for ADRs, and ADRs for Ordinary
Shares, will not be subject to United States federal income or
French tax.

Taxation of Dividends

French Taxation.In
France, dividends are paid out of after-tax income. A resident
of France is entitled to an avoir fiscalor a tax credit,
in respect of a dividend received from a French corporation,
such as the Company, equal to (i) 50% of the amount of the
dividend for individuals and companies owning at least 5% of the
capital of the Company and meeting the conditions to qualify
under the French parent-subsidiary regime, and (ii) 10% of
the dividend paid for the other shareholders who use the
avoir fiscalas of January 1, 2003. Dividendspaid by French companies to non-residents of France
generally are subject to French withholding tax at a 25% rate,
and are not eligible for the benefit of the avoir fiscal.
However, under the Treaty, avoir fiscalis allowed
totally or partially to shareholders who are residents of the
United States.

Under the Treaty, payments of dividends and
avoir fiscalto Eligible U.S. Holders, as defined below,
are subject to French withholding tax at the rate of 10%.

An Eligible U.S. Holder is a U.S.
Holder whose ownership of Ordinary Shares or ADSs is not
effectively connected with a permanent establishment in France
and who is for purposes of the Treaty:



| |   |                                                                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | an individual or other non-corporate holder that
    is a resident of the United States for Treaty purposes,                                                                                                                                                                         
|
| |  | a United States corporation, other than a
    regulated investment company, that does not own, directly or
    indirectly, 10% or more of the capital of the Company, or                                                                                                             
|
| |  | a United States corporation that is a regulated
    investment company if it does not own, directly or indirectly,
    10% or more of the capital of the Company and less than 20% of
    its shares are owned by persons who are not citizens or
    residents of the United States.

Payment of the avoir fiscalis made by the
French Treasury not earlier than January 15 following the
close of the calendar year in which the related dividends are
paid, and only after receipt by the French tax administration of
a claim for such payment in accordance with the procedures
described below. However, avoir fiscalis payable to an
Eligible U.S. Holder under the Treaty only if



| |   |                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the holder owns less than 10% of the
    Companys capital,                                                                                                                                                                                                                                                                                                                        
|
| |  | the holder is subject to U.S. federal income tax
    on both the dividends and the avoir fiscal,                                                                                                                                                                                                                                                                                   
|
| |  | the holder, where required by the French tax
    administration, has shown that he or she is the beneficial owner
    of the Ordinary Shares or ADSs and that the holding of such
    Ordinary Shares or ADSs does not have as one of its principal
    purposes the purpose of allowing another person to take
    advantage of the grant of the avoir fiscalunder the
    Treaty.

92



---



##### Table of Contents



Moreover, a partnership or a trust (other than a
pension trust, a real estate investment trust or a real estate
mortgage investment conduit) is entitled to the avoir fiscal
only to the extent that its partners, beneficiaries or grantors,
as applicable, are themselves Eligible U.S. Holders (other than
a regulated investment company) and are themselves subject to
U.S. federal income tax on their respective shares of both the
dividends and the avoir fiscal.

Under the Treaty, special rules apply to Eligible
Tax-Exempt Holders. An Eligible Tax-Exempt Holder is any
beneficial owner of Ordinary Shares or ADSs that is (i) a
tax-exempt entity established in, and sponsored or established
by a resident of, the United States, the exclusive purpose of
which is to provide retirement or employee benefits and which
does not own, directly or indirectly, 10% or more of the capital
of the Company, (ii) a tax-exempt entity organized in the
United States, the use of whose assets is limited under U.S.
federal or state laws, both currently and upon liquidation, to
the accomplishment of the purposes that serve as the basis of
its exemption from income taxation in the United States and
which does not own, directly or indirectly, 10% or more of the
capital of the Company, or (iii) an individual who is a
resident of the United States under the Treaty and who owns
Ordinary Shares or ADSs through an individual retirement account
(IRA), a Keogh plan or any similar arrangement under
which the contributions or the accumulated earnings receive a
favored tax treatment under U.S. federal income tax law.
Eligible Tax-Exempt Holders are entitled to receive from the
French Treasury a payment equal to 30/85ths of the avoir
fiscal(the partial avoir fiscal).

The following illustrates the consequences of a
dividend of EUR 100 to different categories of U.S. Holder:

|                                                                                                                                     |  |          |     |        |  |         |    |           |  |                |       |           |  |                                           |    |  |     |  |     |                         |      |  |       | 
|------------------------------------------------------------------------------------------------------------------------------------ |  | -------- | --- | ------ |  | ------- | -- | --------- |  | -------------- | ----- | --------- |  | ----------------------------------------- | -- |  | --- |  | --- | ----------------------- | ---- |  | ----- | 
|                                                                                                                                     |  |          |     | Total  |  | Partial |    |           |  | Withholding on |       |          
|                                                                                                                                     |  | Dividend |     | Avoir  |  | Avoir   |    | Refund of |  | payment to     |       | Total net
|                                                                                                                                     |  | Amount   |     | fiscal |  | fiscal  |    | Précompte |  | U.S. Holders   |       | payment  
|                                                                                                                                     |  |          |     |        |  |         |    |           |  |                |       |          
|                                                                                                                                     |  | (EUR)    |     |        |  |         |    |           |  |                |       | (EUR)    
|Individuals,                                                                                                                         |  |          | 100 |        |  |         | 50 | %         |  |                | no    |           |  |                                           | no |  |     |  | 15% |                         |      |  | 127.5 | 
|                                                                                                                                    
|Individuals, via an IRA owning less than 10% of
    the Companys capital                                                            |  |          | 100 |        |  |         | no |           |  |                | 17.65 |           |  | Yes, if it has been paid by theCompany    |    |  | 15% |  |     | 100 +Précompte(if any) 
|                                                                                                                                    
|Corporation, other than R.I.C. owns less than 5%
    of the Companys capital                                                        |  |          | 100 |        |  |         | 10 | %         |  |                | no    |           |  | Partly, if it has been paid by theCompany |    |  | 15% |  |     |                         | 93.5 | 
|                                                                                                                                    
|Corporation, other than R.I.C. owns more than 5%
    and less than 10% of the Companys capital                                      |  |          | 100 |        |  |         | 50 | %         |  |                | no    |           |  |                                           | no |  |     |  | 15% |                         |      |  | 127.5 | 
|                                                                                                                                    
|Corporation, other than R.I.C. owns 10% or more
    of the Companys capital                                                         |  |          | 100 |        |  |         | no |           |  |                | no    |           |  | Yes, if it has been paid by theCompany    |    |  | 5%  |  |     | 95 +Précompte(if any)  
|                                                                                                                                    
|RIC, owns less than 10% of the Companys
    capital and more than 20% of its shares are owned by non-U.S.
    citizens or residents |  |          | 100 |        |  |         | no |           |  |                | no    |           |  | Yes, if it has been paid by theCompany    |    |  | 15% |  |     | 85+Précompte(if any)   
|Or,                                                                                                                                  |  |          |     |        |  |         |    |           |  |                |       |           |  |                                           |    |  |     |  |     |                         |      |  |       | 
|RIC, owns more than 10% of the Companys
    capital                                                                                 |  |          |     |        |  |         |    |           |  |                |       |           |  |                                           |    |  |     |  |     |                         |      |  |       | 
|                                                                                                                                    
|RIC, owns less than 10% of the Companys
    capital and less than 20% of its shares are owned by non-U.S.
    citizens or residents |  |          | 100 |        |  |         | 10 | %         |  |                | no    |           |  | Partly, if it has been paid by theCompany |    |  | 15% |  |     | 93.5 +Précompte(if any)
|                                                                                                                                    
|Pension funds(1)owns less than 10% of
    the Companys capital                                                                      |  |          | 100 |        |  |         | no |           |  |                | 3.53  |           |  | Yes, if it has been paid by theCompany    |    |  | 15% |  |     | 88 +Précompte(if any)  






|    |                                                                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Section 401(a) Qualified retirement plans,
    Section 403(b) Tax deferred annuity contracts, and
    Section 457 Deferred compensation contracts. Section
    references are to the United States Internal Revenue Code of
    1986, as amended.

93



---



##### Table of Contents



An Eligible Tax-Exempt Holder, where required by
the French tax administration, must show that it is the
beneficial owner of the Ordinary Shares or ADSs and that the
holding of such Ordinary Shares or ADSs does not have as one of
its principal purposes to allow another person to take advantage
of the grant of the partial avoir fiscalunder the Treaty.

Eligible U.S. Holders that are not entitled to
receive payments in respect of the avoir fiscalat the
50% rate (e.g., corporations and certain tax-exempt investors)
will be entitled to receive an additional payment from the
French tax authorities if the Company is liable for the
précompteequalization tax in respect of a dividend
distribution (e.g., paid out of profits that have not been taxed
at the ordinary corporate rate, or were earned and taxed more
than five years before the distribution). Corporate holders
receiving such dividends generally will be entitled to receive a
payment equal to 80% of the précomptethat the
Company actually paid in cash in respect of dividends paid, less
a 15% withholding tax. Pension funds and other tax-exempt U.S.
holders generally will be entitled to receive 30/85 of this
amount, less a 15% withholding tax. Such additional payment is
considered an increase to the avoir fiscal, and will also
not be made available until after the close of the calendar year
in which the dividend is paid.

Eligible Tax-Exempt Holders generally must follow
the procedures set forth below, even though the existing French
forms do not take into account the special tax treatment
applicable to Eligible Tax-Exempt Holders with respect to the
payment of the partial avoir fiscaland the refund of the
précompte. Certain Eligible Tax-Exempt Holders may
also be required to provide written evidence certified by the
United States Internal Revenue Service of their status under
United States federal income tax law. Eligible Tax-Exempt
Holders are urged to consult their own tax advisors with respect
to the procedures to be followed to obtain Treaty benefits.

To benefit from the reduced withholding tax rate
of 15% or 5% immediately upon payment of a dividend and to
receive the payment of the avoir fiscalless the 15% or
5% withholding tax on that amount, Eligible U.S. Holders must
complete and deliver to the French tax authorities either
(i) the simplified certificate described below, or
(ii) an application for refund on a French Treasury form RF
1A EU  No. 5052, entitled Application for
Refund, before the date of payment of the dividends. A
simplified certificate must state that the Eligible U.S. Holder
(i) is a U.S. resident within the meaning of the Treaty,
(ii) does not maintain a permanent establishment or fixed
base in France with which the holding giving rise to the
dividend is effectively connected, (iii) owns all the
rights attached to the full ownership of the shares (including
dividend rights), (iv) meets all the requirements of the
Treaty for obtaining the benefit of the reduced rate of
withholding tax and the refund of the avoir fiscal, and
(v) claims the reduced rate of withholding tax and payment
of the avoir fiscal. If an Eligible U.S. Holder that is
not an individual submits an Application for Refund
form, the application must be accompanied by an affidavit
attesting that the Eligible U.S. Holder is the owner of all the
rights attached to the full ownership of the shares (including
dividend rights), or if the Eligible U.S. Holder is not the
owner of all such rights, providing certain information
concerning other owners. The Application for Refund
form, together with instructions, will be provided by the
Depositary to all U.S. Holders registered with the Depositary
and is also available from the United States Internal Revenue
Service. An Eligible U.S. Holder who does not benefit from the
reduced withholding tax rate of 15% or 5% immediately upon the
payment of the dividend may claim a refund of the excess 10% or
20%, respectively, withholding tax and may claim payment of the
avoir fiscalless a 15% or 5% withholding tax on that
amount by filing a French Treasury Form RF 1A
EU-No. 5052 with the French fiscal authorities by
December 31 of the year following the calendar year in
which the related dividend was received. The Depositary will
arrange for the filing with the French fiscal authorities of all
forms completed by U.S. Holders registered with the Depositary
and returned to the Depositary in sufficient time so they may be
filed with the French fiscal authorities by December 31 of
the year following the calendar year in which the related
dividend was received.

If an Eligible U.S. Holder sells Ordinary Shares
or ADSs in a trade executed on the monthly settlement market
during a month during which a dividend payment date with respect
to the Ordinary Shares occurs, generally the seller, rather than
the purchaser, will be entitled to the avoir fiscalwith
respect to the dividend paid on such dividend payment date. See
Item 9.C  Markets for a summary of
certain information relating to trading of the Ordinary Shares
on the monthly settlement market.

94



---



##### Table of Contents



The 2004 Finance Act passed in France tends to
abolish incrementally the avoir fiscal. French resident
individuals will continue to benefit from the avoir fiscal in
respect of 2004 dividend distributions. However, dividends paid
to French resident individuals as from January 1, 2005
would no longer carry an avoir fiscal. With respect to
individuals, the avoir fiscal is replaced by a tax allowance of
50% applicable to amounts distributed pursuant to a decision by
the responsible body of the distributing company. In addition,
the shareholder benefits from a tax credit equal to 50% of the
distributed amounts, before the application of the relevant tax
allowance described above, subject to a threshold of
EUR 115 or EUR 230, according to the familial
situation of the taxpayer. This tax credit is deducted from the
personal income tax due with respect to the year over the course
of which such amounts were received and may be refunded, as the
case may be. The elimination of the avoir fiscal and the benefit
of the tax credit are solely with respect to distributions paid
out as from January 1, 2005. With respect to legal entities
subject to corporation tax, the possibility of offsetting the
avoir fiscal against the tax to which such entities are liable,
is eliminated with respect to tax credits which can be utilized
as from January 1, 2005. Added to this, subject to certain
exceptions, an exceptional levy of 25% will apply to amounts
distributed in 2005.

Note that the 2004 French Finance Act does not
clarify the situation of non-resident recipients. However, it
would appear that two situations will emerge, i.e:



| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. | Individuals that are U.S. residents under the
    Treaty will remain entitled to the avoir fiscal in respect to
    dividends paid to them in 2004, even if in practice, the avoir
    fiscal is transferred not before the 15th January 2005.
    Dividends paid to these individuals after January 1, 2005
    would no longer carry an avoir fiscal. Note further that such
    individuals should benefit from the tax credit equal to 50% of
    the distributed amounts subject to a threshold of EUR 115 or EUR
    230 according to the familial situation of the taxpayer, and as
    the case may be, a refund of such tax credit, subject to
    guidance to be issued by the French tax authorities.
|
| | 2. | Other non-residents such as U.S. companies,
    pension trusts, any other organizations established in the
    United States whose purpose is to administer or provide
    retirement or employee benefits, not-for-profit organizations
    established in the United States should no longer be entitled to
    the avoir fiscal in respect of dividends distributed from
    January 1, 2004.                                                                                                                                                                                                                                                                                                                

United States Federal Income
Taxation.Subject to the passive
foreign investment company rules discussed below, the gross
amount of any dividend paid (before reduction for French
withholding taxes) to a U.S. holder by the Company out of its
current or accumulated earnings and profits (as determined for
United States federal income tax purposes) is subject to United
States federal income taxation. Dividends paid to a noncorporate
U.S. holder in taxable years beginning after December 31,
2002 and before January 1, 2009 that constitute qualified
dividend income will be taxable to the holder at a maximum tax
rate of 15% provided that the Ordinary Shares or ADSs are held
for more than 60 days during the 120 period beginning
60 days before the ex-dividend date and the holder meets
other holding period requirements. The Internal Revenue Service
recently announced that it will permit taxpayers to apply a
proposed legislative change to this holding period requirement
as if such change were already effective. This legislative
technical correction would change the minimum
required holding period, retroactive to January 1, 2003, to
more than 60 days during the 121-day period beginning
60 days before the ex-dividend date. Dividends paid with
respect to the Ordinary Shares or ADSs will be qualified
dividend income provided the holding period requirement is met.

The dividend is taxable to the U.S. holder when
it is actually or constructively received by the U.S. Holder, in
the case of Ordinary Shares, or by the Depositary, in the case
of ADSs. The gross amount of any avoir fiscal also will
be treated as dividend income. The dividend will not be eligible
for the dividends-received deduction generally allowed to United
States corporations in respect of dividends received from other
United States corporations. The amount of the dividend
distribution includible in income of a U.S. Holder will be the
U.S. dollar value of the euro payment made, determined at the
spot U.S. dollar/euro rate on the date such dividend
distribution is includible in the income of the U.S. Holder,
regardless of whether the payment is in fact converted into U.S.
dollars. Generally, any gain or loss resulting from currency
exchange fluctuations during the period from the date the
dividend payment is includible in income to the date such
payment is converted into U.S. dollars will be treated as
ordinary income or loss and will not be eligible for the special
tax rate applicable to qualified dividend income. Such gain or
loss generally will be income from sources within the United
States for foreign tax credit limitation purposes.

95



---



##### Table of Contents



Distributions in excess of current and
accumulated earnings and profits, as determined for United
States federal income tax purposes, will be treated as a return
of capital to the extent of the U.S. Holders basis in the
Shares or ADSs and thereafter as capital gain.


Subject to certain limitations, the French tax
withheld in accordance with the Treaty and paid over to France
will be creditable against the U.S. Holders United States
federal income tax liability. Special rules apply in determining
the foreign tax credit limitation with respect to dividends that
are subject to the maximum 15% tax rate. To the extent a refund
of tax withheld is available to a U.S. Holder (for example,
because the Holder does not establish before the date of payment
that it is a resident of the United States under the Treaty),
the amount of tax withheld that is refundable will not be
eligible for credit against the U.S. Holders United States
federal income tax liability. See French
Taxation, above, for the procedures for obtaining a refund
of tax withheld in excess of the 15% or 5% treaty rates. For
foreign tax credit limitation purposes, the dividend will be
income from sources without the United States, but generally
will be passive income or financial services
income which is treated separately for purposes of
computing the foreign tax credit allowable to a U.S. Holder.

Distributions of additional Ordinary Shares to
U.S. Holders with respect to their Ordinary Shares or ADSs that
are made as part of a pro rata distribution to all shareholders
of the Company generally will not be subject to United States
federal income tax.

Taxation of Capital Gains

French Taxation.Under the Treaty, no French tax is levied on any capital gain
derived from the sale of Ordinary Shares or ADSs by a U.S.
Holder who (i) is a resident of the United States under the
Treaty, (ii) is entitled to Treaty benefits under the
limitation on benefits provisions of Article 30 thereof,
and (iii) does not have a permanent establishment in France
to which the Ordinary Shares or ADRs are effectively connected
or, in the case of an individual, who does not maintain a fixed
base in France to which the Ordinary Shares or ADSs are
effectively connected.

United States Federal Income
Taxation.Subject to the passive
foreign investment company rules discussed below, upon a sale or
other disposition of Ordinary Shares or ADSs, a U.S. Holder will
recognize gain or loss for United States federal income tax
purposes in an amount equal to the difference between the U.S.
dollar value of the amount realized and the U.S. Holders
tax basis (determined in U.S. dollars) in such Ordinary Shares
or ADSs. The deductibility of capital losses is subject to
significant limitations. Long-term capital gain of a
non-corporate U.S. Holder that is recognized on or after
May 6, 2003 and before January 1, 2009 is generally
taxed at a maximum rate of 15% where the holder has a holding
period greater than one year. The gain or loss will generally be
income or loss from sources within the United States for foreign
tax credit limitation purposes.

French Estate and Gift Taxes

Under the Convention Between the United States of
America and the French Republic for the Avoidance of Double
Taxation and the Prevention of Fiscal Evasion with Respect to
Taxes on Estates, Inheritance and Gifts, a transfer of ADSs or
Ordinary Shares by gift or by reason of the death of a U.S.
Holder that would otherwise be subject to French gift or
inheritance tax, respectively, will not be subject to such
French tax unless the donor or the decedent is domiciled in
France at the time of making the gift or of his or her death, or
the ADSs or Ordinary Shares were used in, or held for use in,
the conduct of a business or profession through a permanent
establishment or a fixed place of business based in France.

French Wealth Tax

The French wealth tax generally does not apply to
a U.S. Holder with respect to Ordinary Shares or ADSs.

Passive Foreign Investment Company
Rules

PFIC Rules.The
Company believes that Ordinary Shares and ADSs should not be
treated as stock of a passive foreign investment company (a
PFIC) for United States federal income tax purposes,
but this conclusion is a factual determination made annually and
thus may be subject to change.

96



---



##### Table of Contents



In general, the Company will be a PFIC with
respect to a U.S. Holder if, for any taxable year in which the
U.S. Holder held ADSs or Ordinary Shares, either:



| |   |                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | at least 75% of the gross income of the Company
    for the taxable year is passive income, or                                                                                                         
|
| |  | at least 50% of the value (determined on the
    basis of a quarterly average) of the Companys assets is
    attributable to assets that produce or are held for the
    production of passive income.

For this purpose, passive income generally
includes dividends, interest, royalties, and rents, as well as
certain other categories of income, but generally does not
include income derived in the active conduct of an insurance
business by a corporation predominantly engaged in an insurance
business. The Company believes that this exception applies to
the income earned through the reinsurance businesses conducted
by its subsidiaries. However, no regulatory guidelines have been
issued interpreting this exception.

If the Company were treated as a PFIC, a U.S.
Holder would be subject to special rules with respect to:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | any gain realized on the sale or other
    disposition of Ordinary Shares or ADRs, and                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | any excess distribution by the
    Company to the U.S. Holder (generally, any distributions to the
    U.S. Holder in respect of the Ordinary Shares or ADSs during a
    single taxable year that are greater than 125% of the average
    annual distributions received by the U.S. Holder in respect of
    the Ordinary Shares or ADSs during the three preceding taxable
    years or, if shorter, the U.S. Holders holding period for
    the Ordinary Shares or ADSs).

Under these rules:



| |   |                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the gain or excess distribution would be
    allocated ratably over the U.S. Holders holding period for
    the Ordinary Shares or ADSs, beginning in the year the Company
    became a PFIC.
|
| |  | the amount allocated to the taxable year in which
    the gain or excess distribution was realized would be taxable as
    ordinary income,                                                   
|
| |  | the amount allocated to each prior year, with
    certain exceptions, would be subject to tax at the highest tax
    rate in effect for that year, and                                        
|
| |  | the interest charge generally applicable to
    underpayments of tax would be imposed in respect of the tax
    attributable to each such year.                                               

The special PFIC tax rules described above will
not apply to a U.S. Holder if the U.S. Holder elects to have the
Company treated as a qualified electing fund, or
QEF. U.S. Holders should consult their tax advisors as to the
availability and consequences of such election. Special rules
apply for calculating the amount of the foreign tax credit with
respect to excess distributions by a PFIC or, in certain cases,
QEF inclusions. If the Ordinary Shares or ADSs are shares in a
PFIC and treated as marketable stock, a U.S. Holder may also
make a mark-to-market election and will not be subject to the
PFIC rules described above. Instead, in general, the U.S. Holder
will include as ordinary income each year the excess, if any, of
the fair market value of the Ordinary Shares or ADSs at the end
of the taxable year over the holders adjusted basis in the
Ordinary Shares or ADSs. These amounts of ordinary income will
not be eligible for the favorable tax rates applicable to
qualified dividend income or long-term capital gains. The U.S.
Holder will also be allowed to take an ordinary loss in respect
of the excess, if any, of the adjusted basis of the Ordinary
Shares or ADSs over their fair market value at the end of the
taxable year (but only to the extent of the net amount of
previously included income as a result of the mark-to-market
election). The U.S. Holders basis in the Ordinary Shares
or ADSs will be adjusted to reflect any such income or loss
amounts. In addition, notwithstanding any election made with
regard to the Ordinary Shares or ADSs, dividends received from
the Company will not constitute qualified dividend income to a
U.S. Holder if the Company is a PFIC either in the taxable year
of the distribution or the preceding taxable year. Dividends
that do not constitute qualified dividend income are not
eligible for taxation at the 15% maximum rate applicable to
qualified dividend income. Instead, U.S. Holders must include
the gross amount of any such dividend paid by the Company out of
its accumulated earnings and profits (as determined for United
States federal income tax purposes) in their gross income, and
it will be subject to tax at rates applicable to ordinary
income. A U.S. Holder

97



---



##### Table of Contents



that owns Ordinary Shares or ADSs during any year
that the Company is a PFIC must file Internal Revenue Service
Form 8621.


F. DIVIDENDS AND PAYING AGENTS

Not applicable.

G. STATEMENT BY EXPERTS

Not applicable.

H. DOCUMENTS ON DISPLAY

It is possible to read and copy documents
referred to in this Annual report on Form 20-F that have
been filed with the Securities and Exchange Commission, or SEC,
at the SECs public reference room located at:

451 Fifth Street, NW 
 Washington DC 20549, USA

Please call the SEC at 1-800-SEC-0330 for further
information on the public reference room and their copy charges.

This document is also filed on the SEC document
service Internet site at: http://www.edgar-online.com

In addition, documents referred to above are
available at SCORs registered office, located at:

1, Avenue du Général de Gaulle 
 92074 Paris-La Défense Cedex, France.

I. SUBSIDIARY INFORMATION

Not applicable.

98



---



##### Table of Contents






Item 11. Quantitative and
Qualitative Disclosures About Market Risk

SCOR is exposed to market risk from changes in
foreign currency exchange rates, interest rates and equity
security prices that have an adverse effect on the fair value of
financial instruments and derivative financial instruments. SCOR
manages its market risks as well as risk exposure relating to
non-financial assets, liabilities and transactions by defining
centralized investment policy guidelines, using derivatives to
protect its investment portfolio or rebalancing its existing
asset and liability portfolio.

Market risk sensitive instruments are divided
into two categories: instruments entered into for trading
purposes and instruments entered into for non-trading purposes.
SCORs financial instruments and derivative financial
instruments are all classified as being held for purposes other
than trading.

Foreign Currency Exchange Rate Risk

Foreign currency exchange rate risk arises from
the possibility that changes in foreign currency exchange rates
will impact the value of revenues, expenses, assets and
liabilities denominated in foreign currencies. The Groups
financial position, results of operations and cash flows are
directly dependent on the periodic monitoring and adjustment of
the balance of assets and liabilities in each of its main
operating currencies.

At December 31, 2003, 69.3% of consolidated
net technical reserves were denominated in currencies other than
those participating in the European Economic and Monetary Union,
primarily the U.S. dollar (51.8%) of net technical reserves, the
Pound sterling (5.0%) and the Canadian dollar (3.3%).

The impact of fluctuations in exchange rates is
mitigated to a large extent by the fact that the Group generally
invests in assets denominated in the same currencies as its
corresponding technical reserves, in order to ensure that its
investments on the one hand and reinsurance liabilities on the
other are matched on a currency-by-currency basis. The Group
attempts to match its assets and liabilities on a
currency-by-currency basis in each currency for which an
organized financial or foreign exchange market is available,
including the currencies noted above, primarily by investing in
assets that are denominated in the currency of the Groups
corresponding reinsurance liabilities. Management adjusts open
positions in specific currencies, generally on a quarterly
basis, to manage any excess or deficit of assets compared to
liabilities in a particular currency. Total currency exposure
(other than with respect to the euro) is limited to the excess
(or deficiency) of assets over liabilities in each currency.

Interest Rate Risk

SCOR has exposure to economic losses due to
interest rate risk arising from changes in the level of interest
rates. Generally, a sustained period of lower interest rates
will reduce the investment income yield of the Groups
investment portfolio over time as higher yielding investments
are called, mature or are sold and proceeds are reinvested at
lower rates. However, on significant portions of the investment
portfolio, declining interest rates will generally increase
unrealized gains, as well as realized gains to the extent
securities are sold. Conversely, rising interest rates should,
over time, increase investment income but reduce the market
value of certain of the investments in the Groups
investment portfolio. The diversity of the Groups
investment portfolio, developed as a result of the geographic
spread of its reinsurance businesses and a corresponding
strategy of matching, to the extent possible, investments and
reinsurance liabilities by currency, tends to diminish the
effect of movements in interest rates in any one market.

Equity Security Price Risk

SCOR has exposure to equity security price risk
as a result of its investment in equity securities and equity
derivatives, due to volatility. SCOR mitigates this risk by
diversifying its equity portfolio and applying conservative
investment guidelines.

SCOR prefers investments for long periods of
time, and is not necessarily troubled by short-term price
volatility when economics and management remain excellent.
Equity securities accounted for only 5% of our investments at
December 31, 2003.

99



---



##### Table of Contents



Sensitivity Analysis

SCORs exchange rate sensitivity analysis
assumes an instantaneous 10% change in the exchange rates of
currencies other than the currencies irrevocably fixed against
the euro, from their levels at December 31, 2003, with all
other variables held constant. At December 31, 2003,
appreciation of the euro against other currencies would result
in a before-tax decrease in the market value of financial
instruments of EUR 467 million. A depreciation at
December 31, 2003 of the euro against other currencies
would result in a before-tax increase in the market value of
financial instruments of EUR 467 million.

The interest rate sensitivity analysis estimates
the change in the market value of the Companys
interest-sensitive financial instruments that were held on
December 31, 2003 due to instantaneous parallel changes in
the year-end yield curve. The interest rates on certain types of
assets and liabilities may fluctuate in advance of changes in
market interest rates, while interest rates on other types may
lag behind changes in market rates. Accordingly, the analysis
may not be indicative of, is not intended to provide and does
not provide a precise forecast of the effect of changes of
market interest rates on the Companys income or
stockholders equity. Furthermore, the computations do not
contemplate any actions SCOR would undertake in response to
changes in interest rates.

The interest rate sensitivity analysis assumes an
instantaneous shift in market interest rates, with scenarios of
interest rates increasing and decreasing 100 basis points
(bp) from their levels at December 31, 2003,
with all other variables held constant. A 100 bp increase in
market interest rates would have resulted in a before-tax
decrease in the value of SCORs financial instrument
position of EUR 237 million at December 31, 2003.
A 100 basis point decrease in market interest rates would have
resulted in a before-tax increase in the value of SCORs
financial instrument position of EUR 237 million at
December 31, 2003.

Equity price risk was measured assuming an
instantaneous 10% change in the most pertinent index for the
most significant equity instruments held by the Group (the
Indexes) from their levels at December 31, 2003, with
all other variables held constant. The Indexes are primarily the
Standard & Poors 500 Index for U.S. equity
instruments, the Toronto Stock Exchange 300 Index for Canadian
equity instruments, and the Bloomberg 500 Index for European
equity instruments. The Companys equity holdings were
assumed to be positively correlated with those indexes. At
December 31, 2003, a 10% decrease in the Indexes would have
resulted in a EUR 32 million decrease in the market
value of the Companys equity investments. A 10% increase
in the Indexes would have resulted in a before-tax increase of
EUR 32 million in the market value of the
Companys equity investments at December 31, 2003.

100



---



##### Table of Contents



The following table sets forth the estimated
effect on the market value of the Groups financial
instruments available for sale and for trading at
December 31, 2002 and 2003, assuming changes of 10% in
foreign currency exchange rates and in the Indexes, and a change
of 100 basis points in interest rates.

|                             |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |     |  
|---------------------------- | ----- | ------------------ | ----- | ---------------- |  | ------------------ | ---- | ------------- | ---- |  | ---- | ---- | - |  | --- | --- | -
|                             |       |                   
|                             |       | December 31, 2002 
|                             |       |                   
|                             |       |                    |       | Currency Risk    |  |                   
|                             |       |                    |       |                  |  | Interest Rate Risk |      | Equity Risk  
|                             |       |                    |       | 10% change in    |  |                    |      |              
|                             |       |                    |       | foreign currency |  | 100 bp change in   |      | 10% change in
|                             |       | Market Value       |       | exchange rates   |  | interest rate      |      | Indexes      
|                             |       |                    |       |                  |  |                    |      |              
|                             |       |                   
|                             |       | (EUR, in millions)
|Increase                     |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |    
|Fixed maturities             |       |                    | 6,107 |                  |  |                    | 413  |               |      |  | (195 | )    |   |  |    |    
|Equity securities            |       |                    | 573   |                  |  |                    | 6    |               |      |  |     |      |   |  | 26  |    
|Trading equity securities(2) |       |                    |      |                  |  |                    |     |               |      |  |     |      |   |  |    |    
|Short-term investments       |       |                    | 198   |                  |  |                    | 18   |               |      |  |     |      |   |  |    |    
|Cash and cash equivalents    |       |                    | 1,788 |                  |  |                    | 140  |               |      |  |     |      |   |  |    |    
|                             |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |    
|                             | Total |                    |       | 8,666            |  |                    |      | 578           |      |  |      | (195 | ) |  |     | 26  |  
|                             |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |    
|Decrease                     |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |    
|Fixed maturities             |       |                    | 6,107 |                  |  |                    | (413 | )             |      |  | 195  |      |   |  |    |    
|Equity securities            |       |                    | 573   |                  |  |                    | (6   | )             |      |  |     |      |   |  | (26 | )  
|Trading equity securities(2) |       |                    |      |                  |  |                    |     |               |      |  |     |      |   |  |    |    
|Short-term investments       |       |                    | 198   |                  |  |                    | (18  | )             |      |  |     |      |   |  |    |    
|Cash and cash equivalents    |       |                    | 1,788 |                  |  |                    | (140 | )             |      |  |     |      |   |  |    |    
|                             |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |    
|                             | Total |                    |       | 8,666            |  |                    |      | (578          | )(1) |  |      | 195  |   |  |     | (26 | )
|                             |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |    






|    |                                                                   
|--- | ------------------------------------------------------------------
|(2) | Trading equity securities have been entirely sold
    during 2002.

|                          |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |     |  
|------------------------- | ----- | ------------------ | ----- | ---------------- |  | ------------------ | ---- | ------------- | ---- |  | ---- | ---- | - |  | --- | --- | -
|                          |       |                   
|                          |       | December 31, 2003 
|                          |       |                   
|                          |       |                    |       | Currency Risk    |  |                   
|                          |       |                    |       |                  |  | Interest Rate Risk |      | Equity Risk  
|                          |       |                    |       | 10% change in    |  |                    |      |              
|                          |       |                    |       | foreign currency |  | 100 bp change in   |      | 10% change in
|                          |       | Market Value       |       | exchange rates   |  | interest rate      |      | Indexes      
|                          |       |                    |       |                  |  |                    |      |              
|                          |       |                   
|                          |       | (EUR, in millions)
|Increase                  |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |    
|Fixed maturities          |       |                    | 5,698 |                  |  |                    | 359  |               |      |  | (237 | )    |   |  |     |    
|Equity securities         |       |                    | 269   |                  |  |                    | 8    |               |      |  |      |      |   |  | 27  |    
|Trading equity securities |       |                    | 34    |                  |  |                    | 3    |               |      |  |      |      |   |  | 5   |    
|Short-term investments    |       |                    |      |                  |  |                    |     |               |      |  |      |      |   |  |     |    
|Cash and cash equivalents |       |                    | 1,824 |                  |  |                    | 97   |               |      |  |      |      |   |  |     |    
|                          |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |    
|                          | Total |                    |       | 7,825            |  |                    |      | 467           | (1)  |  |      | (237 | ) |  |     | 32  |  
|                          |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |    
|Decrease                  |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |    
|Fixed maturities          |       |                    | 5,698 |                  |  |                    | (359 | )             |      |  | 237  |      |   |  |     |    
|Equity securities         |       |                    | 269   |                  |  |                    | (8   | )             |      |  |      |      |   |  | (27 | )  
|Trading equity securities |       |                    | 34    |                  |  |                    | (3   | )             |      |  |      |      |   |  | (5  | )  
|Short-term investments    |       |                    |      |                  |  |                    |     |               |      |  |      |      |   |  |     |    
|Cash and cash equivalents |       |                    | 1,824 |                  |  |                    | (97  | )             |      |  |      |      |   |  |     |    
|                          |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |    
|                          | Total |                    |       | 7,825            |  |                    |      | (467          | )(1) |  |      | 237  |   |  |     | (32 | )
|                          |       |                    |       |                  |  |                    |      |               |      |  |      |      |   |  |     |    






|    |                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The effect of changes of currency exchange rates
    on investments will be offset by the effect on technical
    reserves and debts expressed in USD.

101



---



##### Table of Contents






Item 12. Description of Securities
Other than Equity Securities

Not applicable.

102



---



##### Table of Contents






PART II



Item 13. Default, Dividend
Arrearages and Delinquencies

None.




Item 14. Material Modifications to
the Rights of Security Holders and Use of Proceeds

None.




Item 15. Controls and
Procedures

An evaluation was performed under the supervision
and with the participation of our management, including the
Chairman and Chief Executive Officer and the Chief Financial
Officer, of the effectiveness, as of the end of the period
covered by this report, of the design and operation of our
disclosure controls and procedures, which are defined as those
controls and procedures designed to ensure that information
required to be disclosed in reports filed under the U.S.
Securities Exchange Act of 1934 is recorded, summarized and
reported within specified time periods. Based on this
evaluation, our Chairman and Chief Executive Officer and the
Chief Financial Officer concluded that our disclosure controls
and procedures were effective in all material respects. There
were no significant changes in our internal controls over
financial reporting that occurred during the period covered by
this report that have materially affected, or that are
reasonably likely to materially affect, our internal control
over financial reporting.

Pursuant to the French Financial Security Act of
August 1, 2003 (loi de sécurité
financière), the Chairman of our board of directors is
now required to deliver a special report to the annual
shareholders meeting regarding the boards governance
practices, the status of the internal control procedures
implemented by SCOR and the restrictions that the board has
placed on the powers granted to the Chief Executive Officer. In
general, this report describes the objectives of SCORs
internal controls, the organization of those employees
responsible for internal controls and the internal control
procedures that SCOR currently has in place.

The report for 2003 describes the functioning of
SCORs internal control system, which is structured as a
three-level organization, with a first level of control
exercised by the Paris-based operating units and subsidiaries, a
second level of control by the different reinsurance sectors,
the Investment Division and the corporate staff divisions, and a
third level of control exercised by the Internal Audit Division.
The Internal Audit Division directly reports to the Chairman and
Chief Executive Officer and the Groups Accounts and Audit
Committee.

The report further describes SCORs action
plan for 2004, mainly aimed at further improvement of internal
control systems and implementation of testing programs primarily
dedicated to the Paris based entities and designed to allow
regular appraisals of the appropriateness and effectiveness of
internal control procedures.




Item 16.




A. Audit Committee Financial
Expert

Our Supervisory board has concluded that one of
our audit committee members, Mr. Helman Le Pas de
Sécheval, qualifies as audit committee financial
expert as defined in Item 16A of Form 20-F.

From 1998 to 2001, Mr. Le Pas de
Sécheval directed the financial information and operations
department at the COB (Commission des Opérations de
Bourse, now AMF: Autorité des Marchés
Financiers), before being appointed Group Chief Financial
officer of Groupama in November 2001. He holds various
non-executive positions for GAN Insurance in France and abroad
as well as for other financial companies.




B. Code of Business and Ethics and
Corporate Governance

Code of Business Conduct and Ethics

SCOR has put in place since 1996, a Code of
Ethics circulated to all members of personnel. This Code sets
out the fundamental values and principles of the Group and
provides guidance in the resolution of potential legal and
ethical issues facing employees. In particular, it deals with
questions of business confidentiality, use of privileged

103



---



##### Table of Contents



information, financial disclosure, relations with
our customers and competitors, and conflicts of interest. A copy
of our Code of Ethics is available on our website at www.scor.com





C. Principal Accountant Fees and
Services

The following auditors are presented in
decreasing order according to the global amount of fees paid to
them by the Group. All amounts are in euros.

|                      |  |      |           |      |  |  |           | 
|--------------------- |  | ---- | --------- | ---- |  |  | --------- | 
|Ernst & Young         |  | 2003 |           | 2002
|                      |  |      |           |     
|Audit Fees            |  |      | 4,035,302 |      |  |  | 2,877,464 | 
|Audit-Related Fees(1) |  |      | 1,096,473 |      |  |  | 27,852    | 
|Tax Fees(2)           |  |      | 142,641   |      |  |  | 1,051,918 | 
|All Other Fees(3)     |  |      | 0         |      |  |  | 286,155   | 
|                      |  |      |           |      |  |  |           | 
|Total                 |  |      | 5,274,416 |      |  |  | 4,243,389 | 
|                      |  |      |           |      |  |  |           | 

|                      |  |      |         |      |  |  |         | 
|--------------------- |  | ---- | ------- | ---- |  |  | ------- | 
|Mazard & Guérard      |  | 2003 |         | 2002
|                      |  |      |         |     
|Audit Fees            |  |      | 390,800 |      |  |  | 279,000 | 
|Audit-Related Fees(1) |  |      | 65,000  |      |  |  | 0       | 
|Tax Fees(2)           |  |      | 0       |      |  |  | 0       | 
|All Other Fees(3)     |  |      | 0       |      |  |  | 156,750 | 
|                      |  |      |         |      |  |  |         | 
|Total                 |  |      | 455,800 |      |  |  | 435,750 | 
|                      |  |      |         |      |  |  |         | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Audit-Related Fees are fees generally related to
    due diligence investigations, audits of combined financial
    statements prepared for purposes of the contemplated disposal of
    certain of our activities or of combined financial statements of
    companies that we acquired, review of prospectuses issued by us,
    and to other assignments relating to internal accounting
    functions and procedures.
|   
|(2) | Tax Fees are fees for professional services
    rendered by our auditors for tax compliance, tax advice on
    actual or contemplated transactions, tax consulting associated
    with international transfer prices and employee tax services.                                                                                                                                                                          
|   
|(3) | All Other Fees mainly relate to treasury control
    reviews and process improvement and advice.                                                                                                                                                                                                                                                                                                                         

Audit Committee Pre-Approval Policies and
Procedures

SCORs Accounts and Audit Committee
organizes the procedure for selecting the independent auditors
and provides a recommendation to the board of directors
regarding their appointment and their terms of compensation. The
Accounts and Audit Committee also monitors compliance with
principles and rules relating to auditor independence.

In addition, all audit and non-audit services
provided by independent auditors must be pre-approved by
SCORs Accounts and Audit Committee. In 2003, the Audit
Committee pre-approved all the services provided by SCORs
external auditors on a case-by-case basis. In March 2004, our
Board of Directors ratified a pre-approval policy recommended by
the Accounts and Audit Committee pursuant to which audit
engagements will be deemed approved if the payment for each
individual service is less than EUR 20,000 and the total
payment for all services provided in connection with the
engagements is less than EUR 150,000.

During 2002 and 2003, no services were provided
by the independent auditors pursuant to the de minimis exception
to the pre-approval requirement by paragraph (c)(7)(i)(C)
of Rule 2-01 of Regulation S-X.

104



---



##### Table of Contents






PART III





|         |                     
|-------- | --------------------
|Item 17. | Financial Statements

Not applicable.






|         |                     
|-------- | --------------------
|Item 18. | Financial Statements

The following financial statements and financial
statements schedules, together with the report of
Ernst & Young thereon, are filed as part of this Annual
Report:

|                                                                                                                         |  |       |            | 
|------------------------------------------------------------------------------------------------------------------------ |  | ----- | ---------- | 
|                                                                                                                         |  | Pages
|                                                                                                                         |  |      
|Financial Statements                                                                                                     |  |       |            | 
|Report of Independent Auditors                                                                                           |  |       | F-1        | 
|Consolidated Balance Sheets as of
    December 31, 2003 and 2002                                                         |  |       | F-2  F-3  | 
|Consolidated Statements of Income for the Years
    Ended December 31, 2003, 2002 and 2001                               |  |       | F-4        | 
|Consolidated Statements of Comprehensive Income
    for the Years Ended December 31, 2003, 2002,
    and 2001            |  |       | F-5        | 
|Consolidated Statements of Changes in
    Shareholders Equity for the Years Ended
    December 31, 2003, 2002, and 2001 |  |       | F-6        | 
|Consolidated Statements of Cash Flows for the
    Years Ended December 31, 2003, 2002, and 2001                          |  |       | F-7        | 
|Notes to Consolidated Financial Statements                                                                               |  |       | F-8  F-47 | 
|Schedules                                                                                                                |  |       |            | 
|Schedule I  Summary of
    Investments  Other than Investments in
    Related Parties                                  |  |       | S-1        | 
|Schedule III  Supplementary
    Insurance Information                                                                   |  |       | S-2        | 
|Schedule IV  Reinsurance                                                                                                |  |       | S-3        | 
|Schedule V  Valuation and
    Qualifying Accounts                                                                       |  |       | S-4        | 
|Schedule VI  Supplemental
    Information Concerning Property-Casualty
    Insurance Operations                         |  |       | S-5        | 

All other schedules have been omitted because
they are not required under the applicable instructions.






|         |         
|-------- | --------
|Item 19. | Exhibits

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  |            | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ---------- | 
|Exhibit 1:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |  |            | 
|Translation from French into English of the
    Companys Statuts, or bylaws, as last amended on
    May 18, 2004                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |  | E-1  E-7  | 
|Exhibit 4:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |  |            | 
|Summary in the English language of (i) the
    credit line agreement, dated December 26, 2002, as
    amended on November 13, 2003 entered into by and among
    SCOR, a syndicate of banks and BNP Paribas as Agent and as
    Issuing Bank, relating to the issuance of letters of credit
    in an aggregate amount up to USD 900 million and
    (ii) the credit line agreement, dated
    November 14, 2003, entered into by and among
    SCOR VIE, a syndicate of banks and BNP Paribas as
    agent and as Issuing Bank, relating to the insurance of
    letters of credit in an aggregate amount up to
    USD 110 million. |  |  | E-8  E-14 | 
|Exhibit 8:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |  |            | 
|List of subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |  | E-15       | 
|Exhibit 12.1:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |  |            | 
|Certifications of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |  | E-16       | 
|Exhibit 12.2:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |  |            | 
|Certifications of Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |  | E-17       | 
|Exhibit 12.3:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |  |            | 
|Certifications of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |  | E-18       | 
|Exhibit 12.4:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |  |            | 
|Certifications of Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |  | E-19       | 

105



---



##### Table of Contents






REPORT OF INDEPENDENT AUDITORS

We have audited the accompanying consolidated
balance sheets of SCOR and subsidiaries as of December 31,
2003 and 2002, and the related consolidated statements of
income, comprehensive income, shareholders equity, and
cash flows for each of the three years in the period ended
December 31, 2003. Our audits also included the financial
statements schedules listed in the Index at Item 18. These
financial statements and financial statement schedules are the
responsibility of the Companys management. Our
responsibility is to express an opinion on these financial
statements and financial statement schedules based on our audits.

We conducted our audits in accordance with the
standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred
to above present fairly, in all material respects, the
consolidated financial position of SCOR and subsidiaries at
December 31, 2003 and 2002, and the consolidated results of
their operations and their cash flows for each of the three
years in the period ended December 31, 2003, in conformity
with U.S. generally accepted accounting principles. Also, in our
opinion, the related financial statement schedules, when
considered in relation to the basic financial statements taken
as a whole, present fairly in all material respects the
information set forth therein.

As discussed in Note 1.14 to the
consolidated financial statements, during 2001 the Company
adopted the practice of discounting SCOR US subsidiaries tabular
workers compensation reserves and also as discussed in
Note 1.23, during 2002, the Company changed its method of
accounting for goodwill.



| |                             
| | ----------------------------
| | ERNST & YOUNG               
| | Represented by Alain Vincent

Paris, France

June 29, 2004


F-1



---



##### Table of Contents



SCOR

CONSOLIDATED BALANCE SHEETS

ASSETS

|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |       |        | 
|----------------------------------------------- | --------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------- | ---- | ------------------ |  | ---- | ----- | ----- | ------ |  | ----- | ----- | ------ | 
|                                                |                                                                                                                       |                                                           |      |                   
|                                                |                                                                                                                       |                                                           |      | As of December 31,
|                                                |                                                                                                                       |                                                           |      |                   
|                                                |                                                                                                                       | Notes                                                     |      | 2002               |  | 2003
|                                                |                                                                                                                       |                                                           |      |                    |  |     
|                                                |                                                                                                                       |                                                           |      |                   
|                                                |                                                                                                                       |                                                           |      | (EUR, in millions)
|Investments                                     |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|                                                | Fixed maturities, available for sale, at fair
    value (amortized cost: EUR 5,886 in 2002 and EUR 5,628
    in 2003) |                                                           |      | 1,2,12             |  |      |       | 6,107 |        |  |       | 5,698 |       
|                                                | Equity securities, available for sale, at fair
    value (cost EUR 619 in 2002 and EUR 307 in 2003)                   |                                                           |      | 1,2,12             |  |      |       | 573   |        |  |       | 269   |       
|                                                | Trading equity securities, at fair value (cost:
    none in 2002 and EUR 26 in 2003)                                  |                                                           |      | 1,2,12             |  |      |       |      |        |  |       | 34    |       
|                                                | Short-term investments, at cost                                                                                       |                                                           |      | 1,12               |  |      |       | 198   |        |  |       |      |       
|                                                | Other long-term investments                                                                                           |                                                           |      | 1,2                |  |      |       | 345   |        |  |       | 295   |       
|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|                                                |                                                                                                                       | Total investments                                         |      |                    |  |      |       |       | 7,223  |  |       |       | 6,296  | 
|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|Cash and cash equivalents                       |                                                                                                                       |                                                           | 1,12 |                    |  |      | 1,788 |       |        |  | 1,824 |      
|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|Accrued interest income                         |                                                                                                                       |                                                           |      |                    |  |      | 109   |       |        |  | 103   |      
|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|Reinsurance balances receivable                 |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|                                                | Property-Casualty                                                                                                     |                                                           |      | 1                  |  |      |       | 797   |        |  |       | 681   |       
|                                                | Life                                                                                                                  |                                                           |      | 1                  |  |      |       | 234   |        |  |       | 68    |       
|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|                                                |                                                                                                                       | Total reinsurance balances receivable                     |      |                    |  |      |       |       | 1,031  |  |       |       | 749    | 
|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|Accrued premiums receivable, net of commissions |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|                                                | Property-Casualty                                                                                                     |                                                           |      | 1,3                |  |      |       | 875   |        |  |       | 575   |       
|                                                | Life                                                                                                                  |                                                           |      | 1,3                |  |      |       | 214   |        |  |       | 185   |       
|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|                                                |                                                                                                                       | Total accrued premiums receivable, net of
    commissions |      |                    |  |      |       |       | 1,089  |  |       |       | 760    | 
|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|Property-Casualty                               |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|                                                | Reinsurance recoverable on unpaid losses and LAE                                                                      |                                                           |      | 1,3                |  |      |       | 1,067 |        |  |       | 673   |       
|                                                | Prepaid reinsurance premium                                                                                           |                                                           |      | 1,3                |  |      |       | 130   |        |  |       | 76    |       
|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|                                                |                                                                                                                       | Total                                                     |      |                    |  |      |       |       | 1,197  |  |       |       | 749    | 
|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|Life                                            |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|                                                | Reinsurance recoverable on reserves for future
    policy benefits                                                    |                                                           |      | 1,3                |  |      |       | 511   |        |  |       | 401   |       
|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|Deferred policy acquisition costs, net          |                                                                                                                       |                                                           |      |                    |  |      | 454   |       |        |  | 483   |      
|Credits for deposits with ceding companies      |                                                                                                                       |                                                           | 1    |                    |  |      | 1,249 |       |        |  | 1,202 |      
|Deferred income tax benefits                    |                                                                                                                       |                                                           | 1,7  |                    |  |      | 438   |       |        |  | 17    |      
|Derivative financial instruments                |                                                                                                                       |                                                           | 1,13 |                    |  |      | 21    |       |        |  | 79    |      
|Fixed assets, net                               |                                                                                                                       |                                                           | 1    |                    |  |      | 20    |       |        |  | 13    |      
|Intangible assets                               |                                                                                                                       |                                                           | 1    |                    |  |      | 62    |       |        |  | 56    |      
|Advances to and investments in affiliates       |                                                                                                                       |                                                           | 1,5  |                    |  |      | 57    |       |        |  | 51    |      
|Goodwill                                        |                                                                                                                       |                                                           | 1    |                    |  |      | 260   |       |        |  | 239   |      
|Other assets                                    |                                                                                                                       |                                                           |      |                    |  |      | 427   |       |        |  | 444   |      
|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      
|                                                |                                                                                                                       | Total assets                                              |      |                    |  |      |       |       | 15,936 |  |       |       | 13,466 | 
|                                                |                                                                                                                       |                                                           |      |                    |  |      |       |       |        |  |       |      

See accompanying Notes to Consolidated Financial
Statements

F-2



---



##### Table of Contents



SCOR

CONSOLIDATED BALANCE SHEETS

LIABILITIES AND SHAREHOLDERS
EQUITY

|                                           |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |       |        | 
|------------------------------------------ | --------------------------------------------------------------------------- | ---------------------------------- | ------- | ------------------ |  | ---- | ------ | ----- | ------ |  | ------ | ----- | ------ | 
|                                           |                                                                             |                                    |         |                   
|                                           |                                                                             |                                    |         | As of December 31,
|                                           |                                                                             |                                    |         |                   
|                                           |                                                                             | Notes                              |         | 2002               |  | 2003
|                                           |                                                                             |                                    |         |                    |  |     
|                                           |                                                                             |                                    |         |                   
|                                           |                                                                             |                                    |         | (EUR, in millions)
|Property-Casualty                          |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|                                           | Losses and loss adjustment expenses reserves,
    gross                     |                                    |         | 1,16               |  |      |        | 7,967 |        |  |        | 7,003 |       
|                                           | Unearned premium reserves, gross                                            |                                    |         | 1                  |  |      |        | 1,617 |        |  |        | 1,124 |       
|                                           |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|                                           |                                                                             | Total                              |         |                    |  |      |        |       | 9,584  |  |        |       | 8,127  | 
|                                           |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|Life                                       |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|                                           | Reserve for future policy benefits                                          |                                    |         | 1,15               |  |      |        | 2,368 |        |  |        | 2,562 |       
|                                           |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|Funds held under reinsurance treaties      |                                                                             |                                    | 1,3     |                    |  |      | 683    |       |        |  | 529    |      
|                                           |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|Reinsurance balances payable               |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|                                           | Property-Casualty                                                           |                                    |         | 1                  |  |      |        | 312   |        |  |        | 232   |       
|                                           | Life                                                                        |                                    |         | 1                  |  |      |        | 220   |        |  |        | 38    |       
|                                           |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|                                           |                                                                             | Total reinsurance balances payable |         |                    |  |      |        |       | 532    |  |        |       | 270    | 
|                                           |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|Convertible subordinated debentures        |                                                                             |                                    | 6,12    |                    |  |      | 251    |       |        |  | 257    |      
|Long term debt                             |                                                                             |                                    | 6       |                    |  |      | 446    |       |        |  | 579    |      
|Notes payable                              |                                                                             |                                    | 6,12,13 |                    |  |      | 62     |       |        |  | 36     |      
|Debt due within one year                   |                                                                             |                                    |         |                    |  |      | 12     |       |        |  | 14     |      
|Commercial paper                           |                                                                             |                                    | 6,12,13 |                    |  |      |       |       |        |  |       |      
|Derivative financial instruments           |                                                                             |                                    | 13      |                    |  |      | 26     |       |        |  | 9      |      
|Other liabilities                          |                                                                             |                                    |         |                    |  |      | 416    |       |        |  | 427    |      
|Deferred taxes                             |                                                                             |                                    | 1,7     |                    |  |      | 224    |       |        |  | 56     |      
|Minority interest                          |                                                                             |                                    | 14      |                    |  |      | 187    |       |        |  | 172    |      
|                                           |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|                                           |                                                                             | Total liabilities                  |         |                    |  |      |        |       | 14,791 |  |        |       | 13,038 | 
|                                           |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|Contingencies                              |                                                                             |                                    | 17      |                    |  |      |       |       |        |  |       |      
|Shareholders Equity                       |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|                                           | Common stock, 136,544,845 shares in 2002 and 2003
    authorized and issued |                                    |         | 1,9                |  |      |        | 520   |        |  |        | 136   |       
|                                           | Additional paid-in capital                                                  |                                    |         |                    |  |      |        | 802   |        |  |        | 1,186 |       
|                                           | Catastrophe reserve, net of tax                                             |                                    |         | 11                 |  |      |        | 6     |        |  |        |      |       
|                                           | Retained earnings                                                           |                                    |         |                    |  |      |        | (355  | )      |  |        | (931  | )     
|                                           | Accumulated other comprehensive income                                      |                                    |         | 1,4                |  |      |        | 172   |        |  |        | 39    |       
|                                           | Treasury stock, at cost (none in 2002 and 489,500
    shares in 2003)       |                                    |         |                    |  |      |        |      |        |  |        | (2    | )     
|                                           |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|                                           |                                                                             | Total shareholders equity         |         |                    |  |      |        |       | 1,145  |  |        |       | 428    | 
|                                           |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      
|Total liabilities and shareholders equity |                                                                             |                                    |         |                    |  |      | 15,936 |       |        |  | 13,466 |      
|                                           |                                                                             |                                    |         |                    |  |      |        |       |        |  |        |      

See accompanying Notes to Consolidated Financial
Statements

F-3



---



##### Table of Contents



SCOR

CONSOLIDATED STATEMENTS OF INCOME

|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |       |       |  
|------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------- | --- | ----------------------- | --- | ---- | --- | ----- | ----- | - | --- | ----- | ----- | - | ---- | ----- | ----- | -
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                        
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     | Year ended December 31,
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                        
|                                                                                      |                                                                                                                                                             | Notes                                                                                                                                                 |     | 2001                    |     | 2002 |     | 2003 
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |      
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                        
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     | (EUR, in millions)     
|Revenues                                                                              |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|                                                                                      | Life premiums earned, net of premiums ceded
    totaling EUR 102 in 2001, EUR 97 in 2002 and
    EUR 195 in 2003                                            |                                                                                                                                                       |     | 1,3,15                  |     |      |     | 546   |       |   |     | 578   |       |   |      | 517   |      
|                                                                                      | Property-Casualty premiums earned, net of
    premiums ceded totaling EUR 547 in 2001, and EUR 471
    in 2002 and EUR 292 in 2003                          |                                                                                                                                                       |     | 1,3,15                  |     |      |     | 3,107 |       |   |     | 3,575 |       |   |      | 2,807 |      
|                                                                                      | Net investment income                                                                                                                                       |                                                                                                                                                       |     | 1,2,15                  |     |      |     | 347   |       |   |     | 381   |       |   |      | 321   |      
|                                                                                      | Net realized gains (losses) on investments                                                                                                                  |                                                                                                                                                       |     | 1,2,15                  |     |      |     | 10    |       |   |     | (52   | )     |   |      | 116   |      
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|                                                                                      |                                                                                                                                                             | Total revenues                                                                                                                                        |     |                         |     |      |     |       | 4,010 |   |     |       | 4,482 |   |      |       | 3,761 |  
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|Expenses                                                                              |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|                                                                                      | Life claims, net of reinsurance recoveries
    totaling, EUR 90 in 2001, EUR 41 in 2002 and
    EUR 172 in 2003                                             |                                                                                                                                                       |     | 1,3,15                  |     |      |     | 451   |       |   |     | 459   |       |   |      | 421   |      
|                                                                                      | Property-Casualty claims and loss adjustment
    expenses, net of reinsurance recoveries totaling EUR 1,051
    in 2001, EUR 139 in 2002 and EUR 79 in 2003 |                                                                                                                                                       |     | 1,3,15                  |     |      |     | 3,177 |       |   |     | 3,455 |       |   |      | 2,769 |      
|                                                                                      | Policy acquisition costs and commissions                                                                                                                    |                                                                                                                                                       |     | 1,15                    |     |      |     | 848   |       |   |     | 909   |       |   |      | 742   |      
|                                                                                      | Underwriting and administration expenses                                                                                                                    |                                                                                                                                                       |     | 1,15                    |     |      |     | 209   |       |   |     | 208   |       |   |      | 165   |      
|                                                                                      | Foreign exchange loss (gain), net                                                                                                                           |                                                                                                                                                       |     |                         |     |      |     | (8    | )     |   |     | (61   | )     |   |      | (99   | )    
|                                                                                      | Amortization/impairment of goodwill                                                                                                                         |                                                                                                                                                       |     | 1                       |     |      |     | 17    |       |   |     | 17    |       |   |      |      |      
|                                                                                      | Other operating expenses (income), net                                                                                                                      |                                                                                                                                                       |     |                         |     |      |     | (1    | )     |   |     | 19    |       |   |      | 22    |      
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|                                                                                      |                                                                                                                                                             | Total expenses                                                                                                                                        |     |                         |     |      |     |       | 4,693 |   |     |       | 5,006 |   |      |       | 4,020 |  
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|                                                                                      |                                                                                                                                                             | Income (loss) before taxes, minority
    interests, income from investments accounted for by the equity
    method and change in accounting principle |     |                         |     |      |     |       | (683  | ) |     |       | (524  | ) |      |       | (259  | )
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|Income tax                                                                            |                                                                                                                                                             |                                                                                                                                                       | 1,7 |                         |     |      | 273 |       |       |   | (28 | )     |       |   | (293 | )    
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|                                                                                      |                                                                                                                                                             | Income (loss) before minority interests,
    income from investments accounted for by the equity method and
    change in accounting principle        |     |                         |     |      |     |       | (410  | ) |     |       | (552  | ) |      |       | (552  | )
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|Minority interests                                                                    |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      | (1  | )     |       |   | (13 | )     |       |   | (26  | )    
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|                                                                                      |                                                                                                                                                             | Income (loss) before income from investments
    accounted for by the equity method and change in accounting
    principle                            |     |                         | 1,5 |      |     |       | (411  | ) |     |       | (565  | ) |      |       | (578  | )
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|Income from investments accounted for by the
    equity method                        |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      | 4   |       |       |   | 4   |       |       |   | 1    |      
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|                                                                                      |                                                                                                                                                             | Income (loss) before change in accounting
    principle                                                                                               |     |                         |     |      |     |       | (407  | ) |     |       | (561  | ) |      |       | (577  | )
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|Cumulative effect of change in accounting
    principle, net of tax EUR 22 in 2001(1) |                                                                                                                                                             |                                                                                                                                                       | 1   |                         |     |      | 42  |       |       |   |    |       |       |   |     |      
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      
|                                                                                      |                                                                                                                                                             | Net income (loss)                                                                                                                                     |     |                         |     |      |     |       | (365  | ) |     |       | (561  | ) |      |       | (577  | )
|                                                                                      |                                                                                                                                                             |                                                                                                                                                       |     |                         |     |      |     |       |       |   |     |       |       |   |      |      

|                                               |                                                                              |  |  |                        |  |  |  |        |   |  |  |         |   |  |  |         |  
|---------------------------------------------- | ---------------------------------------------------------------------------- |  |  | ---------------------- |  |  |  | ------ | - |  |  | ------- | - |  |  | ------- | -
|                                               |                                                                              |  |  |                       
|                                               |                                                                              |  |  | (EUR, except number of
|                                               |                                                                              |  |  | shares in thousands)  
|Basic earnings per share                       |                                                                              |  |  |                        |  |  |  |        |   |  |  |         |   |  |  |        
|                                               | Income (loss) before cumulative effect of
    change in accounting principle |  |  |                        |  |  |  | (11.98 | ) |  |  | (4.11   | ) |  |  | (4.23   | )
|                                               | Cumulative effect of a change in accounting
    principle, net of tax        |  |  |                        |  |  |  | 1.24   |   |  |  |        |   |  |  |        |  
|                                               |                                                                              |  |  |                        |  |  |  |        |   |  |  |         |   |  |  |        
|                                               | Basic earnings per share available to common
    stockholders                |  |  | 1,9                    |  |  |  | (10.74 | ) |  |  | (4.11   | ) |  |  | (4.23   | )
|                                               |                                                                              |  |  |                        |  |  |  |        |   |  |  |         |   |  |  |        
|Diluted earnings per share                     |                                                                              |  |  |                        |  |  |  |        |   |  |  |         |   |  |  |        
|                                               | Income (loss) before cumulative effect of
    change in accounting principle |  |  |                        |  |  |  | (10.50 | ) |  |  | (4.11   | ) |  |  | (4.23   | )
|                                               | Cumulative effect of a change in accounting
    principle, net of tax        |  |  |                        |  |  |  | 1.10   |   |  |  |        |   |  |  |        |  
|                                               |                                                                              |  |  |                        |  |  |  |        |   |  |  |         |   |  |  |        
|                                               | Diluted earnings per share available to common
    stockholders              |  |  | 1,9                    |  |  |  | (9.40  | ) |  |  | (4.11   | ) |  |  | (4.23   | )
|                                               |                                                                              |  |  |                        |  |  |  |        |   |  |  |         |   |  |  |        
|Weighted average number of shares outstanding, |                                                                              |  |  |                        |  |  |  |        |   |  |  |         |   |  |  |        
|                                               | basic                                                                        |  |  | 1,9                    |  |  |  | 33,971 |   |  |  | 136,592 |   |  |  | 136,300 |  
|                                               |                                                                              |  |  |                        |  |  |  |        |   |  |  |         |   |  |  |        
|                                               | diluted                                                                      |  |  | 1,9                    |  |  |  | 38,288 |   |  |  | 136,592 |   |  |  | 136,300 |  
|                                               |                                                                              |  |  |                        |  |  |  |        |   |  |  |         |   |  |  |        

See accompanying Notes to Consolidated Financial
Statements

F-4



---



##### Table of Contents



SCOR

CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME

|                                       |                                                                         |                                                                                             |                            |                         |      |      |      |      |     |      |      |     |     |      |      |     |     |      |  
|-------------------------------------- | ----------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | -------------------------- | ----------------------- | ---- | ---- | ---- | ---- | --- | ---- | ---- | --- | --- | ---- | ---- | --- | --- | ---- | -
|                                       |                                                                         |                                                                                             |                            |                        
|                                       |                                                                         |                                                                                             |                            | Year ended December 31,
|                                       |                                                                         |                                                                                             |                            |                        
|                                       |                                                                         | Notes                                                                                       |                            | 2001                    |      | 2002 |      | 2003
|                                       |                                                                         |                                                                                             |                            |                         |      |      |      |     
|                                       |                                                                         |                                                                                             |                            |                        
|                                       |                                                                         |                                                                                             |                            | (EUR, in millions)     
|Net income (loss)                      |                                                                         |                                                                                             |                            |                         |      |      | (365 | )    |     |      | (561 | )   |     |      | (577 | )  
|                                       |                                                                         |                                                                                             |                            |                         |      |      |      |      |     |      |      |     |     |      |      |    
|Other comprehensive income, net of tax |                                                                         |                                                                                             |                            |                         |      |      |      |      |     |      |      |     |     |      |      |    
|                                       | Foreign currency translation adjustment                                 |                                                                                             |                            | 1, 4                    |      |      |      | 18   |     |      |      | (80 | )   |      |      | (61 | )  
|                                       | Unrealized appreciation (depreciation) on
    investments during period |                                                                                             |                            |                         |      |      |      |      |     |      |      |     |     |      |      |     |    
|                                       |                                                                         | Fixed maturities                                                                            |                            |                         | 1, 4 |      |      |      | 15  |      |      |     | 74  |      |      |     | (53 | )   
|                                       |                                                                         | Equity securities                                                                           |                            |                         | 1, 4 |      |      |      |    |      |      |     | (10 | )    |      |     | 22  |     
|                                       |                                                                         | Investments accounted for by the equity method                                              |                            |                         | 1, 4 |      |      |      | (18 | )    |      |     |    |      |      |     |     |     
|                                       |                                                                         | Less: reclassification adjustment for prior
    periods appreciation included in net income |                            |                         | 1, 4 |      |      |      | (25 | )    |      |     | 66  |      |      |     | (41 | )   
|                                       |                                                                         |                                                                                             |                            |                         |      |      |      |      |     |      |      |     |     |      |      |    
|                                       |                                                                         |                                                                                             | Other comprehensive income |                         |      |      |      |      |     | (10  | )    |     |     | 50   |      |     |     | (133 | )
|                                       |                                                                         |                                                                                             |                            |                         |      |      |      |      |     |      |      |     |     |      |      |    
|                                       |                                                                         |                                                                                             | Comprehensive income       |                         |      |      |      |      |     | (375 | )    |     |     | (511 | )    |     |     | (710 | )
|                                       |                                                                         |                                                                                             |                            |                         |      |      |      |      |     |      |      |     |     |      |      |    

See accompanying Notes to Consolidated Financial
Statements

F-5



---



##### Table of Contents



SCOR

CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS EQUITY

|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |             |             |  
|-------------------------------------- | --------------------------------------------------------------------------------------------- | ------------------------ | ----- | ---------- | ---------- | ---- | ----- | ---------- | ----------- | - | --- | ----------- | ----------- | -
|                                       |                                                                                               |                         
|                                       |                                                                                               | As of December 31,      
|                                       |                                                                                               |                         
|                                       |                                                                                               | 2001                     |       | 2002       |            | 2003
|                                       |                                                                                               |                          |       |            |            |     
|                                       |                                                                                               |                         
|                                       |                                                                                               | (EUR, in millions)      
|Ordinary Shares                        |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       | Balance at beginning of year                                                                  |                          |       | 133        |            |      |       | 157        |             |   |     | 520         |            
|                                       | Issuance of Ordinary Shares  Sorema
    acquisition                                          |                          |       | 24         |            |      |       |           |             |   |     |             |            
|                                       | Issuance of Ordinary Shares  Public
    issue                                                |                          |       |           |            |      |       | 377        |             |   |     |            |            
|                                       | Change in Ordinary Shares Value  from
    3,85 per share
    to
    1 per share            |                          |       |           |            |      |       |           |             |   |     | (384        | )          
|                                       | Cancellation of Ordinary Shares 
    Treasury stock                                          |                          |       |           |            |      |       | (14        | )           |   |     |             |            
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       |                                                                                               | Balance at end of year   |       |            | 157        |      |       |            | 520         |   |     |             | 136         |  
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|Additional paid-in capital             |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       | Balance at beginning of year                                                                  |                          |       | 656        |            |      |       | 976        |             |   |     | 802         |            
|                                       | Issuance of Ordinary Shares  Sorema
    acquisition                                          |                          |       | 319        |            |      |       |           |             |   |     |            |            
|                                       | Issuance of Ordinary Shares  Public
    issue                                                |                          |       |           |            |      |       | (14        | )           |   |     |            |            
|                                       | Issuance of Ordinary Shares  exercise
    of stock options                                   |                          |       | 1          |            |      |       |           |             |   |     |            |            
|                                       | Change in Ordinary Shares Value  from
    3,85 per share
    to
    1 per share            |                          |       |           |            |      |       |           |             |   |     | 384         |            
|                                       | Cancellation of Ordinary Shares 
    Treasury stock                                          |                          |       |           |            |      |       | (160       | )           |   |     |             |            
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       |                                                                                               | Balance at end of year   |       |            | 976        |      |       |            | 802         |   |     |             | 1,186       |  
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|Accumulated other comprehensive income |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       | Balance at beginning of period                                                                |                          |       | 132        |            |      |       | 122        |             |   |     | 172         |            
|                                       | Unrealized appreciation (depreciation) on
    investments, net of reclassification adjustment |                          |       | (28        | )          |      |       | 130        |             |   |     | (72         | )          
|                                       | Currency translation adjustments                                                              |                          |       | 18         |            |      |       | (80        | )           |   |     | (61         | )          
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       |                                                                                               | Balance at end of period |       |            | 122        |      |       |            | 172         |   |     |             | 39          |  
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|Catastrophe reserve                    |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       | Balance at beginning of year                                                                  |                          |       | 12         |            |      |       | 11         |             |   |     | 6           |            
|                                       | Allocation during year                                                                        |                          |       | (1         | )          |      |       | (5         | )           |   |     | (6          | )          
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       |                                                                                               | Balance at end of year   |       |            | 11         |      |       |            | 6           |   |     |             |            |  
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|Retained earnings                      |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       | Balance at beginning of year                                                                  |                          |       | 626        |            |      |       | 215        |             |   |     | (355        | )          
|                                       | Net income                                                                                    |                          |       | (365       | )          |      |       | (561       | )           |   |     | (577        | )          
|                                       | Allocation to catastrophe reserve                                                             |                          |       | 1          |            |      |       | 5          |             |   |     | 6           |            
|                                       | Dividends                                                                                     |                          |       | (53        | )          |      |       | (11        | )           |   |     |            |            
|                                       | Others                                                                                        |                          |       | 6          |            |      |       | (3         | )           |   |     | (5          | )          
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       |                                                                                               | Balance at end of year   |       |            | 215        |      |       |            | (355        | ) |     |             | (931        | )
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|Treasury stock                         |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       | Balance at beginning of year                                                                  |                          |       | (164       | )          |      |       | (171       | )           |   |     |            |            
|                                       | Cancellation (Purchase) of treasury shares                                                    |                          |       | (7         | )          |      |       | 171        |             |   |     | (2          | )          
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       |                                                                                               | Balance at end of year   |       |            | (171       | )    |       |            | 0           |   |     |             | (2          | )
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|Total Shareholders equity             |                                                                                               |                          | 1,310 |            |            |      | 1,145 |            |             |   | 428 |            
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|Ordinary Shares                        |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       | Balance at beginning of year                                                                  |                          |       | 34,793,846 |            |      |       | 41,244,216 |             |   |     | 136,544,845 |            
|                                       | Exercise of stock options                                                                     |                          |       | 80,000     |            |      |       | 16,158     |             |   |     |            |            
|                                       | Issuance of Ordinary Shares  Sorema
    acquisition                                          |                          |       | 6,370,370  |            |      |       |           |             |   |     |            |            
|                                       | Issuance of Ordinary Shares  Public
    issue                                                |                          |       |           |            |      |       | 99,024,888 |             |   |     |             |            
|                                       | Treasury stocks(1)                                                                            |                          |       |           |            |      |       | (3,740,417 | )           |   |     | (489,500    | )          
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            
|                                       |                                                                                               | Balance at end of year   |       |            | 41,244,216 |      |       |            | 136,544,845 |   |     |             | 136,055,345 |  
|                                       |                                                                                               |                          |       |            |            |      |       |            |             |   |     |            






|    |                               
|--- | ------------------------------
|(1) | Effectively cancelled for 2002

For more information on the Groups share
capital evolution, see Note 9. Share Capital and Earnings
per Share.

See accompanying Notes to Consolidated Financial
Statements

F-6



---



##### Table of Contents



SCOR

CONSOLIDATED STATEMENTS OF CASH
FLOWS

|                                        |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |        |      |       |  
|--------------------------------------- | ------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------- | --------------------------------------------------------- | ------ | ----- | ----- | --- | ------ | ---- | ----- | -- | ------ | ---- | ----- | -
|                                        |                                                                                      |                                                                              
|                                        |                                                                                      | Year ended December 31,                                                      
|                                        |                                                                                      |                                                                              
|                                        |                                                                                      | 2001                                                                          |                                                           | 2002   |       | 2003 
|                                        |                                                                                      |                                                                               |                                                           |        |       |      
|                                        |                                                                                      |                                                                              
|                                        |                                                                                      | (EUR, in millions)                                                           
|Cash flows from operating activities    |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |       
|                                        | Net income before minority interests                                                 |                                                                               |                                                           | (364   | )     |       |     | (548   | )    |       |    | (551   | )   
|                                        | Adjustments to reconcile net income to net cash
    provided by operating activities |                                                                               |                                                           |        |       |       |     |        |      |       |    |        |     
|                                        |                                                                                      | Change in reinsurance recoverable on unpaid losses                            |                                                           |        | (745  | )     |     |        | 255  |       |    |        | 287  |      
|                                        |                                                                                      | Change in prepaid insurance premiums                                          |                                                           |        | (60   | )     |     |        | 12   |       |    |        | 40   |      
|                                        |                                                                                      | Change in losses and LAE reserves, gross                                      |                                                           |        | 1,517 |       |     |        | 467  |       |    |        | (199 | )    
|                                        |                                                                                      | Change in Life reserves for future policy benefits                            |                                                           |        | 33    |       |     |        | 99   |       |    |        | 533  |      
|                                        |                                                                                      | Change in unearned premium reserves, gross                                    |                                                           |        | 128   |       |     |        | 192  |       |    |        | (375 | )    
|                                        |                                                                                      | Deferred policy acquisition costs                                             |                                                           |        | 12    |       |     |        | (116 | )     |    |        | (66  | )    
|                                        |                                                                                      | Realized investment gains and losses                                          |                                                           |        | 48    |       |     |        | (3   | )     |    |        | (122 | )    
|                                        |                                                                                      | Other amortization and change in other provisions                             |                                                           |        | 12    |       |     |        | 73   |       |    |        | 56   |      
|                                        |                                                                                      | Change in deferred tax                                                        |                                                           |        | (260  | )     |     |        | 46   |       |    |        | 258  |      
|                                        |                                                                                      | Unrealized foreign exchange gains or losses                                   |                                                           |        | (1    | )     |     |        | (92  | )     |    |        | (102 | )    
|                                        |                                                                                      | Affiliated income accounted for under equity
    method                       |                                                           |        | (4    | )     |     |        |     |       |    |        |     |      
|                                        |                                                                                      | Cash dividends received from affiliates accounted
    for under equity method |                                                           |        | 8     |       |     |        |     |       |    |        |     |      
|                                        | Changes in assets and liabilities                                                    |                                                                               |                                                           |        |       |       |     |        |      |       |    |        |     
|                                        |                                                                                      | Premium and loss balances, net                                                |                                                           |        | 328   |       |     |        | (47  | )     |    |        | (35  | )    
|                                        |                                                                                      | Change in accrued reinsurance balance payable                                 |                                                           |        | (306  | )     |     |        | 409  |       |    |        | 232  |      
|                                        |                                                                                      | Change in deposits with ceding companies                                      |                                                           |        | (108  | )     |     |        | (275 | )     |    |        | 13   |      
|                                        |                                                                                      | Change in funds held under reinsurance treaties                               |                                                           |        | (28   | )     |     |        | (99  | )     |    |        | (53  | )    
|                                        |                                                                                      | Change in sundry debtors and creditors                                        |                                                           |        | (200  | )     |     |        | (102 | )     |    |        | (7   | )    
|                                        |                                                                                      | Other                                                                         |                                                           |        | (1    | )     |     |        | (2   | )     |    |        | (10  | )    
|                                        |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |       
|                                        |                                                                                      |                                                                               | Net cash provided by (used in) operating
    activities   |        |       | 9     |     |        |      | 269   |    |        |      | (101  | )
|                                        |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |       
|Cash flows from investing activities    |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |       
|                                        | Sales, maturities or redemptions of fixed
    maturities available for sale          |                                                                               |                                                           | 4,395  |       |       |     | 8,649  |      |       |    | 6,145  |     
|                                        | Sales of equity securities                                                           |                                                                               |                                                           | 2,367  |       |       |     | 526    |      |       |    | 159    |     
|                                        | Net sales (purchases) of short-term investments                                      |                                                                               |                                                           | (259   | )     |       |     | 174    |      |       |    | 169    |     
|                                        | Investments in fixed maturities available for sale                                   |                                                                               |                                                           | (3,134 | )     |       |     | (9,876 | )    |       |    | (6,112 | )   
|                                        | Investments in equity securities                                                     |                                                                               |                                                           | (2,172 | )     |       |     | (273   | )    |       |    | (165   | )   
|                                        | Acquisitions of fixed assets                                                         |                                                                               |                                                           | (59    | )     |       |     |       |      |       |    |       |     
|                                        | Disposals of fixed assets                                                            |                                                                               |                                                           | 55     |       |       |     |       |      |       |    | 46     |     
|                                        | Investment in consolidated affiliates                                                |                                                                               |                                                           | 2      |       |       |     | (11    | )    |       |    | 5      |     
|                                        | Investment in reinsurance companies                                                  |                                                                               |                                                           | (342   | )     |       |     | 275    |      |       |    |       |     
|                                        | Long term loans                                                                      |                                                                               |                                                           | (7     | )     |       |     | 13     |      |       |    | 26     |     
|                                        |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |       
|                                        |                                                                                      |                                                                               | Net cash provided by (used in) investing
    activities   |        |       | 846   |     |        |      | (523  | )  |        |      | 273   |  
|                                        |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |       
|Cash flows from financing activities    |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |       
|                                        | Dividends paid                                                                       |                                                                               |                                                           | (53    | )     |       |     | (11    | )    |       |    |       |     
|                                        | Repayment of borrowings                                                              |                                                                               |                                                           | (491   | )     |       |     | (1,864 | )    |       |    | (111   | )   
|                                        | Proceeds from borrowings                                                             |                                                                               |                                                           | 774    |       |       |     | 1,841  |      |       |    | 194    |     
|                                        | Issuance of shares                                                                   |                                                                               |                                                           | 345    |       |       |     | 363    |      |       |    | (3     | )   
|                                        | Increase (decrease) on minority interests                                            |                                                                               |                                                           | 174    |       |       |     | (19    | )    |       |    | (40    | )   
|                                        | Purchase of treasury stock                                                           |                                                                               |                                                           | (7     | )     |       |     | (3     | )    |       |    | (2     | )   
|                                        |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |       
|                                        |                                                                                      |                                                                               | Net cash provided by (used in) financing
    activities   |        |       | 742   |     |        |      | 307   |    |        |      | (38   | )
|                                        |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |       
|Effect of exchange rate changes on cash |                                                                                      |                                                                               | (7                                                        | )      |       |       | (57 | )      |      |       | 21 |       
|                                        |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |       
|                                        |                                                                                      |                                                                               | Net increase (decrease) in cash and cash
    equivalents  |        |       | 1,590 |     |        |      | (4    | )  |        |      | 231   |  
|                                        |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |       
|                                        |                                                                                      |                                                                               | Cash and cash equivalents at beginning of year            |        |       | 247   |     |        |      | 1,927 |    |        |      | 1,788 |  
|                                        |                                                                                      |                                                                               | Effect of changes in exchange rates on cash
    beginning |        |       | 6     |     |        |      | (135  | )  |        |      | (195  | )
|                                        |                                                                                      |                                                                               | Changes in consolidation scope                            |        |       | 84    |     |        |      |      |    |        |      |      |  
|                                        |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |       
|                                        |                                                                                      |                                                                               | Cash and cash equivalents at end of year                  |        |       | 1,927 |     |        |      | 1,788 |    |        |      | 1,824 |  
|                                        |                                                                                      |                                                                               |                                                           |        |       |       |     |        |      |       |    |       

See accompanying Notes to Consolidated Financial
Statements

F-7



---



##### Table of Contents



SCOR

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS



|        |                                                    
|------- | ---------------------------------------------------
|Note 1. | The Company and Significant Accounting
    Policies

SCOR (the Company) is organized as a
société anonyme, or stock company, under the
laws of the Republic of France. SCOR and its subsidiaries
(together, the Group) provide Property-Casualty and
Life reinsurance. Property-Casualty operations include
reinsuring to primary insurers of property, casualty, marine,
space and transportation, construction and credit and surety
risks. Life operations include providing a full range of Life
and Health reinsurance products and related services to primary
Life insurers throughout the world.

1.1.     Significant
and subsequent events

The year 2003 was strongly impacted by the
ongoing increasing losses related to business written from 1997
to 2001, especially in the United States, whereas the business
written during 2002 and 2003 still show profits all over the
world

The total withdrawal from certain lines of
business in the United States (program business and buffers
layers) and in Bermudas (workers compensation), the
constructive handling of these activities on run off notably
through commutations and the complete exit from credit
derivative exposure, will allow to reduce significantly the
potential loss inherent to these contracts.

These ongoing losses led to successive
downgrading of SCORs financial strength rating during
2003. Despite an improvement of the rating to BBB+ (Standard
& Poors) on December 2, 2003, business in the
fourth quarter of 2003, but especially the business renewals on
January 1, 2004, were significantly impacted by these
rating.

As far as finance is concerned, the realization
of capital gains on bonds thanks to decreasing rates, the profit
generated by the sale of the SCOR building and a very favorable
exchange rate, contribute to reduce the years loss.

In order to maintain and reinforce the
Groups financial strength, a EUR 751 million capital
increase has been launched on December 9, 2003 and
finalized on January 7, 2004. The proceeds of the offering
will be used to strengthen the Groups shareholders
equity, to support existing credit facilities and to improve the
Groups operational and financial flexibility. The proceeds
of this offering, net of charges, amounted to
EUR 708 million.

The Companys shareholders meeting
held on May 18, 2004, approved the 2003 French GAAP annual
financial statements and decided to give authorization to issue
shares and debt securities. Based on this authorization to the
Board, SCOR launched on June 24, 2004, an offering of bonds
convertible and/or exchangeable into new or existing shares of
SCOR due January 1, 2010 of nominal value EUR 2.00
each, for an aggregate principal amount of EUR 180,000,000 and
with a 4.125% coupon. The offering size may be increased to
EUR 200,000,000 maximum in the event that the
over-allotment option granted to the Joint Lead-Managers and
Joint Bookrunners is exercised in full.

This public offering of securities is being made
exclusively to residents of France who are physically present in
France and therefore not in the United States or in any other
jurisdiction.

The proceeds of the offering are expected to
permit the Company to improve the structure of its existing
indebtedness by extending its maturity, in particular by
prioritizing the refinancing of its outstanding convertible
OCEANE bonds due January 1, 2005.

1.2.     Basis of
presentation

The accompanying financial statements have been
prepared in accordance with U.S. GAAP. The Company and its
domestic subsidiaries maintain their books in conformity with
French generally accepted accounting principles, and its foreign
subsidiaries in conformity with those of the countries of their
domicile. The financial statements of those consolidated
entities have been adjusted to conform to U.S. GAAP.

F-8



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

The accompanying financial statements include the
accounts of SCOR and its majority-owned and controlled domestic
and foreign subsidiaries. Investment in 20% to 50% owned
affiliates are accounted for by the equity method.

Unistrat is the only company within the Group to
be accounted for by the equity method. As of December 31,
2003, Unistrats book value and consolidated net income
represented EUR 14 million and
EUR 1.15 million, respectively.

The consolidated financial statements are
prepared and presented in euro.

1.3.     Use of
estimates

The preparation of financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amounts in the financial statements and
related footnotes. Actual results could differ from these
estimates.



|     |                             
|---- | ----------------------------
|1.4. | Foreign currency translation

The functional currency of each entity of the
Group is the currency in which that entity primarily conducts
its business. For most of the Groups foreign subsidiaries
the local currency is the functional currency. In accordance
with Statement of Financial Accounting Standard No. 52
(SFAS 52), Foreign Currency Translation,
financial statements of subsidiaries whose functional currency
is not euro are translated into euro equivalents using the
current rate of exchange existing at period-end for assets and
liabilities, and the average yearly exchange rate for revenues
and expenses. Related translation adjustments are reported as a
separate component of shareholders equity.

Transactions denominated in currencies other than
the entitys functional currency are recorded into the
functional currency using exchange rates in effect at the
transaction date. Resulting gains or losses are included in the
income statement.



|     |                      
|---- | ---------------------
|1.5. | Marketable securities

The Group accounts for marketable securities in
accordance with the requirements of Statement of Financial
Accounting Standards No. 115 (SFAS 115),
Accounting for Certain Investments in Debt and Equity
Securities. SFAS 115 requires that debt and
marketable equity securities be classified in one of three
categories: trading, available-for-sale, or held to maturity.

Under the provisions of SFAS 115,
substantially all of the Groups investments in fixed
maturities qualify as securities available for sale
and are recorded at fair value. Fixed maturities purchased with
the intent and ability to hold to maturity are categorized as
securities held to maturity and are carried at
amortized cost. Equity securities are carried at fair value.
Short-term investments are carried at cost, which approximates
fair value.

Realized gains and losses from sale of
investments, determined on the specific identification method,
and declines in value determined to be other than temporary, are
included in net income. Unrealized gains and losses on equity
securities and fixed maturities categorized as
available-for-sale, are not reflected in earnings but are
reported, net of the related tax effect, in other comprehensive
income. Unrealized gains and losses on trading equity securities
are recognized under net investment income to the statement of
income.

F-9



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)



|     |                          
|---- | -------------------------
|1.6. | Cash and cash equivalents

The Group considers all highly liquid investments
with an original maturity of three months or less, consisting
essentially of short-term marketable securities and time
deposits, as cash equivalents. Short-term marketable securities
are valued at the lower of cost or market on an individual basis.



|     |                
|---- | ---------------
|1.7. | Premiums earned

Premiums from short duration contracts are
recognized as revenue evenly as insurance protection is
provided. That part of premiums estimated to be billable but
which has not been notified by ceding companies upon the
financial statement date is estimated and booked as accrued
premiums receivable. Unearned premium reserves represent the
portion of premiums written that relates to the unexpired terms
of contracts and policies in force. Such reserves are computed
by pro rata methods based on statistical data or reports
received from ceding companies. Premiums for long-duration
contracts are recognized as revenue when due from policyholders.
To the extent that the Companys contracts permit a
retrospective charge to the ceding company for additional
premiums, such premiums are accrued as premiums receivable based
on experience under the contract.

The Company calculates earned not yet issued and
unearned premiums, in a manner whereby premiums are computed for
their estimated ultimate amount.

The Company accounts for retrospective contracts
in accordance with Financial Accounting Standards Boards
Emerging Issues Task Force No. 93-6
(EITF 93-6). EITF 93-6 requires that
multi-year retrospectively-rated reinsurance contracts, in which
past events create rights or obligations for the parties, be
accounted as an asset or liability immediately, instead of at
contract termination. Rights or obligations include, but are not
limited to, return of an experience balance, additional or
return premiums and/or reduction in coverage of future events.



|     |                           
|---- | --------------------------
|1.8. | Deferred acquisition costs

Costs that vary with and are directly related to
the acquisition of new business, principally commissions and
brokerage expenses incurred at the time a contract is issued,
are deferred when paid, to the extent recoverable.

For FASB 60 policies, acquisition costs
related to traditional life insurance and certain long-duration
accident and health insurance, to the extent recoverable from
future policy revenues, would be deferred and amortized over the
premium-paying period of the related policies using assumptions
consistent with those used in computing policy benefit reserves.
The deferred policy acquisition costs (DAC) relating to the
life reinsurance business accounted for under FASB 97 are
amortized based on a percentage of our expected gross profits
(EGPs) over the life of the underlying policies. Our estimated
EGPs are computed based on assumptions related to the underlying
policies written, including the lives of the underlying
policies, and, if applicable, growth rate of the assets
supporting the liabilities. We amortize deferred policy
acquisition costs by estimating the present value of the EGPs
over the lives of the insurance policies and the calculate a
percentage of the policy acquisition cost deferred as compared
to the present value of the EGPs. That percentage is used to
amortize the deferred policy acquisition cost such that amount
amortized over the life of the policies results in a constant
percentage of amortization when related to the actual and future
gross profits.

Because of the EGPs are only an estimate of the
profits we expect to recognize from these policies, the EGPs are
adjusted at each balance sheet date to take into consideration
the actual gross profits to date and any changes in the
remaining expected future gross profits. When EGPs are adjusted,
we also adjust the amortization of the DAC amount, if
applicable, either to maintain a constant amortization
percentage over the entire life of the policies (FAS 97
products), or to take into account the absence of future profits
(FAS 60).

The present value of the future profits
(PVFP) booked in respect of SCOR Life Re business acquired
July 1, 2000, decreased in 2001 from
EUR 165 million to EUR 150 million end of
December 2001, resulting in an interest of EUR 7 million, a
favorable exchange rate fluctuation for an amount of
EUR 8 million, the creation of

F-10



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

new business of EUR 2 million, and an
additional EUR 32 million amortization of PVFP. In
2002, the present value of future profits decreased from
EUR 150 million to EUR 111 million end of
December 2002, resulting in an interest of
EUR 5 million, a unfavorable exchange rate fluctuation
for an amount of EUR 23 million, and an additional
EUR 21 million amortization of PVFP. In 2003, the
present value of future profits decreased from
EUR 111 million to EUR 80 million end of
December 2003, resulting in an interest of
EUR 4 million, a unfavorable exchange rate fluctuation
for an amount of EUR 19 million, and an additional
EUR 16 million amortization of PVFP.

In our property-casualty business, deferred
acquisition costs represent the portion of commissions
pertaining to contracts in force at year-end over the period for
which premiums are not yet earned, and are written down over the
residual duration of the contracts in question.

Premium deficiency reserves are established for
the amount of the anticipated losses, loss adjustment expenses,
commissions and other acquisition costs and maintenance costs
that have not previously been expensed in excess of the recorded
unearned premium reserve and future installment premiums on
existing policies.



|     |                            
|---- | ---------------------------
|1.9. | Other long-term investments

Land, buildings and interest in unlisted real
estate companies are carried at cost. Buildings are depreciated
using the straight-line method over 30 to 50 years. Cost
incurred in the acquisition of buildings is amortized over
5 years. Provision is made for losses when the market value
of buildings held for sale in the short-term is lower than the
purchase cost.



|      |             
|----- | ------------
|1.10. | Fixed assets

Property, equipment and leasehold improvements
are stated at cost, less accumulated depreciation and
amortization. Depreciation is provided using the straight-line
method over the estimated useful lives of the related assets
that generally range from 3 to 30 years. Computer software
purchased or internally developed is depreciated over 12 to
60 months. Amortization of leasehold improvements is
provided using the straight-line method over the lesser of the
term of the leases or the estimated useful lives of the
improvements.



|     |                                                
|---- | -----------------------------------------------
|1.11 | Impairment or Disposal of Long-Lived
    Assets

The Group accounts for long-lived assets in
accordance with the requirements of Statement of Financial
Accounting Standards No. 144 ( SFAS 144),
Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to Be Disposed Of. SFAS 144
requires that long-lived assets and certain identifiable
intangibles held and used be reviewed for impairment whenever
events or changes in circumstances indicate that the carrying
amount of the assets or intangibles may not be recoverable.



|      |         
|----- | --------
|1.12. | Goodwill

The excess of purchase price over the fair value
of the net assets acquired of a company restated to fair value
at the date of purchase, is recorded as goodwill. Under
FASB 142 (Goodwill and other intangible
assets), goodwill is not amortized but is subject to an
assessment for impairment on an annual basis, or more frequently
if circumstances indicate that a possible impairment has
occurred. If the goodwill is higher than its fair value, an
impairment is recorded in the statement of income. During 2002,
Commercial Risk Partners goodwill, which is included in
the Alternative Risk Transfer segment, was determined to be
fully impaired.

F-11



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)



|      |                                       
|----- | --------------------------------------
|1.13. | Uncollectible reinsurance
    balances

The Company establishes provisions for
uncollectible reinsurance balances based on managements
assessment of the collectibility of the outstanding balances.
Such provisions were EUR 9 million and EUR
8 million as of December 31, 2003 and
December 31, 2002.



|      |                                                             
|----- | ------------------------------------------------------------
|1.14. | Losses and loss expenses and Life future
    policy benefits

Reserves for losses and loss adjustment expenses
include reserves for unpaid losses and loss expenses and for
losses incurred but not reported (IBNR). This
liability for unpaid claims is established by management based
on information received from ceding companies corrected for
estimated errors and omissions, as necessary, using
managements industry experience and judgment. The methods
used to estimate the reserves are periodically reviewed to
insure that the assumptions made continue to be appropriate and
that any adjustments resulting there from are reflected in
results of operations in the period in which they become known
and are accounted for as changes in estimates.

The Group discounts certain reserves for losses
and loss adjustment expenses relating for the most part to
workers compensation claims, over the estimated payment
period of the liabilities. The discount rate is based on
risk-free rates of return for investments of similar duration,
and the discount rate is a locked in rate unless there are
indications that the assets supporting the liabilities are
returning a significantly lower rate. Loss and loss adjustment
reserves discounted at December 31, 2003 and 2002 were
discounted at rates ranging from 3.7% to 8.1% and the amount of
those discounted reserves were EUR 449 million and
EUR 1,208 million, at December 31, 2003, and
2002, respectively. During 2001, SCOR US adopted the practice of
discounting tabular workers compensation claims for
statutory and U.S. GAAP using an interest rate of 5%. The
Company believes that discounting such claims is preferable
since it more closely matches revenues and expenses, better
reflects the economic reality of paying the fixed amounts over a
long period of time. The impact of the discount on SCOR US
technical reserves as at December 31, 2003 amounts to
EUR 59.5 million, compared to
EUR 68.7 million as at December 31, 2002.

Likewise, the impact of the discount on
CRPs technical reserves as at December 31, 2003
amounts to EUR 44 million, compared to EUR
140 million as at December 31, 2002. This decrease is
mostly due to the commutations that occurred during 2003.

Management believes that the reserve for losses
is adequate to cover the ultimate net cost incurred. However,
the reserve is necessarily an estimate and the amount ultimately
paid may be more or less than the estimate.

The Group has to place significant reliance on
the information obtained from its cedants to develop assumptions
to estimate its ultimate liability. The subsequent development
of these liabilities might not conform to the assumptions
inherent in their determination. As a result, the amounts
ultimately settled could vary significantly from the estimates
included in the accompanying consolidated financial statements.

Estimated Life future policy benefits to be paid
to or on behalf of ceding companies, less estimated future net
premiums to be collected from ceding companies, are accrued when
premium revenue is recognized. Future policy benefits under long
term Life reinsurance contracts have been computed based upon
expected investment yields, mortality, morbidity and withdrawal
rates and other assumptions. These assumptions include for Life
business a margin for adverse deviation and vary with the
characteristics of the plan of reinsurance, year of issue, age
of the insured and other appropriate factors. Mortality,
morbidity and withdrawal assumptions are based on the
Groups experience as well as industry experience and
standards.



|      |                         
|----- | ------------------------
|1.15. | Stock-based compensation

SCOR accounts for its employee stock option plans
in accordance with Accounting Principles Board Opinion
No. 25 (APB 25), Accounting for
Stock Issued to Employees and discloses in Note 10
pro forma net

F-12



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

income and earnings per share as if the
fair-value based method of accounting defined in Statement of
Financial Accounting Standards No. 123
(SFAS 123) and amended by Statement of
Financial Accounting Standards No. 148
(SFAS 148), Accounting for Stock Based
Compensation were applied. SFAS 123 and SFAS 148
establish financial accounting and reporting standards for
stock-based employee compensation plans. The Statement defines a
fair-value based method of accounting for stock-option plans
whereby compensation cost is measured at the grant date based on
the value of the award and is recognized over the service
period. It encourages all entities to adopt that method of
accounting for all of their employee stock compensations plans,
but also allows an entity to continue to measure compensations
costs for those plans using the intrinsic value based method of
accounting prescribed by APB 25.



|      |                            
|----- | ---------------------------
|1.16. | Accounting for income taxes

The Group accounts for income taxes in accordance
with the requirements of Statement of Financial Accounting
Standard No. 109 (SFAS 109)
Accounting for Income Taxes. SFAS 109 provides
for a liability approach under which deferred income taxes are
calculated based upon enacted tax laws and rates, applicable in
the various jurisdictions in which the Group operates, to the
periods in which the tax becomes payable. Deferred tax assets
and liabilities as of December 31, 2003 and 2002 reflect in
respect of French jurisdiction, a surcharge of 3% for 2003 and
2002. Deferred tax assets and liabilities as of
December 31, 2003 and 2002 reflected the 3% and 6%
exceptional surcharge, respectively applicable to tax years 2004
and 2003. Under SFAS 109, valuation allowances are recorded
against deferred tax assets that are more likely than
not to be not realizable in the future. The realization of
these assets is based upon estimates of future taxable income.
In preparing estimates of future taxable income, SCOR used the
same assumptions and projections utilized in internal forecasts.
Since the company has experienced 3 consecutive years of
tax loss, these estimates can no longer be used in assessment of
the recoverability of the deferred tax assets. Nevertheless SFAS
109 requires that valuation allowances be recorded if the
company has experienced 3 consecutive years of tax loss.
Therefore, SCOR recorded an additional impairment of
EUR 385 million in 2003 after
EUR 138 million recorded as an impairment during 2002.



|      |                         
|----- | ------------------------
|1.17. | Post retirement benefits

In accordance with the laws and practices in the
countries where SCOR operates, subsidiaries contribute to
various pension and retirement benefit plans covering
substantially all employees.

In some countries, including France,
contributions based on salaries, are paid to the government
organizations, which are liable for the payments of benefits.
The Group has no actuarial liability under such plans.

Where specific retirement plans or other
commitments exist, which are the Groups responsibility,
the corresponding actuarial obligations are charged to income on
the basis of rights acquired by employees, either by way of
provisions or by contributions to independent organizations that
pay the benefits.

The Group discloses pensions and other
postretirement benefits in accordance with the requirements of
Statement of Financial Accounting Standards No. 132
(SFAS 132),  Employers disclosures
about Pensions and Other Postretirement Benefits.
SFAS 132 suggests combined formats for presentation of
pension and other postretirement benefit disclosures, and does
not change the measurement or the recognition of those plans.



|      |                   
|----- | ------------------
|1.18. | Earnings per share

The Group accounts for earnings per share in
accordance with the requirements of Statement of Financial
Accounting Standards No. 128 (SFAS 128),
Earnings Per Share. SFAS 128 establishes
standards for computing and presenting earnings per share. Basic
earnings per share excludes dilution and is computed by dividing
income available to common stockholders by the weighted-average
number of common shares outstanding for the period. Diluted
earnings per share include the effect of all potentially
dilutive securities.

F-13



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

SFAS 128 also requires a reconciliation of
the numerator and denominator of the basic earnings per share
computation to the numerator and denominator of the diluted
earnings per share computation.

The reconciliation of the numerator and
denominator of the basic earnings per share computation to the
numerator and denominator of the diluted earnings per share
computation is disclosed in Note 9.

Basic earnings per share are calculated using the
weighted average number of Ordinary Shares outstanding during
the period. Diluted earnings per share is based on the
additional assumed dilution of all dilutive potential Ordinary
Shares outstanding which are issuable under stock option plans
(using the treasury stock method), and on the additional
assumption that the convertible bonds are converted into
Ordinary Shares (using the if-converted method).



|      |                     
|----- | --------------------
|1.19. | Comprehensive income

The Group reports comprehensive income in
accordance with the requirements of Statement of Financial
Accounting Standards No. 130, (SFAS 130),
Reporting Comprehensive Income. SFAS 130 establishes
standards for reporting and display of comprehensive income and
its components in a full set of general-purpose financial
statements. It requires that all items that are required to be
recognized under accounting standards as components of
comprehensive income be reported in a financial statement that
is displayed with the same prominence as other financial
statements.



|      |                                                
|----- | -----------------------------------------------
|1.20. | Disclosures about segments of an
    enterprise

The Group discloses about segments and other
related information in accordance with the requirements of
Statement of Financial Accounting Standards No. 131,
(SFAS 131), Disclosures about Segments of
an Enterprise and Related Information.

The Group has organized its business into five
major segments based on the type of reinsurance markets it
targets. Responsibilities and reporting within the Group are
established based on this structure: Property-Casualty treaty
reinsurance, Life/Accident & Health reinsurance, Large
Corporate Accounts reinsurance, credit, surety and political
risks reinsurance and Alternative reinsurance. Other activities
include investment revenue allocated to shareholders
equity, amortization of goodwill and investments accounted for
by the equity method. As disclosed in Note 15, for each activity
SCOR reports earnings before income tax and minority interests,
as used for management purposes.



|      |       
|----- | ------
|1.21. | SOREMA

On July 1, 2001 SCOR Group took full control
of two reinsurance subsidiaries of GROUPAMA, SOREMA S.A., a
French company and SOREMA N.A., an U.S. company

The SOREMA companies specialize in Property &
Casualty reinsurance, mainly in Europe, North America and Asia.
We intend to maintain unchanged these companies portfolio
of reinsurance products and services. Management believes they
are to strengthen our competitive stance without significantly
altering the balance between our three core activities: Property
& Casualty, Life, Accident & Health and Specialty
reinsurance.

As part of this transaction, GROUPAMA agreed to
cover its liabilities in respect of run-off of technical
reserves for the 2000 and previous reinsurance years. The
aforementioned agreement was settled in the form of a
retrocession contract coupled with a general guarantee. At the
end of December 2003, the sum of EUR 240 million was
booked in the accounts of SCOR as a receivable from GROUPAMA
related to the guaranty provided. This amount may be revised at
the expiration of the guarantee period i.e. June 30, 2007.

Goodwill has been calculated on the basis of the
financial statements drawn up at June 30, 2001. SOREMA
operating results have been consolidated since July 1,
2001. Several adjustments have been made to evaluate at

F-14



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

fair value assets and liabilities: technical
reserves have been increased, deferred tax assets and deferred
acquisition expenses have been written down, and restructuring
charges have been booked. The goodwill after these adjustments
amounts was EUR 88 million, of which 17 millions
allocated to licenses of SOREMA N.A at the end of December
2001. At the end of December 2002, an ultimate calculation
including definitive operations related to SOREMA acquisition
show a goodwill of EUR 97 million. SOREMA S.A.
was merged into SCOR following the Extraordinary
Shareholders meeting of December 21, 2001.

Simplified balance sheets of SOREMA S.A. and
SOREMA N.A. as of June 30, 2001 are presented below:

|                                                                       |                                            |                    |     |             |  |       |     |       |  |  |       |       | 
|---------------------------------------------------------------------- | ------------------------------------------ | ------------------ | --- | ----------- |  | ----- | --- | ----- |  |  | ----- | ----- | 
|                                                                       |                                            | Soreama S.A.       |     | Sorema N.A. |  | Total
|                                                                       |                                            |                    |     |             |  |      
|                                                                       |                                            |                   
|                                                                       |                                            | (EUR, in millions)
|ASSETS                                                                 |                                            |                    |     |             |  |       |     |       |  |  |       |      
|Investments and cash and cash equivalent                               |                                            |                    | 510 |             |  |       | 517 |       |  |  | 1,027 |      
|Property-casualty reinsurance balances receivable                      |                                            |                    | 48  |             |  |       | 151 |       |  |  | 199   |      
|Property-casualty accrued premiums receivable,
    net of commissions  |                                            |                    | 218 |             |  |       | 19  |       |  |  | 237   |      
|Property-casualty reinsurance recoverable on
    unpaid losses and LAE |                                            |                    | 140 |             |  |       | 245 |       |  |  | 385   |      
|Fixed and other assets                                                 |                                            |                    | 119 |             |  |       | 127 |       |  |  | 246   |      
|                                                                       |                                            |                    |     |             |  |       |     |       |  |  |       |      
|                                                                       | Total assets                               |                    |     | 1,035       |  |       |     | 1,059 |  |  |       | 2,094 | 
|                                                                       |                                            |                    |     |             |  |       |     |       |  |  |       |      
|LIABILITIES AND SHAREHOLDERS
    EQUITY                               |                                            |                    |     |             |  |       |     |       |  |  |       |      
|Property-casualty underwriting reserves, gross                         |                                            |                    | 888 |             |  |       | 743 |       |  |  | 1,631 |      
|Funds held under reinsurance treaties                                  |                                            |                    | 3   |             |  |       | 74  |       |  |  | 77    |      
|Property-casualty reinsurance balances payable                         |                                            |                    | 0   |             |  |       | 37  |       |  |  | 37    |      
|Financial debt                                                         |                                            |                    | 0   |             |  |       | 5   |       |  |  | 5     |      
|Accrued expenses                                                       |                                            |                    | 23  |             |  |       | 43  |       |  |  | 66    |      
|Total shareholders equity                                             |                                            |                    | 121 |             |  |       | 157 |       |  |  | 278   |      
|                                                                       |                                            |                    |     |             |  |       |     |       |  |  |       |      
|                                                                       | Total liabilities and shareholders equity |                    |     | 1,035       |  |       |     | 1,059 |  |  |       | 2,094 | 
|                                                                       |                                            |                    |     |             |  |       |     |       |  |  |       |      



|      |                                       
|----- | --------------------------------------
|1.22. | Reclassifications and
    Presentation

Certain reclassifications of the consolidated
financial statements and related footnote amounts in the years
ended December 31, 2002 and 2001 have been made to conform
to the presentation in the year ended December 31, 2003.



|      |                                   
|----- | ----------------------------------
|1.23. | Recent Accounting
    Developments

SFAS No. 142 Goodwill and Other
Intangible Assets changes the current accounting model
that requires amortization of goodwill, supplemented by
impairment tests, to an accounting model that is base solely
upon impairment tests. The provisions of SFAS No. 142
related to accounting for goodwill and intangible assets was
generally effective at the beginning of 2002, except among other
things, that goodwill and identifiable intangible assets with
indefinite lives arising from combinations completed after
June 30, 2001 are not amortized.

The company has introduced systematic annual
goodwill impairment testing, by application of the SFAS 142
standard, in order to ascertain the fair value of goodwill.
These tests are based primarily on a battery of methods, notably
the super profit and discounted technical
reserves methods.

As applied to the financial statements at
December 31, 2002, these tests call for goodwill recognized
in the reporting unit that contents the Bermuda subsidiary
Commercial Risk Partners to be written off in full for
EUR 17 million.

F-15



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

After being reviewed by SCOR, the application of
FAS 142 had an impact described as follows :

|                                |  |                              |        |      |  |      |       |   |  |  |       |  
|------------------------------- |  | ---------------------------- | ------ | ---- |  | ---- | ----- | - |  |  | ----- | -
|                                |  | 2001                         |        | 2002 |  | 2003
|                                |  |                              |        |      |  |     
|                                |  |                             
|                                |  | (EUR, in millions except for
|                                |  | earnings-per-share amounts) 
|Disclosure                      |  |                              |        |      |  |      |       |   |  |  |       |  
|Reported net income/(loss)      |  |                              | (365   | )    |  |      | (561  | ) |  |  | (577  | )
|Add back: goodwill amortization |  |                              | 17     |      |  |      |      |   |  |  |      |  
|                                |  |                              |        |      |  |      |       |   |  |  |       |  
|Adjusted net income/(loss)      |  |                              | (348   | )    |  |      | (561  | ) |  |  | (577  | )
|                                |  |                              |        |      |  |      |       |   |  |  |       |  
|Basic earnings-per-share        |  |                              |        |      |  |      |       |   |  |  |       |  
|Reported net income             |  |                              | (10.74 | )    |  |      | (4.11 | ) |  |  | (4.23 | )
|Add back: goodwill amortization |  |                              | 0.50   |      |  |      |      |   |  |  |      |  
|                                |  |                              |        |      |  |      |       |   |  |  |       |  
|Adjusted net income             |  |                              | (10.24 | )    |  |      | (4.11 | ) |  |  | (4.23 | )
|                                |  |                              |        |      |  |      |       |   |  |  |       |  
|Diluted earnings-per-share      |  |                              |        |      |  |      |       |   |  |  |       |  
|Reported net income             |  |                              | (9.40  | )    |  |      | (4.11 | ) |  |  | (4.23 | )
|Add back: goodwill amortization |  |                              | 0.44   |      |  |      |      |   |  |  |      |  
|                                |  |                              |        |      |  |      |       |   |  |  |       |  
|Adjusted net income             |  |                              | (8.96  | )    |  |      | (4.11 | ) |  |  | (4.23 | )
|                                |  |                              |        |      |  |      |       |   |  |  |       |  

In June 2002, FASB issued SFAS No. 146,
Accounting for Costs Associated with Exit or Disposal
Activities, which is effective for exit or disposal
activities that are initiated after December 31, 2002. SFAS
No. 146 requires that a liability for costs associated with
an exit or disposal activity be recognized and measured
initially at fair value only when the liability is incurred. The
adoption of SFAS No 146 did not have impact on the presentation
made in the 2003 financial statements.

In November 2002, the FASB issued Interpretation
(FIN) No. 45, Guarantors Accounting and
Disclosure Requirements for Guarantees, Including Indirect
Guarantees and Indebtedness of Others, an interpretation
of SFAS Nos. 5, 57 and 107, and rescission of FIN
No. 34, Disclosure of Indirect Guarantees of
Indebtedness of Others. FIN No. 45 elaborates on the
disclosures to be made by the guarantor in its interim and
annual financial statements about its obligations under certain
guarantees that it has issued. It also requires that a guarantor
recognize, at the inception of a guarantee, a liability for the
fair value of the obligation undertaken in issuing the
guarantee. The initial recognition and measurement provisions of
the interpretation were applicable on a prospective basis to
guarantees issued or modified after December 31, 2002,
while the provisions of the disclosure requirements were
effective for financial statements of interim or annual periods
ending after December 15, 2002. The adoption of this
interpretation did not have a material impact on the
Companys results of operations, financial position or cash
flows.

In December 2002, SFAS No. 148,
Accounting for Stock-based Compensation-Transition and
Disclosure, an amendment of FASB Statement No. 123, was
issued and amends SFAS No. 123 to provide alternative
methods of transition for a voluntary change to the fair value
based method of accounting for stock-based employee
compensation. It also amends the disclosure provisions of SFAS
No. 123 to require prominent disclosure in both annual and
interim financial statements about the method of accounting for
stock-based employee compensation and the effect of the method
used on reported results. The provisions of SFAS No. 148
were effective for annual financial statements for fiscal years
ending after December 15, 2002, and for financial reports
containing condensed financial statements for interim periods
beginning after December 15, 2002.

In January 2003, the FASB issued Interpretation
No. 46, Consolidation of Variable Interest
Entities (FIN 46). Under that interpretation, certain
entities known as Variable Interest Entities
(VIE) must be consolidated by the primary
beneficiary of the entity. The primary beneficiary is
generally defined as having the majority of the risks and
rewards arising from the VIE. For VIEs in which a significant
(but not majority) variable interest is

F-16



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

held, certain disclosures are required. The
measurement principles of this interpretation will be effective
for the Companys 2004 financial statements. The company
has not yet determined the impact of this standard.

SFAS 149, Amendment of Statement 133
on Derivative Instruments and Hedging
Activities

In April 2003, the FASB issued SFAS No. 149,
Amendment of Statement 133 on Derivative Instruments and
Hedging Activities. This Statement amends and clarifies
financial accounting and reporting for derivative instruments,
including certain derivative instruments embedded in other
contracts, and for hedging activities under SFAS No. 133,
Accounting for Derivative Instruments and Hedging
Activities. This Statement amends SFAS No. 133 for
decisions made as part of the Derivatives Implementation Group
process and in connection with implementation issues raised in
relation to the application of the definition of a derivative.
SFAS No. 149 is effective for contracts entered into or
modified after June 30, 2003. This standard did not have a
material impact on the financial condition or results of
operations of SCOR.

SFAS 150, Accounting for Certain
Financial Instruments with Characteristics of both Liabilities
and Equity

In May 2003, the FASB issued SFAS No. 150,
Accounting for Certain Financial Instruments with
Characteristics of both Liabilities and Equity. This
Statement establishes standards for how an issuer classifies and
measures certain financial instruments with characteristics of
both liabilities and equity. This Statement is effective for
financial instruments entered into or modified after
May 31, 2003, and otherwise is effective at the beginning
of the first interim period beginning after June 15, 2003.
For SCOR, FAS 150 will only be effective for 2004 interim
financial statements. The company has not yet determined the
impact of this standard.

In July 2003, the American Institute of Certified
Public Accountants issued Statement of Position 03-1,
Accounting For and Reporting by Insurance Enterprises for
Certain Nontraditional Long-Duration Contracts and for Separate
Accounts (SOP 03-1). This statement is effective as
of January 1, 2004, and will require SCOR to recognize a
liability for guaranteed minimum death benefits and other living
benefits related to its variable annuity and variable life
contracts and to modify certain disclosures and financial
statement presentations for these products. The company has not
yet determined the impact of this standard. In April 2003, the
FASB released FAS 133 Implementation Issue B36 (DIG
Issue B36), Embedded Derivatives: Modified
Coinsurance Arrangements and Debt Instruments That Incorporate
Credit Risk Exposure That Are Unrelated or Only Partially
Related to the Creditworthiness of the Obligor Under Those
Instruments. The FASB has clarified that an instrument
that incorporates credit risk exposures that are either
unrelated or only partially related to the creditworthiness of
the instruments obligor has an embedded derivative that is
not considered clearly and closely related to the
economic characteristics and risks of the host contract. The
company has not yet determined the impact of this standard.

F-17



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

Note
2.     Investments

The amortized cost and estimated fair value of
fixed maturities as of December 31, 2003, by contractual
maturity is shown below. Expected maturities will differ from
contractual maturities because borrowers may have the right to
call or prepay obligations with or without call or prepayment
penalties.

|                                          |                                                                                                          |                                           |                                         |            |       |            |   |            |     |     |     |    |     |     |     |       |       |       | 
|----------------------------------------- | -------------------------------------------------------------------------------------------------------- | ----------------------------------------- | --------------------------------------- | ---------- | ----- | ---------- | - | ---------- | --- | --- | --- | -- | --- | --- | --- | ----- | ----- | ----- | 
|                                          |                                                                                                          |                                          
|                                          |                                                                                                          | As of December 31, 2002                  
|                                          |                                                                                                          |                                          
|                                          |                                                                                                          | Amortized                                 |                                         | Unrealized |       | Unrealized |   | Estimated 
|                                          |                                                                                                          | cost                                      |                                         | gains      |       | losses     |   | fair value
|                                          |                                                                                                          |                                           |                                         |            |       |            |   |           
|                                          |                                                                                                          |                                          
|                                          |                                                                                                          | (EUR, in millions)                       
|Fixed maturities available for sale       |                                                                                                          |                                           |                                         |            |       |            |   |            |     |     |     |    |     |     |     |      
|                                          | Debt securities issued or guaranteed by the
    French government or its agencies                        |                                           |                                         | 677        |       |            |   | 4          |     |     |     | (1 | )   |     |     | 680   |      
|                                          | Debt securities issued or guaranteed by the
    U.S. government or its agencies                          |                                           |                                         | 1,159      |       |            |   | 19         |     |     |     |   |     |     |     | 1,178 |      
|                                          | Obligations of U.S. states and political
    subdivisions                                                |                                           |                                         | 287        |       |            |   | 19         |     |     |     |   |     |     |     | 306   |      
|                                          | Debt securities issued or guaranteed by the
    European Union                                           |                                           |                                         | 772        |       |            |   | 24         |     |     |     | (4 | )   |     |     | 792   |      
|                                          | Debt securities issued or guaranteed by other
    national, state or local governments or their agencies |                                           |                                         | 320        |       |            |   | 18         |     |     |     |   |     |     |     | 338   |      
|                                          | Corporate debt securities                                                                                |                                           |                                         | 1,434      |       |            |   | 62         |     |     |     | (4 | )   |     |     | 1,492 |      
|                                          | Mortgage-backed securities                                                                               |                                           |                                         | 1,182      |       |            |   | 91         |     |     |     | (6 | )   |     |     | 1,268 |      
|                                          | Other debt securities                                                                                    |                                           |                                         | 55         |       |            |   |           |     |     |     | (1 | )   |     |     | 53    |      
|                                          |                                                                                                          |                                           |                                         |            |       |            |   |            |     |     |     |    |     |     |     |      
|                                          |                                                                                                          | Total fixed maturities available for sale |                                         |            | 5,886 |            |   |            | 237 |     |     |    | (16 | )   |     |       | 6,107 |      
|                                          |                                                                                                          |                                           |                                         |            |       |            |   |            |     |     |     |    |     |     |     |      
|Equity securities, available for
    sale |                                                                                                          |                                           | 619                                     |            |       |            | 9 |            |     |     | (55 | )  |     |     | 573 |      
|                                          |                                                                                                          |                                           |                                         |            |       |            |   |            |     |     |     |    |     |     |     |      
|                                          |                                                                                                          |                                           | Total investments carried at fair value |            |       | 6,505      |   |            |     | 246 |     |    |     | (71 | )   |       |       | 6,680 | 
|                                          |                                                                                                          |                                           |                                         |            |       |            |   |            |     |     |     |    |     |     |     |      

|                                    |                                                                                                          |                                           |                                         |            |       |            |  |            |     |     |  |     |     |     |   |       |       |       | 
|----------------------------------- | -------------------------------------------------------------------------------------------------------- | ----------------------------------------- | --------------------------------------- | ---------- | ----- | ---------- |  | ---------- | --- | --- |  | --- | --- | --- | - | ----- | ----- | ----- | 
|                                    |                                                                                                          |                                          
|                                    |                                                                                                          | As of December 31, 2003                  
|                                    |                                                                                                          |                                          
|                                    |                                                                                                          | Amortized                                 |                                         | Unrealized |       | Unrealized |  | Estimated 
|                                    |                                                                                                          | cost                                      |                                         | gains      |       | losses     |  | fair value
|                                    |                                                                                                          |                                           |                                         |            |       |            |  |           
|                                    |                                                                                                          |                                          
|                                    |                                                                                                          | (EUR, in millions)                       
|Fixed maturities available for sale |                                                                                                          |                                           |                                         |            |       |            |  |            |     |     |  |     |     |     |   |      
|                                    | Debt securities issued or guaranteed by the
    French government or its agencies                        |                                           |                                         | 1,211      |       |            |  | 4          |     |     |  | (14 | )   |     |   | 1,201 |      
|                                    | Debt securities issued or guaranteed by the
    U.S. government or its agencies                          |                                           |                                         | 1,213      |       |            |  | 7          |     |     |  | (5  | )   |     |   | 1,215 |      
|                                    | Obligations of U.S. states and political
    subdivisions                                                |                                           |                                         | 152        |       |            |  | 5          |     |     |  |     |     |     |   | 157   |      
|                                    | Debt securities issued or guaranteed by the
    European Union                                           |                                           |                                         | 645        |       |            |  | 8          |     |     |  | (10 | )   |     |   | 643   |      
|                                    | Debt securities issued or guaranteed by other
    national, state or local governments or their agencies |                                           |                                         | 309        |       |            |  | 14         |     |     |  |     |     |     |   | 323   |      
|                                    | Corporate debt securities                                                                                |                                           |                                         | 1,191      |       |            |  | 30         |     |     |  | (3  | )   |     |   | 1,218 |      
|                                    | Mortgage-backed securities                                                                               |                                           |                                         | 873        |       |            |  | 44         |     |     |  | (7  | )   |     |   | 910   |      
|                                    | Other debt securities                                                                                    |                                           |                                         | 34         |       |            |  |            |     |     |  | (3  | )   |     |   | 31    |      
|                                    |                                                                                                          |                                           |                                         |            |       |            |  |            |     |     |  |     |     |     |   |      
|                                    |                                                                                                          | Total fixed maturities available for sale |                                         |            | 5,628 |            |  |            | 112 |     |  |     | (42 | )   |   |       | 5,698 |      
|                                    |                                                                                                          |                                           |                                         |            |       |            |  |            |     |     |  |     |     |     |   |      
|Equity securities                   |                                                                                                          |                                           |                                         |            |       |            |  |            |     |     |  |     |     |     |   |      
|                                    | Equity securities, available for sale                                                                    |                                           |                                         | 281        |       |            |  | 10         |     |     |  | (22 | )   |     |   | 269   |      
|                                    | Trading securities                                                                                       |                                           |                                         | 26         |       |            |  | 8          |     |     |  |     |     |     |   | 34    |      
|                                    |                                                                                                          |                                           |                                         |            |       |            |  |            |     |     |  |     |     |     |   |      
|                                    |                                                                                                          | Total equity securities                   |                                         |            | 307   |            |  |            | 18  |     |  |     | (22 | )   |   |       | 303   |      
|                                    |                                                                                                          |                                           |                                         |            |       |            |  |            |     |     |  |     |     |     |   |      
|                                    |                                                                                                          |                                           | Total investments carried at fair value |            |       | 5,935      |  |            |     | 130 |  |     |     | (64 | ) |       |       | 6,001 | 
|                                    |                                                                                                          |                                           |                                         |            |       |            |  |            |     |     |  |     |     |     |   |      

F-18



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

|                   |                                        |                         |  |            |       |  |  |       |       | 
|------------------ | -------------------------------------- | ----------------------- |  | ---------- | ----- |  |  | ----- | ----- | 
|                   |                                        |                        
|                   |                                        | As of December 31, 2003
|                   |                                        |                        
|                   |                                        | Amortized               |  | Estimated 
|                   |                                        | cost                    |  | fair value
|                   |                                        |                         |  |           
|                   |                                        |                        
|                   |                                        | (EUR, in millions)     
|Available for sale |                                        |                         |  |            |       |  |  |      
|                   | Due within one year or less            |                         |  | 525        |       |  |  | 522   |      
|                   | Due after one year through five years  |                         |  | 2,378      |       |  |  | 2,408 |      
|                   | Due after five years through ten years |                         |  | 1,851      |       |  |  | 1,876 |      
|                   | Due after ten years                    |                         |  | 873        |       |  |  | 891   |      
|                   |                                        |                         |  |            |       |  |  |      
|                   |                                        | Total                   |  |            | 5,628 |  |  |       | 5,698 | 
|                   |                                        |                         |  |            |       |  |  |      

Actual maturities could differ from the
contractual maturities because the borrows may have the right to
call or prepay obligations.

The following table sets forth the split of the
Other Long Term Investments as of December 31:

|                          |  |                    |     |      |  |  |     | 
|------------------------- |  | ------------------ | --- | ---- |  |  | --- | 
|                          |  |                   
|                          |  | Year ended        
|                          |  | December 31,      
|                          |  |                   
|                          |  | 2002               |     | 2003
|                          |  |                    |     |     
|                          |  |                   
|                          |  | (EUR, in millions)
|Lands                     |  |                    | 93  |      |  |  | 48  | 
|Buildings                 |  |                    | 251 |      |  |  | 247 | 
|Furnitures and equipments |  |                    | 1   |      |  |  |    | 
|                          |  |                    |     |      |  |  |     | 
|Total                     |  |                    | 345 |      |  |  | 295 | 
|                          |  |                    |     |      |  |  |     | 

The 2003 figure for Buildings
includes the SCOR building in Paris, sold under a sale-leaseback
agreement accounted for using the financing method in December
2003 for an amount of EUR 149 million. The SCOR home office
building in Paris, with a carrying value of
EUR 81 million in 2003 and EUR 80 million in
2002, is included in the buildings caption.

The Groups net investment income, comprised
primarily of interest and dividends, was derived from the
following sources:

|                   |                                                                    |                          |  |      |     |      |  |     |     |  |  |     |     | 
|------------------ | ------------------------------------------------------------------ | ------------------------ |  | ---- | --- | ---- |  | --- | --- |  |  | --- | --- | 
|                   |                                                                    |                         
|                   |                                                                    | Year ended December 31, 
|                   |                                                                    |                         
|                   |                                                                    | 2001                     |  | 2002 |     | 2003
|                   |                                                                    |                          |  |      |     |     
|                   |                                                                    |                         
|                   |                                                                    | (EUR, in millions)      
|Investment income  |                                                                    |                          |  |      |     |      |  |     |     |  |  |    
|                   | Fixed maturities                                                   |                          |  | 379  |     |      |  | 332 |     |  |  | 283 |    
|                   | Equity securities, dividends                                       |                          |  | 26   |     |      |  | 6   |     |  |  | 3   |    
|                   | Trading equity securities, net gains (losses)                      |                          |  | (56  | )   |      |  | 53  |     |  |  | 9   |    
|                   | Short term investments and other(1)                                |                          |  | 92   |     |      |  | 122 |     |  |  | 137 |    
|                   |                                                                    |                          |  |      |     |      |  |     |     |  |  |    
|                   |                                                                    | Total investment income  |  |      | 441 |      |  |     | 513 |  |  |     | 432 | 
|                   |                                                                    |                          |  |      |     |      |  |     |     |  |  |    
|Investment expense |                                                                    |                          |  |      |     |      |  |     |     |  |  |    
|                   | Swap interest                                                      |                          |  | 13   |     |      |  | 17  |     |  |  | 8   |    
|                   | Commercial paper                                                   |                          |  | 3    |     |      |  | 8   |     |  |  | 0   |    
|                   | Administration expenses                                            |                          |  | 13   |     |      |  | 16  |     |  |  | 29  |    
|                   | Other (including convertible debentures interest
    and discount) |                          |  | 65   |     |      |  | 91  |     |  |  | 74  |    
|                   |                                                                    |                          |  |      |     |      |  |     |     |  |  |    
|                   |                                                                    | Total investment expense |  |      | 94  |      |  |     | 132 |  |  |     | 111 | 
|                   |                                                                    |                          |  |      |     |      |  |     |     |  |  |    
|                   |                                                                    | Net investment income    |  |      | 347 |      |  |     | 381 |  |  |     | 321 | 
|                   |                                                                    |                          |  |      |     |      |  |     |     |  |  |    

F-19



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)



---



|    |                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------
|(1) | Includes swap income of EUR 10 million in
    2001, EUR 10 million in 2002 and EUR 3 million in 2003.

Net realized investments gains and losses of the
Group were derived from the following sources:

|                                           |                                  |                                       |  |      |    |      |  |      |     |   |  |    |     | 
|------------------------------------------ | -------------------------------- | ------------------------------------- |  | ---- | -- | ---- |  | ---- | --- | - |  | -- | --- | 
|                                           |                                  |                                      
|                                           |                                  | Year ended December 31,              
|                                           |                                  |                                      
|                                           |                                  | 2001                                  |  | 2002 |    | 2003
|                                           |                                  |                                       |  |      |    |     
|                                           |                                  |                                      
|                                           |                                  | (EUR, in millions)                   
|Net realized investment gains
    (losses) |                                  |                                       |  |      |    |      |  |      |     |   |  |   
|                                           | Fixed maturities                 |                                       |  | 69   |    |      |  | 72   |     |   |  | 93 |    
|                                           | Equity securities(1)             |                                       |  | (66  | )  |      |  | (119 | )   |   |  | 13 |    
|                                           | Trading Equity securities        |                                       |  |     |    |      |  | (98  | )   |   |  |   |    
|                                           | Short term investments and other |                                       |  | 7    |    |      |  | 93   |     |   |  | 10 |    
|                                           |                                  |                                       |  |      |    |      |  |      |     |   |  |   
|                                           |                                  | Net realized investment gain (losses) |  |      | 10 |      |  |      | (52 | ) |  |    | 116 | 
|                                           |                                  |                                       |  |      |    |      |  |      |     |   |  |   






|    |                                                                                                   
|--- | --------------------------------------------------------------------------------------------------
|(1) | net realized gains on equity securities for 2002
    include the gain on sale of shares of COFACE.

The Group has concluded an agreement in late
December 2003 to sell its corporate headquarters to an
institutional investor for approximately EUR 150 million. With
this transaction, SCOR has realized a significant capital gain
(EUR 69 million) given the book value of the building. SCOR
has entered into a long-term lease agreement with the purchaser
and will thereby become a tenant of the building at La Defense.
SCOR will also be allowed to sublet certain parts of the
premises.

Under FASB 13, 66 and 98, because SCOR has a
continuing involvement in the property, the sale leaseback
transaction has not been treated as a sale. Therefore the sale
is not currently recognized and the asset remains on SCORs
books. In addition, the sale proceeds are considered as
financing and part of SCORs debt as of December 31,
2003. Under the financing method, lease payments (EUR
10.3 million per year over 9 years) will reduce the
debt over the lease and property will be amortized. Sale will be
recognized at the end of the lease at the latest.

The changes in net unrealized gains and losses on
investments of the Company (including unrealized gains and
losses on trading equity securities that are recognized to the
income statement) are derived from the following sources:

|                                                                                                                        |  |                         |     |      |  |      |     |   |  |  |      |  
|----------------------------------------------------------------------------------------------------------------------- |  | ----------------------- | --- | ---- |  | ---- | --- | - |  |  | ---- | -
|                                                                                                                        |  |                        
|                                                                                                                        |  | Year ended December 31,
|                                                                                                                        |  |                        
|                                                                                                                        |  | 2001                    |     | 2002 |  | 2003
|                                                                                                                        |  |                         |     |      |  |     
|                                                                                                                        |  |                        
|                                                                                                                        |  | (EUR, in millions)     
|Increase (decrease) during period in
    difference between fair value and cost of investments in equity
    securities |  |                         | (59 | )    |  |      | 93  |   |  |  | 42   |  
|Deferred income tax benefit (expense)                                                                                   |  |                         | 21  |      |  |      | (31 | ) |  |  | (13  | )
|                                                                                                                        |  |                         |     |      |  |      |     |   |  |  |      |  
|Increase (decrease) in net unrealized gains
    (losses) on equity securities                                           |  |                         | (38 | )    |  |      | 62  |   |  |  | 29   |  
|                                                                                                                        |  |                         |     |      |  |      |     |   |  |  |      |  
|Increase (decrease) during period in
    difference between fair value and cost of investments in fixed
    maturities  |  |                         | 39  |      |  |      | 93  |   |  |  | (110 | )
|Deferred income tax benefit (expense)                                                                                   |  |                         | (11 | )    |  |      | (21 | ) |  |  | 24   |  
|                                                                                                                        |  |                         |     |      |  |      |     |   |  |  |      |  
|Increase (decrease) in net unrealized gains
    (losses) on fixed maturities                                            |  |                         | 28  |      |  |      | 72  |   |  |  | (86  | )
|Minority interest                                                                                                       |  |                         | 1   |      |  |      | (1  | ) |  |  | 0    |  
|                                                                                                                        |  |                         |     |      |  |      |     |   |  |  |      |  
|Total increase (decrease) in net unrealized
    gains (losses) on equity securities and fixed maturities                |  |                         | (9  | )    |  |      | 133 |   |  |  | (57  | )
|                                                                                                                        |  |                         |     |      |  |      |     |   |  |  |      |  

F-20



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

The following table summarizes the gross
unrealized losses and cost on insurance investment securities,
aggregated by major investment category and length of time that
individual securities have been in a continuous unrealized loss
position, at December 31, 2003.

|                  |  |                     |       |                     |  |              |     |            |  |              |     |            |  |  |     |   |  |  |       |  |  |  |     |  
|----------------- |  | ------------------- | ----- | ------------------- |  | ------------ | --- | ---------- |  | ------------ | --- | ---------- |  |  | --- | - |  |  | ----- |  |  |  | --- | -
|                  |  |                    
|                  |  | Unrealized Losses  
|                  |  |                    
|                  |  |                     |       |                     |  |             
|                  |  | Less than 12 months |       | More than 12 months |  | Total       
|                  |  |                     |       |                     |  |             
|                  |  |                     |       | Unrealized          |  |              |     | Unrealized |  |              |     | Unrealized
|                  |  | @ fair value        |       | losses              |  | @ fair value |     | losses     |  | @ fair value |     | losses    
|                  |  |                     |       |                     |  |              |     |            |  |              |     |           
|                  |  |                    
|                  |  | (EUR, in millions) 
|Bonds(1)          |  |                     | 1,904 |                     |  |              | (41 | )          |  |              | 43  |            |  |  | (1  | ) |  |  | 1,947 |  |  |  | (42 | )
|Equity securities |  |                     | 9     |                     |  |              | (2  | )          |  |              | 131 |            |  |  | (20 | ) |  |  | 140   |  |  |  | (22 | )
|                  |  |                     |       |                     |  |              |     |            |  |              |     |            |  |  |     |   |  |  |       |  |  |  |     |  
|Total             |  |                     | 1,913 |                     |  |              | (43 | )          |  |              | 174 |            |  |  | (21 | ) |  |  | 2,087 |  |  |  | (64 | )
|                  |  |                     |       |                     |  |              |     |            |  |              |     |            |  |  |     |   |  |  |       |  |  |  |     |  






|    |                                                            
|--- | -----------------------------------------------------------
|(1) | Primarily relates to the All other
    corporate category

Unrealized gains/losses are the difference
between the fair and the cost value of investments. A
depreciation is recorded regarding invested lines for which
unrealized losses are deemed to be other than temporary.

SCOR recorded impairment losses net of taxes of
approximately EUR 22 million in 2003. The determination
that a security has incurred an other-than-temporary decline in
value and the amount of any loss recognition requires the
judgment of SCORs management and a continual review of
investments.

The followings present gross unrealized gains and
losses and the related deferred taxes on equity securities and
fixed maturities available for sale carried at fair value:

|                                |                                 |                                                              |  |      |      |      |  |     |     |   |  |     |     |  
|------------------------------- | ------------------------------- | ------------------------------------------------------------ |  | ---- | ---- | ---- |  | --- | --- | - |  | --- | --- | -
|                                |                                 |                                                             
|                                |                                 | Year ended December 31,                                     
|                                |                                 |                                                             
|                                |                                 | 2001                                                         |  | 2002 |      | 2003
|                                |                                 |                                                              |  |      |      |     
|                                |                                 |                                                             
|                                |                                 | (EUR, in millions)                                          
|Equity securities               |                                 |                                                              |  |      |      |      |  |     |     |   |  |    
|                                | Gross unrealized gains          |                                                              |  | 17   |      |      |  | 9   |     |   |  | 10  |    
|                                | Gross unrealized losses         |                                                              |  | (156 | )    |      |  | (55 | )   |   |  | (22 | )  
|                                |                                 |                                                              |  |      |      |      |  |     |     |   |  |    
|                                |                                 | Net unrealized gains (losses)                                |  |      | (139 | )    |  |     | (46 | ) |  |     | (12 | )
|                                |                                 |                                                              |  |      |      |      |  |     |     |   |  |    
|Fixed maturities, at fair value |                                 |                                                              |  |      |      |      |  |     |     |   |  |    
|                                | Gross unrealized gains          |                                                              |  | 153  |      |      |  | 238 |     |   |  | 112 |    
|                                | Gross unrealized losses         |                                                              |  | (34  | )    |      |  | (17 | )   |   |  | (42 | )  
|                                |                                 | Net unrealized gains (losses)                                |  |      | 119  |      |  |     | 221 |   |  |     | 70  |  
|                                |                                 |                                                              |  |      |      |      |  |     |     |   |  |    
|                                |                                 | Total net unrealized gains (losses)                          |  |      | (20  | )    |  |     | 175 |   |  |     | 58  |  
|                                |                                 |                                                              |  |      |      |      |  |     |     |   |  |    
|                                | Policyholder-related amounts(1) |                                                              |  | (57  | )    |      |  | (66 | )   |   |  | (64 | )  
|                                | Deferred tax (liability) asset  |                                                              |  | 32   |      |      |  | (20 | )   |   |  | (25 | )  
|                                | Minority interest               |                                                              |  | (1   | )    |      |  | (2  | )   |   |  | 0   |    
|                                |                                 |                                                              |  |      |      |      |  |     |     |   |  |    
|                                |                                 | Shareholders net unrealized appreciation
    (depreciation) |  |      | (46  | )    |  |     | 87  |   |  |     | (31 | )
|                                |                                 |                                                              |  |      |      |      |  |     |     |   |  |    






|    |                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | amortization of value of business acquired due to
    the revaluation to the fair value of available for sale
    securities in application of SFAS 115
    (shadow DAC).



|        |            
|------- | -----------
|Note 3. | Reinsurance

The Group utilizes a variety of retrocession
agreements with non-affiliated retrocessionaires to control its
exposure to large losses. Although ceded reinsurance permits
recovery of all or a portion of losses from the retrocessional
reinsurer, it does not discharge the Group as the primary
reinsurer.

F-21



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

Premiums written, premiums earned and loss and
LAE incurred for the years ended December 31, 2001, 2002
and 2003 are as follows:

|         |         |                              |  |          |       |              |  |       |       |  |  |        |        |  
|-------- | ------- | ---------------------------- |  | -------- | ----- | ------------ |  | ----- | ----- |  |  | ------ | ------ | -
|         |         |                             
|         |         | Year ended December 31, 2001
|         |         |                             
|         |         | Premiums                     |  | Premiums |       | Loss and LAE
|         |         | written                      |  | earned   |       | incurred    
|         |         |                              |  |          |       |             
|         |         |                             
|         |         | (EUR, in millions)          
|Non-Life |         |                              |  |          |       |              |  |       |       |  |  |       
|         | Assumed |                              |  | 3,782    |       |              |  | 3,654 |       |  |  | (4,228 | )     
|         | Ceded   |                              |  | (608     | )     |              |  | (547  | )     |  |  | 1,051  |       
|Life     |         |                              |  |          |       |              |  |       |       |  |  |       
|         | Assumed |                              |  | 647      |       |              |  | 647   |       |  |  | (541   | )     
|         | Ceded   |                              |  | (101     | )     |              |  | (101  | )     |  |  | 90     |       
|         |         |                              |  |          |       |              |  |       |       |  |  |       
|         |         | Net                          |  |          | 3,720 |              |  |       | 3,653 |  |  |        | (3,628 | )
|         |         |                              |  |          |       |              |  |       |       |  |  |       

|         |         |                              |  |          |       |              |  |       |       |  |  |        |        |  
|-------- | ------- | ---------------------------- |  | -------- | ----- | ------------ |  | ----- | ----- |  |  | ------ | ------ | -
|         |         |                             
|         |         | Year ended December 31, 2002
|         |         |                             
|         |         | Premiums                     |  | Premiums |       | Loss and LAE
|         |         | written                      |  | earned   |       | incurred    
|         |         |                              |  |          |       |             
|         |         |                             
|         |         | (EUR, in millions)          
|Non-Life |         |                              |  |          |       |              |  |       |       |  |  |       
|         | Assumed |                              |  | 4,239    |       |              |  | 4,046 |       |  |  | (3,611 | )     
|         | Ceded   |                              |  | (460     | )     |              |  | (471  | )     |  |  | 139    |       
|Life     |         |                              |  |          |       |              |  |       |       |  |  |       
|         | Assumed |                              |  | 675      |       |              |  | 675   |       |  |  | (500   | )     
|         | Ceded   |                              |  | (97      | )     |              |  | (97   | )     |  |  | 41     |       
|         |         |                              |  |          |       |              |  |       |       |  |  |       
|         |         | Net                          |  |          | 4,357 |              |  |       | 4,153 |  |  |        | (3,931 | )
|         |         |                              |  |          |       |              |  |       |       |  |  |       

|         |         |                              |  |          |       |              |  |       |       |  |  |        |        |  
|-------- | ------- | ---------------------------- |  | -------- | ----- | ------------ |  | ----- | ----- |  |  | ------ | ------ | -
|         |         |                             
|         |         | Year ended December 31, 2003
|         |         |                             
|         |         | Premiums                     |  | Premiums |       | Loss and LAE
|         |         | written                      |  | earned   |       | incurred    
|         |         |                              |  |          |       |             
|         |         |                             
|         |         | (EUR, in millions)          
|Non-Life |         |                              |  |          |       |              |  |       |       |  |  |       
|         | Assumed |                              |  | 2,724    |       |              |  | 3,099 |       |  |  | (2,837 | )     
|         | Ceded   |                              |  | (252     | )     |              |  | (292  | )     |  |  | 68     |       
|Life     |         |                              |  |          |       |              |  |       |       |  |  |       
|         | Assumed |                              |  | 582      |       |              |  | 583   |       |  |  | (509   | )     
|         | Ceded   |                              |  | (66      | )     |              |  | (66   | )     |  |  | 88     |       
|         |         |                              |  |          |       |              |  |       |       |  |  |       
|         |         | Net                          |  |          | 2,988 |              |  |       | 3,324 |  |  |        | (3,190 | )
|         |         |                              |  |          |       |              |  |       |       |  |  |       

For the years ended December 31, 2001, 2002
and 2003, the percentage of net premiums written to gross
premiums written was 84.0%, 88.7% and 90% respectively.

Retrocessionaires of the Group are subject to
initial review of financial condition before final acceptability
is confirmed and to subsequent reviews on an annual basis. The
Group, like most reinsurance companies, enters into retrocession
arrangements for many of the same reasons primary insurers seek
reinsurance, including increasing their premium writing and risk
capacity without requiring additional capital and reducing the
effect of individual or aggregate losses. Historically, the
Group has retroceded risks to retrocessionaires on both a
proportional and excess of loss basis. Under its 2003
retrocessional program, the capacity for Property treaties was
for any one risk either EUR 10 million per cedent (up
to EUR 20 million when no coinsurance on a given book
of businesses) or

F-22



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

EUR 60 million per territory all cedents
combined as defined by the Groups accumulated liability
for a risk. For the classes of motor liability, credit and bond,
decennial, specific retrocession programs have been established.
In 2003, the Group retention was EUR 25 million per
risk for facultative Property and EUR 25 million per risk
for facultative Casualty.

Paid losses, outstanding losses and IBNR
recoverable from retrocessionaires, which are determined to be
uncollectible, are charged to operations. No material amount was
charged to operations for the years ended December 2003, 2002
and 2001.

The Group withholds funds from retrocessionaires
in accordance with retrocessional agreements. Under the terms of
the agreements, the Group pays interest on the principal amounts
of deposits withheld. Related interest expense was
EUR 32 million, EUR 59 million and
EUR 61 million in 2003, 2002 and 2001.

Certain reinsurance contracts do not, despite
their form, provide for the indemnification of the ceding
company by the reinsurer against loss or liability. Such
contracts primarily consist of non-proportional excess-of-loss
treaties covering catastrophic events, which include profit and
loss sharing clauses upon termination or cancellation. In these
cases, the premium paid or received has been accounted for as a
deposit rather than as premium expense or revenue in accordance
with SFAS 113. Amounts recorded as deposits, and classified
as other assets, under such contracts totaled none and
EUR 10 million as of December 31, 2003 and 2002,
respectively. Amounts received and recorded as funds held under
reinsurance treaties under such contracts at such dates were
EUR 105 million and EUR 175 million as of
December 31, 2003 and 2002, respectively.

As of December 31, 2003 and based on the
Groups ceded premiums, there were no Non-Life Property
Casualty retrocessionaires whose the share did exceed 20% of the
total retrocession.



|        |                     
|------- | --------------------
|Note 4. | Comprehensive Income

Related tax effects allocated to each component
of other comprehensive income for the years ended
December 31, 2001, 2002 and 2003 are as follows:

|                                                                        |                                                                                             |                              |     |            |   |         |    |    |   |  |     |     |  
|----------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ---------------------------- | --- | ---------- | - | ------- | -- | -- | - |  | --- | --- | -
|                                                                        |                                                                                             |                             
|                                                                        |                                                                                             | Year ended December 31, 2001
|                                                                        |                                                                                             |                             
|                                                                        |                                                                                             | Before-                      |     | Tax        |   | Net-of-
|                                                                        |                                                                                             | Tax                          |     | (Expense)  |   | Tax    
|                                                                        |                                                                                             | Amount                       |     | or Benefit |   | Amount 
|                                                                        |                                                                                             |                              |     |            |   |        
|                                                                        |                                                                                             |                             
|                                                                        |                                                                                             | (EUR, in millions)          
|Foreign currency translation adjustment                                 |                                                                                             |                              | 18  |            |   |         |   |    |   |  | 18  |    
|Unrealized appreciation (depreciation) on
    investments during period |                                                                                             |                              |     |            |   |         |    |    |   |  |     |    
|                                                                        | Fixed maturities                                                                            |                              |     | 19         |   |         |    | (4 | ) |  |     | 15  |  
|                                                                        | Equity securities                                                                           |                              |     |           |   |         |    |   |   |  |     |    |  
|                                                                        | Investments accounted for by the equity method                                              |                              |     | (28        | ) |         |    | 10 |   |  |     | (18 | )
|                                                                        | Less: reclassification adjustment for prior
    periods appreciation included in net income |                              |     | (39        | ) |         |    | 14 |   |  |     | (25 | )
|                                                                        |                                                                                             |                              |     |            |   |         |    |    |   |  |     |    
|Other comprehensive income                                              |                                                                                             |                              | (30 | )          |   |         | 20 |    |   |  | (10 | )  
|                                                                        |                                                                                             |                              |     |            |   |         |    |    |   |  |     |    

F-23



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

|                                                                        |                                                                                             |                              |     |            |   |         |     |     |   |  |     |     |  
|----------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ---------------------------- | --- | ---------- | - | ------- | --- | --- | - |  | --- | --- | -
|                                                                        |                                                                                             |                             
|                                                                        |                                                                                             | Year ended December 31, 2002
|                                                                        |                                                                                             |                             
|                                                                        |                                                                                             | Before-                      |     | Tax        |   | Net-of-
|                                                                        |                                                                                             | Tax                          |     | (Expense)  |   | Tax    
|                                                                        |                                                                                             | Amount                       |     | or Benefit |   | Amount 
|                                                                        |                                                                                             |                              |     |            |   |        
|                                                                        |                                                                                             |                             
|                                                                        |                                                                                             | (EUR, in millions)          
|Foreign currency translation adjustment                                 |                                                                                             |                              | (80 | )          |   |         |    |     |   |  | (80 | )  
|Unrealized appreciation (depreciation) on
    investments during period |                                                                                             |                              |     |            |   |         |     |     |   |  |     |    
|                                                                        | Fixed maturities                                                                            |                              |     | 98         |   |         |     | (24 | ) |  |     | 74  |  
|                                                                        | Equity securities                                                                           |                              |     | (18        | ) |         |     | 7   |   |  |     | (10 | )
|                                                                        | Less: reclassification adjustment for prior
    periods appreciation included in net income |                              |     | 102        |   |         |     | (36 | ) |  |     | 66  |  
|                                                                        |                                                                                             |                              |     |            |   |         |     |     |   |  |     |    
|Other comprehensive income                                              |                                                                                             |                              | 102 |            |   |         | (53 | )   |   |  | 50  |    
|                                                                        |                                                                                             |                              |     |            |   |         |     |     |   |  |     |    

|                                                                        |                                                                                             |                              |      |            |   |         |    |     |   |  |      |     |  
|----------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ---------------------------- | ---- | ---------- | - | ------- | -- | --- | - |  | ---- | --- | -
|                                                                        |                                                                                             |                             
|                                                                        |                                                                                             | Year ended December 31, 2003
|                                                                        |                                                                                             |                             
|                                                                        |                                                                                             | Before-                      |      | Tax        |   | Net-of-
|                                                                        |                                                                                             | Tax                          |      | (Expense)  |   | Tax    
|                                                                        |                                                                                             | Amount                       |      | or Benefit |   | Amount 
|                                                                        |                                                                                             |                              |      |            |   |        
|                                                                        |                                                                                             |                             
|                                                                        |                                                                                             | (EUR, in millions)          
|Foreign currency translation adjustment                                 |                                                                                             |                              | (61  | )          |   |         |   |     |   |  | (61  | )  
|Unrealized appreciation (depreciation) on
    investments during period |                                                                                             |                              |      |            |   |         |    |     |   |  |      |    
|                                                                        | Fixed maturities                                                                            |                              |      | (59        | ) |         |    | 6   |   |  |      | (53 | )
|                                                                        | Equity securities                                                                           |                              |      | 34         |   |         |    | (12 | ) |  |      | 22  |  
|                                                                        | Less: reclassification adjustment for prior
    periods appreciation included in net income |                              |      | (63        | ) |         |    | 22  |   |  |      | (41 | )
|                                                                        |                                                                                             |                              |      |            |   |         |    |     |   |  |      |    
|Other comprehensive income                                              |                                                                                             |                              | (149 | )          |   |         | 16 |     |   |  | (133 | )  
|                                                                        |                                                                                             |                              |      |            |   |         |    |     |   |  |      |    

Net of tax balances of each classification within
accumulated other comprehensive income as of December 31,
2001, 2002 and 2003 are as follows:

|                             |                                |                          |  |                   |     |                   |  |               |     |   |  |     |    |   |  |      |     | 
|---------------------------- | ------------------------------ | ------------------------ |  | ----------------- | --- | ----------------- |  | ------------- | --- | - |  | --- | -- | - |  | ---- | --- | 
|                             |                                |                          |  |                   |     | Unrealized        |  |              
|                             |                                |                          |  | Unrealized        |     | Appreciation      |  | Accumulated  
|                             |                                | Foreign Currency         |  | Appreciation      |     | (Depreciation) of |  | Other        
|                             |                                | Translation              |  | (Depreciation) of |     | Equity Method     |  | Comprehensive
|                             |                                | Adjustment               |  | Investments       |     | Investments       |  | Income       
|                             |                                |                          |  |                   |     |                   |  |              
|                             |                                |                         
|                             |                                | (EUR, in millions)      
|Year ended December 31, 2001 |                                |                          |  |                   |     |                   |  |               |     |   |  |     |    |   |  |     
|                             | Balance at beginning of Period |                          |  | 147               |     |                   |  | (33           | )   |   |  | 18  |    |   |  | 132  |    
|                             | Current-period change          |                          |  | 18                |     |                   |  | (9            | )   |   |  | (19 | )  |   |  | (10  | )  
|                             |                                | Balance at end of period |  |                   | 165 |                   |  |               | (42 | ) |  |     | (1 | ) |  |      | 122 | 
|Year ended December 31, 2002 |                                |                          |  |                   |     |                   |  |               |     |   |  |     |    |   |  |     
|                             | Current-period change          |                          |  | (80               | )   |                   |  | 129           |     |   |  | 1   |    |   |  | 50   |    
|                             |                                | Balance at end of period |  |                   | 85  |                   |  |               | 87  |   |  |     | 0  |   |  |      | 172 | 
|Year ended December 31, 2003 |                                |                          |  |                   |     |                   |  |               |     |   |  |     |    |   |  |     
|                             | Current-period change          |                          |  | (61               | )   |                   |  | (72           | )   |   |  |    |    |   |  | (133 | )  
|                             |                                | Balance at end of period |  |                   | 24  |                   |  |               | 15  |   |  |     |   |   |  |      | 39  | 

F-24



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)



|        |                                                   
|------- | --------------------------------------------------
|Note 5. | Investments accounted for by the equity
    method

At the end of June 2002, SCOR sold its ownership
interest in Coface to NATEXIS. This transaction provides an
additional EUR 275 million in liquidity and a net
consolidated increase after tax in Group shareholders
equity of EUR 62 million (EUR 90 million
before tax).



|        |     
|------- | ----
|Note 6. | Debt

Short-term and long-term debt, as well as
designated interest rate swap agreements, consists of the
following:

|                                                                 |                       |                    |     |       |  |       |     |       |  |  |     |     |  |  |     |     | 
|---------------------------------------------------------------- | --------------------- | ------------------ | --- | ----- |  | ----- | --- | ----- |  |  | --- | --- |  |  | --- | --- | 
|                                                                 |                       |                   
|                                                                 |                       | As of December 31,
|                                                                 |                       |                   
|                                                                 |                       |                    |     |      
|                                                                 |                       | 2002               |     | 2003 
|                                                                 |                       |                    |     |      
|                                                                 |                       | Book               |     | Fair  |  | Book  |     | Fair 
|                                                                 |                       | Value              |     | Value |  | Value |     | Value
|                                                                 |                       |                    |     |       |  |       |     |      
|                                                                 |                       |                   
|                                                                 |                       | (EUR, in millions)
|Commercial paper  fixed rate                                    |                       |                    |    |       |  |       |    |       |  |  |    |     |  |  |    |    
|Bank and other short-term loans                                  |                       |                    | 12  |       |  |       | 12  |       |  |  | 14  |     |  |  | 14  |    
|                                                                 |                       |                    |     |       |  |       |     |       |  |  |     |     |  |  |     |    
|                                                                 | Total short-term debt |                    |     | 12    |  |       |     | 12    |  |  |     | 14  |  |  |     | 14  | 
|Notes payable  fixed rate                                       |                       |                    | 62  |       |  |       | 62  |       |  |  | 36  |     |  |  | 36  |    
|Convertible subordinated debentures  1%                         |                       |                    | 251 |       |  |       | 237 |       |  |  | 257 |     |  |  | 252 |    
|EUR 200 million debentures  5.25%                               |                       |                    | 200 |       |  |       | 200 |       |  |  | 200 |     |  |  | 210 |    
|EUR 50 million perpetual subordinated debt
     EURIBOR + 0.75% |                       |                    | 50  |       |  |       | 50  |       |  |  | 50  |     |  |  | 50  |    
|USD 100 million 30-year subordinated debt
     LIBOR + 0.80%    |                       |                    | 96  |       |  |       | 96  |       |  |  | 79  |     |  |  | 79  |    
|EUR 100 million 20-year subordinated debt
     EURIBOR + 1.15%  |                       |                    | 100 |       |  |       | 100 |       |  |  | 100 |     |  |  | 100 |    
|Other long-term debt(1)                                          |                       |                    |    |       |  |       |    |       |  |  | 150 |     |  |  | 150 |    
|                                                                 |                       |                    |     |       |  |       |     |       |  |  |     |     |  |  |     |    
|                                                                 | Total long-term debt  |                    |     | 759   |  |       |     | 745   |  |  |     | 872 |  |  |     | 877 | 
|                                                                 |                       |                    |     |       |  |       |     |       |  |  |     |     |  |  |     |    
|                                                                 | Total obligations     |                    |     | 771   |  |       |     | 757   |  |  |     | 886 |  |  |     | 891 | 
|                                                                 |                       |                    |     |       |  |       |     |       |  |  |     |     |  |  |     |    
|Fair value of interest rate swap agreements                      |                       |                    | (1  | )     |  |       | (1  | )     |  |  | (1  | )   |  |  | (1  | )  
|                                                                 |                       |                    |     |       |  |       |     |       |  |  |     |     |  |  |     |    
|                                                                 | Total debt            |                    |     | 770   |  |       |     | 756   |  |  |     | 885 |  |  |     | 890 | 
|                                                                 |                       |                    |     |       |  |       |     |       |  |  |     |     |  |  |     |    






|    |                                                                        
|--- | -----------------------------------------------------------------------
|(1) | This relates to SCOR headquarters. For further
    details, see Note 2.

The notional amount of swap agreements designated
as fair value interest risk hedges outstanding as of
December 31, 2003 was EUR 10 million. Fair value
is based on the discounted amount of future cash flows.
Considering that borrowings carry a variable rate of interest,
face value approximates fair value. Fair value of convertible
subordinated debt is based on quoted market price as of
December 31, 2002 and 2003.

F-25



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

At December 31, 2003, the Group was party to
a number of interest rate swap agreements to hedge several of
its debt securities outstanding. The aggregate fair value of
these swaps totaled 1 million euros. The ineffective part
of the hedges is recognized in the net income (see note 13).

Debt outstanding was denominated in the following
currencies, stated at year-end exchange rates:

|            |            |              |     |      |  |  |     |     | 
|----------- | ---------- | ------------ | --- | ---- |  |  | --- | --- | 
|            |            |             
|            |            | As of       
|            |            | December 31,
|            |            |             
|            |            | 2002         |     | 2003
|            |            |              |     |     
|            |            |             
|            |            | (EUR,       
|            |            | in millions)
|Euro        |            |              | 674 |      |  |  | 656 |    
|U.S. Dollar |            |              | 96  |      |  |  | 79  |    
|            |            |              |     |      |  |  |     |    
|            | Total debt |              |     | 770  |  |  |     | 735 | 
|            |            |              |     |      |  |  |     |    

Debt, presented by interest rate and reflecting
any effect of interest rate swap agreements is as follows:

|                                         |            |              |     |      |  |  |     |     | 
|---------------------------------------- | ---------- | ------------ | --- | ---- |  |  | --- | --- | 
|                                         |            |             
|                                         |            | As of       
|                                         |            | December 31,
|                                         |            |             
|                                         |            | 2002         |     | 2003
|                                         |            |              |     |     
|                                         |            |             
|                                         |            | (EUR,       
|                                         |            | in millions)
|Below 4%                                 |            |              | 308 |      |  |  | 260 |    
|4 to 5.5%                                |            |              | 10  |      |  |  | 35  |    
|5.5 to 6.5%                              |            |              | 204 |      |  |  | 207 |    
|Variable rates based on LIBOR or Euribor |            |              | 248 |      |  |  | 233 |    
|                                         |            |              |     |      |  |  |     |    
|                                         | Total debt |              |     | 770  |  |  |     | 735 | 
|                                         |            |              |     |      |  |  |     |    

Related interest expense for the year, was
EUR 79 million, EUR 89 million and
EUR 70 million, in 2003, 2002 and 2001, respectively.

F-26



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

On March 23, 1999, June 25, 1999 and
July 6, 2000, SCOR issued subordinated debts programs for
EUR 50 million, USD 100 million and
EUR 100 million respectively. All consist of step-up
notes under the following conditions:

|                 |  |           |  |                                                                                   |  |                                                                                     |  |             |  |                                                                                                                                                                                     
|---------------- |  | --------- |  | --------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------- |  | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                 |  |           |  |                                                                                   |  |                                                                                     |  |            
|Principal Amount |  | Term      |  | Interest Rate                                                                     |  | Interest Payment                                                                    |  | Redeemable 
|                 |  |           |  |                                                                                   |  |                                                                                     |  |            
|                 |  |           |  |                                                                                   |  |                                                                                     |  |             |  |                                                                                                                                                                                     
|EUR 50 million   |  | Perpetual |  | From March, 1999 to March, 2014: EURIBOR for
    six-month deposits + 0.75%       |  | March 2014 and Thereafter: EURIBOR for six-month
    deposits + 1.75%               |  | Semi-annual |  | In whole and not in part, at the option of the
    Company on or about March 24, 2009, or on any interest
    payment date falling on or about each fifth anniversary
    thereafter
|USD 100 million  |  | 2029      |  | From June, 1999 to June, 2009: LIBOR for three
    months deposits in USD + 0.80% |  | From June, 2009 to June, 2029: LIBOR for three
    months deposits in USD + 1.80%   |  | Quarterly   |  | In whole or in part, at the option of the Company
    on or about June 25, 2009, or on any interest payment date
    falling thereafter                                             
|EUR 100 million  |  | 2020      |  | From July, 2000 to j July, 2010: EURIBOR for
    three months deposits + 1.15%    |  | From July, 2010 to July, 2020: EURIBOR for three
    months deposits in USD + 2.15% |  | Quarterly   |  | In whole but not in part, at the option of the
    Company on or about July 6, 2010, or on any interest
    payment date falling thereafter                                         

On June 19, 2002, SCOR issued a
unsubordinated debts for EUR 200 million. The notes
are issued under the following conditions:

|                 |  |      |  |                                                |  |                  |  |                                                                            |  | 
|---------------- |  | ---- |  | ---------------------------------------------- |  | ---------------- |  | -------------------------------------------------------------------------- |  | 
|                 |  |      |  |                                                |  |                  |  |                                                                           
|Principal Amount |  | Term |  | Interest Rate                                  |  | Interest Payment |  | Redeemable                                                                
|                 |  |      |  |                                                |  |                  |  |                                                                           
|                 |  |      |  |                                                |  |                  |  |                                                                            |  | 
|EUR 200 million  |  | 2007 |  | From June, 2002 to June, 2007: Fix Rate 5,25%. |  | Annual           |  | The notes will be redeemed at their principal
    amount on June 21, 2007.

On June 15, 1999, SCOR launched a
EUR 233 million issue of convertible bonds redeemable
in new or existing shares (OCEANE),
represented by 4,025,000 bonds with a nominal value of
EUR 58 each. The OCEANE bear interest at a rate of 1% per
annum, payable annually on January 1, of each year, and are
redeemable in full at maturity on January 1, 2005 at
EUR 65.28 per bond. Early redemption in whole or in part is
possible, at the option of the Company by:



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | purchases on the market or public offers,                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| | (2) | at any time from January 1, 2003 until
    December 31, 2004, at an early redemption price equivalent
    to the yield to maturity if the product of the conversion ratio
    and the arithmetic means of the closing prices of the SCOR
    Ordinary Share over 20 consecutive trading days of the 40
    consecutive trading days preceding the publication of a notice
    concerning such redemption, exceeds 120% of the early redemption
    price of each bond, and
|
| | (3) | when less than 10% of the bond issue remains
    outstanding.                                                                                                                                                                                                                                                                                                                                                                                                             

Bondholders may request conversion at any time
from June 28, 1999. The Company may, at its option, deliver
new shares and/or existing shares.

F-27



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

Repayments of long-term debt as of
December 31, 2003 were scheduled as follows:

|           |                      |                    |     |     |    
|---------- | -------------------- | ------------------ | --- | --- | ---
|Year       |                      | Payment           
|           |                      |                   
|           |                      | (EUR, in millions)
|2004       |                      |                    | 14  |    
|2005       |                      |                    | 257 |    
|2006       |                      |                    |    |    
|2007       |                      |                    | 224 |    
|2008       |                      |                    |    |    
|Thereafter |                      |                    | 240 |    
|           |                      |                    |     |    
|           | Total long-term debt |                    |     | 735 | (1)
|           |                      |                    |     |    






|    |                                                                                    
|--- | -----------------------------------------------------------------------------------
|(1) | Excluding EUR 150 million related to
    the sale of the SCOR building. See Note 2.

At December 31, 2003, the Group had
approximately EUR 50 million available in unused short
and long-term credit lines.



|        |           
|------- | ----------
|Note 7. | Income Tax

The provision for income tax consisted of the
following components:

|                               |         |                                  |      |      |      |      |     |     |    |  |     |     |     | 
|------------------------------ | ------- | -------------------------------- | ---- | ---- | ---- | ---- | --- | --- | -- |  | --- | --- | --- | 
|                               |         |                                 
|                               |         | Year ended December 31,         
|                               |         |                                 
|                               |         | 2001                             |      | 2002 |      | 2003
|                               |         |                                  |      |      |      |     
|                               |         |                                 
|                               |         | (EUR, in millions)              
|Current tax expense (benefit)  |         |                                  |      |      |      |      |     |     |    |  |     |    
|                               | French  |                                  |      | 1    |      |      |     | (8  | )  |  |     | 1   |    
|                               | Foreign |                                  |      | 8    |      |      |     | (11 | )  |  |     | 32  |    
|                               |         |                                  |      |      |      |      |     |     |    |  |     |    
|                               |         |                                  | 9    |      |      |      | (19 | )   |    |  | 33  |    
|                               |         |                                  |      |      |      |      |     |     |    |  |     |    
|Deferred tax expense (benefit) |         |                                  |      |      |      |      |     |     |    |  |     |    
|                               | French  |                                  |      | (150 | )    |      |     | (47 | )  |  |     | 171 |    
|                               | Foreign |                                  |      | (110 | )    |      |     | 94  |    |  |     | 89  |    
|                               |         |                                  |      |      |      |      |     |     |    |  |     |    
|                               |         |                                  | (260 | )    |      |      | 47  |     |    |  | 260 |    
|                               |         |                                  |      |      |      |      |     |     |    |  |     |    
|                               |         | Total provision for income taxes |      |      | (251 | )    |     |     | 28 |  |     |     | 293 | 
|                               |         |                                  |      |      |      |      |     |     |    |  |     |    

At December 31, 2003, the most significant
change of the net income tax expense is a tax loss resulting of
an additional impairment of EUR 385 million based on
assets tax recorded in accordance to SFAS 109 due to a net loss
result of SCOR US and SCOR for three consecutive years.

F-28



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

The deferred tax assets and liabilities on the
consolidated balance sheets reflect timing differences between
the carrying amount of assets and liabilities for financial
reporting and income tax purposes. Significant components of the
Groups deferred tax assets and liabilities are as follows:

|                       |                                                                   |              |  |      |     |  |  |      |  
|---------------------- | ----------------------------------------------------------------- | ------------ |  | ---- | --- |  |  | ---- | -
|                       |                                                                   |             
|                       |                                                                   | As of       
|                       |                                                                   | December 31,
|                       |                                                                   |             
|                       |                                                                   | 2002         |  | 2003
|                       |                                                                   |              |  |     
|                       |                                                                   |             
|                       |                                                                   | (EUR,       
|                       |                                                                   | in millions)
|Deferred tax liability |                                                                   |              |  |      |     |  |  |     
|                       | Deferred policy acquisition costs                                 |              |  | 91   |     |  |  | 88   |  
|                       | Unrealized appreciation and timing differences on
    investments |              |  | 13   |     |  |  | 5    |  
|                       | Equalization reserves                                             |              |  | 14   |     |  |  | 16   |  
|                       | Catastrophe reserves                                              |              |  | 4    |     |  |  |     |  
|                       | Amortization of goodwill                                          |              |  | 11   |     |  |  |     |  
|                       | Ceding commission acquisition Allstate                            |              |  | 14   |     |  |  | 17   |  
|                       | Financial instruments                                             |              |  |     |     |  |  | 11   |  
|                       | Loss carryforward                                                 |              |  |     |     |  |  | 1    |  
|                       | Temporary differences and other                                   |              |  | 77   |     |  |  | 50   |  
|                       |                                                                   |              |  |      |     |  |  |     
|                       | Total deferred tax liability                                      |              |  | 224  |     |  |  | 188  |  
|                       |                                                                   |              |  |      |     |  |  |     
|Deferred tax asset     |                                                                   |              |  |      |     |  |  |     
|                       | Unrealized depreciation and timing differences of
    investments |              |  |     |     |  |  | 1    |  
|                       | Retirement plan                                                   |              |  | 1    |     |  |  | 1    |  
|                       | Loss carryforward                                                 |              |  | 456  | (1) |  |  | 539  |  
|                       | Handling claims reserves                                          |              |  | 1    |     |  |  |     |  
|                       | Loss reserves                                                     |              |  | 75   |     |  |  | 66   |  
|                       | Unearned premium                                                  |              |  | 12   |     |  |  | 4    |  
|                       | Cancellation of internal realized gains on sale
    of assets     |              |  | 5    |     |  |  | 5    |  
|                       | Portfolio transfer adjustment                                     |              |  | 18   |     |  |  |     |  
|                       | Realized gain (loss) on real estate                               |              |  |     |     |  |  | 24   |  
|                       | Temporary differences and other                                   |              |  | 2    |     |  |  |     |  
|                       |                                                                   |              |  |      |     |  |  |     
|                       | Total deferred tax asset                                          |              |  | 438  |     |  |  | 640  |  
|                       | Valuation allowance                                               |              |  | (132 | )   |  |  | (491 | )
|                       |                                                                   |              |  |      |     |  |  |     
|                       | Net deferred tax asset (liability)                                |              |  | 214  |     |  |  | (39  | )
|                       |                                                                   |              |  |      |     |  |  |     






|    |                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------
|(1) | In 2002, impairments from SCOR US for
    EUR 68 million and EUR 70 million for SCOR
    Paris have been recorded.

In the table presented above, deferred tax assets
and liabilities are presented by nature, whereas they are
presented on the balance sheet, tax-entity (or group) by
tax-entity (or group).

As December 31, 2002, we had
EUR 214 million of net deferred tax assets, net of
impairment from SCOR US loss carry forwards, related principally
to domestic and US domiciled loss carry forwards, for which no
valuation allowance has been recorded. The realization of these
assets is based upon estimates of future taxable income. In
preparing estimates of future taxable income, we have used the
same assumptions and projections utilized in our internal
forecasts. Based on these projections, we estimate that the loss
carry forwards will be utilized prior the expiration of the loss
carry forwards except for a part estimated to
EUR 138 million recorded as an impairment loss during
2002. Estimates of future earnings are based on an increase in
reinsurance rates, and the absence of major catastrophes like
those hitting us in 2002. Should the pretax book income and
taxable income instead

F-29



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

remain at 2002 levels due to an occurrence of
other catastrophes, a valuation allowance would be required. In
addition, management believes certain tax planning strategies
exist, including its ability to alter the mix of its investment
portfolio to taxable investments from tax-exempt investments,
which could be implemented if necessary to ensure sufficient
taxable income to realize fully its deferred income tax benefits.

At December 31, 2003, we had EUR
39 million of deferred tax liability.

A reconciliation of income tax expense computed
by applying the French income tax rate of 35.43% in 2003, 35.43%
in 2002 and 36.43% in 2001 to income from operations before
income taxes is as follows:

|                                             |                                  |                         |      |      |   |      |      |    |  |  |     |     | 
|-------------------------------------------- | -------------------------------- | ----------------------- | ---- | ---- | - | ---- | ---- | -- |  |  | --- | --- | 
|                                             |                                  |                        
|                                             |                                  | Year ended December 31,
|                                             |                                  |                        
|                                             |                                  | 2001                    |      | 2002 |   | 2003
|                                             |                                  |                         |      |      |   |     
|                                             |                                  |                        
|                                             |                                  | (EUR, in millions)     
|Computed tax expense at statutory rate       |                                  |                         | (226 | )    |   |      | (175 | )  |  |  | (66 | )  
|Losses carried forward                       |                                  |                         | 31   |      |   |      | 136  |    |  |  | 366 |    
|Tax exempt revenues and expenses             |                                  |                         | (22  | )    |   |      | 24   |    |  |  | (9  | )  
|Changes from statutory tax rate              |                                  |                         | (11  | )    |   |      | 40   |    |  |  | 4   |    
|Goodwill and other consolidation adjustments |                                  |                         | (23  | )    |   |      |     |    |  |  |    |    
|Others, net                                  |                                  |                         |     |      |   |      | 3    |    |  |  |    |    
|                                             |                                  |                         |      |      |   |      |      |    |  |  |     |    
|                                             | Total provision for income taxes |                         |      | (251 | ) |      |      | 28 |  |  |     | 293 | 
|                                             |                                  |                         |      |      |   |      |      |    |  |  |     |    



|        |                  
|------- | -----------------
|Note 8. | Employee Benefits



|         |              
|-------- | -------------
|Item 20. | Pension plans

The Group contributes to retirement plans for its
personnel in accordance with laws and practices of each country.

In countries where company-sponsored employee
retirement plans exist, primarily the United States, provision
is made in the consolidated financial statements in respect of
Group employees based on actuarial calculations. In 1997 the
Company established a defined benefit retirement plan for
certain of its key employees. The plan is noncontributory and
provides pension benefits for eligible employees. The plan is
funded with contributions to an insurance company.

The following table sets forth the key components
of the pension plans as of December 31, 2002 and 2003:

|                                                                       |  |       |         |      |  |  |         |  
|---------------------------------------------------------------------- |  | ----- | ------- | ---- |  |  | ------- | -
|                                                                       |  | 2003  |         | 2002
|                                                                       |  |       |         |     
|                                                                       |  |      
|                                                                       |  | in K
|Projected Benefit Obligation at end of
    year                        |  |       | 40,306  |      |  |  | 41,390  |  
|Fair value of Plan Assets at end of
    year                           |  |       | 15,863  |      |  |  | 14,810  |  
|Funded status                                                          |  |       | (24,443 | )    |  |  | (26,580 | )
|                                                                       |  |       |         |      |  |  |         |  
|Unrecognized elements (actuarial gains/losses,
    prior service cost) |  |       | 5,761   |      |  |  | 6,864   |  
|                                                                       |  |       |         |      |  |  |         |  
|Net amount recognized:
    (accrued)/prepaid                           |  |       | (18,681 | )    |  |  | (19,716 | )
|                                                                       |  |       |         |      |  |  |         |  

F-30



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

|                                      |  |       |        |      |  |  |        |  
|------------------------------------- |  | ----- | ------ | ---- |  |  | ------ | -
|                                      |  | 2003  |        | 2002
|                                      |  |       |        |     
|                                      |  |      
|                                      |  | in K
|Net periodic pension cost             |  |       |        |      |  |  |        |  
|Service cost                          |  |       | 2,087  |      |  |  | 2,303  |  
|Interest cost                         |  |       | 2,240  |      |  |  | 2,375  |  
|Expected return on plan assets        |  |       | (1,195 | )    |  |  | (1,533 | )
|Amortization of unrecognized elements |  |       | 248    |      |  |  | 20     |  
|Impact of curtailment/settlement      |  |       | 19     |      |  |  | 176    |  
|                                      |  |       |        |      |  |  |        |  
|Net periodic pension cost             |  |       | 3,399  |      |  |  | 3,340  |  
|                                      |  |       |        |      |  |  |        |  
|Assumptions                           |  |       |        |      |  |  |        |  
|Discount rate                         |  |       | 5.24%  |      |  |  | 5.37%  |  
|Expected return on plan assets        |  |       | 7.58%  |      |  |  | 8.07%  |  



|         |              
|-------- | -------------
|Item 21. | Savings plans

Substantially all employees of the French
companies of the Group are eligible to participate in the
corporate and statutory profit-sharing plans. Under these plans,
the benefits to the employees, calculated based on the net
profits for the period and not distributable to the employee for
five years, may be contributed to a company savings plan. The
Company matches partially the contribution to the savings plan,
for a total of none in 2003, 1 million in 2002 and
EUR 2 million in 2001.

Funds placed in the company savings plan are
invested in highly liquid short-term investments, debt or equity
securities or in shares of SCOR, at the option of the employee.
The company savings plan is managed by a financial institution.

Assets held by the company savings plan are as
follows:

|                                                               |  |                    |    |      |  |      |    |  |  |  |   | 
|-------------------------------------------------------------- |  | ------------------ | -- | ---- |  | ---- | -- |  |  |  | - | 
|                                                               |  |                   
|                                                               |  | As of December 31,
|                                                               |  |                   
|                                                               |  | 2001               |    | 2002 |  | 2003
|                                                               |  |                    |    |      |  |     
|                                                               |  |                   
|                                                               |  | (EUR, in millions)
|Assets held in short-term investments and fixed
    maturities |  |                    | 11 |      |  |      | 10 |  |  |  | 9 | 
|Assets held in French stocks                                   |  |                    | 2  |      |  |      | 2  |  |  |  | 3 | 
|Assets held in Ordinary Shares of SCOR                         |  |                    | 11 |      |  |      | 3  |  |  |  | 1 | 



|        |                                     
|------- | ------------------------------------
|Note 9. | Share Capital and Earnings per Share

SCOR launched a capital increase on
December 9, 2003 for an amount of
EUR 751 million, corresponding to the issuance of
682 million of new shares. This operation, which was
successful, was finalized on January 7, 2004 and will be
recorded in 2004s accounts. The proceeds of this offering,
net of charges, amounted to EUR 708 million.

At December 31, 2003, the number of
outstanding shares equaled 136,544,845 of which 489,500 were
held by SCOR as treasury stock. At December 31, 2002, the
number of outstanding shares equaled 136,544, 845 of which none
was held by SCOR as treasury stock. At December 31, 2001,
the number of outstanding shares equaled 41,244,216 of which
3,630,417 were held by SCOR as treasury stock.

During 2002 and 2001, and for the year ended
December 31, 2001 and 2000, respectively, dividends
totaling EUR 11 million and EUR 52 million ,
respectively were payable.

In accordance with French laws, dividends must be
declared in euro and may only be declared on the parent
companys net income for the year and on the parent
companys retained earnings available for distribution
calculated in accordance with French accounting principles. As
of December 31, 2001, there was no amount

F-31



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

available for distribution. A distribution of a
dividend of EUR 0.30 per share drawn from the special
long-term unrealized capital gains reserve was approved by the
April 10, 2002 shareholders meeting. This purely
accounting procedure will entail no additional advance income
tax charge. As of December 31, 2002 and 2003, no
distribution was done because there was no amount available for
distribution.

The following is the reconciliation of the
numerator and denominator of the basic earnings per share
computation to the numerator and denominator of the diluted
earnings per share computation for the years ended
December 31, 2001, 2002 and 2003, respectively:

|                              |                                                                     |                              |      |               |   |           |  |        |  |  |  |        |  
|----------------------------- | ------------------------------------------------------------------- | ---------------------------- | ---- | ------------- | - | --------- |  | ------ |  |  |  | ------ | -
|                              |                                                                     |                             
|                              |                                                                     | Year ended December 31, 2001
|                              |                                                                     |                             
|                              |                                                                     | Income                       |      | Shares(1)     |   | Per-Share
|                              |                                                                     | (Numerator)                  |      | (Denominator) |   | Amount   
|                              |                                                                     |                              |      |               |   |          
|                              |                                                                     | (EUR, in millions)           |      | (Thousands)   |   | (EUR)    
|Net Income                    |                                                                     |                              | (365 | )             |   |           |  |        |  |  |  |       
|                              |                                                                     |                              |      |               |   |           |  |        |  |  |  |       
|Basic Earnings Per Share      |                                                                     |                              |      |               |   |           |  |        |  |  |  |       
|                              | Income available to Ordinary Shareholders                           |                              |      | (365          | ) |           |  | 33,971 |  |  |  | (10.74 | )
|                              |                                                                     |                              |      |               |   |           |  |        |  |  |  |       
|Effect of dilutive securities |                                                                     |                              |      |               |   |           |  |        |  |  |  |       
|                              | Stock options                                                       |                              |      |              |   |           |  | 292    |  |  |  |        |  
|                              | Convertible bonds                                                   |                              |      | 5             |   |           |  | 4,025  |  |  |  |        |  
|                              |                                                                     |                              |      |               |   |           |  |        |  |  |  |       
|Diluted Earnings Per Share    |                                                                     |                              |      |               |   |           |  |        |  |  |  |       
|                              | Income available to Ordinary Shareholders +
    assumed conversions |                              |      | (360          | ) |           |  | 38,288 |  |  |  | (9.40  | )
|                              |                                                                     |                              |      |               |   |           |  |        |  |  |  |       






|    |                                                                            
|--- | ---------------------------------------------------------------------------
|(1) | Weighted average number of shares outstanding
    excluding treasury stocks

Options to purchase Ordinary Shares at
EUR 37.2, EUR 56.25, EUR 46.00, EUR 48.00,
and EUR 45.00 per share were granted in 1997, in 1998, in
1999 in 2000 and in 2001. 2.074.950 such options at
December 31, 2001 were outstanding but were not included in
the computation of diluted earnings per share because the
options exercise price was greater than the average market
price of the Ordinary Shares.

|                              |                                                                     |                              |      |               |   |           |  |         |  |  |  |       |  
|----------------------------- | ------------------------------------------------------------------- | ---------------------------- | ---- | ------------- | - | --------- |  | ------- |  |  |  | ----- | -
|                              |                                                                     |                             
|                              |                                                                     | Year ended December 31, 2002
|                              |                                                                     |                             
|                              |                                                                     | Income                       |      | Shares(1)     |   | Per-Share
|                              |                                                                     | (Numerator)                  |      | (Denominator) |   | Amount   
|                              |                                                                     |                              |      |               |   |          
|                              |                                                                     | (EUR, in millions)           |      | (Thousands)   |   | (EUR)    
|Net Income                    |                                                                     |                              | (561 | )             |   |           |  |         |  |  |  |      
|                              |                                                                     |                              |      |               |   |           |  |         |  |  |  |      
|Basic Earnings Per Share      |                                                                     |                              |      |               |   |           |  |         |  |  |  |      
|                              | Income available to Ordinary Shareholders                           |                              |      | (561          | ) |           |  | 136,592 |  |  |  | (4.11 | )
|                              |                                                                     |                              |      |               |   |           |  |         |  |  |  |      
|Effect of dilutive securities |                                                                     |                              |      |               |   |           |  |         |  |  |  |      
|                              | Stock options                                                       |                              |      |              |   |           |  |        |  |  |  |       |  
|                              | Convertible bonds                                                   |                              |      |              |   |           |  |        |  |  |  |       |  
|                              |                                                                     |                              |      |               |   |           |  |         |  |  |  |      
|Diluted Earnings Per Share    |                                                                     |                              |      |               |   |           |  |         |  |  |  |      
|                              | Income available to Ordinary Shareholders +
    assumed conversions |                              |      | (561          | ) |           |  | 136,592 |  |  |  | (4.11 | )
|                              |                                                                     |                              |      |               |   |           |  |         |  |  |  |      






|    |                                                                            
|--- | ---------------------------------------------------------------------------
|(1) | Weighted average number of shares outstanding
    excluding treasury stocks

Any options to purchase Ordinary Shares options
outstanding at December 31, 2002 included in the
computation of diluted earnings per share because all
options exercise prices were greater than the average
market price of the Ordinary Shares.

F-32



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

|                              |                                                                     |                              |      |               |   |           |  |         |  |  |  |       |  
|----------------------------- | ------------------------------------------------------------------- | ---------------------------- | ---- | ------------- | - | --------- |  | ------- |  |  |  | ----- | -
|                              |                                                                     |                             
|                              |                                                                     | Year ended December 31, 2002
|                              |                                                                     |                             
|                              |                                                                     | Income                       |      | Shares(1)     |   | Per-Share
|                              |                                                                     | (Numerator)                  |      | (Denominator) |   | Amount   
|                              |                                                                     |                              |      |               |   |          
|                              |                                                                     | (EUR, in millions)           |      | (Thousands)   |   | (EUR)    
|Net Income                    |                                                                     |                              | (577 | )             |   |           |  |         |  |  |  |      
|                              |                                                                     |                              |      |               |   |           |  |         |  |  |  |      
|Basic Earnings Per Share      |                                                                     |                              |      |               |   |           |  |         |  |  |  |      
|                              | Income available to Ordinary Shareholders                           |                              |      | (577          | ) |           |  | 136,300 |  |  |  | (4.23 | )
|                              |                                                                     |                              |      |               |   |           |  |         |  |  |  |      
|Effect of dilutive securities |                                                                     |                              |      |               |   |           |  |         |  |  |  |      
|                              | Stock options                                                       |                              |      |              |   |           |  |        |  |  |  |      |  
|                              | Convertible bonds                                                   |                              |      |              |   |           |  |        |  |  |  |      |  
|                              |                                                                     |                              |      |               |   |           |  |         |  |  |  |      
|Diluted Earnings Per Share    |                                                                     |                              |      |               |   |           |  |         |  |  |  |      
|                              | Income available to Ordinary Shareholders +
    assumed conversions |                              |      | (577          | ) |           |  | 136,300 |  |  |  | (4.23 | )
|                              |                                                                     |                              |      |               |   |           |  |         |  |  |  |      






|    |                                                                            
|--- | ---------------------------------------------------------------------------
|(1) | Weighted average number of shares outstanding
    excluding treasury stocks

Any options to purchase Ordinary Shares options
outstanding at December 31, 2003 included in the
computation of diluted earnings per share because all
options exercise prices were greater than the average
market price of the Ordinary Shares.

Note 10.     Stock
Option Plans

SCOR issues to its employees options to purchase
Ordinary Shares of the Company under a number of plans. In all
cases, the exercise price of options granted reflects the market
value of SCORs share at the grant date, resulting in no
compensation expense being recorded.

Under the terms of the plans adopted until 1996,
options vest at the rate of 30% at the end of each the first and
the second year and 40% at the end of the third year of
continued employment. Effective 1997, plans provide for cliff
vesting on the fifth or the fourth anniversary of the grant
date. 16,158 options in 2002, 80,000 options in 2001 and 164,940
options in 2000 were exercised at an aggregate price of
EUR 0.3 million, EUR 2 million and
EUR 3 million, respectively. At December 31,
2002, 820,320 options were exercisable.

The following table summarizes the changes in
options on Ordinary Shares:

|                                 |                   |      |           |          |   |      |           |          |   |  |           |           |  
|-------------------------------- | ----------------- | ---- | --------- | -------- | - | ---- | --------- | -------- | - |  | --------- | --------- | -
|                                 |                   | 2001 |           | 2002     |   | 2003
|                                 |                   |      |           |          |   |     
|Outstanding at beginning of year |                   |      | 2,425,128 |          |   |      | 3,065,228 |          |   |  | 4,915,746 |          
|                                 | Options granted   |      |           | 826,000  |   |      |           |         |   |  |           | 3,884,887 |  
|                                 | Options exercised |      |           | (80,000  | ) |      |           | (16,158  | ) |  |           |          |  
|                                 | Options forfeited |      |           | (105,900 | ) |      |           | (159,850 | ) |  |           | (324,721  | )
|                                 |                   |      |           |          |   |      |           |          |   |  |           |          
|Outstanding at end of year       |                   |      | 3,065,228 |          |   |      | 2,889,220 | (1)      |   |  | 8,475,912 |          
|                                 |                   |      |           |          |   |      |           |          |   |  |           |          






|    |                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Following the capital increase on
    December 31, 2002, the Company has adjusted the number of
    shares eligible to subscription to 4,915,746.

Following the capital increase on January 7,
2004, the Company has adjusted the price of the shares covered
by options granted and the number of shares under option,
pursuant to Section L208-5 of the French July 24, 1966
Act and Article D174-8 of the March 23, 1967 Decree.

F-33



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

The price of shares under option, as set prior to
this operation, has been reduced by an amount equal to the
product of this price multiplied by the ratio between a) the
value of the preferential subscription right and b) the value of
the share prior to removal of this right, i.e.:

|                                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Previous offer price x value of preferential
    subscription right (average listed opening price during the
    subscription period)                                               
|                                                                                                                                                                                    
|Value of share after removal of preferential
    subscription right (average listed opening price during the
    subscription period) + value of preferential subscription
    right

Because the initial value of the option is
supposed to remain constant, the new number of shares eligible
for subscription is equal to the initial value of the option
divided by the new offer price, i.e.:

|                                                
|------------------------------------------------
|Initial number of options x previous offer price
|                                                
|New offer price as defined below                

These calculations have been performed
individually and by-plan, and rounded up to the nearest unit.

The table below summarizes the status of option
plans before and after the 2004 capital increase.

There are no stock option plans providing for the
purchase of or subscription to shares in Group subsidiaries.

|     |  |                                      |       |                                     |  |                |           |                 |  |  |       |  |  |  |            | 
|---- |  | ------------------------------------ | ----- | ----------------------------------- |  | -------------- | --------- | --------------- |  |  | ----- |  |  |  | ---------- | 
|     |  |                                      |       |                                    
|     |  | Before issuance of ordinary shares  |       | After issuance of ordinary shares 
|     |  | public issue                         |       | public issue                       
|     |  |                                      |       |                                    
|     |  |                                      |       | Options                             |  |                |           | Options        
|     |  |                                      |       | outstanding at                      |  |                |           | outstanding at 
|PLAN |  | Exercise price                       |       | the end of year                     |  | Exercise price |           | the end of year
|     |  |                                      |       |                                     |  |                |           |                
|     |  | (in EUR)                             |       |                                     |  | (in EUR)       |           |                
|1994 |  |                                      | 10.22 |                                     |  |                | 78,156    |                 |  |  | 7.02  |  |  |  | 113,809    | 
|1995 |  |                                      | 9.59  |                                     |  |                | 152,795   |                 |  |  | 6.59  |  |  |  | 222,498    | 
|1996 |  |                                      | 17.04 |                                     |  |                | 510,525   |                 |  |  | 11.70 |  |  |  | 743,406    | 
|1997 |  |                                      | 21.88 |                                     |  |                | 619,847   |                 |  |  | 15.03 |  |  |  | 902.587    | 
|1998 |  |                                      | 33.08 |                                     |  |                | 672,567   |                 |  |  | 22.72 |  |  |  | 979.358    | 
|1999 |  |                                      | 27.05 |                                     |  |                | 653,015   |                 |  |  | 18.58 |  |  |  | 950,886    | 
|2000 |  |                                      | 28.23 |                                     |  |                | 142,956   |                 |  |  | 19.39 |  |  |  | 208,164    | 
|2000 |  |                                      | 26.46 |                                     |  |                | 568,845   |                 |  |  | 18.17 |  |  |  | 828,330    | 
|2001 |  |                                      | 28.23 |                                     |  |                | 845,181   |                 |  |  | 19.39 |  |  |  | 1,230,713  | 
|2001 |  |                                      | 19.99 |                                     |  |                | 347,138   |                 |  |  | 13,73 |  |  |  | 505,946    | 
|2003 |  |                                      | 4.16  |                                     |  |                | 956,000   |                 |  |  | 2.86  |  |  |  | 1,392,042  | 
|2003 |  |                                      | 5.74  |                                     |  |                | 2,928,887 |                 |  |  | 3.94  |  |  |  | 4,265,223  | 
|     |  |                                      |       |                                     |  |                |           |                 |  |  |       |  |  |  |            | 
|     |  |                                      |       |                                     |  |                | 8,475,912 |                 |  |  |       |  |  |  | 12,342,962 | 
|     |  |                                      |       |                                     |  |                |           |                 |  |  |       |  |  |  |            | 

F-34



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

Stocks options issued to employees under the
various stock options plans and still outstanding at
December 31, 2003 are as follows:

|                         |                |                     |  |                     |           |                |  |             |           |                |  |  |       |  |  |  |           |  |  |  |       | 
|------------------------ | -------------- | ------------------- |  | ------------------- | --------- | -------------- |  | ----------- | --------- | -------------- |  |  | ----- |  |  |  | --------- |  |  |  | ----- | 
|                         |                |                     |  |                    
|                         |                | Options outstanding |  | Options exercisable
|                         |                |                     |  |                    
|                         |                |                     |  | Weighted-           |           |                |  |            
|                         |                |                     |  | average             |           | Weighted-      |  |             |           | Weighted-     
|                         |                | Number              |  | remaining           |           | average        |  | Number      |           | average       
|Range of Exercise Prices |                | Outstanding         |  | contractual life    |           | exercise price |  | exercisable |           | exercise price
|                         |                |                     |  |                     |           |                |  |             |           |               
|(EUR)                    |                |                     |  |                     |           | (EUR)          |  |             |           | (EUR)         
|                         | 4.16 to 5.74   |                     |  |                     | 3,884,887 |                |  |             | 9.4 years |                |  |  | 5.35  |  |  |  |          |  |  |  |      | 
|                         | 9.59 to 10.22  |                     |  |                     | 230.951   |                |  |             | 1.0 year  |                |  |  | 9.80  |  |  |  | 230,951   |  |  |  | 9.80  | 
|                         | 17.04 to 21.88 |                     |  |                     | 1,477,510 |                |  |             | 4.3 years |                |  |  | 19.76 |  |  |  | 1,802,939 |  |  |  | 19.69 | 
|                         | 26.46 to 27.05 |                     |  |                     | 1,221,860 |                |  |             | 6.1 years |                |  |  | 26.78 |  |  |  |          |  |  |  |      | 
|                         | 28.23 to 33.08 |                     |  |                     | 1,660,704 |                |  |             | 6.3 years |                |  |  | 30.19 |  |  |  |          |  |  |  |      | 
|                         | 4.16 to 33.08  |                     |  |                     | 8,475,912 |                |  |             | 7.2 years |                |  |  | 13.49 |  |  |  | 2,033,890 |  |  |  | 18.02 | 

As discussed in Note 1, the Company has
elected to follow APB 25 and related Interpretations in
accounting for its employees stock options because, as discussed
below, the alternative fair value accounting provided for under
SFAS 123 requires the use of option valuation models that
were not developed for use in valuing employee stock options.
Under APB 25, when the exercise price of the Companys
employee stock options is lower than the market price of the
underlying stock on the date of grant, a compensation expense is
recognized.

Pro forma information regarding net income and
earnings per share is required by SFAS 123, and has been
determined as if the Company had accounted for its employee
stock options under the fair value method of that Statement. The
fair value method was estimated at the date of grant using a
Black-Scholes option pricing model with the following weighted
average assumptions for October 2001, September 2001, August
2000, May 2000, and 1999, respectively: risk-free interest rates
of 4.01%, 4.45%, 5.32%, 5.29% and 4.47%; expected dividend
yields of 5.00%, 3.54%, 3.78%, 3.54% and 3.54%; volatility
factors of the expected market price of the Companys
Ordinary Shares of 0.412, 0.277, 0.422, 0.403 and 0.454; and a
weighted-average expected life of the option of 5 years.

The Black-Scholes option valuation model was
developed for use in estimating the fair value of traded
options, which have no vesting restrictions and are fully
transferable. In addition, option valuation models require the
input of highly subjective assumptions including the expected
stock price volatility. Because the Companys employee
stock options have characteristics significantly different from
those of traded options, and because changes in the subjective
input assumptions can materially affect the fair value estimate,
in managements opinion, the existing models do not
necessarily provide a reliable measure of the fair value of its
employee stock options.

For purposes of pro forma disclosures, the
estimated fair value of the options is recognized to expense
according to the options graded vesting schedule of 30% at
the end of each the first and the second year and 40% at the end
of the third year of continued employment, for plans prior to
December 31, 1996. For plans established after that date,
the estimated fair value of the options is recognized to expense
over the vesting period of five or four years. An adjustment to
eliminate compensation cost previously recognized for options
that were subsequently forfeited is recognized when the
forfeiture occurs. Had compensation expense for SCORs
stock option plans been recognized in accordance with SFAS 123,
SCORs net income, basic earnings per share and diluted
earnings per share would have been EUR - 568 million
or EUR - 4.16 and EUR - 4.16 per share,
respectively, for the year ended December 31, 2002,
EUR - 372 million or EUR - 10.94 and
EUR - 9.58 per share, respectively, for the year ended
December 31, 2001 and EUR 71 million or
EUR 2.26 and EUR 2.14 per share, respectively, for the
year ended December 31, 2000.

F-35



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

Note 11.     Catastrophe
Reserve

Management has allocated a portion of SCOR
Groups consolidated retained earnings to a catastrophe
reserve that is not available for dividend distribution. This
reserve is intended to represent an allocation of funds for
settlement of claims related to future catastrophic disasters.

Note 12.     Financial
Instruments

Item 22. Concentration of credit
risk

Credit risk arises from the possible inability of
counter parties to meet the terms of their contracts and from
changes in security values, interest rates, and currency rates.
In the event counter parties are unable to fulfill their
contractual obligations, future losses due to defaults may
exceed amounts currently being recognized in the balance sheet
up to a maximum of the notional principal amounts of the
instruments. Counter parties to the financial instruments are,
in decreasing order of magnitude, foreign and domestic
commercial banks, U.S. Government-chartered organizations,
sovereigns and corporations. In selecting its counter parties,
the Group carefully assesses their creditworthiness by
evaluating credit exposure and referring to the ratings of
widely accepted credit rating services. With certain counter
parties, the Group receives cash and/or investment grade
securities as collateral to mitigate its credit exposure.

At December 31, 2003, the Group did not have
a material concentration of financial instruments in any single
investee, industry or geographic location. Almost all of the
Groups investment in fixed maturities are investment grade
securities.

The Groups client base and the geographic
diversity thereof limit the concentration of credit risk on
amounts due from clients. At December 31, 2003, the Group
had no significant concentrations of credit risk by geographic
area.

Item 23. Fair value of financial
instruments

The following methods and assumptions were used
by the Group to estimate the fair value disclosures for its
assets and liabilities as of December 31, 2003 and 2002:

Item 24. Fixed maturities and equity
securities

Fair values are based on quoted market prices or
dealer quotes. If quoted market prices are not available, fair
value is estimated using quoted market prices for similar
securities.

Item 25. Cash and short-term
investments

The purchase cost is a reasonable estimate of
fair value.

Item 26. Long-term debt

Fair value is based on the discounted amount of
future cash flows using the Groups current estimated
borrowing rate for a similar liability. To the extent that
borrowings carry a variable rate of interest, book value
approximates fair value.

Item 27. Commercial paper and note
payable

The carrying value is a reasonable estimate of
fair value due to the short-term variable rate nature of this
liability. Furthermore, fair value of hedged commercial paper
and note payable is based on the discounted amount of future
cash flows.

F-36



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

Item 28. Interest rate
swaps

Fair value is based on the discounted amount of
future cash flows using the appropriate market rate.

Item 29. Forward rate
agreement

Fair value is based on the difference between the
exchange rate of the forward contract and the spot rate for a
similar contract on the market.

The estimated fair values of the Groups
financial instruments are as follows:

|            |                                       |                    |  |                   |  |          |  |            |  |  |  |       |  |  |  |       | 
|----------- | ------------------------------------- | ------------------ |  | ----------------- |  | -------- |  | ---------- |  |  |  | ----- |  |  |  | ----- | 
|            |                                       |                    |  |                  
|            |                                       | As of              |  | As of            
|            |                                       | December 31, 2002  |  | December 31, 2003
|            |                                       |                    |  |                  
|            |                                       | Carrying           |  |                   |  | Carrying |  |           
|            |                                       | amount             |  | Fair value        |  | amount   |  | Fair value
|            |                                       |                    |  |                   |  |          |  |           
|            |                                       |                   
|            |                                       | (EUR, in millions)
|Assets      |                                       |                    |  |                   |  |          |  |            |  |  |  |       |  |  |  |      
|            | Fixed maturities at fair value        |                    |  | 6,107             |  |          |  | 6,107      |  |  |  | 5,698 |  |  |  | 5,698 | 
|            | Equity securities, available for sale |                    |  | 573               |  |          |  | 573        |  |  |  | 269   |  |  |  | 269   | 
|            | Trading equity securities             |                    |  |                  |  |          |  |           |  |  |  | 34    |  |  |  | 34    | 
|            | Short-term investments                |                    |  | 198               |  |          |  | 198        |  |  |  |      |  |  |  |      | 
|            | Cash                                  |                    |  | 1,788             |  |          |  | 1,788      |  |  |  | 1,824 |  |  |  | 1,824 | 
|            | Derivative instruments                |                    |  | 21                |  |          |  | 21         |  |  |  | 78    |  |  |  | 78    | 
|Liabilities |                                       |                    |  |                   |  |          |  |            |  |  |  |       |  |  |  |      
|            | Convertible subordinated debentures   |                    |  | 251               |  |          |  | 237        |  |  |  | 257   |  |  |  | 252   | 
|            | Debentures                            |                    |  | 200               |  |          |  | 200        |  |  |  | 200   |  |  |  | 210   | 
|            | Notes payable                         |                    |  | 62                |  |          |  | 62         |  |  |  | 36    |  |  |  | 36    | 
|            | Commercial paper                      |                    |  |                  |  |          |  |           |  |  |  |      |  |  |  |      | 
|            | Derivative instruments                |                    |  | 26                |  |          |  | 26         |  |  |  | 9     |  |  |  | 9     | 

Note 13.     Derivative
instruments

SCOR is exposed to market risk from changes in
foreign currency exchange rates, interest rates and equity
security prices that have an adverse effect on the fair value of
financial instruments and derivative financial instruments. SCOR
manages its market risks, as well as risk exposure relating to
non-financial assets, liabilities and transactions by defining
centralized investment policy guidelines, using derivatives to
protect its investment portfolio or rebalancing its existing
asset and liability portfolio.

The Group takes advantage of a variety of
derivative instruments to reduce this exposure to market risk
and in conjunction with its foreign currency asset/liability
management. Derivatives used by the Group include interest rate
swaps, interest rate floors, indexed options, warrants, equity
options, currency swaps, currency forward purchases and sales.
Weather derivatives and credit derivatives, used or issued by
the Group are not considered derivative instruments under the
definition of SFAS 133.

Subsequent to the adoption of SFAS 133
Accounting for derivative instruments and hedging
activities, the Groups derivative instruments are
accounted for on a fair value basis, and reported as
investments, derivative assets or derivative liabilities. When
certain conditions are met, a derivative may be specifically
designated as a hedge and accounted for as fair value, cash flow
or foreign currency hedge, for all or a specific portion of the
identified hedged risk. The Group did not designate any cash
flow hedge. As of December 31, 2001, the related transition
adjustment resulted in a gain of EUR 2 million
reported in Cumulative effect of change in accounting principle
(EUR 1 million net of taxes).

F-37



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

As of December 31, 2003, the Group has not
recorded any material income related to derivatives, except for
the credit derivative agreement with Goldman Sachs and the
forward sale of USD 400 million.

Fair Value Hedges:

SCOR actively draws on its fixed rates available
lines of commercial paper and medium-term negotiable notes in
order to maintain the adequate level of cash needed in its
regular reinsurance and investing transactions. Most of the time
amounts drawn significantly exceed those requirements and the
bulk of available funds is then invested in short-term
investments. Groups fixed-rate commercial paper and notes
payable are generally swapped to floating rates under terms that
match those of the debt instruments. Existing spread in the debt
pay fixed and the swap receive fixed results in a pay floating
rate that is generally lower than EONIA (Euro Overnight Index
Average) rates earned on the pool of available funds.

Several pay variable  receive fixed
interest rate swaps were designated as fair value hedges to
interest rate risk of fixed-rate notes payable and commercial
paper debt. Conditions that allowed these designations are met
therefore those hedged items are accounted for at fair value.
The change of fair value in those derivatives together with the
change in fair value of the hedged items are reported in the
statement of income.

The loss of the hedges ineffectiveness of
EUR 514,010 was recognized in net investment income in 2003.

Foreign Currency Hedges:

The Group attempts to match its assets and
liabilities on a currency-by-currency basis in each currency for
which an organized financial or foreign exchange market is
available, primarily by investing in assets that are denominated
in the currency of the Groups corresponding reinsurance
liabilities. Management adjusts open positions in specific
currencies, generally on a quarterly basis, to manage any excess
or deficit of assets compared to liabilities in a particular
currency. Total currency exposure (other than with respect to
the euro) is limited to the excess (or deficiency) of assets
over liabilities in each currency.

The U.S. dollar represents the most significant
portion of those reserves not denominated in currencies of the
European Economic and Monetary Union. In addition, acquisitions
the Group entered into 2001 were denominated in U.S. dollar.
SCOR arranged two foreign exchange hedges in the first half of
2001. The first concerned the forward purchase of
USD 315 million to cover excess book liabilities in
this currency. The second involved a matching forward sale of US
dollars for the same amount, in order to hedge the value of
equity investments in that currency. The two hedging
transactions were repeated on January 3, 2002 for a total
of USD 450 million and were stopped at the end of June
2002.

In order to protect the subsidiaries net
asset denominated in US dollars as well as the Groups
shareholders equity, a new foreign-exchange currency hedge
has been set up in September 2003, through a forward sale of
US dollars 400 million (corresponding to the value of
the equity investments denominated in this currency) against
euros. This operation allowed to reduce the unrealized exchange
loss shown under the item currency translation
adjustment in the Groups shareholders equity
for an amount of EUR 37 million.

Those derivatives are carried at fair value and
classified as derivative assets and derivative liabilities.

SCOR has also designated a non-derivative
instrument as hedging the foreign currency exchange risk of
certain of its subsidiaries. The net loss included in the
cumulative translation adjustment of the equity was
EUR 34 million in 2003.

Credit Derivative Hedges:

On December 1, 2003, SCOR completed its exit
of credit derivative exposure by entering into an agreement with
Goldman Sachs to hedge the Group entirely against all credit
events, representing a maximum loss amount of

F-38



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

USD 2.5 billion, that occur on or
subsequent to that date. The related derivative instrument is
shown at its fair value at year-end on the balance sheet for
EUR 39 million.

Non-hedge instruments:



|  |                                                                          
|- | -------------------------------------------------------------------------
| | Derivatives used in conjunction with the
    Groups investment strategy:

To a lesser extent, the Group uses indexed
options as well as pay variable  receive variable
structured on different maturities interest rate swaps to manage
volatility on the bond portfolio. The Group also uses a limited
volume of warrants, equity options, equity index instruments in
accordance with its selective equity investment policy to
provide higher returns on selected equity lines. Sales of call
options are used by the Group to mitigate the effect of possible
decline in value of identified equities. Those derivatives are
carried at fair value and classified as investments or
derivative on the balance sheets.



|  |                                     
|- | ------------------------------------
| | Other derivatives used by the Group:

The Group entered into specific interest rate
floor agreements in conjunction with Property-Casualty or Life
reinsurance transactions, in order to mitigate the effect of
change in interest rates on the return of specific contracts.
Those derivatives are carried at fair value and classified as
derivative on the balance sheets. Some particular alternative
reinsurance transactions were also based on indexed options.
Certain Life reinsurance annuity-based contracts underwritten by
SCOR Life Re include specified market index return. Matching
investments are structured on similar index put and call options
that replicate the fluctuation of those indexes.

Other interest rate swaps use by the Group are
carried at fair value and classified as derivative on the
balance sheets for EUR 2 million in assets and
EUR 9 million in liabilities.

Note 14.     Commitments

We enter into off-balance-sheet arrangements in
the ordinary course of business both on our own behalf and on
behalf of our customers.

Off-balance-sheet arrangements we enter into for
our clients consist of letter of credit (LOC) transactions
where we provide LOC coverage for all or part of our reinsurance
obligations to ceding companies, or where similar coverage is
provided to us by our retrocessionaires. These transactions are
entered into in the ordinary course to comply with ceding
companies credit or regulatory requirements. We also
pledge enter some securities as collateral in order to guarantee
the payment of cedents reserves. The following table sets
forth our off-balance-sheet engagements at December 31,
2001, 2002 and 2003:

|                     |                           |                         |  |      |     |      |  |       |       |  |  |       |       | 
|-------------------- | ------------------------- | ----------------------- |  | ---- | --- | ---- |  | ----- | ----- |  |  | ----- | ----- | 
|                     |                           |                        
|                     |                           | Year ended December 31,
|                     |                           |                        
|                     |                           | 2001                    |  | 2002 |     | 2003
|                     |                           |                         |  |      |     |     
|                     |                           |                        
|                     |                           | (EUR, in millions)     
|Commitments received |                           |                         |  |      |     |      |  |       |       |  |  |      
|                     | Unused credit lines       |                         |  | 640  |     |      |  | 100   |       |  |  | 50    |      
|                     | Endorsements and sureties |                         |  | 2    |     |      |  | 1     |       |  |  | 68    |      
|                     | Finance leases            |                         |  |     |     |      |  | 59    |       |  |  | 60    |      
|                     | Letters of Credit         |                         |  | 78   |     |      |  | 1,262 |       |  |  | 1,285 |      
|                     | Other commitments         |                         |  |     |     |      |  | 1     |       |  |  |      |      
|                     |                           |                         |  |      |     |      |  |       |       |  |  |      
|                     |                           | Total                   |  |      | 720 |      |  |       | 1,423 |  |  |       | 1,463 | 
|                     |                           |                         |  |      |     |      |  |       |       |  |  |      

F-39



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

|                  |                           |                         |  |       |       |      |  |       |       |  |  |       |       | 
|----------------- | ------------------------- | ----------------------- |  | ----- | ----- | ---- |  | ----- | ----- |  |  | ----- | ----- | 
|                  |                           |                        
|                  |                           | Year ended December 31,
|                  |                           |                        
|                  |                           | 2001                    |  | 2002  |       | 2003
|                  |                           |                         |  |       |       |     
|                  |                           |                        
|                  |                           | (EUR, in millions)     
|Commitments given |                           |                         |  |       |       |      |  |       |       |  |  |      
|                  | Endorsements and sureties |                         |  | 2     |       |      |  | 1     |       |  |  | 90    |      
|                  | Finance leases            |                         |  | 5     |       |      |  | 120   |       |  |  | 102   |      
|                  | Letters of Credit         |                         |  | 1,459 |       |      |  | 1,085 |       |  |  | 594   |      
|                  | Repos and equivalents     |                         |  |      |       |      |  |      |       |  |  |      |      
|                  | Collateralized securities |                         |  | 795   |       |      |  | 2,583 |       |  |  | 3,226 |      
|                  | Other commitments         |                         |  | 27    |       |      |  | 23    |       |  |  | 139   |      
|                  |                           |                         |  |       |       |      |  |       |       |  |  |      
|                  |                           | Total                   |  |       | 2,288 |      |  |       | 3,812 |  |  |       | 4,151 | 
|                  |                           |                         |  |       |       |      |  |       |       |  |  |      

We are not aware of factors relating to the
foregoing off-balance-sheet arrangements that are reasonably
likely to adversely affect liquidity trends or the availability
of or requirements for capital resources. As of
December 31, 2003, there were no material additional
financial commitments required from Group companies in respect
of such arrangements.

At the end of December 2003, SCOR Group received
unused credit line for EUR 50 million and letters of
credit for EUR 1,285 millions.

In December 2003, SCOR signed an agreement with a
number of banks concerning EUR 50 million in confirmed
credit lines and EUR 676 million in letters of credit.
Details of the agreement are provided below:

SCOR has pledged shares in its subsidiaries for a
value of EUR 50 million in order to guarantee the
commitment received from banks to provide short-term credit.

The commitments received from banks to provide
EUR 676 million in letter of credit is covered by two
contracts with by the banks: Contract with a banking trust for
an amount of EUR 581 millions
(USD 732 million) covered by various guarantees:



| |   |                                                                     
| | - | --------------------------------------------------------------------
| |  | available-for-sale shares pledged for a value of
    EUR 514 million
|
| |  | buildings pledged for a value of
    EUR 30 million                 
|
| |  | subsidiaries shares pledged for a value of
    EUR 1,189 million.  

Contract with Natexis for an amount of
EUR 95 million (USD 120 million)
specifically concerning our commitments on the September 11
tragedy, and which is guaranteed in full by a trust fund (other
guarantees given).

As far as the contract with the banking trust is
concerned, on March 31, 2004 at the latest, the cumulated
amount of the OAT guarantees was to be equal to 105% of the
outstanding credit. Since this limit was reached, the banks gave
a release of buildings and subsidiaries collateralized
securities, except for the collateralization of SCOR VIEs
securities that have authority to guarantee SCOR Vies
credit.

On November 14, 2003, in the context of the
transfer of the Life business of SCOR to SCOR VIE, SCOR VIE
entered into a EUR 110 million-credit facility
agreement with a banking syndicate, utilizable by the issuance
of letters of credit. This agreement took effect on
December 1, 2003, the date at which the transfer of the
SCOR Life business to SCOR VIE took effect. This amount was
subsequently reduced to EUR 87 million on
December 31, 2003.

F-40



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

At the same time, SCOR has pledged to disclose
the following information to the banks:



| |   |                                                                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | on any disposal of assets by SCOR or by a pledged
    subsidiary for an amount superior to EUR 30 million
    and on the realization of any exceptional product, including a
    capital increase. Cash received from the sale of the SCOR
    building was pledged in 2004;
|
| |  | on the Companys financial statements
    (annual, half-yearly, quarterly) within the prescribed time and
    of any information about its financial situation;                                                                                                             
|
| |  | communication within 20 days on any change
    of the social bodies members and concerning the auditors;                                                                                                                                                                   
|
| |  | notification without any delay of any major
    event, of any claim for an amount superior to
    USD 50 million and of any legal proceeding for an
    amount superior to USD 50 million per claim.                                                                        

Note 15.     Lines
of Business and Geographic Information

SCOR Group acting through the Companys four
Non-Life (treaty Property-Casualty + Large Corporate Accounts),
Life/Accident & Health, Credit, Surety and Political
Risks and Alternative risks operating divisions, its
ten subsidiary companies and their twenty-two branches and
representative offices, provides treaty and facultative
reinsurance on a worldwide basis to Property-Casualty and Life
insurers.

Since 2003, the Group reorganizes its operations
around four segments that correspond to the market of
reinsurance. Responsibilities and reporting within the Group is
established based on this structure, and operating results of
those segments are reviewed by the Groups Executive
Committee to make decisions about resources to be allocated to
those segments and assess their performances. To correspond to
Group organization, the two previous segments, treaty
Property-Casualty and Large Corporate Accounts have been put
together.

In addition to the four operating segments, the
Group includes under Others investment revenue
allocated to shareholders equity, amortization of goodwill
and investments accounted for by the equity method.

Due to the way in which the Group is organized,
its operations are presented herewith by business segment:

Non-Life (Property-Casualty treaty and
Large corporate accounts reinsurance)

Property-Casualty treaty:The Property-Casualty treaty
segment includes the proportional (pro rata) and
non-proportional (excess of loss and stop loss) treaty classes
of property, casualty, marine, space and transportation, and
construction. Property-Casualty also includes direct or
allocated operating expenses and net income from
Property-Casualty-related investing activities.

Large corporate accounts:Large corporate accounts
reinsurance includes large facultative business for large,
complex industrial or technical risks, such as automotive
assembly lines, semiconductor manufacturing plants, oil and gas
or chemical facilities, oil and gas exploration and production
sites, energy facilities, or boiler and machinery installations.
Large corporate accounts reinsurance also includes direct or
allocated operating expenses and net income from Large corporate
accounts reinsurance-related investing activities.

Life/Accident &
Health

Life/Accident & Health reinsurance
includes Life reinsurance products as well as the personal
segments of casualty reinsurance that are accident, disability,
health, unemployment and long-term care.
Life/Accident & Health reinsurance is conducted mainly
through Division SCOR Vie, which also provides support in this
segment of reinsurance to Group subsidiaries, SCOR Life
U.S. Re, SCOR Deutschland and SCOR Italy.
Life/Accident & Health also includes direct or
allocated operating expenses and net income from Life/Accident
& Health-related investing activities.

F-41



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

Credit, Surety and Political
Risks

Credit, Surety and Political Risks includes the
needs of its credit and surety insurance clients in providing
treaty covers as well as non-proportional reinsurance, covering
peak and cumulative risks. Credit, Surety and Political risks
also includes direct or allocated operating expenses and net
income from Credit, Surety and Political risks-related investing
activities.

Alternative risks (Commercial Risk
Partners)

Alternative risks reinsurance concerns all
sectors of alternative risk transfer and mainly loss frequency
driven by workers compensation, motor insurance and
general liability in the US market, weather variations covers,
primarily temperature-based derivatives and protection against
combinations of fortuitous uncertainties with financial
exposures. Alternative risks also includes direct or allocated
operating expenses and net income from Alternative risks-related
investing activities.

The following is a summary of the activity split:

|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |  |  |     |       |  |  |    |    |  |  |       |        |  
|----------------------------------------- | ------------------------------------------ | ---------------------------- | ----- | ---------- | - | --------- | --- | ----------- | - | ------ | --- | ------------ |  |  | --- | ----- |  |  | -- | -- |  |  | ----- | ------ | -
|                                          |                                            |                             
|                                          |                                            | Year ended December 31, 2001
|                                          |                                            |                             
|                                          |                                            | Non Life                     |       |           
|                                          |                                            | (Property-                   |       |           
|                                          |                                            | Casualty                     |       |            |   | Credit/   |     |            
|                                          |                                            | & Large                      |       | Life/      |   | Surety    |     | Alternative |   |       
|                                          |                                            | Corporate                    |       | Accident & |   | Political |     | risks       |   |       
|                                          |                                            | Accounts)                    |       | Health     |   | Risks     |     | transfer    |   | Others |     | Consolidated
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |             
|                                          |                                            |                             
|                                          |                                            | (EUR, in millions)          
|Net premiums written                      |                                            |                              | 1,953 |            |   |           | 896 |             |   |        | 161 |              |  |  | 710 |       |  |  |    |    |  |  | 3,720 |       
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |  |  |     |       |  |  |    |    |  |  |       |       
|Net premiums earned                       |                                            |                              | 1,967 |            |   |           | 852 |             |   |        | 163 |              |  |  | 671 |       |  |  |    |    |  |  | 3,653 |       
|Net investment income                     |                                            |                              | 121   |            |   |           | 91  |             |   |        | 12  |              |  |  | 78  |       |  |  | 45 |    |  |  | 347   |       
|Net realized gains on investments         |                                            |                              | 4     |            |   |           | 3   |             |   |        |    |              |  |  | 2   |       |  |  | 1  |    |  |  | 10    |       
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |  |  |     |       |  |  |    |    |  |  |       |       
|                                          | Total revenues                             |                              |       | 2,092      |   |           |     | 946         |   |        |     | 175          |  |  |     | 751   |  |  |    | 46 |  |  |       | 4,010  |  
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |  |  |     |       |  |  |    |    |  |  |       |       
|Claim and claim expenses                  |                                            |                              | 2,117 | (1)        |   |           | 741 |             |   |        | 115 |              |  |  | 655 |       |  |  |   |    |  |  | 3,628 |       
|Acquisition costs                         |                                            |                              | 506   |            |   |           | 219 |             |   |        | 47  |              |  |  | 76  |       |  |  |   |    |  |  | 848   |       
|Underwriting and administration expenses  |                                            |                              | 142   |            |   |           | 46  |             |   |        | 5   |              |  |  | 16  |       |  |  |   |    |  |  | 209   |       
|Other income and expenses                 |                                            |                              |      |            |   |           |    |             |   |        |    |              |  |  |    |       |  |  | 8  |    |  |  | 8     |       
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |  |  |     |       |  |  |    |    |  |  |       |       
|                                          | Total expenses                             |                              |       | 2,765      |   |           |     | 1,006       |   |        |     | 167          |  |  |     | 747   |  |  |    | 8  |  |  |       | 4,693  |  
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |  |  |     |       |  |  |    |    |  |  |       |       
|Income accounted for by the equity method |                                            |                              |      |            |   |           |    |             |   |        |    |              |  |  |    |       |  |  | 4  |    |  |  | 4     |       
|                                          | Income before taxes and minority interests |                              |       | (673       | ) |           |     | (60         | ) |        |     | 8            |  |  |     | 4     |  |  |    | 42 |  |  |       | (679   | )
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |  |  |     |       |  |  |    |    |  |  |       |       
|                                          | Total assets as of December 31             |                              |       | 9,842      |   |           |     | 4,343       |   |        |     | 718          |  |  |     | 2,030 |  |  |    |    |  |  |       | 16,933 |  
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |  |  |     |       |  |  |    |    |  |  |       |       






|    |                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | excluded a profit of EUR 64 million reported
    in cumulative effect of change in accounting principle (discount
    of workmens compensation reserves)

F-42



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

|                                          |                                            |                              |       |            |   |           |       |             |  |        |     |              |   |  |     |       |   |  |     |     |   |  |       |        |  
|----------------------------------------- | ------------------------------------------ | ---------------------------- | ----- | ---------- | - | --------- | ----- | ----------- |  | ------ | --- | ------------ | - |  | --- | ----- | - |  | --- | --- | - |  | ----- | ------ | -
|                                          |                                            |                             
|                                          |                                            | Year ended December 31, 2002
|                                          |                                            |                             
|                                          |                                            | Non Life                     |       |           
|                                          |                                            | (Property-                   |       |           
|                                          |                                            | Casualty                     |       |            |   | Credit/   |       |            
|                                          |                                            | & Large                      |       | Life/      |   | Surety    |       | Alternative |  |       
|                                          |                                            | Corporate                    |       | Accident & |   | Political |       | risks       |  |       
|                                          |                                            | Accounts)                    |       | Health     |   | Risks     |       | transfer    |  | Others |     | Consolidated
|                                          |                                            |                              |       |            |   |           |       |             |  |        |     |             
|                                          |                                            |                             
|                                          |                                            | (EUR, in millions)          
|Net premiums written                      |                                            |                              | 2,739 |            |   |           | 1,045 |             |  |        | 108 |              |   |  | 466 |       |   |  |     |     |   |  | 4,358 |       
|                                          |                                            |                              |       |            |   |           |       |             |  |        |     |              |   |  |     |       |   |  |     |     |   |  |       |       
|Net premiums earned                       |                                            |                              | 2,575 |            |   |           | 901   |             |  |        | 153 |              |   |  | 524 |       |   |  |     |     |   |  | 4,153 |       
|Net investment income                     |                                            |                              | 157   |            |   |           | 119   |             |  |        | 13  |              |   |  | 73  |       |   |  | 19  |     |   |  | 381   |       
|Net realized gains on investments         |                                            |                              | (21   | )          |   |           | (16   | )           |  |        | (2  | )            |   |  | (10 | )     |   |  | (3  | )   |   |  | (52   | )     
|                                          |                                            |                              |       |            |   |           |       |             |  |        |     |              |   |  |     |       |   |  |     |     |   |  |       |       
|                                          | Total revenues                             |                              |       | 2,711      |   |           |       | 1,004       |  |        |     | 164          |   |  |     | 587   |   |  |     | 16  |   |  |       | 4,482  |  
|                                          |                                            |                              |       |            |   |           |       |             |  |        |     |              |   |  |     |       |   |  |     |     |   |  |       |       
|Claim and claim expenses                  |                                            |                              | 2,276 |            |   |           | 663   |             |  |        | 278 |              |   |  | 714 |       |   |  |    |     |   |  | 3,931 |       
|Acquisition costs                         |                                            |                              | 579   |            |   |           | 245   |             |  |        | 35  |              |   |  | 50  |       |   |  |    |     |   |  | 909   |       
|Underwriting and administration expenses  |                                            |                              | 150   |            |   |           | 66    |             |  |        | 4   |              |   |  | 11  |       |   |  | (23 | )   |   |  | 208   |       
|Other income and expenses                 |                                            |                              |      |            |   |           |      |             |  |        |    |              |   |  |    |       |   |  | (25 | )   |   |  | (25   | )     
|                                          |                                            |                              |       |            |   |           |       |             |  |        |     |              |   |  |     |       |   |  |     |     |   |  |       |       
|                                          | Total expenses                             |                              |       | 3,005      |   |           |       | 974         |  |        |     | 317          |   |  |     | 775   |   |  |     | (48 | ) |  |       | 5,023  |  
|                                          |                                            |                              |       |            |   |           |       |             |  |        |     |              |   |  |     |       |   |  |     |     |   |  |       |       
|Income accounted for by the equity method |                                            |                              |      |            |   |           |      |             |  |        |    |              |   |  |    |       |   |  | 4   |     |   |  | 4     |       
|                                          | Income before taxes and minority interests |                              |       | (294       | ) |           |       | 30          |  |        |     | (153         | ) |  |     | (188  | ) |  |     | 68  |   |  |       | (537   | )
|                                          |                                            |                              |       |            |   |           |       |             |  |        |     |              |   |  |     |       |   |  |     |     |   |  |       |       
|                                          | Total assets as of December 31             |                              |       | 9,219      |   |           |       | 4,099       |  |        |     | 714          |   |  |     | 1,904 |   |  |     |     |   |  |       | 15,936 |  
|                                          |                                            |                              |       |            |   |           |       |             |  |        |     |              |   |  |     |       |   |  |     |     |   |  |       |       

F-43



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |   |  |     |      |   |  |     |     |   |  |       |        |  
|----------------------------------------- | ------------------------------------------ | ---------------------------- | ----- | ---------- | - | --------- | --- | ----------- | - | ------ | --- | ------------ | - |  | --- | ---- | - |  | --- | --- | - |  | ----- | ------ | -
|                                          |                                            |                             
|                                          |                                            | Year ended December 31, 2003
|                                          |                                            |                             
|                                          |                                            | Non Life                     |       |           
|                                          |                                            | (Property-                   |       |           
|                                          |                                            | Casualty                     |       |            |   | Credit/   |     |            
|                                          |                                            | & Large                      |       | Life/      |   | Surety    |     | Alternative |   |       
|                                          |                                            | Corporate                    |       | Accident & |   | Political |     | risks       |   |       
|                                          |                                            | Accounts)                    |       | Health     |   | Risks     |     | transfer    |   | Others |     | Consolidated
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |             
|                                          |                                            |                             
|                                          |                                            | (EUR, in millions)          
|Net premiums written                      |                                            |                              | 2,041 |            |   |           | 885 |             |   |        | 63  |              |   |  | (1  | )    |   |  |    |     |   |  | 2,988 |       
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |   |  |     |      |   |  |     |     |   |  |       |       
|Net premiums earned                       |                                            |                              | 2,174 |            |   |           | 869 |             |   |        | 122 |              |   |  | 159 |      |   |  |    |     |   |  | 3,324 |       
|Net investment income                     |                                            |                              | 209   |            |   |           | 54  |             |   |        | 11  |              |   |  | 54  |      |   |  | (7  | )   |   |  | 321   |       
|Net realized gains on investments         |                                            |                              | 75    |            |   |           | 20  |             |   |        | 4   |              |   |  | 20  |      |   |  | (3  | )   |   |  | 116   |       
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |   |  |     |      |   |  |     |     |   |  |       |       
|                                          | Total revenues                             |                              |       | 2,458      |   |           |     | 943         |   |        |     | 137          |   |  |     | 233  |   |  |     | (10 | ) |  |       | 3,761  |  
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |   |  |     |      |   |  |     |     |   |  |       |       
|Claim and claim expenses                  |                                            |                              | 2,042 |            |   |           | 653 |             |   |        | 157 |              |   |  | 338 |      |   |  |    |     |   |  | 3,190 |       
|Acquisition costs                         |                                            |                              | 469   |            |   |           | 252 |             |   |        | 30  |              |   |  | (9  | )    |   |  |    |     |   |  | 742   |       
|Underwriting and administration expenses  |                                            |                              | 114   |            |   |           | 63  |             |   |        | 3   |              |   |  | 6   |      |   |  | (21 | )   |   |  | 165   |       
|Other income and expenses                 |                                            |                              |      |            |   |           |    |             |   |        |    |              |   |  |    |      |   |  | (77 | )   |   |  | (77   | )     
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |   |  |     |      |   |  |     |     |   |  |       |       
|                                          | Total expenses                             |                              |       | 2,625      |   |           |     | 968         |   |        |     | 190          |   |  |     | 335  |   |  |     | (98 | ) |  |       | 4,020  |  
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |   |  |     |      |   |  |     |     |   |  |       |       
|Income accounted for by the equity method |                                            |                              |       |            |   |           |     |             |   |        |     |              |   |  |     |      |   |  | 1   |     |   |  | 1     |       
|                                          | Income before taxes and minority interests |                              |       | (167       | ) |           |     | (25         | ) |        |     | (53          | ) |  |     | (102 | ) |  |     | 89  |   |  |       | (258   | )
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |   |  |     |      |   |  |     |     |   |  |       |       
|                                          | Total assets as of December 31             |                              |       | 8,177      |   |           |     | 4,362       |   |        |     | 482          |   |  |     | 445  |   |  |     |    |   |  |       | 13,466 |  
|                                          |                                            |                              |       |            |   |           |     |             |   |        |     |              |   |  |     |      |   |  |     |     |   |  |       |       

The following is a summary of the Groups
business by geographic area. Allocations by geographic area have
been made based on the location of the related subsidiary.

|                             |                                       |                    |  |        |   |         |  |       |  |              |  |       |   |  |  |     |  |  |  |        |  
|---------------------------- | ------------------------------------- | ------------------ |  | ------ | - | ------- |  | ----- |  | ------------ |  | ----- | - |  |  | --- |  |  |  | ------ | -
|                             |                                       |                    |  |        |   | North   |  |       |  |             
|                             |                                       | France             |  | Europe |   | America |  | Asia  |  | Consolidated
|                             |                                       |                    |  |        |   |         |  |       |  |             
|                             |                                       |                   
|                             |                                       | (EUR, in millions)
|Year ended December 31, 2001 |                                       |                    |  |        |   |         |  |       |  |              |  |       |   |  |  |     |  |  |  |       
|                             | Revenues                              |                    |  | 1,131  |   |         |  | 515   |  |              |  | 2,170 |   |  |  | 194 |  |  |  | 4,010  |  
|                             | Income before taxes                   |                    |  | (369   | ) |         |  | 15    |  |              |  | (284  | ) |  |  | 23  |  |  |  | (615   | )
|                             | Identifiable assets as of December 31 |                    |  | 7,394  |   |         |  | 1,800 |  |              |  | 7,346 |   |  |  | 393 |  |  |  | 16,933 |  
|Year ended December 31, 2002 |                                       |                    |  |        |   |         |  |       |  |              |  |       |   |  |  |     |  |  |  |       
|                             | Revenues                              |                    |  | 1,362  |   |         |  | 708   |  |              |  | 2,131 |   |  |  | 281 |  |  |  | 4,482  |  
|                             | Income before taxes                   |                    |  | (490   | ) |         |  | 65    |  |              |  | (138  | ) |  |  | 43  |  |  |  | (520   | )
|                             | Identifiable assets as of December 31 |                    |  | 7,316  |   |         |  | 2,047 |  |              |  | 6,167 |   |  |  | 406 |  |  |  | 15,936 |  
|Year ended December 31, 2003 |                                       |                    |  |        |   |         |  |       |  |              |  |       |   |  |  |     |  |  |  |       
|                             | Revenues                              |                    |  | 1,607  |   |         |  | 713   |  |              |  | 1,217 |   |  |  | 223 |  |  |  | 3,761  |  
|                             | Income before taxes                   |                    |  | (179   | ) |         |  | 112   |  |              |  | (249  | ) |  |  | 58  |  |  |  | (258   | )
|                             | Identifiable assets as of December 31 |                    |  | 6,836  |   |         |  | 1,742 |  |              |  | 4,519 |   |  |  | 369 |  |  |  | 13,466 |  

Note 16.     Unpaid
loss and loss adjustment expenses

The Group has to place significant reliance on
the information obtained from its cedants to develop assumptions
to estimate its ultimate liability. The subsequent development
of these liabilities might not conform to the

F-44



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

assumptions inherent in their determination. As a
result, the amounts ultimately settled could vary significantly
from the estimates included in the accompanying consolidated
financial statements.

The adverse development on prior year losses does
not reflect the additional premium that is required under the
reinsurance contracts as a result of those additional losses.
Such additional premium is recognized in net income in the same
period as the additional losses and is reported as premiums
earned.

The following provides the reconciliation of
beginning and ending reserve balances for unpaid
Property-Casualty losses and loss adjustment expenses
(LAE) on a net of reinsurance basis to the amounts
recorded in the balance sheet:

Reconciliation of Reserves for Losses and
LAE

|                                                                    |                                  |                         |       |       |  |      |       |       |  |  |       |       | 
|------------------------------------------------------------------- | -------------------------------- | ----------------------- | ----- | ----- |  | ---- | ----- | ----- |  |  | ----- | ----- | 
|                                                                    |                                  |                        
|                                                                    |                                  | Year ended December 31,
|                                                                    |                                  |                        
|                                                                    |                                  | 2001                    |       | 2002  |  | 2003
|                                                                    |                                  |                         |       |       |  |     
|                                                                    |                                  |                        
|                                                                    |                                  | (EUR, in millions)     
|Reserves for losses and LAE at beginning of year,
    net           |                                  |                         | 5,068 |       |  |      | 6,917 |       |  |  | 6,899 |      
|Effect of changes in foreign currency exchange
    rates            |                                  |                         | 133   |       |  |      | (738  | )     |  |  | (657  | )    
|Effect of claims portfolio transfer and other
    reclassifications |                                  |                         | 1,071 | (2)   |  |      | 73    |       |  |  | 35    |      
|                                                                    |                                  |                         |       |       |  |      |       |       |  |  |       |      
|Incurred related to:                                                |                                  |                         |       |       |  |      |       |       |  |  |       |      
|                                                                    | Current year                     |                         |       | 3,076 |  |      |       | 2,785 |  |  |       | 1,596 | 
|                                                                    | Prior years                      |                         |       | 101   |  |      |       | 671   |  |  |       | 1,173 | 
|                                                                    |                                  |                         |       |       |  |      |       |       |  |  |       |      
|                                                                    | Total incurred losses and LAE(1) |                         |       | 3,177 |  |      |       | 3,456 |  |  |       | 2,769 | 
|                                                                    |                                  |                         |       |       |  |      |       |       |  |  |       |      
|Change in accounting principle                                      |                                  |                         | (62   | )     |  |      |      |       |  |  |      |      
|Paid related to:                                                    |                                  |                         |       |       |  |      |       |       |  |  |       |      
|                                                                    | Current year                     |                         |       | 738   |  |      |       | 450   |  |  |       | 68    | 
|                                                                    | Prior years                      |                         |       | 1,732 |  |      |       | 2,358 |  |  |       | 2,648 | 
|                                                                    |                                  |                         |       |       |  |      |       |       |  |  |       |      
|                                                                    | Total paid losses and LAE(1)     |                         |       | 2,470 |  |      |       | 2,808 |  |  |       | 2,716 | 
|                                                                    |                                  |                         |       |       |  |      |       |       |  |  |       |      
|Reserves for losses and loss expenses at end of
    year  net      |                                  |                         | 6,917 |       |  |      | 6,900 |       |  |  | 6,330 |      
|Reinsurance recoverable on unpaid losses                            |                                  |                         | 1,448 |       |  |      | 1,067 |       |  |  | 673   |      
|                                                                    |                                  |                         |       |       |  |      |       |       |  |  |       |      
|Reserves for losses and loss expenses at end of
    year  gross    |                                  |                         | 8,365 |       |  |      | 7,967 |       |  |  | 7,003 |      
|                                                                    |                                  |                         |       |       |  |      |       |       |  |  |       |      






|    |                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Initial gross, initial retroceded and initial net
    reserves are shown on a U.S. GAAP basis. Paid
    (cumulative) amounts and reserve re-estimated amounts are
    shown on a calendar year basis.
|   
|(2) | SOREMA acquisition                                                                                                                                                                                   

Together with the World Trade Center tragedy, an
unprecedented catastrophe in the history of insurance, the
market results were also affected by the need to bolster
reserves set aside in 2001 year, leading us to reinforce
our reserves on US treaties regarding prior accident years (from
1997 to 1999, the low point of the previous cycle). SCORs
booked reserves on the World Trade Center tragedy are based on
the assumption of a single event. To face loss incurred
degradation on the underwriting years 2001 and prior, the group
had, on Back on Track plan, made additional reserves:

The primary reason for such reserves
strengthening is as follows:

For 2001 and prior reserves in 2002:



|  |                                                                                                                                                                                                                                                                                                      
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Additional reserve of EUR 154 million for
    SCOR US, increasing its total reserves to EUR 2.6 billion.
    These additional reserves apply to all the underwriting years,
    in particular 1998-2001, and to Program Business activities (in
    which underwriting was discontinued at end-2001).

F-45



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)



|  |                                                                                                                                                                                                                                                                                                                                                                                 
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Additional reserve of EUR 141 million for
    Commercial Risk Partners. These additional reserves mainly
    relate to prospective finite risk contracts for Workers
    Compensation in 1999 and 2000. Finite risk for such contracts
    were cut back significantly in first-half 2002 and the Group has
    discontinued its underwriting activities in this business line.
| 
| | Additional reserve of EUR 30 million for the
    Credit and Surety business, These additional reserves relate to
    credit derivatives reinsurance, the underwriting of which was
    discontinued in November 2001.                                                                                                                                                           
| 
| | Additional reserves of EUR 15 million for
    exposure to asbestos and pollution risks, so as to reflect
    recent legal developments in the USA.                                                                                                                                                                                                                              

For 2002 and prior reserves in 2003:



|  |                                                                                                                                                                                                           
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Additional reserve of EUR 227 million
    applied to all the underwriting years, in particular 1998-2001,
    and to Program Business activities (in which underwriting was
    discontinued at end-2001).
| 
| | Additional reserve of EUR 45 million on
    Commercial Risk Partner relating mainly to prospective finite
    risk contracts for Workers Compensation in 1999 and 2000                                   

The Groups reserves for losses and LAE
include an estimate of its ultimate liability for asbestos and
environmental claims for which an ultimate value cannot be
estimated using traditional reserving techniques and for which
there are significant uncertainties in estimating the amount of
the Groups potential losses. SCOR and certain of its
subsidiaries, of which principally SCOR Paris and SCOR U.S.,
have received and continue to receive notices of potential
reinsurance claims from ceding insurance companies which have in
turn received claims asserting environmental and asbestos losses
under primary insurance policies, in part reinsured by Group
companies. Such claims notices are frequently merely
precautionary in nature and generally are unspecific, and the
primary insurers often do not attempt to quantify the amount,
timing or nature of the exposure. Given the lack of specificity
in these notices, SCOR cannot quantify its potential exposure
regarding the claims reported. In addition, due to the changing
legal and regulatory environment and changes in tort law, in our
evaluation, the final cost of our exposure to asbestos related
and environmental claims appears to be increasing, but we are
unable to determine to what degree. Diverse factors could
increase our exposure to the consequences of asbestos related
risks, such as an increase in the number of claims filed or in
the number of persons likely to be covered by these claims.
These uncertainties inherent to environmental and asbestos
claims are unlikely to be resolved in the near future.
Evaluation of these risks is all the more difficult given that
claims related to asbestos and environmental pollution are often
subject to payments over long periods of time. In these
circumstances, it is difficult for us to estimate the reserves
that should be recorded for these risks and to guarantee that
the amount reserved will be sufficient.

As a result of these imprecisions and
uncertainties, we cannot exclude the possibility that we could
be required to pay significant claims in these areas and these
payments would have a material effect on our results and
financial conditions. Case reserves have been established when
sufficient information has been developed to indicate the
involvement of a specific reinsurance contract. In addition,
incurred but not reported reserves have been established to
provide for additional exposure on both known and unasserted
claims. These reserves are reviewed and updated continually. In
establishing liabilities for asbestos and environmental claims,
management considers facts currently known and the current legal
and tort environment.

F-46



---



##### Table of Contents



SCOR


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

|                                                                     |  |                         |      |                  |  |      |      |      |  |      |      |      |  |  |      |  |  |  |      |  |  |  |      | 
|-------------------------------------------------------------------- |  | ----------------------- | ---- | ---------------- |  | ---- | ---- | ---- |  | ---- | ---- | ---- |  |  | ---- |  |  |  | ---- |  |  |  | ---- | 
|                                                                     |  |                        
|                                                                     |  | Year ended December 31,
|                                                                     |  |                        
|                                                                     |  |                         |      |                 
|                                                                     |  | Asbestos(1)             |      | Environmental(1)
|                                                                     |  |                         |      |                 
|                                                                     |  | 2001                    |      | 2002             |  | 2003 |      | 2001 |  | 2002 |      | 2003
|                                                                     |  |                         |      |                  |  |      |      |      |  |      |      |     
|                                                                     |  |                        
|                                                                     |  | (EUR, in millions)     
|Gross Non-Life claims reserves, including IBNR
    reserves          |  |                         | 124  |                  |  |      | 157  |      |  |      | 109  |      |  |  | 92   |  |  |  | 88   |  |  |  | 59   | 
|% of total loss and LAE reserves                                     |  |                         | 1.3% |                  |  |      | 1.6% |      |  |      | 1.3% |      |  |  | 0.9% |  |  |  | 0.9% |  |  |  | 0.7% | 
|Non-Life claims and LAE paid                                         |  |                         | 15   |                  |  |      | 7    |      |  |      | 15   |      |  |  | 17   |  |  |  | 71   |  |  |  | 13   | 
|% of the Groups total net property-casualty
    claims and LAE paid |  |                         | 0.6% |                  |  |      | 0.2% |      |  |      | 0.5% |      |  |  | 0.6% |  |  |  | 2.2% |  |  |  | 0.4% | 






|    |                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Asbestos and environmental (A&E) reserve data
    includes SCORs estimated A&E exposures in respect of
    its participation in the Anglo French Reinsurance Pool, for
    which A&E exposures for the years shown were as follows:

The 2001 reserves are respectively EUR 38
million and EUR 35 million for asbestos and environmental.
The 2001 paid claims and LAE are respectively EUR 2.4
million and EUR 2.2 million for asbestos and environmental.

The 2002 reserves are respectively EUR 30
million and EUR 28 million for asbestos and environmental.
The 2002 paid claims and LAE are respectively EUR 0.8
million and EUR 0.7 million for asbestos and environmental.

The 2003 reserves are respectively EUR 19
million and EUR 18 million for asbestos and environmental.
The 2003 paid claims and LAE are respectively EUR 0.6
million and EUR 0.9 million for asbestos and environmental.

Note
17.     Contingencies

In December 2003, the minority shareholders of
IRP Holdings, Highfields Capital filed a petition with the High
Court of Dublin seeking injunctive relief, including: (i) a
declaration that, as a result of SCORs actions, the
affairs of IRP Holdings have been conducted in a way that is
oppressive and/or in disregard of Highfields interests;
(ii) an order directing or declaring the termination of the
quota share agreements between Irish Reinsurance Partners, as
retrocessionnaires, and SCOR, from such date as the Court may
direct; (iii) an injunction that certain existing
arrangements between SCOR and IRP Holdings under the quota share
agreement, pursuant to which SCOR currently withholds certain
funds of IRP Holdings, be terminated and such funds be returned
to IRP Holdings; and (iv) an order for the reduction of IRP
Holdings capital and the corresponding return of capital
to the shareholders of IRP Holdings. The minority shareholder
also applied for the dissolution of IRP Holdings on equitable
grounds. In March 2004, the minority shareholder filed a related
complaint against SCOR in the U.S. District Court for the
District of Massachusetts. The complaint alleges fraud and
related state law claims in connection with the minority
shareholders investment in IRP and seeks unspecified
compensatory and exemplary damages as well as interest and
costs. SCOR has not yet been able to determine, how and if the
lawsuit will impact SCOR.

F-47



---



##### Table of Contents



SCHEDULE I  SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS

IN RELATED PARTIES


December 31, 2003 (EUR, in
millions)

| |  |                             |                     |                                                                                                          |       |              |       |               |  |     |       |  |       |     |       |  |  | 
| |  | --------------------------- | ------------------- | -------------------------------------------------------------------------------------------------------- | ----- | ------------ | ----- | ------------- |  | --- | ----- |  | ----- | --- | ----- |  |  | 
|
|
|
|
| |  | Col A                       |                     | Col B                                                                                                    |       | Col C        |       | Col D         |  |    
|
|
| |  | Amount at which             |                     |                                                                                                         
| |  | Acquisition                 |                     | Fair                                                                                                     |       | shown in the |       |              
| |  | Type of investment          |                     | cost                                                                                                     |       | Value        |       | balance sheet |  |    
|
|
| |  | Fixed maturities:           |                     |                                                                                                          |       |              |       |               |  |     |       |  |       |     |       | 
| |  |                             | Available for sale: |                                                                                                          |       |              |       |               |  |     |       |  |       |     |       |  | 
| |  |                             |                     | Debt securities issued or guaranteed by the
    French government or its agencies                        |       |              | 1,211 |               |  |     | 1,201 |  |       |     | 1,201 |  |  | 
| |  |                             |                     | Debt securities issued or guaranteed by the U.S.
    government or its agencies                          |       |              | 1,213 |               |  |     | 1,215 |  |       |     | 1,215 |  |  | 
| |  |                             |                     | Obligations of U.S. states and political
    subdivisions                                                |       |              | 152   |               |  |     | 157   |  |       |     | 157   |  |  | 
| |  |                             |                     | Debt securities issued or guaranteed by the
    European Union                                           |       |              | 645   |               |  |     | 643   |  |       |     | 643   |  |  | 
| |  |                             |                     | Debt securities issued or guaranteed by other
    national, state or local governments or their agencies |       |              | 309   |               |  |     | 323   |  |       |     | 323   |  |  | 
| |  |                             |                     | Corporate debt securities                                                                                |       |              | 1,191 |               |  |     | 1,218 |  |       |     | 1,218 |  |  | 
| |  |                             |                     | Mortgage-backed securities                                                                               |       |              | 873   |               |  |     | 910   |  |       |     | 910   |  |  | 
| |  |                             |                     | Other debt securities                                                                                    |       |              | 34    |               |  |     | 31    |  |       |     | 31    |  |  | 
| |  |                             |                     |                                                                                                          |       |              |       |               |  |     |       |  |       |     |       | 
| |  |                             |                     | Total fixed maturities available for sale                                                                |       |              | 5,628 |               |  |     | 5,698 |  |       |     | 5,698 |  |  | 
| |  |                             |                     |                                                                                                          |       |              |       |               |  |     |       |  |       |     |       | 
| |  |                             | Held to maturity:   |                                                                                                          |       |             |       |               |  |    |       |  |       |    |       |  | 
| |  |                             |                     |                                                                                                          |       |              |       |               |  |     |       |  |       |     |       | 
| |  |                             |                     | Total fixed maturities                                                                                   |       |              | 5,628 |               |  |     | 5,698 |  |       |     | 5,698 |  |  | 
| |  |                             |                     |                                                                                                          |       |              |       |               |  |     |       |  |       |     |       | 
| |  | Equity securities:          |                     |                                                                                                          |       |              |       |               |  |     |       |  |       |     |       | 
| |  |                             | Available for sale  |                                                                                                          |       | 281          |       |               |  | 269 |       |  |       | 269 |       |  | 
| |  |                             | Trading             |                                                                                                          |       | 26           |       |               |  | 34  |       |  |       | 34  |       |  | 
| |  |                             |                     |                                                                                                          |       |              |       |               |  |     |       |  |       |     |       | 
| |  |                             |                     | Total equity securities                                                                                  |       |              | 307   |               |  |     | 303   |  |       |     | 303   |  |  | 
| |  |                             |                     |                                                                                                          |       |              |       |               |  |     |       |  |       |     |       | 
| |  | Short-term investments      |                     |                                                                                                          |      |              |       |               |  |     |       |  |      |     |       | 
| |  |                             |                     |                                                                                                          |       |              |       |               |  |     |       |  |       |     |       | 
| |  | Other long-term investments |                     |                                                                                                          | 295   |              |       |               |  |     |       |  | 295   |     |       | 
| |  |                             |                     |                                                                                                          |       |              |       |               |  |     |       |  |       |     |       | 
| |  |                             |                     | Total investments                                                                                        |       |              | 6,230 |               |  |     |       |  |       |     | 6,296 |  |  | 
| |  |                             |                     |                                                                                                          |       |              |       |               |  |     |       |  |       |     |       | 
| |  | Cash and cash equivalents   |                     |                                                                                                          | 1,824 |              |       |               |  |     |       |  | 1,824 |     |       | 
|
|

S-1



---



##### Table of Contents



SCHEDULE III  SUPPLEMENTARY
INSURANCE INFORMATION

December 31, 2003, 2002 and
2001

(EUR, in millions)


|                   |                               |                   |  |                  |     |              |  |                  |        |  |  |       |       |  |  |   |   |  |  | 
|------------------ | ----------------------------- | ----------------- |  | ---------------- | --- | ------------ |  | ---------------- | ------ |  |  | ----- | ----- |  |  | - | - |  |  | 
|                  
|                  
|                  
|Col. A             |                               | Col. B            |  | Col. C           |     | Col. D       |  | Col. E           |        | 
|                  
|                  
|                   |                               | Future Policy     |  |                 
|                   |                               | Benefits, Losses, |  |                  |     | Other Policy |  |                 
|                   |                               | Deferred Policy   |  | Claims, and Loss |     | Unearned     |  | Claims and       |        | 
|                   |                               | Acquisition Costs |  | Expenses         |     | Premiums     |  | benefits Payable |        | 
|                  
|                  
|December 31, 2003: |                               |                   |  |                  |     |              |  |                  |        |  |  |       |       |  |  |   |   | 
|                   | Life insurance and annuities  |                   |  | 246              |     |              |  | 2,562            |        |  |  |      |       |  |  |  |   |  | 
|                   | Property-casualty reinsurance |                   |  | 237              |     |              |  | 7,003            |        |  |  | 1,124 |       |  |  |  |   |  | 
|                   |                               | Total             |  |                  | 483 |              |  |                  | 9,565  |  |  |       | 1,124 |  |  |   |  |  |  | 
|                   |                               |                   |  |                  |     |              |  |                  |        |  |  |       |       |  |  |   |   | 
|December 31, 2002: |                               |                   |  |                  |     |              |  |                  |        |  |  |       |       |  |  |   |   | 
|                   | Life insurance and annuities  |                   |  | 155              |     |              |  | 2,368            |        |  |  |      |       |  |  |  |   |  | 
|                   | Property-casualty reinsurance |                   |  | 299              |     |              |  | 7,967            |        |  |  | 1,617 |       |  |  |  |   |  | 
|                   |                               | Total             |  |                  | 454 |              |  |                  | 10,335 |  |  |       | 1,617 |  |  |   |  |  |  | 
|                   |                               |                   |  |                  |     |              |  |                  |        |  |  |       |       |  |  |   |   | 
|December 31, 2001: |                               |                   |  |                  |     |              |  |                  |        |  |  |       |       |  |  |   |   | 
|                   | Life insurance and annuities  |                   |  | 104              |     |              |  | 2,601            |        |  |  |      |       |  |  |  |   |  | 
|                   | Property-casualty reinsurance |                   |  | 248              |     |              |  | 8,365            |        |  |  | 1,665 |       |  |  |  |   |  | 
|                   |                               | Total             |  |                  | 352 |              |  |                  | 10,966 |  |  |       | 1,665 |  |  |   |  |  |  | 
|                   |                               |                   |  |                  |     |              |  |                  |        |  |  |       |       |  |  |   |   | 
|                  
|                  

This schedule has been prepared in a manner
consistent with the classification of Balance Sheet and Income
Statement that are reviewed by the Groups Executive
Committee. The corresponding information for the income
statement is presented for Property-Casualty treaty, Life/
Accident & Health and Specialty Property-Casualty
reinsurance segments in Note 15 to the consolidated financial
statements.

S-2



---



##### Table of Contents



SCHEDULE IV  REINSURANCE

December 31, 2003, 2002 and
2001

(EUR, in millions)


|                              |                                              |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |   |  | 
|----------------------------- | -------------------------------------------- | ---------------------------- |  | --------- | - | ---------- |  | ------ | --- | ---------- |  | - | ----- |  |  | - | ----- |  |  | - | --- | - |  | 
|                             
|                             
|                             
|Col. A                        |                                              | Col. B                       |  | Col. C    |   | Col. D     |  | Col. E |     | Col. F     |  |  
|                             
|                             
|                              |                                              | % of                         |  |          
|                              |                                              | Ceded to                     |  | Assumed   |   |            |  | Amount |     |           
|                              |                                              | Gross                        |  | Other     |   | from Other |  | Net    |     | Assumed to |  |  
|                              |                                              | Amount                       |  | Companies |   | Companies  |  | Amount |     | Net        |  |  
|                             
|                             
|Year Ended December 31, 2003: |                                              |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |  
|                              | Life insurance in force                      |                              |  |          |   |            |  |       |     |            |  |  |       |  |  |  |       |  |  |  |     |   | 
|                              |                                              |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |  
|                              | Insurance premiums and other considerations: |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |   | 
|                              |                                              | Life insurance and annuities |  |           |  |            |  |        | 66  |            |  |   | 582   |  |  |   | 516   |  |  |   | 138 | % |  | 
|                              |                                              | Property-casualty insurance  |  |           |  |            |  |        | 252 |            |  |   | 2,724 |  |  |   | 2,472 |  |  |   | 110 | % |  | 
|                              |                                              |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |  
|                              |                                              | Total                        |  |           |  |            |  |        | 318 |            |  |   | 3,306 |  |  |   | 2,988 |  |  |   | 115 | % |  | 
|                              |                                              |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |  
|Year Ended December 31, 2002: |                                              |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |  
|                              | Life insurance in force                      |                              |  |          |   |            |  |       |     |            |  |  |       |  |  |  |       |  |  |  |     |   | 
|                              |                                              |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |  
|                              | Insurance premiums and other considerations: |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |   | 
|                              |                                              | Life insurance and annuities |  |           |  |            |  |        | 97  |            |  |   | 675   |  |  |   | 578   |  |  |   | 117 | % |  | 
|                              |                                              | Property-casualty insurance  |  |           |  |            |  |        | 471 |            |  |   | 4,046 |  |  |   | 3,575 |  |  |   | 113 | % |  | 
|                              |                                              |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |  
|                              |                                              | Total                        |  |           |  |            |  |        | 568 |            |  |   | 4,721 |  |  |   | 4,153 |  |  |   | 114 | % |  | 
|                              |                                              |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |  
|Year Ended December 31, 2001: |                                              |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |  
|                              | Life insurance in force                      |                              |  |          |   |            |  |       |     |            |  |  |       |  |  |  |       |  |  |  |     |   | 
|                              |                                              |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |  
|                              | Insurance premiums and other considerations: |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |   | 
|                              |                                              | Life insurance and annuities |  |           |  |            |  |        | 102 |            |  |   | 648   |  |  |   | 546   |  |  |   | 119 | % |  | 
|                              |                                              | Property-casualty insurance  |  |           |  |            |  |        | 547 |            |  |   | 3,654 |  |  |   | 3,107 |  |  |   | 118 | % |  | 
|                              |                                              |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |  
|                              |                                              | Total                        |  |           |  |            |  |        | 649 |            |  |   | 4,302 |  |  |   | 3,653 |  |  |   | 118 | % |  | 
|                              |                                              |                              |  |           |   |            |  |        |     |            |  |   |       |  |  |   |       |  |  |   |     |  
|                             
|                             

S-3



---



##### Table of Contents



SCHEDULE V  VALUATION AND
QUALIFYING ACCOUNTS

December 31, 2003, 2002 and
2001

|                   |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |        |  |  | 
|------------------ | -------------------------------------------------- | ----------------------------------------- | ----- | ------------ | -- | ----------------- |  | ---------- | -- | ----------- |  | ----- | ---- | ------ | - | - | -- | -- | - | ----- | -- | ------ |  |  | 
|                  
|                  
|                   |                                                    |                                           |       |             
|                   |                                                    |                                           |       |             
|Col. A             |                                                    | Col. B                                    |       | Col. C       |    | Col. D            |  | Col. E     |    |            
|                   |                                                    |                                          
|                   |                                                    |                                          
|                   |                                                    |                                           |       |              |    |                  
|                   |                                                    | Additions                                 |       |              |    |                  
|                   |                                                    |                                           |       |              |    |                  
|                   |                                                    | Balance at                                |       | 1)  Charged |    |                   |  |            |    |            
|                   |                                                    | beginning of                              |       | to costs and |    | 2)  Charged      |  |            |    | Balance at  |  |      
|Description        |                                                    | year                                      |       | expenses     |    | to other accounts |  | Deductions |    | end of year |  |      
|                   |                                                    |                                          
|                   |                                                    |                                          
|December 31, 2003: |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|                   | Reserves deducted from assets to which they apply: |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |        | 
|                   |                                                    | Investments                               |       |              | 32 |                   |  |            | 3  |             |  |       |      |        |   |   |    |    |   |       | 35 |        |  | 
|                   |                                                    | Reinsurance balance receivable            |       |              | 9  |                   |  |            |    |             |  |       | (1   | )      |   |   |    |    |   |       | 8  |        |  | 
|                   |                                                    | Advances to and investments in affiliates |       |              | 16 |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       | 16 |        |  | 
|                   |                                                    | Other assets                              |       |              | 1  |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       | 1  |        |  | 
|                   |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|                   |                                                    |                                           | Total |              |    | 58                |  |            |    | 3           |  |       |      | (1     | ) |   |    |   |   |       |    | 60     |  |  | 
|                   |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|                   | Reserves not deducted from assets(1):              |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |        | 
|                   | Loss and loss adjustment expenses reserves, net    |                                           |       | 6,900        |    |                   |  | 89         |    |             |  | (658  | )(2) |        |   |   |    |    |   | 6,331 |    |        | 
|                   | Unearned premium reserves, net                     |                                           |       | 1,487        |    |                   |  | (335       | )  |             |  | (104  | )(3) |        |   |   |    |    |   | 1,048 |    |        | 
|                   | Reserve for future policy benefits, net            |                                           |       | 1,857        |    |                   |  | 534        |    |             |  | (230  | )(4) |        |   |   |    |    |   | 2,161 |    |        | 
|                   |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|                   |                                                    |                                           | Total |              |    | 10,244            |  |            |    | 288         |  |       |      | (992   | ) |   |    |   |   |       |    | 9,540  |  |  | 
|                   |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|December 31, 2002: |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|                   | Reserves deducted from assets to which they apply: |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |        | 
|                   |                                                    | Investments                               |       |              | 6  |                   |  |            | 25 |             |  |       | 1    |        |   |   |    |    |   |       | 32 |        |  | 
|                   |                                                    | Reinsurance balance receivable            |       |              | 12 |                   |  |            |    |             |  |       | (3   | )      |   |   |    |    |   |       | 9  |        |  | 
|                   |                                                    | Advances to and investments in affiliates |       |              | 16 |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       | 16 |        |  | 
|                   |                                                    | Other assets                              |       |              | 2  |                   |  |            |    |             |  |       | (1   | )      |   |   |    |    |   |       | 1  |        |  | 
|                   |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|                   |                                                    |                                           | Total |              |    | 36                |  |            |    | 25          |  |       |      | (3     | ) |   |    |   |   |       |    | 58     |  |  | 
|                   |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|                   | Reserves not deducted from assets(1):              |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |        | 
|                   | Loss and loss adjustment expenses reserves, net    |                                           |       | 6,917        |    |                   |  | 721        |    |             |  | (738  | )(2) |        |   |   |    |    |   | 6,900 |    |        | 
|                   | Unearned premium reserves, net                     |                                           |       | 1,412        |    |                   |  | 204        |    |             |  | (129  | )(3) |        |   |   |    |    |   | 1,487 |    |        | 
|                   | Reserve for future policy benefits, net            |                                           |       | 1,953        |    |                   |  | 99         |    |             |  | (195  | )(4) |        |   |   |    |    |   | 1,857 |    |        | 
|                   |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|                   |                                                    |                                           | Total |              |    | 10,282            |  |            |    | 1,024       |  |       |      | (1,062 | ) |   |    |   |   |       |    | 10,244 |  |  | 
|                   |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|December 31, 2001: |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|                   | Reserves deducted from assets to which they apply: |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |        | 
|                   |                                                    | Investments                               |       |              | 6  |                   |  |            |    |             |  |       |      |        |   |   |   |    |   |       | 6  |        |  | 
|                   |                                                    | Reinsurance balance receivable            |       |              | 5  |                   |  |            |    |             |  |       | 7    |        |   |   |    |    |   |       | 12 |        |  | 
|                   |                                                    | Advances to and investments in affiliates |       |              | 17 |                   |  |            |    |             |  |       |      |        |   |   | (1 | )  |   |       | 16 |        |  | 
|                   |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|                   |                                                    | Other assets                              |       |              |    |                   |  |            | 1  |             |  |       | 1    |        |   |   |    |    |   |       | 2  |        |  | 
|                   |                                                    |                                           | Total |              |    | 28                |  |            |    | 1           |  |       |      | 8      |   |   |    | (1 | ) |       |    | 36     |  |  | 
|                   |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|                   | Reserves not deducted from assets(1):              |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |        | 
|                   | Loss and loss adjustment expenses reserves, net    |                                           |       | 5,068        |    |                   |  | 773        |    |             |  | 1,076 | (2)  |        |   |  |    |    |   | 6,917 |    |        | 
|                   | Unearned premium reserves, net                     |                                           |       | 1,097        |    |                   |  | 68         |    |             |  | 247   | (3)  |        |   |  |    |    |   | 1,412 |    |        | 
|                   | Reserve for future policy benefits, net            |                                           |       | 1,798        |    |                   |  | 32         |    |             |  | 123   | (4)  |        |   |  |    |    |   | 1,953 |    |        | 
|                   |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|                   |                                                    |                                           | Total |              |    | 7,963             |  |            |    | 873         |  |       |      | 1,446  |   |   |    |   |   |       |    | 10,282 |  |  | 
|                   |                                                    |                                           |       |              |    |                   |  |            |    |             |  |       |      |        |   |   |    |    |   |       |    |       
|                  
|                  



|    |                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Provisions to reserves and deductions from
    reserves presented as a net provision or a net deduction.                                                                                                                     
|   
|(2) | of which, translation adjustment of
    EUR 657 million in 2003, EUR 738 million in
    2002, EUR 124 million in 2001 and increases of
    EUR 952 million due to the acquisition of Sorema N.A.
    and Sorema S.A. in 2001.
|   
|(3) | of which, translation adjustment of
    EUR 104 million in 2003, EUR 129 million in
    2002, EUR 36 million in 2001 and increases of
    EUR 211 million from the acquisition of SOREMA N.A.
    and Sorema S.A. in 2001.   
|   
|(4) | of which, translation adjustment of
    EUR 230 million in 2003, EUR 195 million in
    2002, EUR 56 millions in 2001 and increases of
    EUR 67 million from the acquisition of Sorema N.A. and
    Sorema S.A. in 2001.   

S-4



---



##### Table of Contents



SCHEDULE VI  SUPPLEMENTAL
INFORMATION CONCERNING

PROPERTY/ CASUALTY INSURANCE
OPERATIONS


(I)     DECEMBER 31,
2003, 2001 AND 2000

(EUR, in millions )


|                                         |      |                     |  |                     |  |             |  |          |  |  |  |     |  |  |  |       |  |  | 
|---------------------------------------- | ---- | ------------------- |  | ------------------- |  | ----------- |  | -------- |  |  |  | --- |  |  |  | ----- |  |  | 
|                                        
|                                        
|                                        
|Col. A                                   |      | Col. B              |  | Col. C              |  | Col. D      |  | Col. E   |  | 
|                                        
|                                        
|                                         |      | Reserves for Unpaid |  | Discount if any,    |  |            
|                                         |      | Deferred Policy     |  | Claims, and Claim   |  | Deducted in |  | Unearned |  | 
|Affiliation with Registrant              |      | Acquisition Costs   |  | Adjustment Expenses |  | Column C    |  | Premiums |  | 
|                                        
|                                        
|Registrant and consolidated subsidiaries |      |                     |  |                     |  |             |  |          |  |  |  |     |  |  |  |       |  | 
|                                         | 2003 |                     |  | 237                 |  |             |  | 7,003    |  |  |  | 104 |  |  |  | 1,124 |  |  | 
|                                         | 2002 |                     |  | 299                 |  |             |  | 7,967    |  |  |  | 210 |  |  |  | 1,617 |  |  | 
|                                         | 2001 |                     |  | 247                 |  |             |  | 8,365    |  |  |  | 190 |  |  |  | 1,665 |  |  | 
|                                        
|                                        

For 2001, Claims and claim adjustment expenses
incurred included a profit of EUR 62 million reported in
cumulative effect of change in accounting principle (discount of
workmens compensation reserves) and excluded the
GROUPAMAs guarantee to cover its technical reserves for
the 2000 and previous years (EUR 128 million and EUR 73
respectively).

S-5



---



##### Table of Contents



Signature

Pursuant to the requirements of Section 12
of the Securities Exchange Act of 1934, the registrant certifies
that it meets all of the requirements for filing on
Form 20-F/A and has duly caused this Annual Report to be
signed on its behalf by the undersigned, thereunto duly
authorized.



| |             
| | ------------
| | SCOR        
| | (Registrant)



| |     |                  
| | --- | -----------------
| | By: | /s/ DENIS KESSLER

| |                                     
| | ------------------------------------
| |                                     
| | Denis Kessler,                      
| | Chairman and Chief Executive Officer

Dated October 20, 2004




---



##### Table of Contents



Appendix Index

|           |                            |       |  |         | 
|---------- | -------------------------- | ----- |  | ------- | 
|           |                            | Pages
|           |                            |      
|Appendix 1 |                            |       |  |        
|           | Glossary of selected terms |       |  | A-1A-6 | 



---



##### Table of Contents






Appendix 1

GLOSSARY OF SELECTED TERMS



|                                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|------------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Accounting year                      |  | The companys fiscal year in which the
    accounts are recorded. Because of the time required to transmit
    information for a given period of cover, the ceding
    companys accounting year may differ from that of the
    reinsurer. For reinsurers such as SCOR wishing to calculate
    their results more rapidly, estimates are made for the accounts
    of ceding companies for the last quarter or quarters not yet
    received at closing date.   
|                                    
|Actuarial analyses; actuarial models |  | Evaluation of risks in order to attempt to assure
    that premiums and loss reserves adequately reflect expected
    future loss experience and claims payments; in evaluating risks,
    mathematical models are used to predict future loss experience
    and claims payments based on past loss ratios and loss
    development patterns and other relevant data and assumptions.                                                                            
|                                    
|Accident year                        |  | The accounting year, in which loss events occur,
    regardless of when the losses are reported, booked or paid.                                                                                                                                                                                                                                                                                                                                                  
|                                    
|Additional reserves                  |  | Reserves set aside by the reinsurer over and
    above the amount indicated by the insurer. They are intended to
    cover claims incurred but not reported (IBNR), and
    underestimated claims (IBNER  incurred but not enough
    reserved).                                                                                                                                                                                                                 
|                                    
|Adverse development                  |  | Losses for which estimations of ultimate incurred
    losses and allocated LAE are proven inadequate. Increases in
    incurred losses as a result of adverse development are
    recognized in financial statements in the period of the change.                                                                                                                                                                                                                 
|                                    
|Alternative risk transfer, ART       |  | A concept covering the financing of risks through
    programmes other than the traditional insurance, using a
    combination of capital markets, investment banking, and
    reinsurance.                                                                                                                                                                                                                                                                       
|                                    
|Attachment point                     |  | The amount of losses above which excess of loss
    reinsurance becomes operative.                                                                                                                                                                                                                                                                                                                                                                                
|                                    
|Bancassurance; Bank insurance        |  | The sale, marketing and promotion of insurance
    products by banks. Initially appeared in Europe in the
    1980s, the term extended over the years to describe
    relationships between insurance companies and banks whereby the
    banks network of branches, contacts and/or marketing or
    client information are used to distribute Property-Casualty and
    personal insurance products manufactured and administrated by
    insurance companies.
|                                    
|Broker distribution                  |  | Reinsurance that is marketed and sold to ceding
    companies through reinsurance brokers.                                                                                                                                                                                                                                                                                                                                                                        
|                                    
|Capacity                             |  | Maximum amount of insurance or reinsurance
    available to cover risks for a company or for an entire market.
    An insurers capacity generally depends on its share
    capital and reserves, and on its premium income.                                                                                                                                                                                                                                      
|                                    
|Case reserves                        |  | Loss reserves established with respect to
    individual reported claims.                                                                                                                                                                                                                                                                                                                                                                                         

A-1



---



##### Table of Contents





|                                              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Casualty insurance                            |  | Insurance that is primarily concerned with the
    losses caused by injuries to third persons (in other words,
    persons other than the policyholder) and the legal liability
    imposed on the insured resulting there from.                                                                                                                                                                                                                                                    
|                                             
|Catastrophe equalization reserves             |  | Premium revenue deferred to future periods to
    provide against future catastrophes.                                                                                                                                                                                                                                                                                                                                                                                              
|                                             
|Ceded; cedent; ceding company                 |  | When a company reinsures its risk with another,
    it cedes business and is referred to as the
    ceding company, the cedent or the
    reinsured.                                                                                                                                                                                                                                                                                                                        
|                                             
|Class of business                             |  | A homogeneous category of insurance. Since 1985,
    French reinsurers have utilized a uniform presentation that
    distinguishes between life, fire, crop hail, credit and surety,
    other risks, third party liability, motor, marine and aviation
    classes. The last eight of these form the general class of
    Property-Casualty business. English-speaking markets generally
    distinguish between Casualty (liability insurance) and Property
    (damage to goods).
|                                             
|Combined ratio                                |  | A combination of the underwriting expense ratio
    and the loss and LAE ratio, determined in accordance with GAAP.
    A combined ratio below 100% generally indicates profitable
    underwriting prior to the consideration of investment income. A
    combined ratio over 100% generally indicates unprofitable
    underwriting prior to the consideration of investment income.                                                                                              
|                                             
|Credit and surety insurance                   |  | Credit insurance provides cover against loss to a
    supplier caused by customer insolvency. Surety insurance is a
    commitment to a bondholder to substitute for his debtor in case
    of default by the latter.                                                                                                                                                                                                                                                               
|                                             
|Decennial insurance                           |  | Decennial insurance provides cover to building
    owners and construction companies against losses caused by
    structural defects in new buildings resulting from inherent
    defects in design, construction or the materials employed. In a
    number of countries, including France, such coverage is required
    as a matter of law. It is generally granted for a period of ten
    years after the completion of construction.                                          
|                                             
|Deposit                                       |  | Amount deposited to guarantee the
    reinsurers commitment vis-à-vis the ceding company.
    Cash deposits generally earn interest at a rate agreed at the
    time of writing the business. Income from securities deposited
    accrues to the reinsurer.                                                                                                                                                                                                                       
|                                             
|Direct distribution                           |  | Reinsurance that is marketed and sold directly to
    ceding companies without the assistance of brokers or other
    intermediaries.                                                                                                                                                                                                                                                                                                                                               
|                                             
|Earned premiums                               |  | Amount of premium (calculated on a risk exposure
    or time apportion basis) corresponding to the expired portion of
    risk or time for which the reinsured policy(ies) was/were in
    effect.                                                                                                                                                                                                                                                                                  
|                                             
|Excess of loss reinsurance                    |  | A generic term describing reinsurance which
    indemnifies the reinsured against all or a specified portion of
    losses on underlying insurance contracts in excess of the ceding
    companys retention. Also known as non-proportional
    reinsurance.                                                                                                                                                                                                                       
|                                             
|Expense ratio; underwriting expense
    ratio |  | Operating expenses as a percentage of net
    premiums earned.                                                                                                                                                                                                                                                                                                                                                                                                                      

A-2



---



##### Table of Contents





|                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Facultative reinsurance                             |  | The reinsurance of all or a portion of the
    insurance provided by a single contract. Each contract reinsured
    is separately negotiated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                   
|Gross premiums written                              |  | Total premiums for insurance written and
    reinsurance assumed during a given period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                   
|Group policy                                        |  | A single insurance policy that provides cover
    against death, accident and sickness for several persons forming
    a homogeneous group, generally belonging to a single company or
    association.                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                   
|Incurred but not reported reserves
    (IBNR)     |  | Loss reserves for estimated losses and LAE, which
    have been incurred, but which have not yet been reported to the
    insurer or reinsurer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                   
|Loss                                                |  | Event that triggers insurance cover. An event or
    series of events arising from a particular cause which gives
    rise to an insured or reinsured loss. Depending on the wording
    of the reinsurance agreement, such event may also
    include continuous exposure to conditions giving rise to losses,
    which may be generated under certain forms of Casualty insurance
    coverage. For coverage purposes, particularly under Catastrophe
    Excess agreements, the definition of occurrence may be
    restricted or expanded to include claims within a certain period
    of time (e.g., 72 hours) as one occurrence.
|                                                   
|Loss adjustment expenses
    (LAE)                |  | The expenses of settling claims, including legal
    and other fees and the portion of general expenses allocated to
    claim settlement costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                   
|Loss experience                                     |  | Ratio of total cost of claims for the year to
    total earned premiums.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                   
|Loss ratio; loss and LAE ratio                      |  | Losses and LAE incurred as a percentage of net
    premiums earned.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                   
|Loss reserves                                       |  | Liabilities established by insurers and
    reinsurers to reflect the estimated cost of claims payments that
    the insurer or reinsurer will ultimately be required to pay in
    respect of insurance or reinsurance it has written. Loss
    reserves are established for losses and LAE, and consist of case
    reserves and IBNR reserves.                                                                                                                                                                                                                                                                                         
|                                                   
|Low or working layer excess of loss
    reinsurance |  | Reinsurance that absorbs the losses immediately
    above the reinsureds retention layer. A low layer excess
    of loss reinsurer will pay up to a certain monetary amount at
    which point a higher layer reinsurer or the ceding company will
    be liable for additional losses. Also known as working layer
    reinsurance.                                                                                                                                                                                                                                                                                                     
|                                                   
|Morbidity                                           |  | The relative incidence of disability or sickness
    due to disease or physical impairment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                   
|Mortality                                           |  | The relative incidence of death of life insureds
    or annuitants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                   
|Net premiums earned                                 |  | The portion of net premiums written during or
    prior to a given period that is recognized for accounting
    purposes as income during such period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                   
|Net premiums written                                |  | Gross premiums written for a given period less
    premiums ceded to retrocessionaires during such period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

A-3



---



##### Table of Contents





|                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Non-proportional reinsurance      |  | Reinsurance contract written to protect the
    ceding company from all or part of claims in excess of a
    specified amount retained (priority). Also called Excess of Loss
    or Stop Loss reinsurance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                 
|Probable maximum loss
    (PML) |  | The estimated anticipated maximum loss, taking
    into account ceding company and contract limits, caused by a
    single catastrophe affecting a broad contiguous geographic area,
    such as that caused by a hurricane or earthquake of such a
    magnitude that it is expected to recur once during a given
    return period, such as every 50, 100 or 200 years.                                                                                                                                                                                                                                                                                                                        
|                                 
|Primary insurer                   |  | An insurance company that issues insurance
    contracts to the public generally or to certain non-insurance
    entities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                 
|Property insurance                |  | Insurance that provides coverage to a person with
    an insurable interest in tangible property for that
    persons property loss, damage or loss of use.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                 
|Pro rata reinsurance              |  | A generic term describing all forms of
    reinsurance in which the reinsurer shares a proportional part of
    the original premiums and losses of the reinsured. (Also known
    as proportional reinsurance, which includes quota share and
    surplus share reinsurance.)                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                 
|Pure premium                      |  | Premium equal to the statistical estimate of the
    risk covered by the insurer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                 
|Reinstatement                     |  | A provision in an excess of loss reinsurance
    contract, particularly catastrophe and clash covers, that
    provides for reinstatement of a limit which had been reduced by
    the occurrence of a loss or losses. The number of times that the
    limit can be reinstated varies, as does the cost of the
    reinstatement.                                                                                                                                                                                                                                                                                                                                                               
|                                 
|Reinstatement premiums            |  | Additional premiums charged under certain excess
    of loss reinsurance contracts to restore coverage to original
    coverage amounts after a loss.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                 
|Reinsurance                       |  | The practice whereby one party, called the
    reinsurer, in consideration of a premium paid to it, agrees to
    indemnify another party, called the reinsured or ceding company,
    for part or all of the liability assumed by the reinsured under
    a contract or contracts of insurance which it has issued.
    However, the legal rights of the insured generally are not
    affected by the reinsurance transaction and the insurance
    enterprise issuing the insurance contract remains liable to the
    insured for payment of policy benefits. The reinsured may be
    referred to as the original or primary insurer, the direct
    writing company, or the ceding company.
|                                 
|Retention; retention level        |  | The amount or portion of risk which an insurer or
    reinsurer retains for its own account. Losses in excess of the
    retention level are paid by the reinsurer or retrocessionaire.
    In proportional treaties, the retention may be a percentage of
    the original contracts limit. In excess of loss business,
    the retention is a fixed monetary amount of loss, a loss ratio
    or a percentage of the loss.                                                                                                                                                                                                                                                                    
|                                 
|Retrocession                      |  | A transaction whereby a reinsurer cedes to
    another reinsurer (the retrocessionaire) all or part
    of the reinsurance it has assumed. Retrocession provides
    reinsurers with benefits similar to those which reinsurance
    provides to ceding companies. Retrocession does not legally                                                                                                                                                                                                                                                                                                                                                                                               

A-4



---



##### Table of Contents



|                                                                |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                |  | discharge the ceding reinsurer from its liability
    with respect to its obligations to the reinsured.                                                                                                                                                                                                                                                                                                                                               
|                                                               
|Survival ratio                                                  |  | Measure developed by A.M. Best to measure the
    number of years it would take an insurance company to exhaust
    both its asbestos and environmental reserves for losses and loss
    expenses. This ratio is calculated by dividing the amount of the
    companys reserve by the amount claims paid annually in the
    course of the past three years.                                                                                         
|                                                               
|Tail                                                            |  | The period of time that elapses between either
    the writing of the applicable insurance or reinsurance policy or
    the loss event (or the insurers or reinsurers
    knowledge of the loss event) and the payment in respect thereof.
    A short-tail product is one where ultimate losses
    are known comparatively quickly; ultimate losses under a
    long-tail product are sometimes not known for many
    years.                 
|                                                               
|Treaty reinsurance                                              |  | The reinsurance of a specified type or category
    of risks defined in a reinsurance agreement (a
    treaty) between a primary insurer or other reinsured
    and a reinsurer. Typically, in treaty reinsurance, the primary
    insurer or reinsured is obligated to offer and the reinsurer is
    obligated to accept a specified portion of all such type or
    category of risks originally written by the primary insurer or
    reinsured.
|                                                               
|Underwriting                                                    |  | The insurer or reinsurers process of
    reviewing applications submitted for insurance or reinsurance
    coverage to determine whether to accept all or part of the
    coverage requested and determining the applicable rates, terms
    and conditions.                                                                                                                                                                                         
|                                                               
|Underwriting capacity                                           |  | The maximum amount that an insurance or
    reinsurance company can underwrite. The limit is generally
    determined by the companys retained earnings and
    investment capital. Reinsurance serves to increase a
    companys underwriting capacity by reducing its exposure
    from particular risks.                                                                                                                                         
|                                                               
|Underwriting cycle                                              |  | Pattern in which property and casualty insurance
    and reinsurance premiums, profits and availability of coverage
    rise and fall over time.                                                                                                                                                                                                                                                                                                      
|                                                               
|Underwriting expenses                                           |  | The aggregate of policy acquisition costs,
    including commissions, and that portion of administrative,
    general and other expenses attributable to underwriting
    activities.                                                                                                                                                                                                                                                                 
|                                                               
|Underwriting year                                               |  | An underwriting year reinsurance contract
    reinsures losses incurred on underlying insurance policies that
    begin at any time during the reinsurance contract term. This
    means, for example, that, if both the underlying insurance
    contracts and the reinsurance contract have twelve-month terms,
    the reinsurance contract will cover underlying losses occurring
    over a twenty-four month period.                            
|                                                               
|Unearned premium                                                |  | The portion of a premium allocated to the
    unexpired portion of the contract term as of a certain date.                                                                                                                                                                                                                                                                                                                                            
|                                                               
|U.S. Generally Accepted Accounting Principles
    (U.S. GAAP) |  | United States accounting principles as set forth
    in opinions of the Accounting Principles Board of the American
    Institute of Certified Public                                                                                                                                                                                                                                                                                                 

A-5



---



##### Table of Contents



|                             |  |                                                                                                                                                                                                                                                                                                      
|---------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                             |  | Accountants and/or in statements of the Financial
    Accounting Standards Board and/or their respective successors
    and which are applicable in the circumstances as of the date in
    question.                                                                                                
|                            
|Working layer excess of loss |  | See low or working layer excess of loss
    reinsurance.                                                                                                                                                                                                                                           
|                            
|Written premiums             |  | Premiums recorded in the accounts that the
    insurer transmits to the reinsurer. They are divided into two
    parts: earned premiums, which appear on the credit side of the
    operating statement; and unearned premiums, which appear as a
    reserve under liabilities in the balance sheet.

A-6



---



##### Table of Contents



Exhibit Index

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       |  |            | 
|------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----- |  | ---------- | 
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Pages
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |      
|Exhibit 1:    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       |  |           
|              | Translation from French into English of the
    Companys Statuts, or bylaws, as last amended on
    May 18, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |       |  | E-1  E-7  | 
|             
|Exhibit 4:    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       |  |           
|              | Summary in the English language of (i) the
    credit line agreement, dated December 26, 2002, as amended
    on November 13, 2003 entered into by and among SCOR, a
    syndicate of banks and BNP Paribas as Agent and as Issuing Bank,
    relating to the issuance of letters of credit in an aggregate
    amount up to USD 900 million and (ii) the credit
    line agreement, dated November 14, 2003, entered into by
    and among SCOR VIE, a syndicate of banks and BNP Paribas as
    agent and as Issuing Bank, relating to the insurance of letters
    of credit in an aggregate amount up to USD 110 million. |       |  | E-8  E-14 | 
|             
|Exhibit 8:    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       |  |           
|              | List of subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |       |  | E-15       | 
|             
|Exhibit 12.1: |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       |  |           
|              | Certifications of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |       |  | E-16       | 
|             
|Exhibit 12.2: |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       |  |           
|              | Certifications of Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |       |  | E-17       | 
|             
|Exhibit 12.3: |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       |  |           
|              | Certifications of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |       |  | E-18       | 
|             
|Exhibit 12.4: |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       |  |           
|              | Certifications of Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |       |  | E-19       | 

A-7