In a year marked by a significant series of natural catastrophes which occurred mostly in the second part of the year, SCOR’s strong underlying results demonstrate its resilience and the effectiveness of its business model, based on extensive business and geographical diversification, while focusing on traditional reinsurance activities.
(1) By net reinsurance premiums written, source: “AM Best Special Report Global Reinsurance 2018”.
The statute of limitations for dividends is five years. Unclaimed dividends will be paid over to the French Treasury. See also Section 4.6 – Notes to the consolidated financial statements, Note 21 – Earnings per share.
The ordinary shares are included on the following indices: SBF TOP 80, SBF 120, CAC Next 20, CAC Large 60, CAC Large 60 EW, CAC All-Shares, CAC All Tradable, CAC Financials, Euronext FAS IAS, Euronext 100, Euronext France Next 40 EW, Euronext Europe Sustainable 100 EW, Euronext France Energy Transition Leaders 40 EW, Euronext Vigeo® Europe 120, Euronext Vigeo® Eurozone 120, Ethibel® Sustainability Index Excellence Europe (ESI Europe), SBFT 50 ESG EW and CAC® Large 60 Responsible Investment SW.
SCOR Global Life SE, which is now one of SCOR’s three primary operational subsidiaries (along with SCOR Global P&C SE and SCOR Global Investments SE, which became SCOR Investment Partners SE, described below), with responsibility for the Life reinsurance business.
The main operational entities of the Group are presented in the chart below(1): SCOR Global Life SE (France)
On September 19, 2018, SCOR was informed of A.M. Best’s decision to affirm the Group’s Financial Strength Rating of “A+ (Superior)” and its Long-Term Issuer Credit Ratings of’ ”aa-”.
In addition, reinsurers may also provide advisory services to ceding companies by: ◆ helping them define their reinsurance needs and devise the most effective reinsurance program to better plan their capital needs and solvency margin; ◆ supplying a wide panel of support services, particularly in terms of knowledge sharing, best practices and risk assessment, modeling and management tools; ◆ providing expertise in certain highly specialized areas such as complex risk analysis and pricing; and
◆ enabling ceding companies to build up their business, particularly when launching new products requiring significant upfront investment or financing or when investing in new markets by starting their own operations or acquiring portfolios or companies.
The Group has announced in September 2018 the grouping of its existing insurance units under a newly formed Specialties Insurance division. It is composed of SCOR Business Solutions, Channel 2015 SCOR’s Lloyd’s syndicate and MGAs.
Mortality protection represents 55% of the SCOR Global Life portfolio based on gross written premiums for the year ended December 31, 2018. SCOR Global Life actively underwrites mortality risk in all the geographical markets in which it operates.
SCOR has set up a rigorous governance process and an ERM-focused organizational structure: ◆ the Board of Directors approves risk appetite, risk limits and as a consequence, the capital allocated to insurance business investments on the basis of the Risk Committee’s recommendations; ◆ the Executive Committee approves the overall investment strategy and the macro-positioning of the investment portfolio on the basis of the Group Investment Committee’s recommendation.
The proceeds from the notes are eligible for inclusion in SCOR’s Tier 1 regulatory capital, in accordance with applicable rules and regulatory standards, and as equity credit in the rating agency capital models.
SCOR’s competitors include independent and state-owned reinsurance companies, subsidiaries or affiliates of established worldwide insurance companies, and reinsurance departments of certain primary insurance companies. Among the Group’s major competitors are European reinsurers (for example, Swiss Re, Munich Re and Hannover Re) and US/Bermudian reinsurers (for example, Partner Re, RGA, Chubb, Axis Capital, TransRe, Odyssey Re, GenRe and Everest Re). Moreover, Lloyd’s syndicates (where SCOR is also represented as a sole capital provider of the Channel Syndicate 2015) are recognized as competitors.
The total amount recorded under «other operating expenses» in 2018 is an expense of EUR 24 million (vs 2017: EUR 38 million; 2016: EUR 35 million) mainly linked to the Atlas CAT bonds’ depreciation.
(2) Net of retrocession and reinstatement premiums (assumed and retrocession). (3) Including Typhoons Jebi, Trami, Mangkhut and Yutu in Saipan and Tinian, Hurricanes Michael, Florence and Leslie, Camp Califnornia Fire and Woolsey
(5) Including Hurricane Harvey, Irma, Maria, Mexico Earthquakes, Northern and Southern California wildfires, Cyclone Debbie, South Africa climatic events, Typhoon Hato, Peru El Nino Costero events, Newcrest Mining Earthquake loss, US April and May Winds, Mumbai Floods, Portuguese Fires.
The real estate portfolio increased marginally to EUR 699 million as at December 31, 2018, and stands at 3% of invested assets (as at December 31, 2017: EUR 680 million, 4% of invested assets).
(3) Assets invested by third parties in mutual funds and non-controlling real estate investments fully consolidated by SCOR. (4) Fair value less carrying amount of real estate investments excluding EUR 9 million attributable to third-party investors. (5) Real estate financing related to real estate investments (buildings owned for investment) excluding EUR 30 million attributable to third-party investors.
(1) Refer to Section 1.3.3 – Significant event of the year on the US tax reform (Tax Cuts and Jobs Act, the “TCJA”). (2) Pro-rata of 50%: linear acquisition throughout the period.
The information published by SCOR within the last 12 months from February 23, 2018 to March 4, 2019 is available for downloading from the following sites: ◆ Autorité des marchés financiers (AMF): ◆ Bulletin des Annonces Légales Obligatoires (BALO): ◆ SCOR: ◆ L’info financière:
In application of the Act of July 3, 2008 implementing European Union Directive 2006/46/EC of June 14, 2006, SCOR SE refers to the AFEP-MEDEF corporate governance code in preparing the report to be issued in accordance with Article L. 225-37 of the French Commercial Code.
◆ Member of the Board of Directors of Société de Distribution Aéroportuaire (SDA) (France)
◆ Chairman of the Board of Directors of Rothschild & Co Bank AG (Switzerland)*
◆ Chairman of the Board of Directors of Europ Assistance Holding (France)
Fields Wicker-Miurin, an American and British citizen, studied in France at the Institut d’Études Politiques de Paris, in the United States and Italy. She graduated from the University of Virginia (BA) and the School of Advanced International Studies of the Johns Hopkins University (MA). Fields Wicker-Miurin began her career in banking, before joining Strategic Planning Associates (now Oliver Wyman Consulting) as a senior partner where she was the main advisor to Lloyd’s of London. In 1994, she became Chief Financial Officer and Head of Strategy of the London Stock Exchange. She was a member of the Nasdaq Technology Advisory Council and advised the European parliament on financial markets harmonization. In 2002, she was one of the founders of Leaders’ Quest, a social enterprise that works with leaders from all sectors and across the globe who want to make a responsible, positive difference through their leadership. In 2007 she was awarded the OBE (Officer of the British Empire) and in 2011 she was awarded Fellow of King’s College London. She is also a director of BNP Paribas and of Prudential plc and is a non-executive Member of the Board of the Department of Digital, Culture, Media and Sport of the UK Government where she chairs the Audit and Risk Committee.
Vincent FOUCART (employee director) X X X X X X X X X
The Board of Directors’ composition is guided by the following principles: ◆ application of best-in-class corporate governance practices; ◆ appropriate number of Board members in order to allow meaningful individual participation; ◆ majority of independent directors, pursuant to criteria adopted by the Board of Directors; ◆ diversity of expertise; ◆ professional experience; ◆ diversity of nationalities; ◆ high proportion of female Board members.
Michèle Aronvald April 27, 2016 April 26, 2018 F French End of mandate
These criteria are consistent with the AFEP-MEDEF corporate governance code, excluding the provision included in the criterion 1 above according to which a director may be deemed to be independent provided that he abstains from taking part in Board decisions in the event of conflict of interest with the subsidiary concerned.
(1) The attendance rate does not take into account the directors whose term ended on April 26, 2018.
SCOR’s Board of Directors has established six Committees in order to examine specific topics, to prepare the Board’s proceedings and to make recommendations to it.
The discussions focused primarily on the following matters: ◆ accounting and financial responsibilities: the review of the quarterly, half-year and annual financial statements, the impact of the US tax reform on SCOR, the review of the half-year interim report, the hybrid debt issuance, the review of the 2018 budget and operating plan, the review of the Statutory Auditors’ report, the review of the 2017 Registration Document, the review of the financial resolutions for the Annual Shareholders’ Meeting, the review of some authorisations prior to their submission to the Board, the 3SE merger and Brexit consequences for SCOR; ◆ ethical, internal control and compliance responsibilities: the review of the quarterly internal audit reports and of the 2018 internal audit plan, the annual review of the Group Policies (especially those required by Solvency II), the actuarial key function report, the 2018 compliance plan and the annual review of compliance activities, the annual review of related party agreements, the review of the work of the Audit Committees of the main subsidiaries, the review of the quarterly legal and compliance dashboard, the control of the selection of the auditors and the review of the Company’s statement with regard to the UK Modern Slavery Act.
Fields Wicker-Miurin 100 * Member of the Compensation and Nomination Committee until April 26, 2018. ** During its meeting held on October 23, 2018, after having examined the unanimous opinion of the Compensation and Nomination Committee and noted that the situation of Thierry Derez disturbed the proper functioning of SCOR’s governing bodies of which he was a member, the Board of Directors unanimously decided that Thierry Derez was no longer, with immediate effect, a member of the Strategic Committee, the Risk Committee, the Compensation and Nomination Committee and the Corporate Social Responsibility Committee. Thierry Derez was included in the calculation of the attendance to the meetings of the Committees until October 23, 2018, taking into account the situation of conflicts of interests which preceded it.
Except the employee director and Claude Tendil, the other members are independent.
The Committee mainly analyzed the consequences of Covéa’s unsolicited proposed combination with SCOR as well as the failure of the participants to Covéa’s unsolicited project (in particular Thierry Derez) to comply with applicable legal and governance rules.
Thus, in 2018, all of the directors were independent, except the Chairman and Chief Executive Officer, the employee director, Thierry Derez since Covéa crossed the 5% shareholding threshold in April 2016 (being specified that Thierry Derez resigned from the Board of Directors on November 13, 2018) and Claude Tendil who has been a director for over 12 years.
Romain Launay, a French citizen, is a graduate of the École Polytechnique, of the École des Mines de Paris and of the Centre des Hautes Études de l’Assurance. Having occupied various positions at the French Ministry for the Economy and Finance between 2004 and 2009, he became Technical Advisor to the Prime Minister in 2009. He joined SCOR in February 2012 as Senior Advisor to the Chairman and Chief Executive Officer, before being appointed Group General Secretary in May 2014. In February 2016, he became Group Chief Operating Officer.
(1) The variable annual compensation related to the 2018 financial year has been determined by the Board of Directors based on a percentage of achievement for the objectives of 98.7%. This variable annual compensation amount is paid in one instalment, pending the approval of the Shareholders’ Meeting.
Those compensation items are compliant with the principles and rules stated for the determination of compensation and in-kind benefits attributable to Mr. Denis Kessler, Chairman and Chief Executive Officer for the 2018 reporting period and as approved by the 2018 Shareholders’ Meeting.
NA The Group compensation policy does not provide for variable deferred compensation.
NA The Group compensation policy does not provide for multi-year variable compensation.
The Shareholders’ Meeting of the Company held on April 26, 2018 resolved that the annual maximum aggregate amount of directors’ fees shall not exceed EUR 1,400,000. Upon the proposal of the Compensation and Nomination Committee and within the limit of this amount, the Board of Directors’ meetings held on February 21, 2017 and October 23, 2018 set the terms and conditions of the allocation so as to encourage the attendance of the directors and to be compliant with the AFEP-MEDEF corporate governance code which stipulates that directors’ compensation should include a significant variable portion. In accordance with the AFEP-MEDEF corporate governance, the directors should be shareholders themselves and hold a significant number of shares in relation to the directors’ fees. According to the Board’s Internal Charter, this significant number of shares corresponds to an amount of EUR 10,000 at the time of purchase of the shares.
Except the Chairman and Chief Executive Officer and the employee director, members of the Board are not entitled to Company stock option plans or free share allocation plans, nor to any variable compensation other than the directors’ fees attributable to their attendance to meetings.
The Board of Directors has decided that the Chairman and Chief Executive Officer may not benefit from exceptional compensation for the fiscal year ended on December 31, 2019.
At its February 19, 2019 meeting, the Board of Directors decided to grant the Chairman and Chief Executive Officer 125,000 performance shares and 100,000 stock options in 2019.
Nevertheless, such a system may be envisaged if regulatory developments or any other circumstance make it too restrictive or impossible for the Company to use a share-based instrument.
◆ of which number of potential new shares from outstanding free share plans (free shares allocated but not vested)(1) 0
(1) The free share allocation plans currently in force only allocate outstanding shares. (2) Authorization granted by the Shareholders’ Meeting of April 26, 2018 in its 23rd resolution (stock options).
Following the Company’s Board of Directors’ meeting of October 23, 2018, 75,455 free shares were awarded on December 23, 2018 to all French tax resident employees of the Group (835 employees).
The plans for which shares have finally vested and for which the holding period ended before December 31, 2017, are not presented below.
The table below presents the acquisitions, sales, subscriptions or exchanges of SCOR SE shares as well as transactions involving securities linked to SCOR SE carried out by directors, executive corporate officer and persons discharging managerial responsibilities in 2018.
(4) Overall number of shares held by employees (including performance shares granted prior to the publication of Law No. 2015-990 of August 6, 2015). (5) As at December 31, 2018, employee shareholdings, as defined in Article L. 225-102 of the French Commercial Code, amount to 0.93% of the capital. Source: TPI and CMi2i.
On November 5, 2014, the Board of Directors authorized an amendment to the Supplementary Retirement Plan Regulations providing for: ◆ a cap at 45% of the beneficiary’s reference income the amount of the pension that may be received under that plan; and
Amendment concerning the severance pay commitments made to M. Denis Kessler.
Similarly, changes in tax legislation and regulations, or in their interpretation, may have a negative impact on SCOR’s performance, including financial results, and business model (such as unfavorable changes in deferred taxes resulting from the Tax Cuts and Jobs Act enacted in United States). Refer to Section 1.3.3 – Significant events of the year.
See Section 3.7 – Operational risks for further details on SCOR’s Internal control system approach, Appendix A – Internal control and risk management procedures, Section 4.1 – Group functions for a description of some of the departments involved in the management of intangible assets and Appendix A – Internal control and risk management procedures, Section 7 – Financial reporting for further details on the production of SCOR’s technical and financial results, including intangible assets.
Moreover, some of SCOR’s facilities contain conditions about its financial situation which, if not met, constitute a default and might result in the suspension of the use of current credit facilities and/ or a prohibition on obtaining new lines of credit or result in the need to negotiate new LOC facilities under adverse conditions.
Disruptions, uncertainty or volatility in the capital and credit markets may also limit the Group’s access to capital required to operate its business, most significantly its insurance operations. Such market conditions may limit its ability to: ◆ replace, in a timely manner, maturing debts; ◆ access the capital needed to grow its business; ◆ satisfy statutory capital requirements and maintain a solvency ratio in line with its risk appetite framework.
◆ Underwriting and pricing guidelines, defined by the P&C division, specify the underwriting capacities delegated to each underwriter in each entity, as well as the underwriting rules and principles to be complied with. These guidelines are subject to a regular review and approval process. SCOR’s underwriting guidelines are more restrictive regarding certain areas with difficult or uncertain legal environments.
◆ The underwriting teams are supported by P&C division’s Underwriting Management. This function provides worldwide treaty and facultative underwriting guidelines, policies regarding the delegation of capacity, underwriting support to specific lines of business or individual risks when required, ceding company portfolio analysis and risk surveys and is responsible for monitoring and referral of non-standard business and for authorizing exceptions to the underwriting guidelines.
◆ In order to mitigate its property exposure, the Group retrocedes a portion of the risks it underwrites. See 3.3.5 – Retrocession and other risk mitigation techniques for further information on how these instruments are managed.
03 RISK FACTORS AND RISK MANAGEMENT MECHANISMS Underwriting risks related to the P&C and Life reinsurance businesses 3.3.3. INTERDEPENDENCE AND ACCUMULATION RISKS BETWEEN SCOR’S AREAS OF BUSINESS
Note 7 – Insurance business investments. For more information on debts issued in different currencies, see Section 4.6 – Notes to the consolidated financial statements, Note 13 – Financial liabilities.
SCOR could also lose receivables from the defaulting retrocessionaire (receivables are due to a timing difference between statement accounts received and real payment due for positive balances of retrocessionaire accounts).
3.5.2.1. MANAGEMENT OF CREDIT RISKS RELATED TO CASH AND INVESTED ASSETS
03 RISK FACTORS AND RISK MANAGEMENT MECHANISMS Liquidity risks 3.6.2. MANAGEMENT OF LIQUIDITY RISKS
Outsourcing some activities or processes may improve or streamline some aspects of a process, but SCOR is still expected to deliver the same level of service. Principles to properly manage potential operational risks stemming from outsourcing of certain functions are set out in dedicated policies and guidelines.
(1) Largely due to negative impact of USD weakening against EUR. (2) Mostly relates to the partial sale of ASEFA.
Disposals of consolidated entities, net of cash disposed of 4(4) 3(4) 8(4)
Net cash flows provided by/(used in) financing activities (638) (467) (895)
The impact of the referendum on Britain’s membership in the European Union has led to heightened financial market volatility and increased political and economic uncertainty. The terms of the Brexit are still uncertain at year end 2018. To prepare for Brexit the Group has set up a new entity, SCOR Europe SE. With effect from January 1, 2019, SCOR Europe SE, a 100%-owned subsidiary of SCOR SE, will underwrite all new and renewed business relating to risks located in the EEA that can no longer be accepted by SCOR UK Company Ltd. after the Brexit date. SCOR Europe SE will also take over all commitments from policies previously issued by SCOR UK Company Ltd. if the latter can no longer honor these following Brexit.
The Group’s consolidated financial statements are presented in euros (EUR) and all values are rounded to the nearest EUR million except where stated otherwise. Percentages and percent changes are calculated on unrounded figures (including decimals), therefore the Notes might contain immaterial differences in totals and percentages due to rounding.
The Group’s investments in associates are accounted for using the equity method. Associates are companies in which the Group exercises significant influence but no control or joint control. Significant influence generally occurs when the Group owns, directly or indirectly, between 20% and 50% of the outstanding voting rights. For certain associates accounted for under the equity method the Group consistently uses provisional financial year-end information and makes adjustments, if necessary, in the following reporting period.
The Group, through SCOR Investment Partners, acts as a fund manager for various investment funds. Funds for which SCOR acts as principal are consolidated, even if the Group holds less than 50% of the voting rights.
SCOR Reinsurance Asia-Pacific Pte Ltd. Singapore 100 100 100 100 Full
Change in fair value of investments - (13) - (13) (2) 4 - 2 1 5 - 6
Net cash flows provided by operating activities amounted to EUR 891 million in 2018 (2017: EUR 1,144 million and 2016: EUR 1,354 million). The decrease of technical operating cash flows in 2018 compared to 2017 for the SCOR Global Life segment is mainly due to positive one-off impacts in 2017.
Ordinary shares are classified in shareholders’ equity when there is no contractual obligation to transfer cash or other financial assets to the holders.
UBS is now committed, in lieu of BNP Paribas, to subscribing to the new shares, in case of exercise of the warrants, but does not intend to become a long-term shareholder of SCOR and would therefore resell the shares by way of private placements and/ or sales on the open market. In this respect, UBS has also been substituted to BNP Paribas with respect to the profit sharing arrangement put in place in December 2016, whereby 75% of the gain generated by the resale of the new shares, if any, would be retroceded to SCOR. If the resale of the new shares occurs immediately upon exercise through an off-market transaction, the profit share owed to SCOR will be paid in the form of SCOR shares in order to limit the dilutive impact of the transaction for SCOR’s shareholders.
EUR 15 million (2017: EUR 16 million) with the offsetting impact recorded in other comprehensive income.
Unfunded obligation as at December 31 124 115 3 6 62 48 8 6 64 50 8 6
Finally, the third part of the table presents the net earned premiums history at current balance sheet foreign exchange rates per underwriting year.
Net claims incurred relating to the current calendar year 2,296 2,234
The standard tax rates for the primary locations in which the Group has operations are as follows:
The table below shows the net retrocession result for the years ended December 31, 2018, 2017 and 2016: In EUR millions
On December 21, 2009 SCOR filed an appeal to the sanctioning decision before the Administrative Chamber of the National Audience (Audiencia Nacional, or the “AN”).
◆ assesses the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. This assessment is based on the audit evidence obtained up to the date of the audit report. However, future events or conditions may cause the Company to cease to continue as a going concern. If the auditor concludes that a material uncertainty exists, there is a requirement to draw attention in the audit report to the related disclosures in the consolidated financial statements or, if such disclosures are not provided or inadequate, to modify the opinion expressed therein.
As set forth in Article 3 of the bylaws (statuts), the corporate purpose includes the following: ◆ insurance, reinsurance, cession or retrocession of business of any nature in all classes and in all countries, the assumption in any form of reinsurance contracts or liabilities of any French or foreign company, organization, entity or association, and creation, acquisition, rental, lease, installation and operation of any undertaking related to these activities; ◆ the construction, lease, operation or purchase of any and all properties; ◆ the acquisition and management of all securities and other equity rights by any means including but not limited to subscription, transfer or acquisition of shares, bonds, corporate rights, partnerships and other equity rights; ◆ acquisition of equity investments or interests in any industrial, commercial, agricultural, financial, movable property or real estate companies, the formation of any company, participation in any capital increases, mergers, demergers and spin-offs; ◆ 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 including, but not limited, to participation in any company or equity investment; ◆ implementation and management of centralized cash resource management within the Group and the provision of services, to any Group company concerned, relating to the management and operations of centralized cash resources; and
Dividends may also be distributed from optional or statutory reserves, subject to approval by the shareholders and certain limitations, either as an addition to an annual dividend distribution or as a special dividend.
The clarity and detailed description of strategic objectives and their implementation within the Group facilitate the identification, evaluation and control of risks, whatever their nature (e.g. underwriting risk, market risk, and operational risk), possibly caused by these objectives.
General accounting for SCOR subsidiaries is supported by two main auxiliary accounting systems, namely (1) a system for technical reinsurance accounting: premiums, claims, commissions, underwriting reserves, value of business acquired (VOBA), deferred acquisition costs (DAC), funds held; and (2) a system for financial asset accounting: securities, bank accounts, investment income and expenses.
On March 6, 2018, SCOR SE issued a perpetual deeply subordinated notes in the amount of USD 625 million, redeemable every fifth anniversary from March 13, 2029. The coupon was set at 5.25% (until March 13, 2029), and will be reset every 5 years thereafter at the prevailing 5-year US. Treasury yield plus 2.37%.
Deferred acquisition costs assumed (Non-Life) 56 - 97 153 51 - 93 144
C UNCONSOLIDATED CORPORATE FINANCIAL STATEMENTS OF SCOR SE Notes to the corporate financial statements 5.3.5. STOCK OPTIONS
◆ Evaluates the overall presentation of the financial statements and assesses whether these statements represent the underlying transactions and events in a manner that achieves fair presentation.
Unless stated otherwise, this consolidated declaration covers SCOR SE and all its fully-consolidated subsidiaries(1) , hereinafter “SCOR” or “the Group”, other than the exceptions stipulated in the note on methodology in the appendix to this declaration.
Risk management is at the heart of the Group’s reinsurance and investment activities. It is underpinned by a risk appetite framework built around four concepts(1): Risk Appetite, Risk Preferences, Risk Tolerances and “Footprint” scenarios.
Aside from its employees, SCOR maintains relationships with a broad range of stakeholders directly affected by its business. The Group’s stakeholders include: shareholders and investors, clients and reinsurance brokers, financial and non-financial rating agencies, national supervisory authorities for the insurance and reinsurance industries, trade associations representing the interests of the insurance and reinsurance industry, academics, non-governmental organisations and institutions. Aside from its employees, SCOR maintains relationships with a broad range of stakeholders directly affected by its business.
Headcount is calculated on the basis of employees registered at December 31, on fixed-term contracts (employment contract signed directly between SCOR and the individual with a defined end date) or permanent contracts (employment contract signed directly between SCOR and the individual for an unlimited period). Trainees are employees paid by the Company under a tripartite agreement between the Company, the school and the student.
SCOR is currently conducting a project to automate many of the screening processes in order to enhance them. SCOR already screens several of its database to identify suspicious case.
Tax is an integral part of SCOR business principle. The SCOR Group complies with the applicable tax laws wherever it operates. The Group tax department is in charge of ensuring that the various entities of the Group comply with the applicable tax laws and regulations wherever they operate. All key entities have a designated tax manager in charge of making sure that the entity complies with its tax obligations. Tax compliance is managed by the Business process owner in accordance with the principles governing the Group’s Internal control framework.
In addition to the implementation of sectorial guidelines for industries with high coal exposure, SCOR integrates other ESG dimensions into its investment and underwriting policy. In 2018, the Group thus confirmed its commitment to exclude the tobacco industry from its activities both on the assets and liabilities side. In addition, the Group associated itself with the PSI/WWF/Unesco declaration on the protection of the world heritage sites.
The variation in the intensity ratio presented in Section 4.4.3 covers scope 1 and 2 described above and concerns the management of the Group’s operational processes.
Based on the work performed, no material misstatement has come to our attention that causes us to believe that, the extra-financial performance declaration in accordance with the applicable legal provisions and regulations and that the Information, taken as a whole, is not presented fairly in accordance with the Guidelines.
(2) Paris, Cologne, Dublin and London sites. (3) Social information: Measures to promote equality between women and men.
In accordance with the AMF Guide for compiling registration documents updated as at April 13, 2015, statements and information pertaining to the management report on the Company’s and the Group’s activities in 2018, as approved by the Board of Directors on February 19, 2018 (the “Report”), are included and presented in the 2018 Registration Document which will be submitted as such to the Shareholders’ Meeting convened to approve the financial statements for the financial year ended December 31, 2018.
For additional information on the operating and financial situation of SCOR SE and its subsidiaries, as well as on the development of their business in 2018, see Section 1.3, Section 4 and Appendix C of the Registration Document.
F ADDITIONAL INFORMATION RELATING TO THE MANAGEMENT REPORT OF THE COMPANY AND THE GROUP – CORRESPONDENCE TABLE Operating and financial review of SCOR SE
Direct or indirect shareholding interests in the Company of which it is aware pursuant to Articles L. 233-7 (threshold crossing) and L. 233-12 (cross-shareholding) Sections 2.3.1.1,2.3.1.3 and 5.1.7