In application of article 28 of the EC Commission Regulation No. 809/2004, the following information is incorporated by reference in this Registration Document: (i) The consolidated financial statements as at 31 December 2012 are included from pages 197 to 299 and the auditors’
Registration Document filed with the Autorité des marchés financiers on 6 March 2013 under Number D.13-0106, (and from pages 190 to 287 and from pages 288 to 289, respectively, of the free translation into English of the above mentioned Registration Document. The translation is available on SCOR’s website www.scor.com).
(ii) The consolidated financial statements as at 31 December 2011 are included from pages 198 to 303 and the auditors’
Registration Document filed with the Autorité des marchés financiers on 8 March 2012 under Number D.12-0140, (and from pages 190 to 284 and from pages 285 to 286, respectively, of the free translation into English of the before mentioned Registration Document. The translation is available on SCOR’s website www.scor.com).
Disposals of consolidated entities, net of cash disposed of (2) - (3) 9
Effect of change in foreign exchange rates on cash and cash equivalents (76) 8 52
(1) For further details refer to Note 3 – Acquisitions and disposals (2) Settlement of certain contingencies in 2012 related to the US Fixed Annuity Business sold in 2011 – refer to Note 3 – Acquisitions and disposals (3) Acquisitions and disposals of other insurance business investments also include movements relating to bonds and other short term investments which have a maturity date of < 3 months, and are classified as cash equivalents (4) Includes the repurchase of subordinated debt of USD 46 million (EUR 35 million) (refer to Note 14 – Financial debt), the redemption of MRM S.A. debt of EUR 33 million (including EUR 26 million done in the context of the acquisition by SCOR). Refer to Note 3 – Acquisitions and disposals), the payment of EUR 45 million made to exercise the purchase option on a real estate investment previously held under finance lease, the redemption of other real estate debt of EUR 5 million, and EUR 20 million for entities that had a negative bank balance as at 31 December 2013
(5) Of which EUR 8 million payment made during June 2013 for interest in arrears owed to the former bondholders of MRM S.A.
Revaluation – Assets available for sale - - (307) - - - - - (307)
Net losses on cash flow hedges - - - (21) - - - - (21)
Taxes recorded directly in equity - - 77 6 - - - - 83
Actuarial losses not recognized in income - - - (3) - - - - (3)
Dividends paid - (3) - (198) - - - - (201) SHAREHOLDERS’ EQUITY 31 DECEMBER 2011 revised 1,513 835 (178) 1,959 (121) 329 63 7 4,407 Allocation of prior year net income - - - 329 - (329) - - -
Revaluation – Assets available for sale - - 331 - - - - - 331
Net losses on cash flow hedges - - - (25) - - - - (25)
Actuarial losses not recognized in income - - - (16) - - - - (16)
Comprehensive income, net of tax - - 244 (37) - 418 - - 625
(1) Fair value of non-controlling interest in MRM S.A. of EUR 36 million, adjustment of EUR (2) million and EUR (1) million for dividends relating to minority shareholders of CPP (2) Movements presented above relate to the issuance of shares on the exercise of stock-options for EUR 20 million (EUR 10 million in share capital and
EUR 10 million in additional paid-in capital). This resulted in the creation of 1,254,162 new shares during the year ending 31 December 2013. These movements were compensated by a reduction in group capital by cancellation of treasury shares for EUR 15 million (EUR (7) million in share-capital and EUR (8) million in additional paid-in capital)
Net income for year ended 31 December 2013 - - - - - 549 - - 549
Revaluation – Assets available for sale - - (89) - - - - - (89)
Effect of change in foreign exchange rates - - - (163) - - - - (163)
Profits on cash flow hedges - - - 8 - - - - 8
Taxes recorded directly in equity - - 15 (6) - - - - 9
Actuarial profits not recognized in income - - - 9 - - - - 9
SWX Swiss Exchange). The principal activities of the Company and its subsidiaries (“the Group” or “SCOR”) are Life and
(“EU”) and effective as at 31 December 2013. The term “IFRS” refers collectively to International Accounting Standards (IAS)
and International Financial Reporting Standards (IFRS) and to Interpretations of the Interpretations Committees (Standing
Certain reclassifications and revisions have been made to the financial information of the prior year to conform to the current year presentation.
The preparation of the consolidated financial statements requires management to make certain judgments, assumptions and estimates. These affect the reported amounts of revenue, expenses, assets and liabilities, and the disclosure of contingent assets and liabilities at the reporting date. Management reviews these estimates and assumptions periodically, based on past experience and other factors. The actual outcome and results could differ substantially from estimates and assumptions made. The most material financial statement captions for which the Group uses estimates and assumptions are reinsurance reserves, receivables and liabilities relating to reinsurance operations, the fair value and impairment of financial instruments, intangible assets, retirement and other defined benefit plans and deferred taxes.
(SPVs). The SPVs allow the retrocession of catastrophe losses and of extreme mortality events in the US, financed by the issuance of Cat bonds. In accordance with SIC 12 Consolidation - Special Purpose Entities, these vehicles are not consolidated by the Group as SCOR does not control them and is not liable for any residual risks or benefits of ownership.
The financial statements of the material subsidiaries are prepared for the same accounting period as for the parent company.
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. The other key currencies in which the Group conducts business and the exchange rates used for the preparation of the 2013 financial statements are as follows: Currency Ending rate 2013 Average rate 2013
Other Comprehensive Income into two groups based on whether or not they are able to be recycled to profit or loss in the future. The presentation of the consolidated statements of comprehensive income has been adjusted accordingly.
 Amendments to IAS 12 – Deferred Tax: Recovery of Underlying Assets, introduce an exception to the measurement principles of deferred tax assets and liabilities arising from assets measured using the fair value model under IAS 40, Investment Property. The application of these amendments did not have any impact on the
 Amendments to IAS 19 – Employee Benefits, make significant changes to the recognition and measurement of defined benefit pension expenses and termination benefits, and to disclosures for all employee benefit plans. The concept of expected return on plan assets previously recognized in profit and loss has been removed. The net interest is calculated on a net funding basis. The impact, net of taxes, of the retrospective application amounted to
EUR 4 million on shareholders’ equity as at 1 January 2011. This amount results from recognition of past service costs that were generated on French and Swiss pension schemes.
December 2012. As the Group is not netting off financial instruments in accordance with IAS 32 and does not have relevant offsetting arrangements, the amendment does not have an impact on the Group’s financial statements.
 IFRS 13 – Fair value measurement, provides guidance on how to measure the fair value of financial and nonfinancial assets and liabilities when required or permitted by IFRS. The application of IFRS 13 has not materially impacted the fair value measurements carried out by the Group.
December 2013. The Group has early adopted these amendments to IAS 36 in 2013 since they provide useful information as intended by the IASB, without impact on SCOR’s financial statements.
Financial Statements that address the accounting for consolidated financial statements. It also includes the issues raised in SIC-12 - Consolidation – Special Purpose Entities. The standard establishes a single control model that applies to all entities. It will require management to exercise judgment to determine which entities are controlled, and therefore are required to be consolidated by a parent. The European Union endorsed IFRS 10 on 11
European listed companies. The adoption of IFRS 10 is not expected to have a material impact on the Group’s consolidated financial statements.
 IFRS 11 – Joint Arrangements replaces IAS 31 - Interests in Joint Ventures and SIC-13 - Jointly-controlled Entities
– Non-monetary Contributions by Venturers. The standard addresses two forms of joint arrangements: joint operations and joint ventures. To assess whether there is joint control IFRS 11 uses the principle of control in IFRS
10. The existing option to account for jointly controlled entities under IAS 31 using proportionate consolidation is removed in this standard. The European Union endorsed IFRS 11 on 11 December 2012. This standard is effective for annual periods beginning on or after 1 January 2013 for companies preparing financial statements in compliance with IFRS issued by the IASB and on or after 1 January 2014 for European listed companies. SCOR
 IFRS 12 – Disclosure of Interests in Other Entities, includes all the disclosures that were previously included in IAS
 As a consequence of the new IFRS 11 and IFRS 12 standards, IAS 28 has been renamed IAS 28 - Investments in
 Amendments to IAS 32 – Offsetting Financial Assets and Financial Liabilities, clarify the meaning of “currently has a legally enforceable right to set-off”. The amendments also clarify the application of the IAS 32 offsetting criteria to settlement systems which apply gross settlement mechanisms that are not simultaneous. The European Union endorsed the amendments on 13 December 2012. These amendments are not expected to impact the Group’s financial position or performance and become effective for annual periods beginning on or after 1 January 2014.
 The IASB’s project to replace IAS 39 by IFRS 9 is split into three phases, Classification and Measurement,
Impairment and General Hedge Accounting. Macro Hedge Accounting is considered in a separate project. IFRS 9
– Financial Instruments: Classification and Measurement, applies to the classification and measurement of financial assets and financial liabilities. An effective date will be added when all phases of the project are complete and a final version of IFRS 9 is issued. The IASB decided that the mandatory effective date will be no earlier than annual periods beginning on or after 1 January 2018. The European Union has not decided yet whether to endorse
IFRS 9 or not. The adoption of IFRS 9 will affect the classification and measurement of the Group’s financial assets. However, the Group determined that the effect will be quantified only in conjunction with the other phases when issued, to present a comprehensive view. IFRS 9, Phase 3 - Hedge Accounting, was issued in November 2013. The standard will align hedge accounting more closely with risk management. It does not fundamentally change the types of hedging relationships or the requirements to measure and recognize hedge ineffectiveness.
The standard also removes the effective date of IFRS 9, with the new mandatory effective date being determined once the classification and measurement and impairment phases of IFRS 9 are finalized. The European Union has not endorsed the amendments yet. In line with the assessment of the classification and measurement phase, the
 IFRIC 21 - ‘Levies’, addresses the accounting for an obligation to pay a levy that is not an income tax. The interpretation addresses what the obligating event is that gives rise to pay a levy and when a liability should be recognized. The European Union has not yet endorsed IFRIC 21. The interpretation is effective for annual periods beginning on or after 1 January 2014 for companies preparing financial statements in compliance with IFRS issued by the IASB. The impact on the Group is not expected to be material.
Where the functional currency of an entity is not the same as the reporting currency used to present the Group’s consolidated financial statements, assets and liabilities of the entity are translated using the exchange rate at the balance sheet date and the statement of income is translated using the average exchange rate for the period. Translation differences are recognized directly in shareholders’ equity. The foreign exchange rates used for this purpose are stated under Note 1
(C). Transactions denominated in foreign currencies (currencies other than the functional currency) are translated into the functional currency at the rate of exchange at the date of the transaction (for practical purposes, an average rate is used).
These rates may differ from the rates used to translate functional currency into the reporting currency as mentioned above.
At each period end, the entity must translate the items on its balance sheet which are denominated in a foreign currency into the functional currency, using the following procedures:  monetary items and non-monetary items classified as fair value through income are translated at end of period exchange rates and the resulting gains and losses are recorded in the statement of income;  other non-monetary items are translated: - at the exchange rates in effect on the transaction date for items valued at historical cost; or - at the end of period exchange rates if they are valued at fair value; and - to the extent that any gains or losses arise, these are directly recorded in shareholders’ equity. In particular this affects foreign exchange differences for available for sale equity securities and exchange differences resulting from the conversion of these items which are also directly recorded in shareholders’ equity;
 the gains and losses resulting from the translation of net foreign investment hedges are recorded in shareholders’
to reflect the substance of the stream of expected future profits.
Real estate currently held by the Group is classified as investment property when it is held to earn rental income, as capital appreciation or both. Other properties are classified as tangible assets. Some buildings may be partially occupied by entities of the Group. Properties, including properties used by the Group, are recognized at cost, net of accumulated depreciation and impairment losses. Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows: Category Useful life
Every five years, each investment property is subject to an in-depth analysis of its market value by an independent appraiser, having recent experience in the location and category of investment property assessed and approved by the domestic regulators (l’Autorité de Contrôle Prudentiel et de Résolution in France). Annually, the appraised market value is updated by the same independent appraiser according to the changes of the local market and/or the property rental and technical situation.
Investment properties acquired through financial lease agreements are recorded on the balance sheet as assets based on the present value of future rental payments and any purchase option. Subsequent to the initial recognition, they are accounted for as investment properties at cost, net of accumulated depreciation and impairment losses. The corresponding debt is recorded under “financial liabilities” and is amortized based on the effective interest rate method.
Rental income from investment properties is recorded on a straight-line basis over the term of current rental agreements.
The Group classifies its financial assets in the following categories: available-for-sale, fair value through income, loans and accounts receivables and cash and cash equivalents. There are currently no assets classified as held-to-maturity. Sales and purchases of assets are recorded on the settlement date. Once it has been recorded, an asset is measured according to its asset category, determined according to the methods set forth below. Financial assets are derecognized when the contractual rights to the cash flow of the financial asset expire or are transferred, and when the Group has substantially transferred the risks and rewards inherent to the ownership of the financial asset.
Non-derivative financial assets, where payment is fixed or determinable and which are not listed on an active market, are also included within this category and are recognized at amortized cost using the effective interest rate method.
Cash and cash equivalents comprise cash, net bank balances and short-term deposits or investments with a maturity less than or equal to three months at the date of purchase or deposit. Money market funds are also classified as cash equivalent, though only to the extent that fund invested assets qualify as cash equivalents, or there are strict fund management policies and limits that allow the funds to qualify as cash equivalents.
A hedging instrument is a designated derivative instrument or, in the case of a single foreign currency hedge, a designated non-derivative asset or liability for which the fair value or cash flows offset variations in the fair value or cash flows of the hedged item.
For units in unit linked-trusts, shares in open-ended investment companies and derivative financial instruments (including real estate, interest rate and mortality swaps, options, etc.), fair value is determined by reference to either published bidvalues, or modeled values which incorporate market inputs within the valuation assumptions.
The Group may conclude the prices received from third parties are not reflective of current market conditions. In those instances, SCOR may request additional pricing quotes or apply internally developed valuations. Similarly, the Group may value certain derivative investments using internal valuation techniques based on observable market data.
The fair value of hedge funds managed by third parties is based on their Net Asset Value as issued by external asset managers. This Net Asset Value is regularly audited, at least annually.
If, as a result of a change in intention or ability or in the circumstance that a reliable measure of fair value is no longer available, it becomes appropriate to carry a financial instrument at cost or amortized cost, then the last reliable fair value available is taken as the new cost or amortized cost, as applicable.
The Group provides disclosures on the measurements of those financial instruments held at fair value, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:  Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;  Level 2: models prepared by internal and external third parties using market inputs; and
The level in the fair value hierarchy within which the fair value measurement is categorized is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement. If a fair value measurement uses observable inputs that require significant adjustments based on unobservable inputs, then this measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement requires judgment, considering factors specific to the asset or liability.
For unlisted equity instruments, impairment is assessed using a similar approach to listed equities.
If an available-for-sale financial asset is impaired and a decline in the fair value of this asset has been recognized in other comprehensive income, the cumulative loss is reclassified from equity to the statement of income. The cumulative loss is computed as the difference between the cost of the asset (net of any principal repayment and amortization) and its current fair value, less any impairment previously recognized in the statement of income.
Impairment reversals in respect of equity instruments classified as available-for-sale are not recognized in the statement of income. Reversals of impairment losses on fixed income securities classified as available-for-sale are reversed through the statement of income if the increase in fair value of the instrument can be objectively related to an event occurring after the impairment losses were recognized in the statement of income.
Restructuring costs other than those that may be recognized on the balance sheet of an acquired company on the acquisition date are recorded when the Group has a present obligation as evidenced by a binding sale agreement or a detailed formal restructuring plan of which the main features are announced to those affected or to their representatives.
Basic earnings per share is calculated by dividing net income available to ordinary shareholders by the weighted average number of ordinary shares outstanding over the year, excluding the average number of ordinary shares purchased by the
Potential or contingent share issuances are considered as dilutive when their conversion to shares would decrease net earnings per share.
The treaties and facultative contracts assumed and retroceded by the Group are subject to different IFRS accounting rules depending on whether they fall within the scope of IFRS 4 - Insurance Contracts, or IAS 39 - Financial Instruments: Recognition and Measurement.
Assumed and ceded reinsurance transactions that do not transfer significant risk are recognized in the accounts in accordance with IAS 39 - Financial Instruments: Recognition and Measurement, which means that amounts collected are no longer recognized as premiums, reserves and deferred acquisition expenses recorded as assets or liabilities on the balance sheet but are reclassified as “financial contract liabilities” and “financial contract assets”. These deposits are assessed only on the basis of financial flows and no longer on the basis of estimated ultimate results as required by accounting principles applicable to insurance transactions. Income from these transactions is equal to SCOR’s net fee or spread and is recorded under “other operating income” on the statement of income.
Claim reserves for losses and claims settlement expenses are recognized for payment obligations from reinsurance losses that have occurred but have not yet been settled. They are recognized under reserves for reinsurance losses reported before the reporting date and reserves for reinsurance losses that have already been incurred but not yet reported (IBNR).
The liability adequacy test is performed at the level of portfolios that are managed together and are subject to broadly similar risks.
payable. This reflects the reduction in the Group’s exposure to risks previously written by the syndicates. The Group recognizes Lloyd’s RITC in claims and policy benefits to ensure consistency with similar transactions recognized in accordance with IFRS and to present a true and fair view.
Defined benefit plans are those where a sum is paid to the employee upon retirement, which is dependent upon one or several factors such as age, years of service and salary. Defined benefit obligations and contributions are calculated annually by independent qualified actuaries using the projected unit credit method. The obligation recognized on the balance sheet represents the present value of the defined benefit obligation at the balance sheet date, less the market value of any plan assets, where appropriate, both adjusted for actuarial gains and losses and unrecognized past service cost.
Past service costs generated at the adoption or modification of a defined benefit plan are fully and immediately recorded as an expense.
Deferred tax assets are recognized on net operating losses carried forward to the extent that it is probable that future taxable profit will be available to utilize those net operating losses carried forward. Management makes assumptions and estimates related to income projections to determine the availability of sufficient future taxable income. SCOR uses a discounted cash flow model comprised of an earnings model, which considers forecasted earnings, and other financial ratios of legal entities based on board approved business plans, which incorporate key drivers of the underwriting results.
Deferred tax assets and liabilities are assessed at the tax rate applicable in the fiscal year in which the asset will be realized or the liability settled, based on the tax rates (and tax regulations) that have been enacted or substantially enacted at the balance sheet date.
insurance and reinsurance (also referred to as “Non-Life”); and the SCOR Global Life segment, with responsibility for our life reinsurance (also referred to as “Life”). Each operating segment underwrites different types of risks and offers different products and services, which are marketed via separate channels. Responsibilities and reporting within the Group are established on the basis of this structure.
Group Functions is not an operating segment and does not generate revenues. The costs in Group Functions are Group related costs that are not directly attributable to either the Non-Life or Life segments. Group Functions includes the cost of departments fulfilling duties for the benefit of the whole Group, such as the costs for Group Internal audit, Group Chief
Gross benefits and claims paid (4,087) (2,967) - - (7,054) (3,780) (2,833) - - (6,613) (2,615) (3,038) - (1) (5,654)
Change in ceded unearned premiums - 11 - - 11 - 8 - - 8 (1) 32 - - 31
The distribution by geographic region, based on subsidiary localization, is as follows: FOR THE YEAR ENDED 31 DECEMBER
Asia Pacific / Rest of world 490 245 85 816 750 608
The distribution by geographic region, based on the localization of the ceding company for treaty business and localization of the insured for facultative business, is as follows: FOR THE YEAR ENDED 31 DECEMBER
The increase in gross written premiums of SCOR Global Life in 2013 is partially due to the acquisition of Generali U.S.
Life Reassurance Company (“Generali U.S.”) and the recapture of the retrocession agreements between Generali U.S. and
P&C Total Cash and cash equivalents at 1 January 680 786 1,466 576 705 1,281 320 687 1,007
Net cash flows from operations 296 601 897 227 534 761 128 402 530
Net cash flows from investing activities (593) (73) (666) 26 (464) (438) (225) (355) (580)
Net cash flows from financing activities 545 (652) (107) (157) 11 (146) 340 (68) 272
Effect of changes in foreign exchange rates (43) (33) (76) 8 - 8 13 39 52
The purchase price has been allocated based on an estimate of the fair value of assets acquired and liabilities assumed at the date of acquisition determined in accordance to IFRS 3 “Business Combinations”. The allocation relies on significant assumptions and the use of external expertise. The assets and liabilities acquired have been recorded at their fair values for purposes of the opening balance sheet and included in the consolidated accounts of SCOR using the Group's accounting principles as determined in accordance with IFRS.
The VOBA has been estimated at EUR 453 million based on the best estimate of expected future profits using a discount rate including an appropriate risk premium.
This intangible asset will be amortized over the lifetime of the underlying treaties, in line with expected emergence of profits.
Deferred tax has been recognized on the timing differences arising from the purchase price allocation. These balances represent payable and recoverable amounts which the Group expects to realize.
The share of the reinsurance business of Generali U.S. included in SCOR’s consolidated income corresponds to the results generated during the period from 1 October 2013, the date of acquisition by the Group, up to the end of the reporting period,
The pro forma financial information as at 31 December 2013 is presented to illustrate the effect on the Group’s statement of income of the Generali U.S. acquisition as if the acquisition had occurred on 1 January 2013. The Generali U.S. information is based on the estimated revenues and net income of the acquired business for the twelve month period ended 31
SCOR to finance the Generali U.S. acquisition have been assumed to be recorded beginning on 1 January 2013. They amounted to EUR (10) million.
The income statement pro forma information presented below has been prepared in accordance with AMF requirements and
The consolidated statement of cash flows includes the following impacts related to the Generali U.S. acquisition: In EUR million
The purchase price has been allocated based on an estimate of the fair value of assets acquired and liabilities assumed at the date of acquisition determined in accordance to IFRS 3 “Business Combinations”.
SCOR using the Group's accounting principles in accordance with IFRS. The gain from bargain purchase arising from the acquisition of MRM S.A. was because MRM S.A.’s finances need to be restructured with the help of a third party investor.
Acquisition related expenses of EUR 3 million have been stated separately on the face of the consolidated statements of income.
EUR 519 million and the profit before tax for the Group would have been EUR 674 million.
Ireland, SCOR acquired the mortality risk reinsurance business of Transamerica Re on 9 August 2011.
EUR 127 million as the fair value of net assets of EUR 770 million was in excess of the aggregate consideration of
EUR 646 million. The gain from bargain purchase included an impact of EUR 3 million foreign exchange gain using the average EUR/USD exchange rate of 0.7148 for the year ended 31 December 2011.
The VOBA has been estimated at EUR 546 million based on the best estimate of expected future profits using a discount rate including an appropriate risk premium.
Fair values have been determined for investments based mainly on quoted market prices. If quoted market prices were not available, valuation models were applied.
Mathematical reserves, claims reserves and share of retrocessionaires in Contract Liabilities have been recorded based on best estimate assumptions at the time of acquisition.
The management of SCOR measured the fair value of the separately recognizable identifiable assets acquired and the liabilities assumed as at the acquisition date. The cost of the investment was lower than the fair value of the net assets acquired. This difference, or gain from bargain purchase of EUR 127 million, was recorded in the consolidated statement of income for the year ended 31 December 2011 of the Group.
On 18 July 2011, SCOR completed the sale of its US fixed annuity business through the sale of its wholly owned subsidiary
Investors Insurance Corporation to Athene Holding Ltd. As a result of the sale, SCOR has recognized a loss of
Cumulative amortization and impairment at 31 December 2013 (181) (462) (105) (748)
Carrying value as at 31 December 2013 788 1,393 126 2,307
The disclosure of intangible assets split between the Group’s operational segments SCOR Global P&C and SCOR Global
Goodwill, which represents the excess of the cost of each business combination over SCOR’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities acquired, was EUR 788 million as at 31 December 2013 and 2012.
For SCOR Global Life, goodwill is tested for impairment with reference to the inputs and methodology that SCOR applies in calculating the embedded value of the segment. Market Consistent Embedded Value (MCEV) is a measure of the consolidated value of shareholders’ interests in the covered business. The MCEV represents the present value of shareholders’ interests in the earnings distributable from assets allocated to the covered business after sufficient allowance for the aggregate risks in the covered business. The allowance for risk is calibrated to match the market price for risk where reliably observable. The MCEV consists of the Shareholder Net Worth (market value basis of equity), and
Value of In-Force covered business (VIF). The VIF is comprised of Present Value of Future Profits, projected over the life of the portfolio and based on contractual cash-flows. Key assumptions are morbidity, mortality and lapse rates.
Mortality/morbidity are based on external tables, adjusted based on internal past experience. Lapses are also based on internal past experience. SCOR calculates and publishes an MCEV in line with the principles of the CFO Forum. For the 2013 embedded value, discount rates used were based on par swap rates ranging between 0.06% and 8.52% depending on the currency and the duration adjusted for credit risk and extrapolation.
Global Life recoverable amounts are based would not cause their carrying amount to exceed their recoverable amount.
The annual goodwill impairment tests conducted for both SCOR Global P&C and SCOR Global Life segments show recoverable amounts in excess of the respective total carrying values. Consequently, no goodwill impairment charges were recognized for the years ended 31 December 2013, 2012 and 2011.
Other intangible assets at 31 December 2013 were EUR 126 million compared with EUR 122 million at 31 December 2012.
During 2012, SCOR received indications that this agreement would be terminated and consequently management decided to impair the intangible to its recoverable value of EUR 6 million. At 31 December 2013, the remaining value of the intangible is EUR 0.2 million.
EUR (8) million for the years ended 31 December 2013, 2012, and 2011 respectively.
Tangible assets as at 31 December 2013 were EUR 544 million compared to EUR 540 million as at 31 December 2012.
These primarily relate to buildings used by SCOR as offices, office furniture and equipment, and building fixtures and fittings.
(SGL) and to the acquisition of office space in a building in Singapore.
SCOR Reinsurance Asia Pacific PTE Ltd. did not have the right to use the building, which is contingent on completion of construction and fitting, expected to take place in October 2016.
20.1.6.6 NOTE 6 - INSURANCE BUSINESS INVESTMENTS The insurance business investments of the Group can be analyzed as follows: Net book value as at 31 December (1)
Investments at fair value through income Note 6 – (A), (B), (D) 369 216
Analysis of insurance business investments and financial liabilities carried at fair value by valuation method: The level in which an investment is categorized within the fair value method hierarchy is determined on the basis of the lowest level of input that is significant to the fair value measurement of that instrument. The significance of an input is therefore assessed against the fair value measurement in its entirety. Assessing the significance of particular inputs into the fair value measurement requires judgment, considering factors specific to the instrument. At each end of reporting period, the Group considers the classification relevancy of financial instruments that are recognized at fair value. The valuation methodology of financial instruments is monitored to identify potential reclassifications.
Further detail on the valuation of these derivative instruments is included within Note 8 – Derivative Instruments.
Investments at fair value through income 369 172 197 - -
Cash and cash equivalents 1,514 1,514 - - - INVESTMENTS AND CASH AS AT 31 DECEMBER 2013 23,786 13,021 1,494 59 9,212
Cash and cash equivalents 1,466 1,466 - - - INVESTMENTS AND CASH AS AT 31 DECEMBER 2012 22,575 12,109 1,461 83 8,922
Level 3: Investments at fair value determined using valuation technique not (or partially) based on market data
There have been no material transfers between Level 1 and Level 2 in 2013 and 2012 respectively. There were also no changes in the purpose of any financial asset that subsequently resulted in a different classification of that asset.
The movement in Level 3 investments since 31 December 2012 is mainly due to foreign exchange impacts and the change in fair value of Atlas vehicles.
During the year ended 31 December 2013, there were EUR 2 million net transfers out of Level 3 fair value measurement category.
(1) Movements in derivative instruments mainly due to the change in fair value of ATLAS V and VI derivatives recorded in other operating expenses
(1) Movements in derivative instruments mainly due to the change in fair value of ATLAS V and VI derivatives recorded in other operating expenses (2) Purchase of the second tranche of ATLAS VI catastrophe bonds
The EUR (46) million total losses recorded in the statement of income in 2013, represents EUR (46) million of change in fair value (2012: EUR (50) million; 2011: EUR (31) million) and no realized gains/losses (2012: Nil; 2011: Nil).
Cumulative depreciation and impairment at 31 December 2012 (39) (34) (73)
On 29 May 2013, SCOR acquired a 59.9% stake in the capital of MRM S.A., a listed real estate company, which resulted in a EUR 259 million increase in the gross book value of real estate investments. See Note 3 – Acquisitions and disposals for the detail of the MRM S.A. acquisition.
September 2013 (the lease started simultaneously) and is recorded at 31 December 2013 at a gross value of EUR 93 million (EUR 72 million as at 31 December 2012).
Fair value of real estate investments is categorized within Level 3. The fair value technique and unobservable inputs are as follows: (1) Discounted Cash Flows (DCF) approach might also be used for some real estate investments
The following table summarizes the fixed income securities and unrealized gains / (losses) by class of fixed income security: As at 31 December 2013 As at 31 December 2012
The change in the valuation of the available-for-sale portfolio affecting shareholders’ equity is as follows: (1) Change in unrealized gains and losses is net of shadow accounting
(b) Unrealized gains (losses) on investments included in other comprehensive income
The unrealized gains and losses on available-for-sale investments can be analyzed as follows: In EUR million Unrealized gains Unrealized losses
(1) Unrealized gains and losses on available for sale investments analyzed above exclude:  Gains and losses relating to foreign exchange of EUR 12 million (2012: EUR 7 million);  Shadow accounting of EUR 1 million (2012: EUR 30 million);  Non-controlling interests on mutual funds of EUR (3) million (2012: EUR 3 million);  Tax effects on above stated items of EUR 16 million (2012: 29 million)
Total impairment losses recognized in 2013 amounted to EUR 74 million (2012: EUR 72 million), of which EUR 72 million
Net unrealized gains (losses) net of tax 1 January 66 (178) 56
The Group analyzes its unrealized gains / (losses) on equity securities as follows (amounts are stated net of impairment): (1) Other also includes one listed investment with an unrealized loss of EUR 6 million (2012: EUR (11) million) deemed not to be impaired given its strategic nature 20.1.6.7 NOTE 7 - LOANS AND RECEIVABLES
Loans and receivables include primarily receivables from cash deposits made at the request of ceding companies as collateral for commitments (insurance contract liabilities), short term investments and related accrued interest. Short term investments include government bonds, certificates of deposit (CDs) and treasury bills (T-bills) maturing between three and 12 months from the date of purchase. CDs and T-bills maturing in more than 12 months from date of purchase are included in “other loans maturing in more than one year”. Part of the assets presented within loans and receivables are managed by
Short term investments are carried at fair value. Other loans and receivables are carried at cost which approximates to the fair value at 31 December 2013 and 2012.
On 9 December 2009, SCOR completed the EUR 75 million Atlas VI transaction, replacing Atlas Reinsurance III. Atlas VI
provided EUR 75 million of protection against European windstorms and Japanese earthquakes risks until 31 March 2013.
Expected loss related to European windstorms (and a small contribution below 20% from Japan Earthquake for Atlas VI 2010) based on RMS/AIR model: 4.08% - - 3.30%
A significant catastrophic event (US or Japan Earthquake or a US or Europe Hurricane/Windstorm) covered by the respective Atlas Cat bond series and occurring during the coverage period of these bonds, would have an increasing impact on the expected loss and on the fair value of the respective portion of the Atlas derivative instrument recorded.
These assets are disclosed as level 3 investments within insurance business investments (see Note 6 – Insurance Business
SCOR has entered into interest rates swaps to cover its exposure to financial debt with variable interest rates relating to real estate investments. The fair value of these swaps is obtained from the banking counterparty and is based on market inputs.
Cash-flow hedge accounting is applied when the hedging relationship is determined to be highly effective. Effectiveness testing is performed at the inception of the hedging relationship and at each balance sheet date throughout the term of the hedge relationship. Where hedge effectiveness is not attained, the hedging instrument (interest rate swap) is measured at fair value through profit and loss from the date the hedge relationship ceases to be effective. As at 31 December 2013, the fair value of the interest rate swaps was a liability of EUR 26 million (2012: liability of EUR 36 million). The amount recognized in other comprehensive income in 2013 is EUR 9 million (2012: EUR (12) million). The amount recognized in the statement of income in 2013 is EUR 1 million (2012: EUR (1) million).
In order to hedge the foreign exchange risk associated with the debts issued in CHF (CHF 650 million issued in 2011,
CHF 315 million issued in 2012 and CHF 250 million issued in 2013, see Note 14 – Financial Debt), SCOR entered into cross-currency swaps which exchange the principals and the coupons on the notes into EUR, and mature on 2 August 2016,
Cash-flow hedge accounting is applied. The fair value of the swaps is obtained from the banking counterparty using market inputs. As part of the usual analysis of accounts processes these third party valuations are checked for reasonableness against internal models. The total relating notional amount is CHF 1,215 million as at 31 December 2013 (2012: CHF 965 million). Fair value of the swaps is EUR 3 million as at 31 December 2013 (EUR 9 million as at 31 December 2012). EUR (5) million of the fair value movement during the year was debited to the statement of income
(2012: EUR 7 million) whereas EUR (1) million was debited to other comprehensive income (2012: EUR (13) million).
Amounts are recorded in the balance sheet representing the instrument asset recognized at fair value through P&L and other liabilities representing the value of interest payments. In the absence of observable market inputs and parameters to reliably determine a fair value for this derivative instrument, the best measure of fair value is the expected cost of the instrument, corresponding to the total annual fees payable under the arrangement net of the warrants’ subscription amount received, amortized over the life of the instrument. These assets are disclosed as level 3 investments within insurance business investments (see Note 6 – Insurance Business Investments).
(1) Based on 2013, 2012 and 2011 provisional financial information, respectively (2) The provisional financial information provided by ASEFA has been revised in order to reflect a valuation based on accounting estimates homogenous with SCOR’s accounting policies and adjustments recorded by ASEFA as requested by its local regulator. ASEFA’s net book value decreased by EUR 22 million, of which EUR 15 million in the income statement and EUR 7 million in equity
(3) Investment in COGEDIM Office Partner additionally includes a loan to the entity for EUR 13 million as at 31 December 2013, EUR 13 million as at 31 December 2012 and EUR 11 million as at 31 December 2011 respectively, presented in loans and receivable 20.1.6.10 NOTE 10 - ASSUMED AND CEDED INSURANCE AND REINSURANCE RECEIVABLES AND PAYABLES
Gross receivables from ceding companies 47 363 410 271 329 600
Assumed insurance and reinsurance accounts receivable 2,052 2,127 4,179 2,136 2,106 4,242
Receivables from ceded reinsurance transactions 47 55 102 2 75 77
Assumed insurance and reinsurance accounts payable (264) (146) (410) (304) (91) (395)
Accounts payable on ceded reinsurance transactions (584) (404) (988) (518) (372) (890)
20.1.6.12 NOTE 12 - CASH AND CASH EQUIVALENTS AND CASH FLOWS
Net cash flow provided by operations, excluding changes in working capital 910 669 511
Change in scope of consolidation and contract portfolio exchanges - - - - - - (105) - (105)
Other changes (including change in shadow accounting) 17 - 17 - - - - - -
The authorized share capital of the Company at 31 December 2013 was 192,757,911 shares with a nominal value of
EUR 7.8769723 each compared with authorized share capital of 192,384,219 shares with a nominal value of
Share capital increase – exercise of stock options – 28 February 2011 - - 42,140
Share capital increase – exercise of stock options – 31 December 2011 - - 8,000
Share capital increase – exercise of stock options – 31 March 2012 - 131,447 -
Share capital decrease – decision of the Board of Directors - 3 May 2012 - (216,250) -
Share capital increase – exercise of stock options – 31 May 2012 - 2,500 -
Share capital increase – exercise of stock options – 31 July 2012 - 4,000 -
Share capital increase – exercise of stock options – 31 January 2013 158,984 - -
Share capital increase – exercise of stock options – 31 March 2013 260,224 - -
Share capital increase – exercise of stock options – 31 July 2013 11,500 - -
Share capital increase – exercise of stock options – 31 August 2013 70,784 - -
Share capital increase – exercise of stock options – 31 October 2013 30,163 - -
Share capital increase – exercise of stock options – 30 November 2013 56,045 - -
Share capital increase – exercise of stock options – 31 December 2013 132,329 - -
In 2011, the movements were due to the following operations:  The Board of Directors held on 7 March 2011 decided to reduce the share capital by cancellation of 146,663 treasury shares for a total value of EUR 1 million.
 On 5 July 2011, in the context of the contingent capital facility, UBS exercised the number of warrants required for the issuance and subscription of 4,250,962 new SCOR shares for a global amount of EUR 75 million.
 All other movements presented above relate to the issuance of shares on the exercise of stock options for EUR 2 million (EUR 1 million in share capital and EUR 1 million in additional paid-in capital). This resulted in the creation of 121,603 new shares throughout the year.
EUR 9 million (EUR 4 million in share capital and EUR 5 million in additional paid-in capital). This resulted in the creation of 579,166 new shares throughout the year.
 In 2013, the movements were due to the following operations:  The Board of Directors held on 25 April 2013 decided to reduce the Group capital by cancellation of 880,470 treasury shares for EUR (15) million (EUR (7) million in share-capital and EUR (8) million in additional paid-in capital).
In the context of a contingent capital facility program, SCOR issued 9,521,424 warrants on 17 December 2010 to UBS, each warrant committing UBS to subscribe for two new SCOR shares (maximum amount of EUR 150 million - including issuance premium available per tranche of EUR 75 million each - including issuance premium) when the aggregated amount of the estimated ultimate net losses resulting from eligible natural catastrophes incurred by the Group (in its capacity as an insurer/reinsurer) reaches certain contractual thresholds in any given calendar year between 1 January 2011 and 31
December 2013 or if no drawdown already took place in the context of the agreement and SCOR’s share price drops below
On 5 July 2011, SCOR drew EUR 75 million under the contingent capital facility due to the exceptional first quarter natural catastrophe events. UBS exercised the number of warrants required for the issuance and subscription by it of new SCOR
shares in an aggregate amount of EUR 75 million and informed SCOR that it had placed the corresponding shares with investors in a private placement.
SCOR benefits from an additional EUR 75 million financial coverage from 1 January 2012 to 31 December 2013, thereby increasing its existing contingent capital facility from EUR 75 million to EUR 150 million.
On 20 December 2013, SCOR agreed a new EUR 200 million contingent capital facility line with UBS and issued 12,695,233 warrants in favor of UBS. This contingent capital facility which is effective 1 January 2014, replaces the previous contingent capital arrangement. Under the new arrangement, the protection would be triggered in case of extreme life events, as well as natural catastrophe events included within the last facilities. Each warrant commits UBS to subscribe to two new SCOR shares (maximum amount of EUR 200 million available per tranche of EUR 100 million each, including issuance premium) when the aggregated amount of (i) the estimated ultimate net losses resulting from eligible natural catastrophes incurred by the Group (in its capacity as an insurer/reinsurer) or (ii) the ultimate net claims amount recorded by
SCOR group life segment (in its capacity as an insurer/reinsurer) reaches certain contractual thresholds between 1 January
2014 and 31 December 2016. In addition, subject to no drawdown having already been conducted under the facility, if the price of the SCOR shares falls below EUR 10 an individual tranche of EUR 100 million will be drawn down out of the EUR
The Group seeks to optimize the structure and sources of capital to ensure that it consistently maximizes returns to the shareholders.
SCOR believes that its working capital is sufficient to meet the requirements of its consolidated companies. The Group reconciles its strategic objectives with the protection of its capital via its “capital shield” policy, which articulates the Group’s risk appetite. This policy is based on an economic approach and aims to protect the Group against potential shock losses, some of which are not immediately recognized from a pure accounting view. The policy builds on the following two concepts: (a) Active hedging of peak exposures through retrocession
The Group selects the level of its retrocession to third parties once a year to ensure that the Group’s retained risk profile is in line with specific Group risk tolerance limits, to help the Group achieve its return on capital and solvency objectives.
The primary source of capital used by the Group is equity shareholders’ funds and borrowings.
The objective of the capital management policy is sustained and ensured through regular updates of forecasts and an annual strategic and financial planning process. The Group’s Board and Executive Management team regularly review the
Capitalization and indebtedness was comprised of the following: Prior year comparatives have been adjusted retrospectively due to the adoption of IAS 19 – Employee Benefits (revised) – refer to Section 20.1.6. Note 1 – D - IFRS
The operations of the Group are subject to regulatory requirements within the countries in which entities of the Group underwrite. Such regulations not only prescribe approval and monitoring of activities, but also impose certain obligations related to level of capital (e.g. capital adequacy) to cover the risk of default and insolvency on the part of the reinsurance companies and insurance companies to meet unforeseen liabilities.
The Group actively monitors the regulatory capital requirements of each of its operating subsidiaries within this capital management framework. The Group is subject to applicable government regulation in each of the jurisdictions in which it conducts business, particularly in France, Switzerland, the US, the UK, Singapore, Hong Kong, Ireland, Germany and
Failure of an operating company to meet the local regulatory capital requirements of the jurisdiction in which it operates could lead to regulatory supervision or administration of the affairs of the operating company.
Under the Reinsurance Directive 2005/68/EC of 16 November 2005, adopted in France in late 2008, reinsurance companies and their subsidiaries situated in a country within the European Economic Area ("EEA"), are subject to state control of the head office country. The Group calculated its solvency based on consolidated IFRS financial statements adjusted to be consistent with French Generally Accepted Accounting Procedure (GAAP) requirements. This was first performed by the
Group does have one hedge of net investment remaining in place. See Note 8 – Derivative instruments.
The Group reviews the functional currency of its entities on an ongoing basis to ensure they appropriately reflect the currency of the primary economic environment in which they operate. As at 1 January 2011, the functional currencies of the
USD to KRW respectively. Also as at 1 January 2012, Zurich branch of SCOR SE changed its functional currency with prospective application from CHF to EUR. As at 1 January 2013, the functional currency of one group subsidiary, SCOR
GLOBAL LIFE Reinsurance Ireland Ltd, was changed with prospective application from EUR to USD.
The following table sets out an overview of the debt issued by the Group: In EUR million Maturity Net book value Fair value
A 30-year subordinated note totaling USD 100 million was issued on 7 June 1999. These notes are redeemable by SCOR
quarterly as from the tenth year following their issue date. These floating-rate bonds bear interest indexed on the 3-month
(i) 1.15% for the first ten years, and (ii) 2.15% thereafter. The Group decided not to redeem the EUR 100 million of subordinated bonds due 2020 at their first call date in July 2010.
Covenants applicable to the aforementioned notes: These clauses, which are binding on the issuer, allow for anticipated reimbursement in the following circumstances:  A change in legislation or tax law which would deprive the bondholders of all or part of the interest payments stipulated in the initial operating note.
During 2009, the Group provided liquidity to both its perpetual super-subordinated debt security (Tier 1 type) (TSSDI
SCOR has entered into a cross-currency swap which exchanges the principal into EUR and exchanges the CHF coupon on the notes to EUR 6.98% and matures on 2 August 2016. Refer to Note 8 – Derivative Instruments.
On 10 September 2013, SCOR issued CHF 250 million perpetual subordinated notes, redeemable by SCOR each quarter as at payment of interest dates from 30 November 2018. The settlement of the notes took place on 30 September 2013. The coupon has been set to 5.00% until 30 November 2018 and 3-month CHF LIBOR plus a margin of 4.0992% thereafter.
Real estate financing relates to the acquisition of investment properties through property-related bank loans of
EUR 497 million (EUR 405 million as at 31 December 2012). The main property related bank loan amounts to EUR 168 million and is used to finance the Group’s head-office in Paris, at Kléber. It bears interest indexed to the 3-month Euribor rate plus 1.35% and is redeemable in June 2018. SCOR entered into three interest rate swaps which cover its exposure to the variable interest rate whereas SCOR pays fixed 2.97% and receives three-months Euribor. The interest rate swaps have been accounted for as cash flow hedges (for further detail refer to Note 8 – Derivative instruments). The other propertyrelated bank loans bear interests indexed to the 3 - month Euribor and redeemable between 2016 and 2021. They are used to finance other buildings owned by the Group.
EUR 26 million done in the context of the acquisition by SCOR).
Libor rate plus a spread ranging from 0.55% to 1.40% over the period. The agreement contains accelerated repayment clauses, an option to extend by 4 months the maturity date but doesn’t set any financial covenant.
At 31 December 2013, the other reserves include provisions related to employee and litigation of EUR 12 million (2012: EUR 9 million). At 31 December 2013, the other reserves comprise EUR 135 million additional reserves covering preexisting creditors and other liabilities related to the Generali U.S. acquisition. These amounts were included within the acquisition accounting assessment which led to the recognition of a EUR 197 million gain from bargain purchase.
Total gross insurance contract liabilities 11,850 12,354 24,204 11,154 12,540 23,694
Ceded claims reserves & claims expense reserves (304) (629) (933) (282) (690) (972)
Underwriting reserves, or contract liabilities, are subject to the use of estimates. Payments linked to these reserves are not usually fixed, either by amount or by due date. Liquidity information related to contract liabilities is included in Note 26 –
The table below shows the movement in the net reserves for unpaid losses and loss expenses of SCOR Global P&C.
The following tables present the consolidated ten-year loss development of our Non-Life operations on an IFRS basis and a three-year reconciliation of beginning and ending reserve balances on an IFRS basis. The IFRS loss development data is presented on a calendar year basis, as well as the reserve reconciliation data represents our allocation of incurred and paid losses and loss adjustment expenses between current and prior years on a calendar year basis.
Ceded claims reserves & estimates – end of year (2) 691 533 554 490 598 467 473 412
Net claims reserves & estimates – end of year (2) 6,354 5,602 5,756 5,301 8,727 8,660 8,683 9,284
Gross cumulative inception to date incurred losses as at 31 December 2013 (2) 7,778 6,558 6,376 5,443 9,449 9,368 9,281 10,578 11,544 11,900 -
Ceded UPR – end of year 76 40 24 18 39 40 40 51 84 93 101
Net UPR – end of year 1,048 938 613 557 1,069 1,059 1,095 1,333 1,432 1,590 1,562
Ceded DAC – end of year 5 3 2 - 2 1 - 1 5 7 8
The table below is a reconciliation of the beginning and ending liability for claims reserves and claims expenses of SCOR
Ceded claims reserves and claims estimates as at 1 January (690) (765)
Net claim reserves and claims estimates as at 1 January 10,167 9,837
Revaluation of opening balance at current year end exchange rates (386) 192
Net claims reserves and claims estimates as at 1 January – revalued 9,781 10,029
Net claims incurred relating to the current calendar year 1,803 1,684
Gross claims reserves and claims estimates as at 31 December 10,691 10,857
For the year ended 31 December Asbestos (1) Environment (1) 2013 2012 2013 2012
Gross reserves, including IBNR reserves (in EUR million) 93 109 14 15
The change in Life mathematical reserves for the years ended 31 December 2013 and 2012 was as follows: In EUR million 2013 2012
An analysis of the share of retrocessionaires in the Group’s contract liabilities by rating of the retrocessionaires and collateral from retrocessionaires in favor of SCOR at 31 December 2013 and 2012 is as follows: In EUR million AAA AA A BBB < BBB Not rated
Total collateral from retrocessionaires in favor of SCOR - 206 531 40 - 535 1,312
Total as at 31 December 2012 Share of retrocessionaires contract liabilities - 410 628 150 1 134 1,323
Share of retrocessionaires contract liabilities net of collateral (2) - 101 204 (37) 1 (215)(1) 53
The payments made by the Group are expensed during the period in which the expense was incurred.
The amounts paid under defined contribution plans were EUR 19 million, EUR 17 million, and EUR 13 million for the years
and 15%, respectively, as at 31 December 2012), of the Group’s obligation under defined benefit plans.
A decrease in the discount rate of 0.25% would result in an increase in the estimated pension liability of EUR 10 million
The average duration of plans by geographic area is disclosed in the table below: Europe Switzerland US UK Canada Global
Interest income on plan assets (4) - (2) (2) (4) (1) (2) (1) (4) (1) (2) (1)
Actuarial (gains)/losses due to change in assumptions (1) (3) 4 (3) (4) 19 8 3 8 (1) (5) 2 2
Net defined benefit obligation as at 31 December - Deficit 117 77 18 22 109 69 22 18 91 57 23 11
Fair value of plan assets as at 31 December 179 25 97 57 145 23 89 33 125 16 78 31
Accrued/ (Prepaid) as at 31 December 118 78 18 22 113 73 22 18 93 59 23 11
The following table includes the allocation of plan assets as at 31 December 2013 and 2012: Total in EUR
As at 31 December 2013, employer contributions for the year ahead are expected to amount to EUR 12 million (2012: EUR 11 million).
The stock options are available after four years regardless of whether the employee is still actively employed by the Group.
The exercise of all of the stock options allocated in 2013 is subject to performance conditions which are based on the strict observance of the principles set forth in the SCOR Code of Professional Conduct, on the financial strength ratings from S&P,
The table below presents the changes and the current stock options plans at the end of the year along with the average corresponding exercise price.
The average weighted remaining life of the options for 2013 and 2012 was 5.98 and 6.12 years respectively.
The terms and conditions of the performance share plan of 18 December 2013, provide that after the vesting period of three years for beneficiaries tax resident in France (and an obligation to retain shares for a period of two years after the end of the vesting period) and of five years for beneficiaries not tax resident in France, the final acquisition of these shares will be subject to the condition of presence of three years and to the satisfaction of performance conditions.
December 2013 to the Chairman and Chief Executive Officer, to the other members of the COMEX, to the Executive Global
Partners and to the Senior Global Partners and half of the allocation to the other Partner beneficiaries (less Senior Global
SCOR Global Life’s technical margin and the SCOR group’s ROE in 2013 and 2014. The grants to Non Partners under the share plan of 2 October 2013 are not subjected to performance conditions.
The fair value of the free shares corresponds to the market value adjusted for dividends and non-transferability costs, estimated using a forward acquisition/disposal method. The following table lists the characteristics used at the end of 2013, 5 March 2013 Plan (LTIP)
French residents 3 years 2 years - 2 years 6 years
Non-French residents 5 years 4 years 4 years 4 years 8 years
French residents 2 years 2 years 6 years 2 years 2 years 2 years
The main components of income taxes for the years ended 31 December 2013, 2012 and 2011 are presented below: Amounts reported in the consolidated statements of income
Changes in deferred taxes due to changes in tax rates or tax law 3 2 1 INCOME TAX (EXPENSE)/BENEFIT REPORTED IN STATEMENT OF INCOME (91) (108) -
INCOME TAX (EXPENSE) / BENEFIT REPORTED IN EQUITY 9 (73) 83
The one-off increase in income tax rate (“contribution exceptionnelle”) has been further increased by the French Finance Bill 2014 (“Loi de Finances”) for two years and therefore is applicable for fiscal years ending 31 December 2013 and 31 December 2014. As a result, the income tax rate increased to 38.00% for fiscal years 2013 to 2014 and will be 34.43%
of EUR 69 million and EUR 10 million respectively. 2011 included the recognition of a EUR 44 million tax-exempt gain from bargain purchase for the acquired Transamerica Re business.
In the Finance Bill 2013 an additional 7% exit tax of 2010 on the capitalization reserve position as at 31 December 2009 was enacted resulting in an additional income tax expense in the year 2012 of EUR 12 million.
The standard tax rates for the primary locations in which the Group has operations are as follows: INCOME TAX EFFECTS RELATING TO OTHER COMPREHENSIVE INCOME
Net gains/losses on cash flow hedge 8 (1) 7 (25) 6 (19) (21) 3 (18)
In accordance with deferred tax netting IFRS rules, the amount of deferred tax liabilities and deferred tax assets stated in the balance sheet are as follows: BALANCE SHEET AMOUNTS AS AT 31 DECEMBER 2013 2012 2011
As at 31 December 2013, the operating tax losses available for carry-forward expire as follows: In EUR million
The table below shows the net results of retrocession for the years ended 31 December 2013, 2012 and 2011: In EUR million
Interest income on funds withheld and contract deposit 191 213 205
(1) 2013 operating and administrative expenses include Generali U.S. costs from October 2013 whereas 2012 expenses do not include such costs.
Net income attributable to ordinary shareholders and estimated conversions 549 188,311 2.91 418 186,911 2.24 329 186,854 1.76
 Post-employment benefit plans for the benefit of the Group’s employees.
SCOR SE is the ultimate parent of the Group. As noted above transactions between SCOR SE and its subsidiaries meet the definition of related party transactions. Where these transactions are eliminated in consolidation they are not disclosed in the
The total gross compensation of key management personnel, which include short-term employee benefits, post-employment benefits, other long-term benefits, termination benefits and share-based payments, for the years ended December 31 2013, 2012, and 2011 is outlined below.
The members of the Executive Committee also benefit from the use of a vehicle for business purposes; the Chairman and
The criteria of the conditions of performance are available in the report of the Board of Directors.
SCOR SE PROVIDES SERVICES AND BENEFITS TO ITS SUBSIDIARY COMPANIES OPERATING IN FRANCE AND WORLDWIDE AS FOLLOWS
Provision of technical support in relation to risk management information technology and reinsurance services: services are charged for annually on an arms’ length basis.
Issue of share options and share awards to employees of subsidiaries: costs are charged for annually based on the underlying value of the awards granted calculated in accordance with the guidance set out in IFRS 2. See Note 18 - Stock options and share awards for further details.
SCOR SE provides parental guarantees to a number of operating subsidiaries. These guarantees cover all of these subsidiaries' payment obligations under the insurance and reinsurance contracts issued by them. These guarantees are unconditional and continuing and shall be binding upon SCOR SE as guarantor and its successors and assigns. The owners of the insurance and reinsurance contracts issued by these subsidiaries are express third party beneficiaries of these guarantees. The obligations of SCOR SE as guarantor under these guarantees rank pari passu with all other unsecured indebtedness of SCOR SE.
The subsidiaries which benefitted from the SCOR SE parent guarantee in 2013 are the following:  In Europe : SCOR Global Life SE; SCOR Global P&C SE; SCOR Switzerland AG; SCOR Global P&C Ireland Ltd
Reinsurance Company of Texas; SCOR Global Life Americas Reinsurance Company; SCOR Life Reassurance
Company; SCOR Life Assurance Company; SCOR Global Life USA Reassurance Company (formerly Generali
SCOR SE provides loans to Group companies in the normal course of business remunerated at market rates.
SCOR Reinsurance Escritório de Representação no Brasil Ltda Brazil 100.00 100.00 100.00 100.00 Full
Revios Canada Holding Corp. Ltd. Canada 100.00 100.00 100.00 100.00 Full
SCOR Global Life Re Insurance Company of Delaware United States 100.00 100.00 100.00 100.00 Full
SCOR Global P&C Ireland Ltd Ireland 100.00 100.00 100.00 100.00 Full
SCOR P&C Ireland Holding Limited Ireland 100.00 100.00 100.00 100.00 Full
SCOR Services International Ltd Hong Kong 100.00 100.00 100.00 100.00 Full
SCOR Holding (UK) Ltd United Kingdom 100.00 100.00 100.00 100.00 Full
PPG Lime Street Ltd United Kingdom 100.00 100.00 100.00 100.00 Full
FCT Scor Real Estate Loans France 100.00 100.00 - - Full
ASEFA S.A. Seguros y reaseguros Spain 39.97 39.97 39.97 39.97 Equity interest
The general reinsurance regulatory environment requires that underwriting liabilities be collateralized by pledged assets, cash deposits or letters of credit.
Assets including investment securities, real estate and shares in associates for a total amount of EUR 3,789 million (2012: EUR 4,286 million) have been pledged to financial institutions, in order to guarantee the letters of credit granted to SCOR
Parental guarantees provided by SCOR SE to a number of operating subsidiaries have been presented within Note 24 –
The principal risk the Group faces under insurance and reinsurance contracts is that the actual amounts of claims and benefit payments, or the timing thereof, differ from expectations. The frequency of claims, their severity, actual benefits paid, subsequent development of long-tail claims and external factors beyond the Group’s control, including inflation, legal developments and others have an influence on the principal risk faced by the Group. Additionally, the Group is subject to the underwriting management for certain reinsurance treaties and to claims management by companies and other data provided by them. In spite of these uncertainties, the Group seeks to ensure that sufficient reserves are available to cover its liabilities.
The insured losses may be covered under various different lines of business within the Property business such as fire, engineering, aviation, space, marine and agricultural.
Additional exposure could arise from so-called emerging risks, which are risks considered to be new or subject to constant evolution, and thus particularly uncertain in their impact. Examples of such risks are electromagnetic fields, nanotechnology or cyber-risks.
Officer and Chief Risk Officer of SCOR Global P&C. Any request for deviations from the underwriting guidelines is subject to special referral procedures at two key levels. At the first level, the request is submitted by the underwriting units to the
Underwriting Management function to the Group Risk Management function of SCOR, and to the Chief Executive Officer of
Hub, distributing the responsibility of Cat pricing to the Cat modelers, the pricing actuaries or the underwriter. In addition, a system of Cat referrals has been introduced in excess of a given threshold.
Group to better appreciate the strengths and limitations of each model and make adjustments where appropriate, and it is well equipped with alumni from the main model providers.
The probabilistic catastrophe modelling approach captures the uncertainty related to the likelihood of a given event occurring (frequency uncertainty) as well as the uncertainty associated with the amount of loss, given that a particular event has occurred (severity uncertainty). A sound understanding of the uncertainties associated with the model’s key parameters is essential for the interpretation of the model outcome and thus for decision-making. The outcomes for each model describe a bandwidth of loss estimates and not a unique value. In order to identify and stress-test the key parameters, systematic sensitivity analyses are carried out.
 Accumulations are performed either on a notional basis (i.e. sum of event limits for underwritten share), or on a
For the year ended 31 December 2013, approximately 63% of Non-Life gross premiums were produced through brokers (for the year ended 31 December 2012: 65%). In 2013, SCOR had two brokers that accounted for approximately 34% of its Non-
Like other reinsurance companies, SCOR may be exposed to multiple insured losses to property or to individuals arising from a single occurrence, whether a natural catastrophe such as a hurricane, typhoon, windstorm, flood, hail, severe winter storm, earthquake, etc.), or a man-made catastrophe such as an explosion, fire at a major industrial facility or an act of terrorism. Any such catastrophic event may generate insured losses in one or more of the Group’s lines of business.
Information on exposures to asbestos and environmental claims is included in Note 16 – Net Contract Liabilities.
The main categories of risks for the life reinsurance underwritten by the SCOR Life division are biometric, behavioral and catastrophe risks as well as credit risk (refer to Section 4.1.14 – SCOR is exposed to losses due to counterparty default risks or credit risks), currency risks (refer to Section 4.2.4 – SCOR is exposed to foreign currency exchange rate fluctuations)
and market risks (refer to Sections 4.2 – Risks related to financial markets and 4.2.3. – SCOR is exposed to other risks arising from the investments it owns).
Global Life’s own portfolio experience, from the ceding companies as well as relevant information available in the public domain, such as mortality or disability studies and tables as available from various sources, e.g. actuarial associations or medical research bodies.
In Life reinsurance, a severe pandemic is a major risk. In the past century, three major outbreaks of influenza occurred and claimed millions of lives. The occurrence of a similar event could cause large losses to SCOR due to an increased mortality far beyond the usual volatility. Experts closely monitor current influenza virus strains and those of other infectious diseases.
Anti-selection refers to the problem of asymmetry of information between the insured and the insurer. An individual applying for life or health insurance cover usually has better knowledge about his or her own state of health than the insurer. The risk to the (re)insurer is of policyholders deliberately deciding among other things to:  take out a policy in the knowledge that either their chances of claiming is high or higher than average;  terminate a policy in the knowledge that their chances of claiming are low or lower than average; or
 choose and exercise a policy option which increases the policyholder’s expected benefit.
However, there is a trend, especially in the US, where policyholders who can no longer afford or for other reasons do not want to continue to pay the premiums, sell their polices (for more than the cash surrender value) and the eventual death benefit to third parties who continue to pay the premium. Similarly, during the period primarily from 2003 to 2008, policies were purchased with the intention to sell them to a third party who has no insurable interest in the life of the insured. Under these “Stranger Owned Life Insurance (STOLI)” or “Investor Owned Life Insurance (IOLI)” policies, the investor has an interest that the insured dies as soon as possible. This practice can lead to deviations between actual and expected lapse rates and mortality experience which can be a risk to the insurer and reinsurer of the cover. Most states as well as virtually all life insurance financial underwriting practices currently prohibit STOLI/IOLI transactions at the time of sale because of the lack of insurable interest. This presents an opportunity for the reinsurer to partner with the insurer (ceding company) through a thorough review and/or investigation to ensure that proper underwriting and claim payment processes are followed.
Collateral arrangements in Life reinsurance transactions are stipulated in contractual agreements generally established from regulatory frameworks or to addressclients’ counterparty risk mitigation requirements.
Insurance Policies Model Regulation), commonly referred to as Regulation XXX (or Triple X) and adopted by most US states as at 1 January 2000, requires a relatively higher level of regulatory, or statutory, reserves that US Life insurance and Life reinsurance companies must hold on their statutory financial statements for various types of Life insurance business, primarily certain level premium term life products. The reserve requirements under Regulation XXX increase over time and are normally in excess of reserves required under IFRS in other jurisdictions. The increase and the ultimate level of XXX
reserves will depend upon the mix of business and future production levels in the US.
balance or the excess of the GMDB over the cash surrender value, depending on the definition of the underlying reinsurance agreements. A fall in the value of the variable annuity policies’ funds therefore leads to higher expected claims amounts. The variable annuity policyholders invest their funds in a wide variety of US equity, other equity, fixed interest, money market, balanced and other funds. Hence SCOR Global Life is exposed to losses, through higher death claims, if these funds fall in value. These funds are not held by SCOR Global Life. The assets remain with the originating ceding companies.
Business of this type which contains a specific economic risk in case of a financial crisis is not within the usual scope of the
SCOR Global Life underwriting policy, no GMDB new business is being underwritten. These treaties are all in run-off and, as at 31 December 2013, cover in total approximately 0.5 million policies written by two cedants. These treaties were issued mainly in the late 1990’s and incorporate various benefit types. In terms of reserves the GMDB business represents less than 0.5% of SCOR Global Life’s overall reserves.
Different types of GMDBs are covered, including return of premium, ratchet, roll-up and reset. Guarantees that increase over time are, for a majority of the assumed business, only applied up to a certain age. This implies that SCOR Global Life will be released from the risk when the beneficiary reaches this age limit. See Note 16 – Net Contract Liabilities.
See “Note 16, Net Contract liabilities – (A) Guaranteed Minimum Death Benefit (GMDB)” for further information on risk mitigation actions.
Mandates for underwriting life reinsurance business are assigned to teams on a mutually exclusive basis. Life reinsurance treaties are underwritten by life reinsurance experts familiar with the specific features of their markets. The life business is underwritten in line with the market specific underwriting and pricing guidelines.
SCOR Global Life. Business opportunities going beyond the stipulations of these guidelines are subject to a special referral procedure at two key levels in order to ensure that the business respects defined risk-adjusted return criteria and risk tolerance limits. These cases are examined at the SCOR Global Life level by the Life Central Actuarial and Underwriting
SCOR Global Life uses the expertise of five dedicated Research & Development centers within the Life Central Actuarial and Underwriting Department to analyze and assess the key factors underlying mortality, longevity, LTC, policyholder behavior, CI and disability risks. The SCOR Global Life Research & Development Centers provide recommendations for the implementation of the research results into the pricing, underwriting control and determination of exposure limits.
A significant part of the reinsured premium in respect of Disability, Long Term Care (LTC) and Critical Illness (CI) products includes premium adjustment clauses. In the case of LTC, the premium adjustments are designed to offset potentially worsening incidence or improving longevity of disabled and active lives. In the case of CI, premium adjustments mitigate potential negative impacts on future claims patterns due to a general deterioration in health and improved medical diagnosis.
Fixed income investments are managed by SCOR Global Investments SE or by external managers monitored by SCOR. In all cases, investment guidelines are provided to managers and strict monitoring is carried out over the global portfolio by the respective Group entities. Whether managed internally or externally, each entity monitors, either directly or via an intermediary, the changes in value of the investment assets. In general, the tactical allocation of the global portfolio is defined by the Group Investment Committee which meets each quarter at least. It is chaired by the Group’s Chief Executive
Executive Officer of SCOR Global P&C and the Chief Executive Officer of SCOR Global Life, the Chief Executive Officer of
In spite of the measures to control, diversify and reduce the risk of defaults of its retrocessionaires, the occurrence of one or more of such default could have a material adverse impact on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.
SCOR's capital shield policy includes traditional retrocession as well as the use of alternative risk transfer solutions (e.g., the multi-year securitization of catastrophic risk in the form of catastrophe bonds) and contingent capital facilities, which are designed as tools of last resort. The credit risk that SCOR may be exposed to through these alternative risk transfer solutions can be more limited than the credit risk related to traditional retrocession arrangements because alternative retrocession is usually fully collateralized, which is not the case with traditional retrocession.
Credit risks related to contracts with cedants are mitigated through a quarterly examination of exposure and associated risks.
Depending on the financial situation of the principal cedants, actions aimed at reducing or limiting exposure or mitigating the risk through guarantees on deposits (for example, via offset clauses) may be carried out. Moreover, should their financial strength deteriorate between the time their financial commitment is made and the time it must be honored, an appropriate financial provision is established in the Group’s accounts corresponding to the liability for which a loss is considered probable.
Concentration risk is mitigated by defining counterparty exposure limits. Furthermore, SCOR selects bank counterparties according to their rating and quality of their credit. SCOR also considers the public assistance (e.g., loans, guarantees of deposits, nationalizations) certain banks may benefit from during the financial crisis, as they are important in the economy of their country.
SCOR’s Credit & Surety business does not cover either credit default swaps (CDS) or real estate loans, notably in the US, nor is it exposed to the various US credit “monoline insurers” or “credit insurers”.
In particular this affects the US book of business acquired in the course of the Transamerica Re acquisition. The majority of the former Transamerica Re's reinsurance contracts flow into SCOR via retrocession from Aegon companies. An AEGON
insolvency might lead to premiums from clients no longer being passed on to SCOR, and thus potentially impair the value of business acquired (“VOBA”).
Secondly, a reduction in the value of future profits could arise from a massive unexpected lapsation of policies following a deterioration of the cedant’s financial rating or standing or an event which has a negative effect on the cedant’s reputation.
SCOR participates, for certain risk categories that are material (particularly terrorist risks), in various groups of insurers and reinsurers (“pools”) aimed at pooling the relevant risks among the members of each group. In the event of a total or partial default by one of the members of a group, it could be required to assume, in the event of joint liability of the members, all or part of the liabilities of the defaulting member. In such a case, this could adversely impact its business, present and future revenues, net income, cash flows, financial position, and potentially, the price of its securities.
Certain countries do not permit the exclusion of terrorist risks from insurance policies. Due to these regulatory constraints, the Group has actively supported the creation of insurance and reinsurance pools involving insurance and reinsurance companies as well as public authorities in order to spread the risks of terrorist activity among the members of these pools. It participates in pools created in certain countries, such as France (GAREAT), Germany (Extremus), the Netherlands (NHT),
Australia and Belgium (TRIP), which allows the Group to have limited and known commitments. In the US, the Terrorism
SCOR monitors very closely its exposure to the US market, primarily because of the insurance obligation created by the law.
Beyond the potential impact on its non-life book, a terror event could also affect the Group’s life portfolio. Although the claims incurred from past events have been comparatively small in relation to the non-life claims incurred, a future terrorist act, such as a “dirty bomb”, could claim a substantial amount of insured lives.
The following table provides an overall analysis of the aging of financial assets as at 31 December 2013: In EUR million Current 1-12 months Total
SCOR needs liquidity to pay claims, its operating expenses, interest on its debt and dividends on its capital stock, and replace certain maturing liabilities. Without sufficient liquidity, the Group may be forced to curtail its operations, and business will suffer. The principal internal sources of the Group’s liquidity are reinsurance premiums, cash flow from its investment portfolio and other assets, consisting mainly of cash or assets that are readily convertible into cash.
Liquidity risk is increased in situations of market disruption as SCOR may need to sell a significant portion of its assets quickly and at unfavorable terms. Additional information on the Group’s liquid assets is included in Note 6 – Insurance
The projections for insurance liabilities of the Life segment have been prepared on a best estimate basis. The amounts below represent the estimated maturity profile of the gross liabilities. For long-term life reinsurance, benefit payments are typically settled net of premiums (for treaties with periodic premium payments). Where liabilities are deposited with the client, the settlement normally also includes certain other account items, primarily the release of the deposits. For contracts where funds held are used to offset the amounts settled between SCOR and its cedants, funds held to cover the life insurance liabilities in the table below mature at the same date as the respective life insurance liabilities.
Life insurance liabilities In EUR million < 1 year 1-5 years 6-10 years > 10 years Total
Maturity profiles have been based on undiscounted contractual maturities and include contractual interest payments
(including those from cross currency and interest rate swaps). In the case of perpetual debt, or debt which is subject to multiple optional reimbursement dates, the analysis below has been prepared based on the assumption that the Company does not make use of any of the early optional reimbursement dates. Perpetual debt is classified within the column “more than 5 years” due to an absence of a maturity date. Of the amounts below, EUR 451 million (1) (2012: EUR 179 million)
(2) The interests for perpetual debt as at 31 December 2013 represent EUR 49 million, on a yearly basis (2012: EUR 41 million)
The Group did hold a finance lease with an option to purchase an investment property at the end of the lease term. This finance lease came to an end in 2013, and the purchase option was exercised. In addition, various entities in the Group rent their office headquarters. The minimum payments relating to these operating leases are presented within Note 5 - Tangible assets and property related commitments.
SCOR’s main non-French legal entities are located in Switzerland, the Americas, the UK and Asia/Pacific. The shareholders’
equity of these entities is denominated mainly in Euros, US dollars, Canadian dollars or British pounds.
US dollar against the Euro, have had and may have in the future, an adverse effect on the Group’s consolidated shareholders’ equity. SCOR does not fully hedge its exposure to this risk. The impact of the fluctuation in the exchange rates used to translate foreign currencies into Euros on its consolidated shareholders’ equity is described in Section 20.1.5 -
Consolidated Statements of Changes in Shareholders’ Equity.” The sensibility of Group shareholders equity to exchange rates is presented in this note.
Some events, such as catastrophes, can have an impact on the matching of assets and liabilities in a currency, which can generate a temporary unmatched position which is not covered by currency contracts or hedges. In spite of the measures to control and reduce SCOR’s exposure to fluctuations of exchange rates of major currencies, such fluctuation could have a material adverse impact on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.
The Group analyzes the impact of a major change in interest rates on each of its investment portfolios and at the global level.
Here, it identifies the unrealized capital loss that would result from a rise in interest rates. The instantaneous unrealized capital loss is measured for a uniform increase of 100 basis points in rates or in the event of a distortion of the structure of the yield curve. Portfolio sensitivity analysis to interest rate changes is an important risk measurement and management tool which may lead to decisions for reallocation or hedging.
in the event of a 100 basis point change in interest rates.
For Long-Term Care Products in France, ceding companies use valuation rates established by French regulators which are based on a prudent proportion of the moving average of long-term government rates. The bulk of the reserves are deposited.
Valuation risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.
SCOR is also exposed to equity price risk. A widespread and sustained decline in the equity markets could result in an impairment of its equity portfolio. Such impairment could affect its net income.
The Group’s exposure to the equity market results from direct purchases or investments in convex equity strategies such as convertible bonds or mean variance strategy, and through certain (re)insurance products including GMDB business.
market vary with the value of the underlying assets rather than the sum at risk. Thus, premiums would decrease under a decline of the equity values whereas the expected claims would increase thus leading to an increase in the liability.
The interest sensitivities for profit & loss presented in the table below shows the impact of changes in fair value of financial assets at fair value through P&L held at closing date, and change in income on variable rate financial assets held at closing date, following an increase/decrease of interests of 100 basis points. An estimate of the impact on the future profit & loss following a change of 100bps is therefore included. However, SCOR does not include in this analysis the impact that changes in interest rates might have on the reinvestment of future cash flows, as future cash flows of our business are difficult to predict and asset allocations might change over time.
SCOR conducted an analysis of the sensitivity of the impairment of equity securities, by applying the accounting policy and application guidance set out in Note 1 (H) to theoretical future market value changes. SCOR estimates that, excluding any impairment arising to duration, a further uniform decline of 10% from 31 December 2013 market values would generate a future further impairment of equity securities of EUR 1 million (2012: EUR 12 million; 2011: EUR 7 million). It should be noted that this figure should not be scaled up or down as the impairment rules are not a linear function of market value. For example a scenario with a market value decline of 20% would not double the potential further equity impairment.
As previously mentioned, the Life and Non-Life business have minimal sensitivity to equity price movements.
In addition, since 2009 the Group entered into net investment hedges to reduce its exposure to variations in the net assets of USD functional currency subsidiaries. These hedges resulted in a total positive foreign exchange impact of EUR 4 million within equity in 2013 (2012: EUR 13 million and 2011: EUR 13 million). As at 31 December 2013, the Group does have one hedge of net investment remaining in place. See Note 8 - Derivatives instruments.
The Group recognized a net foreign exchange loss of EUR 10 million for the year ended 31 December 2013 (2012: gain of
Registration Document 2011 for more information) and at the expiration of the deadlines for opposition by the parties, these agreements have become final and will allow for stipulated distributions by the parties, withdrawn from a sequestered bank account in place at the time of the signing of the settlement agreements. The matter is therefore concluded for SCOR and has no further supplementary financial impact for SCOR.
Comisión Nacional de la Competencia: On 12 November 2009, and following an administrative sanctioning procedure, the Spanish competition authority (Comisión
Nacional de la Competencia, or the “CNC”) sanctioned SCOR Global P&C SE Ibérica Sucursal, a branch of SCOR Global
P&C, and a number of other insurance and reinsurance companies for an alleged infringement of Article 1 of Law 15/2007, of 3 July 2007, on Competition (the “Competition Act” which prohibits agreements and concerted practices that may have as an object or effect the restriction of competition in the market). The infraction would have consisted in an agreement to set the minimum price and other commercial conditions applied to customers in the market for decennial insurance for construction in Spain. Pursuant to such decision, SCOR was required to pay a fine of EUR 18.6 million. Other insurers and reinsurers were also fined in relation to the same matter.
SCOR's grounds and declared that the company did not infringe the Competition Act. Consequently, the economic sanction impose on SCOR by the CNC has been annulled.
Highfields directors and officers insurance policy: On 18 June 2009, SCOR commenced an action before the Commercial Court of Nanterre against an insurance company with respect to the recovery of the attorneys fees and costs arising from the Highfields Capital LTD, Highfields Capital I LP
and Highfields Capital II LP litigation covered by the directors and officers insurance policy. The proceedings were dismissed on 24 October 2012. On 23 November 2012, SCOR filed an appeal before the Court of Appeal of Versailles. In this appeal procedure appeal summons were filed on 15 February 2013. On the basis of the two directors and officers insurance policies in excess coverage, SCOR also commenced two distinct procedures on 10 January 2012 and 22 June 2012 before the Commercial Court of Nanterre and the Commercial Court of Paris against two insurance companies with respect to the recovery of the attorneys’ fees and costs and a portion of the settlement amount relating to the litigation with
French and it is provided solely for the convenience of English-speaking users.
The statutory auditors’ report includes information specifically required by French law in such reports, whether modified or not. This information is presented below the audit opinion on the consolidated financial statements and includes an explanatory paragraph discussing the auditors’ assessments of certain significant accounting and auditing matters. These assessments were considered for the purpose of issuing an audit opinion on the consolidated financial statements taken as a whole and not to provide separate assurance on individual account balances, transactions or disclosures.
We conducted our audit in accordance with professional standards applicable in France; those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit involves performing procedures, using sampling techniques or other methods of selection, to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made, as well as the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the consolidated financial statements give a true and fair view of the assets and liabilities and of the financial position of the group as at December 31, 2013 and of the results of its operations for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union.
In accordance with the requirements of article L. 823-9 of the French Commercial Code (code de commerce) relating to the justification of our assessments, we bring to your attention the following matters:  The notes 1- “(G) real estate investments”, 1 - “(H) financial instruments”, 5, 6 and 8 to the consolidated financial statements describe the principles and methods used to estimate the valuation and impairment of investments and derivative instruments.
We examined the control system in place, detailed in note 26 to the consolidated financial statements, relative to the inventory of direct and indirect exposures, and the system in place for their assessment, as well as the valuation methods and write-down policies applicable to certain financial instruments. We have obtained assurance that the information provided in the aforementioned notes is appropriate, and that the approaches and policies described were properly applied by the company.
 The notes 1 - “(F) intangible assets”, 3 and 4 to the consolidated financial statements describe the principles and methods used to assess the valuation of goodwill, the valuation of customer relationship intangible asset and the value of business acquired for the Life and Non-Life reinsurance portfolios. The methods used to carry out these annual impairment tests are described in note 4 to the consolidated financial statements.
 Note 3 - “Acquisitions and disposals” to the consolidated financial statements describes the methods and assumptions used for the final valuation of net assets, and by comparison with the acquisition price, of the gain from bargain purchase following the acquisition of Generali U.S. and MRM S.A.
We have assessed the approaches used in this impairment test, the forecasted cash flows and the assumptions made. We have verified that the information described in note 19 “Taxes” to the consolidated financial statements is appropriate.
 As stated in the notes 1 - “(B) Basis for preparation”, 1 - “(N) Accounting principles and methods specific to reinsurance business”, 7, 10, 11 and 16 to the consolidated financial statements, the technical accounts specific to reinsurance are estimated on the basis of reinsurance commitments or on statistical and actuarial bases, particularly in the case of accounts not received from cedents recognized as receivables, technical reserves, and deferred acquisition costs. The methods used to calculate these estimates are described in the notes to the consolidated financial statements.
As required by law, we have also verified in accordance with professional standards applicable in France the information presented in the group’s management report.
The related-party agreements executed in 2013 or continued during 2013, as defined by Articles L. 225-38 and following of the French Commercial Code have been the subject of a specific report by the statutory auditors in Section 19.3.
The SCOR SE’s corporate accounts for the financial periods ending 31 December 2013, 2012 and 2011, included respectively in Appendix A of this Registration Document, in appendix A of the Registration Document filed with the Autorité
Document, in appendix A of the Registration Document filed with the Autorité des marchés financiers on 6 March 2013 under the number D.13-0106 and in appendix A of the Registration Document filed with the Autorité des marches financiers on 8 March 2012 under the number D.12-0140.
No material change has occurred in the Group’s financial or commercial situation since the end of the financial year 2013.
21.1 Share capital 21.1.1 AMOUNT OF ISSUED CAPITAL AND ADDITIONAL INFORMATION
Pursuant to the decision of the Extraordinary Shareholders General Meeting of the Company dated 28 April 2010, in its seventeenth resolution to authorize the Board to grant the issuance of shares and/or of securities granting access to capital or giving entitlement to a debt instrument, with cancellation of preferential subscription rights, reserved for one category of entities, insuring the underwriting of the company’s equity securities, SCOR SE decided, on 5 July 2011, to issue a drawdown notice of EUR 75 million under the contingent capital facility placed at its disposal by UBS whom exercised the adequate number of warrants on 11 July 2011 creating the issuance of 4,250,962 new ordinary shares, each of a nominal value of EUR 7.8769723. On 27 July 2011, the Board of Directors of SCOR SE acknowledged that the share capital of the company amounted to EUR 1,512,224,741.93.
According to the decisions of the Extraordinary Shareholders General Meetings of the Company dated (i) 18 May 2004, in its fourth resolution, (ii) 31 May 2005 in its sixth resolution and (iii) 16 May 2006 in its fifth resolution to authorize the Board to grant to officers and employees options to subscribe for or purchase of shares and to acknowledge, if necessary, at its first meeting following the year end of the Company, the number and amount of new shares issued during that period following the exercise of options, the Board of Directors of SCOR SE acknowledged, on 3 May 2012, the capital increase of
(1) This figure corresponds to the share capital and to the number of shares as acknowledged by the Board of Directors on 27 July 2011, and stated in the bylaws of the Company as at 31 December 2011. It does not take into account the shares that could have been issued between 7 March and 31 December 2011 due to the exercise of stock-options. The figures that take these shares into account are referred to in Section 20.1.6 – Notes to the consolidated financial statements, Note 13 – Information on share capital, capital management, regulatory framework and shareholders 'equity.
(3) This figure corresponds to the share capital and to the number of shares as acknowledged by the Board of Directors on 3 May 2012 and stated in the bylaws of the Company as at 31 December 2012. It does not take into account the shares that could have been issued between 3 May 2012 and 31 December 2012 due to the exercise of stock options. The figures that take these shares into account are referred to in Section 20.1.6 – Notes to the consolidated financial statements, Note 13 – Information on share capital, capital management, regulatory framework and shareholders’ equity.
According to the decision of the Shareholders General Meeting of the Company dated 3 May 2012, the Board of Directors of the Company decided on 3 May 2012 the share capital reduction of EUR 1,703,397.26 by cancellation of 216,250 treasury shares to reduce the share capital from EUR 1,513,928,137.19 to EUR 1,512,224,741.93 dived by 191,980,457 ordinary shares. The reason for such decision of capital reduction is to avoid any dilutive effect of the exercise of stock-options upon the share capital.
According to the decisions of the Extraordinary Shareholders General Meetings of the Company dated (i) 18 May 2004, in its fourth resolution, (ii) 31 May 2005 in its sixth resolution, (iii) 16 May 2006 in its fifth resolution, (iv) 24 May 2007 in its twenty first resolution and (v) 7 May 2008 in its nineteen resolution to authorize the Board to grant to officers and employees options to subscribe for or purchase of shares and to acknowledge, if necessary, at its first meeting following the year end of the Company, the number and amount of new shares issued during that period following the exercise of options, the Board of Directors of SCOR SE acknowledged, on 5 March 2013, the capital increase of EUR 4,456,365.57 by creation of 565,746 shares with a nominal value of EUR 7.8769723 each.
acknowledged, on 25 April 2013, the capital increase of EUR 2,479,072.23 by creation of 314,724 shares with a nominal value of EUR 7.8769723 each.
According to the decision of the Shareholders General Meeting of the Company dated 25 April 2013 in its twenty-first resolution, the Board of Directors of the Company decided on 4 March 2014 the share capital reduction of
Number of shares authorized for convertible securities and under stock option plans
Refer to Section 21.1.4 – Amount of convertible securities, exchangeable securities or securities with subscription warrants for a description of the warrants issued on 23 December 2013.
14th resolution (Delegation of authority granted to the Board of Directors for the purpose of deciding on the issuance of shares and/or of securities granting access to capital or giving entitlement to a debt instrument, without cancellation of preferential subscription rights)
16th resolution (Delegation of authority granted to the Board of Directors for the purpose of making determinations with respect to the issuance, in the context of an offer referred to in paragraph II of Article L.411-2 of the French Monetary and Financial code, of shares and/or of securities granting access to capital or entitling the holder to a debt instrument, with cancellation of preferential subscription rights)
24th resolution (Delegation of authority granted to the Board of Directors in order to carry out an increase in share capital by the issuance of shares reserved to the members of savings plans (plans d’épargne), with cancellation of preferential subscription rights to the benefit of such members)
Authorizations for share issues granted by the Extraordinary Shareholders’ Meeting of 25 April 2013 19th resolution (Authorization granted to the Board of Directors for the purpose of increasing the number of shares issued in accordance with 14th and 15th resolutions in the event of over-subscription to the share capital increase, with or without cancellation of preferential subscription rights)
This resolution can only be used with the 14th and 15th resolutions and is in any case capped by the 25th resolution 22nd resolution (Authority to issue shares for stock option plans)
The description of the stock buyback program implemented under the 11th resolution of the Annual Shareholders' Meeting of 25 April 2013 was published by the Company on 25 April 2013. The report of the Board of Directors of the Company to the
Annual Shareholders’ Meeting to be held in the first half of 2014 on the use of the 11 th resolution will be made available to
In the context of the above mentioned buyback program and this liquidity agreement were as follows: SCOR proceeded, between 25 April and 31 December 2013, to:  the purchase of 2,086,740 treasury shares;  the sale of 1,554,100 treasury shares;  the transfer of 2,405,650 treasury shares.
On 31 December 2013, SCOR held 7,167,371 shares compared with 8,930,686 shares at 31 December 2012. The par value of these treasury shares is EUR 56,457,182.83 and their book value is EUR 142,898,237.94.
In EUR Percentage of share capital 1. Stimulation of the secondary market or the liquidity of the Company's shares by an investment services provider through a liquidity agreement compliant with a professional ethics charter recognized by the Financial Markets Authority 103,668 0 816,589.96 0.05%
2. Setting-up, implementation or hedging of any stock option plans, other plans for allocation of shares and, generally, any form of allocation to employees and/or corporate officers (mandataires sociaux) of the Company and/or of affiliated companies, including hedging of any Company stock option plan pursuant to the provisions of Articles L. 225-177 et seq. of the French Commercial Code, allocation of Company shares at no cost in the context of the provisions of Articles L. 225-197-1 et seq. of the French Commercial Code, allocation of Company shares as participation in profits generated by the expansion of business (participation aux fruits de l’expansion de l’entreprise) or allocation or transfer of Company shares within the framework of any employee savings plan (plan d’épargne salariale), in particular in the context of the provisions of Articles L. 3321-1 et seq., and L. 3332-1 et seq., of the French Labor Code 7,239,569 (880,470) 57,025,884.48 3.76%
3. Purchasing of shares for keeping and later remittal for exchange or as payment within the framework of possible external growth operations without exceeding the limit set by paragraph 6 of Article L. 225-209 of the French Commercial Code in the context of a merger, spin-off or contribution 0 0 0 0 4. Respect of all obligations linked to the issuance of securities granting access to capital 0 0 0 0 5. Cancellation of the shares bought back in this way, within the limits established by law in the context of a reduction in share capital approved or authorized by the shareholders 0 880,470 0 0
21.1.4 AMOUNT OF CONVERTIBLE SECURITIES, EXCHANGEABLE SECURITIES OR SECURITIES WITH SUBSCRIPTION WARRANTS
In the context of a contingent capital facility program, SCOR issued 12,695,233 warrants (“Warrants”) on 23 December 2013 to UBS, each warrant committing UBS to subscribe for two new SCOR shares (maximum amount of EUR 200 million including issuance premium available per tranche of EUR 100 million each - including issuance premium) when the aggregated amount of the estimated ultimate net losses resulting from eligible natural catastrophes or extreme events Life incurred by the Group (in its capacity as an insurer/reinsurer) reaches certain contractual thresholds in any given calendar year between 1 January 2014 and 31 December 2016 or if no drawdown already took place in the context of the agreement and SCOR’s share price drops below EUR 10.
21.1.6 INFORMATION ABOUT ANY CAPITAL OF ANY MEMBER OF THE GROUP WHICH IS UNDER OPTION OR AGREED CONDITIONALLY OR UNCONDITIONALLY TO BE PUT UNDER OPTION AND CHARACTERISTICS OF SUCH OPTIONS
Refer to:  Section 15.1.3 – Remuneration in the form of options and share allocation;  Section 17.2 – Information on shareholding and stock options or Company stock purchases by members of the administrative and management bodies;  Section 17.3 – Plans providing employee participation in Company;  Appendix A – 1.5 – Notes to the corporate Financial Statements, Note 12 – Stock Options;  Section 20.1.6 – Notes to the Consolidated Financial Statements, Note 17 – Provisions for employee benefits,
 Section 20.1.6 – Notes to the Consolidated Financial Statements, Note 18 – Stock options and share awards;  Section 21.1.1 – Amount of issued capital and additional information, and;  Section 21.1.4 – Amount of convertible securities, exchangeable securities or securities with subscription warrants.
For further detail please refer to Section 20.1.6 - Notes to the consolidated financial statements, Note 13 - Information on share capital, capital management, regulatory framework and shareholders' equity and to Appendix A – 1.5 - Notes to the Corporate Financial Statements, Note 5 - Shareholders' Equity.
Officer (Directeur Général Délégué), any of its shareholders holding more than 10% of the registered capital or of the voting rights or, if a legal entity, the company controlling it within the meaning of article L. 233-3 of the French commercial code and, or any entity in which any of these persons is at the same time an owner, partner with unlimited liability, manager, director, member of the supervisory board or an executive officer, unless the transaction is entered into in the ordinary course of business and under normal terms and conditions.
Directors or interested representative of the Company liable for any damages suffered as a result thereof.
Under Article L. 225-43 of the French Commercial Code, the Directors, other than the legal entities, Chief Executive Officer
21.2.3 RIGHTS, PRIVILEGES AND RESTRICTIONS ATTACHED TO EXISTING SHARES VOTING RIGHTS
After approval of the financial statements and recognition of the existence of distributable funds consisting of the earnings for the fiscal year, less prior losses and plus, if applicable, any profit carried forward, the Shareholders’ Meeting shall distribute them as follows:  All sums transferred to reserves pursuant to the law;  All or part of the profit available for distribution may be transferred by the Shareholders’ Meeting to any discretionary, ordinary or extraordinary reserves or carried forward, as deemed appropriate;  Any remaining balance shall be distributed on all the shares in proportion to their unredeemed paid-up value, it being stipulated that during a period of two years starting from the reverse split operation on the shares of the
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 the fiscal year. Dividends not claimed within five years of the date of payment revert to the French Government. According to the bylaws (statuts), shareholders may decide in an ordinary general meeting to give each shareholder the option of receiving all or part of a
Dividends paid to non-residents are in principle subject to withholding tax.
The Company may also acquire its own shares without having to cancel them:  Redemption to the aim of allocating them to the employees or to the officers of the Company (article L. 225-208 of the French commercial code);  Redemption in the context of a share buyback program (article L. 225-209 of the French commercial code).
Shareholders are liable for corporate liabilities only up to their contributions.
Commercial Code, eliminate the pre-emptive subscription right for the entire capital increase or for one or more segments of said increase and may allow or not allow a priority subscription period for shareholders. When the issue is carried out through a public offering or through an offer referred to in Article L.411-2, II of the French Financial and Monetary Code without pre-emptive subscription rights, the issue price must be set according to Article L. 225-136 of the French
In accordance with French law concerning dematerialization (“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
BNP on our behalf. 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 addition, we may, under certain circumstances as described in Section L. 228-3-1 of the French Commercial Code, request any legal entity which holds more than 2.5% of the Company’s Ordinary Shares to disclose the identity of any person who owns, directly or indirectly, more than a third of such entity’s share capital or voting rights. An entity not timely providing complete and accurate information may be deprived of its voting rights at any shareholders’ meeting held until the date of provision of the requested identification information and the payment of dividends payable to such entity is deferred until such date. If the entity knowingly (“sciemment”) refuses to comply with applicable rules, it may be deprived by a French court of all or part of the voting rights attached to the Ordinary Shares that are the subject of the information request and/or its right to dividends, for a period of up to five years.
An owner of Ordinary Shares residing outside France may trade such shares on Euronext. Should such owner, or the broker or other agent through whom a sale is completed, require assistance in this connection, an accredited intermediary should be contacted.
French company in respect of which more than 33.33% of its shares or its voting rights are held by a person not residing in
In accordance with French law, there are two types of general shareholders’ 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 and the declaration of dividends. The Board of Directors is required to convene an annual ordinary general meeting of shareholders, which must be held within six months of the end of our fiscal year. This period may be extended by an order of the President of the competent French Commercial Court. The Company’s fiscal year begins on the first day of January of each calendar year and ends on the last day of December of that year.
Special meetings of shareholders of a certain class of shares (such as shares with double voting rights or preferred shares)
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 the statutory auditors, by the liquidators in case of bankruptcy, by shareholders owning the majority of the Ordinary Shares or voting rights after having launched a takeover bid or by an agent appointed by a court.
One or several shareholder(s), holding at least a certain percentage of our share capital (computed on the basis of a formula related to capitalization which on the basis of our outstanding share capital as at 30 June 2011, would represent approximately 0.5% of our share capital), the Workers’ Council or a duly authorized association of shareholders holding their
June 2013, would represent approximately 1% of SCOR SE’s voting power) 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 bylaws (statuts), the right to participate in Shareholders’ Meetings is subject to registration of shares in the name of the shareholder or of the approved intermediary acting on his or her behalf, by T-0 (Paris time) on the third trading day prior to the Shareholders’ Meeting, either in the nominative share registers held on the Company's behalf by the Company’s agent or in the bearer share accounts held by an authorized intermediary.
Company, either by regular mail or, pursuant to a decision of the Board of Directors, in electronic format. Mail voting forms must be addressed to the Company within a period prior to the meeting as established by the Board of Directors. Such period may not exceed 3 days before the meeting date. Proxy forms must be received by the Company no later than 3 p.m.
or by proxy of shareholders holding not less than one fifth of the Ordinary Shares entitled to vote is necessary for a quorum in the case of any other extraordinary general meeting.
However, a unanimous vote is required to increase liabilities of shareholders.
From 3 January 2009, the date of the cancellation of old shares, each share is entitled to one vote.
The bylaws make no provision for shares with double voting rights.
Pursuant to Articles L. 322-4 and R. 322-11-1 of the French Insurance Code, any transaction allowing a person acting alone or in concert with other persons, as defined by Article L. 233-10 of the French Commercial Code, to acquire, to increase, to decrease or to cease holding, directly or indirectly, as defined by Article L. 233-4 of the French Commercial Code, an equity stake in an insurance or a reinsurance company, shall be notified by such person(s) to the ACPR prior to its completion when any one of the following conditions is met:  the portion of the voting rights held by such person(s) crosses upwards or downwards the thresholds of the tenth, the fifth, the third or half of the total number of voting rights of the Company; or
such default and, upon a decision of the commercial court, part or all the shares of such shareholder may be suspended for up to five years.
Shareholders’ Meeting, by the suspension of voting rights from all shares in excess of the non-declared fraction for any
For the two years immediately preceding publication of this Reference Document, there are no material contracts other than contracts entered into in the ordinary course of business, to which the issuer or any member of the Group is a party.
The Company certifies that all the following information stated in this Registration Document and received from third parties has been accurately reproduced and that as far as the Company is aware and is able to ascertain from information published by such third party, no facts have been omitted, which would render the reproduced information inaccurate or misleading:  Data issued from the Standard & Poor’s Global Reinsurance Highlights (2013 Edition) and relating to the ranking on reinsurance market participants quoted in Section 3.1 – Group key figures and Section 6.5 – Information on
Throughout the period of validity of the Registration Document, the bylaws and any other document required by law may be consulted and are freely available upon request from the registered office of the Company at 5 avenue Kléber, 75016 Paris.
As at 31 December 2013, SCOR held indirectly shares or units in the following companies, which represent at least 10% of the consolidated net assets or generate at least 10% of the consolidated net profit or loss.
Refer to Section 20.1.6 – Notes to the Consolidated Financial Statements, Note 22 – Other operating and administrative expenses for the detail of audit fees.
Company. The other legal documents relating to the Company can be looked at the Company registered offices pursuant to the applicable rules and regulations.
The Registration document of the Company filed with the l’Autorité des marchés financiers, as well as the press releases of the Company, its annual and half-year reports, its annual and consolidated financial statements as well as the information relating to the transactions upon treasury shares and to the total number of shares and voting rights can be looked at on the
“Significant Events Of The Year” are an integral part of the notes to the unconsolidated corporate financial statements.
This year, SCOR SE carried out the following significant transactions: Dividends received
SCOR SE granted a EUR 202 million hybrid loan and a USD 228 million bridge loan to SCOR Global Life SE to fund the acquisition of Generali U.S.
SCOR entered into a cross-currency swap which exchanges CHF 250 million of the principal into EUR and exchanges the
CHF coupon on the notes to EUR 5.8975% and which matures on 30 November 2018.
SCOR SE bought back part of its USD 67 million perpetual subordinated notes in quarter 2 and 3 of 2013 for USD 43 million and USD 3.2 million respectively. The purchases at a discount gave rise to a pre-tax profit of EUR 3.8 million.
During 2013, SCOR SE acquired 59.9% of the listed real estate investment company MRM S.A. for EUR 53 million.
Due and accrued interests on rental income 3 - 3 -
(1) Data for financial years 2013 and 2012 are before appropriation of results
In EUR million Gross transactions Retroceded transactions 2013 net transactions 2012 net transactions
Expenses for Life reinsurance and other underwriting reserves 7 - 7 51
Internal and external investment management expenses and interest expenses (10) - (10) (6)
Internal and external investment management expenses and interest expenses (85) (50)
Rate swaps - - - - Rate and currency swaps (cross-currency swaps) - 995 995 796 Foreign currency forward purchases 156 173 329 546 Letters of credit - 580 580 796 Endorsements and sureties - - - 8
Endorsements, sureties - 9 9 16 Letters of credit - 5 5 5
Other commitments on investment securities, assets or revenues - 973 973 771
Marketable securities pledged to financial institutions - - - - Contract termination indemnities - 8 8 7 Foreign currency forward sales 158 175 333 541
Non-Life underwriting statement, the Life underwriting statement and the non-underwriting statement. In addition to reinsurance operations, the underwriting accounts include general expenses and income from investments relating to reinsurance activities. Income from invested shareholders’ equity is recorded in the non-underwriting account.
At each balance sheet date, if the carrying value of an investment in associate is less than its historical cost, an analysis is conducted in order to determine if impairment is required. The assumptions and conclusions of this analysis, conducted as at 31 December 2013, are detailed in Note 2.1.
Equity securities and other variable-income securities are recorded at cost, excluding expenses. The realizable value as at the balance sheet date is determined according to article R.332-20 of the French Insurance Code, and for listed securities, corresponds to the share price on the balance sheet date. For unlisted securities the fair value is based on net assets.
When the realizable value is more than 20% below the initial cost for more than six consecutive months, a detailed line-byline analysis is performed to determine whether the impairment is permanent. In accordance with the Notice of 18 December 2002 (amended on 15 December 2008) issued by the Emergency Committee of the French National
In accordance with Statement 2013-03 dated 13 December 2013 of the French standard-setter, the difference between cost and redeemable par value of depreciable assets in the scope of article R.332-20 of the French insurance Code is amortized to income over the remaining period until maturity.
Bonds and other fixed-income securities are recorded at cost, excluding accrued interests. In compliance with article R. 33219 of the French Insurance Code, the difference between cost and redeemable par value is amortized to income over the remaining period until maturity using the effective interest rate method.
1.2.5 Provision for liquidity risk on underwriting commitments (“Provision pour Risque d’Exigibilité”)
- Updated mortality tables for the various plans, with turnover data for managers and salary increases.
- Long-term service awards: the CNC Notice 2004-05 dated 25 March 2004 requires the recognition of a provision for long-term service awards as from 2004.
This financial statement caption includes the various subordinated or unsubordinated bonds issued by the Company as described in Note 4.1.
Debt issuance costs are amortized over the life of the respective loan. Interests on financial debt are included in financing expenses.
Overall, the premiums recorded for the year (premiums reported in the accounts received from cedants and estimated premiums) correspond to the estimated premium expected at the time the policy was underwritten.
The retrocessionaires’ share in estimates of assumed premiums and commissions is shown in liabilities in account
Securities pledged as collateral by reinsurers to guarantee their commitment are shown off balance sheet at their fair value.
Finite reinsurance treaties, as defined under article L. 310-1-1 of the French Insurance Code, have to be accounted for under provisions of opinion 2009-12 dated 1 October 2009 issued by the CNC (French accounting standard setter).
The costs associated with the acquisition of new Non-Life contracts, essentially commissions, are recorded as assets within the limits of contract profitability. They are amortized over the acquisition period of the premiums. The acquisition costs of
Premium portfolio entries based on the accounts of ceding companies offset the risk on accounts managed by accounting year. Premium portfolio entries represent the portion of unearned premiums paid at the start of the contract and the financial year while the risk relates to previous years. Likewise, premium portfolios ceded represent the portion of unearned premium at the end of the financial year and of the contract. Premium portfolio entries and withdrawals are included in the premium written and are an integral part of premium income. Portfolio movements are recorded as premium and claim portfolio entries or transfer.
Cash deposited with ceding companies (related & associated companies) 31 - - 2 29
 The shares held in SCOR US Corporation were valued using the following method and assumptions: enterprise value was assessed based on revalued net assets increased for the creation of future value determined using the
The boards of PREVOYANCE RE and SCOR GLOBAL LIFE SE, both affiliates of SCOR SE, decided upon a merger of the two entities on 28 June 2012, with retroactive effect as at 1 January 2012. As a consequence, PREVOYANCE RE was dissolved and merged into SCOR GLOBAL LIFE SE which in turn increased its share capital from EUR 274,540,000 to EUR
On 29 May 2013, SCOR SE acquired 59.9% of the capital and the voting rights of MRM S.A., a French Real Estate
EUR 53 million and was made in exchange for MRM S.A. shares. The transaction was financed through the use of own funds, without the issuance of any new debt or own shares.
EUR 952 million to SCOR Global Life SE, EUR 70 million to SCOR AUBER SA and EUR 88 million to GIE Informatique)
EUR 126 million from SCOR HOLDING SWITZERLAND and EUR 136 million from SCOR Global P&C) compared to EUR
for a total value of EUR 142,992,673. These shares were acquired in the context of anticipated awards to Company employees and officers as part of share allotment plans.
Cash deposits with ceding companies - - - - - - - -
Accounts receivable from reinsurance transactions 5 - 26 31 5 - 39 44
Accrued income and deferred charges 1,863 - 157 2,020 1,823 - 126 1,949
Deferred acquisition costs – assumed (Non-Life) 31 - 55 86 31 - 47 78
Deferred income and accrued expenses 2 - 4 6 - - - -
Related companies Other affiliates Other Total 4.1 OTHER EQUITY AND FINANCIAL LIABILITIES
 On 28 July 2006 Scor issued a perpetual super subordinated notes (Tier 1 type) in an aggregate principal amount of EUR 350 million acquisition to finance the acquisition of Revios Ruckversicherung AG. This debt has been reduced to EUR 257 million after repurchase of EUR 93 million during 2009. The bond issuance is represented by last-rank subordinated bearer notes with a par value of EUR 50,000 each bearing interest at an initial rate of 6.154% per annum, a floating rate indexed on the 3-month EURIBOR plus a margin of 2.90%, payable quarterly. No fixed redemption date is set but SCOR SE reserves the right to redeem the bonds in full or in part as from 28 July 2016.
(until 8 June 2018) and 3-month CHF LIBOR plus a margin of 4.8167% thereafter. The notes are hedged with a cross-currency swap detailed in Note 15.1.1 - Financial instruments received and given, in the analysis of commitments given and received.
 CHF 250 million fixed rate perpetual subordinated notes issued on 10 September 2013. The notes are redeemable by SCOR from 30 November 2018 on a quarterly basis on the payment of interest dates. The coupon has been set to 5% until 30 November 2018 and to 3-month CHF LIBOR plus a margin of 4.10%
thereafter. If SCOR does not exercise this option on such date, such repayment may intervene, where applicable, quarterly, at the date of payment of interests. The notes are hedged with a cross-currency swap detailed in Note 15.1.1 - Financial instruments received and given, in the analysis of commitments given and received.
 Initial USD 100 million, reduced to USD 67 million after repurchase of USD 33 million in 2011 and subsequently reduced to USD 20.8 million after repurchase of USD 46.2 million in 2013, 30-year subordinated bonds issued on 7 June 1999, callable by SCOR quarterly as from the tenth year. These floating-rate bonds bear interest based on the 3-month Libor rate plus (i) 0.80% for the first ten years of the issue, and (ii) 1.80%
These floating-rate bonds bear interest based on the 3-month Euribor plus (i) 1.15% for the first ten years, and
SE’s accounts, this decrease in debt resulted in a new internal loan from SHS for EUR 93 million with the same characteristics as the subordinated perpetual debt.
 Loans granted to SCOR by its subsidiaries, mainly SCOR Global P&C SE (see Note 2.3 - Subsidiaries and
The reinsurance activity of SCOR SE comprises four treaties, a quota share with SCOR Global P&C SE, another with
The maturity of debt at 31 December 2013 is as follows: In EUR million Less than 1 year 1-5 years +5 years Total
Due and accrued interests on rental income 3 - - -
 The reinsurance estimates ─ assumed ─ Life (EUR 652 million) includes premiums for EUR 369 million, commissions payable of EUR (97) million and claims payable amounting to EUR 380 million.
The share capital, comprising 192,757,911 shares with a par value per share of EUR 7.8769723 totalled
 The gain for 2012, i.e., EUR 208 million, combined with a portion of retained earnings of EUR 15 million, was allocated to dividends for EUR 223 million.
EUR 20.1 million were allocated to the share capital of the Company for EUR 9.9 million and to additional paidin capital for EUR 10.2 million. The exercise of options resulted in the creation of 1,254,162 shares.
 The issuance of 4,250,962 new shares related to the first tranche of contingent capital for EUR 75 million in
 SCOR SE announced a new 3-year contingent capital facility. This takes the form of a guaranteed equity line, providing SCOR SE with EUR 200 million coverage in case of extreme natural catastrophe or life events. This equity line facility will replace, as at 1 January 2014, the current contingent capital facilities which come to an end on 31 December 2013. Under this new EUR 200 million arrangement, SCOR raises its protection versus the existing contingent capital facility by EUR 50 million.
 During 2013, the Board decided upon a share capital reduction by cancellation of a total of 880,470 treasury shares for a total amount of EUR 6.9 million.
Contingency reserves amount to EUR 96 million, of which:  EUR 21 million for free share allotment plans with the following expiry: EUR 11 million at 2014, EUR 5 million at 2015, EUR 2 million at 2016 and EUR 3 million at 2017.
Dividends received from subsidiaries total EUR 321 million and include: SCOR Global P&C EUR 94 million, SCOR US
Results from transactions involving financial instruments (rate swaps, interest-rate options, real estate swap) were posted to financial income in the net amount of EUR 0 million in 2013 compared to EUR 0.2 million in 2012.
Currency losses were EUR (2.2) million in 2013 compared to a loss of EUR (6) million in 2012.
The corporate financial statements are prepared in original currencies converted to Euros. Fluctuations in the exchange rates used to convert the accounts might generate a significant foreign exchange impact. To limit the exchange rate fluctuation risk, forward foreign currency transactions are entered into at the beginning of the year to hedge the main currency surpluses in the balance sheet at the beginning of the year and adjusted during the year for material arbitrage transactions involving currencies. Hedges include spot trades of foreign currencies, forward trades of foreign currencies and option strategies.
It breaks down into extraordinary income by EUR 3.7 million and extraordinary expenses by EUR 5.6 million.
SCOR Auber SA, DB Caravelle, ReMark France, SAS Mobility and Rehalto SA as subsidiaries. Under the tax agreement,
SCOR SE benefits from the tax loss carry-forwards of its subsidiaries, and tax benefits are transferred back to the individual subsidiary concerned, if the entity becomes profitable in the future.
Total tax losses of the consolidated French tax Group were EUR 1,277 million as at 31 December 2013.
The table below summarizes the status of the various stock option plans for 2013: By application of Articles L.225-181 and R.225-137 of the French Commercial Code, the Company adjusted the price of the shares corresponding to options granted and the number of shares linked to options following the capital increases of 31 December 2002, of 7 January 2004 and of 12 December 2006. Thus, according to the provisions of Article R.22891 of the French Commercial Code, the adjustment applied equalizes, to the nearest hundredth of a share, the value of shares that will be received if the rights attached to share subscription and purchase options are exercised after the capital increase, while retaining the preferential subscription right, of the Company decided on 13 November 2006 and the value of the shares that would have been obtained in case those rights were exercised prior to said capital increase.
The stock option plans for the years 2003 to 2011 are share subscription plans that may give rise to a share capital increase. The other plans are share purchase options.
In 2011, 121,603 rights of options were exercised: 22,671 rights of options exercised under the stock option plan of 25 August 2004, vested on 26 August 2008, 48,587 options exercised under the stock option plan of 16 September 2005, vested on 16 September 2009, 42,345 options exercised under the stock option plan of 14 September 2006, vested on 14 September 2010 and 8,000 options exercised under the stock option plan of 13 September 2007, vested on
Date of availability of options Plan expiration date Number of beneficiaries
In 2013, 1,251,162 rights of options were exercised: 70,591 rights of options exercised under the stock option plan of 25 August 2004 vested on 26 August 2008, 105,835 options exercised under the stock option plan of 16 September 2005 vested on 16 September 2009, 143,936 options exercised under the stock option plan of 14 September 2006 vested on 14 September 2010, 29 500 options exercised under the stock option plan of 14 December 2006 vested on 14
December 2010, 240,500 options exercised under the stock option plan of 13 September 2007 vested on 13 September 2011, 274,950 options exercised under the stock option plan of 10 September 2008 vested on 10 September 2012, 60,000 options exercised under the stock option plan of 22 May 2008 vested on 22 May 2012, 314,850 options exercised under the stock option plan of 23 March 2009 vested on 23 March 2013 and 11,000 options exercised under the stock option plan of 25 November 2009 vested on 25 November 2013.
Amount distributed under the profit-sharing plan 1,153 815 1,115 1,609 1,138
(*) Paid out in the financial year for the previous financial year 13.3 INDIVIDUAL RIGHT TO TRAINING
Confirmed credits, letters of credit and guarantees given (Note 15.1.2) 580 796 18 26
CHF 315 million into EUR and exchange the coupon on the CHF 250 million tranche to 6.2855% and on the CHF 60 million tranche to 6.235%. These latest instruments mature on 8 June 2018.
In 2013 SCOR entered into a cross-currency swap which exchanges CHF 250 million of the principal into EUR and exchanges the CHF coupon on the notes to EUR 5.8975% and which matures on 30 November 2018.
15.1.2 Confirmed credits, letters of credit, and guarantees received and given
In consideration of its commitments relating to technical reserves, SCOR SE has granted letters of credit in the amount of USD 7 million (EUR 5 million) to cedants compared to EUR 580 million in letter of credit capacity received from banks.
(EUR 12 million). This guarantee was in the form of securities pledged to ceding companies.
Apart from mentioned commitments in the note above and the parental guarantee (Note 2.3), the Company no longer has any commitment with respect to hybrid transactions such as asset swaps or index default swaps. No facts in connection with the aforementioned commitments given and received have come to our knowledge, which may have an adverse impact on cash flows, cash positions or on our liquidity requirements.
(Comisión Nacional de la Competencia, or the “CNC”) sanctioned SCOR Global P&C SE Ibérica Sucursal, a branch of
On 18 June 2009, SCOR commenced an action before the Commercial Court of Nanterre against an insurance company with respect to the recovery of the attorneys fees and costs arising from the Highfields Capital LTD, Highfields
This is a free translation into English of the statutory auditors’ report on the financial statements issued in French and it is provided solely for the convenience of English-speaking users. The statutory auditors' report includes information specifically required by French law in such reports, whether modified or not. This information is presented below the audit opinion on the financial statements and includes an explanatory paragraph discussing the auditors’ assessments of certain significant accounting and auditing matters. These assessments were considered for the purpose of issuing an audit opinion on the financial statements taken as a whole and not to provide separate assurance on individual account balances, transactions or disclosures. This report also includes information relating to the specific verification of information given in the management report and in the documents addressed to the shareholders.
In our opinion, the financial statements give a true and fair view of the assets and liabilities and of the financial position of the Company as at 31 December 2013 and of the results of its operations for the year then ended in accordance with
Without qualifying our opinion, we draw your attention to the matters set out in Notes 1.2.2 and 5 to the financial statements regarding the changes in accounting methods that your company has made, and particularly the impacts of the change of accounting method related to the cross currency swaps portfolio.
Our work consisted of assessing the data and assumptions used, reviewing the company’s calculations and verifying that the information in notes 1.5 and 6 to the annual financial statements is appropriate.
Concerning the information given in accordance with the requirements of article L. 225-102-1 of the French Commercial
Code (code de commerce) relating to remunerations and benefits received by the directors and any other commitments made in their favor, we have verified its consistency with the financial statements, or with the underlying information used to prepare these financial statements and, where applicable, with the information obtained by your company from companies controlling your company or controlled by it. Based on this work, we attest the accuracy and fair presentation of this information.
In accordance with law, we have ensured that the required information concerning the purchase of investments and controlling interests and the names of the main shareholders has been properly disclosed in the directors’ report.
The main reconciling items between French GAAP on a statutory basis and IFRS of SCOR SE on a consolidated basis stated in the tables below relate to the consolidation of subsidiaries in the IFRS consolidated financial statements
(whereas such subsidiaries are accounted for at cost less impairment in the stand alone French GAAP Parent Company financial statements) and to deferred taxes that are not recognized under French GAAP.
Increase / decrease of French GAAP accrual for share award plans (3) 18
APPENDIX B: REPORT OF THE CHAIRMAN OF THE BOARD OF DIRECTORS
In accordance with the provisions of article L. 225-37 of the French Commercial Code, this report serves to set forth the composition of the Board of Directors and the implementation of the principle of balanced representation of women and men among its members, the terms and conditions for the preparation and organization of the work of the Company’s
Board of Directors, in addition to the internal control and risk management procedures that have been implemented by the Company.
This report is subject to an internal review, including by the Group’s various bodies: the Executive Committee (Comex), the Audit Committee and the Board of Directors.
I. Terms and conditions for preparing and organizing the work of the Board of Directors
Chairman of the Board, Gérard Andreck, Andreas Brandstetter, Thierry Derez, Peter Eckert, Charles Gave, Kevin J.
Knoer (employee representative), Guillaume Sarkozy (as representative of Malakoff Médéric Group), Guylaine Saucier,
Kory Sorenson, Claude Tendil, Daniel Valot and Fields Wicker-Miurin. Amongst these 13 Directors, 11 are independants: Gérard Andreck, Andreas Brandstetter, Thierry Derez, Peter Eckert, Charles Gave, Guillaume Sarkozy (as representative of Malakoff Médéric Group), Guylaine Saucier, Kory Sorenson, Claude Tendil, Daniel Valot and Fields
Mr Claude Tendil, the lead independent director, addressed a questionnaire to the Directors in December 2013. This questionnaire was about the composition of the Board, its organization, its functioning and the functioning and composition of its Committees. The Chairman of the Board has not participated in the evaluation. All directors completed this questionnaire. Mr Claude Tendil presented his report during the Board of Directors held on 4 March 2014. The main conclusions drawn from this analysis are the following:  The director’s assessment of the Board was globally very positive : - 85 % of the directors said that the governance of the SCOR Group was better than in the other boards on which they sat ; - The organization of work, the functioning of the Board and the associated documentation were all declared to be of a high standard ; - The work conducted by the Board Committees (especially the Strategic Committee and the Risk
Committee) and the areas dealt with by the Board were declared to be very comprehensive;
Compensation and Nomination Committees are fully composed of independent directors;  A diversity of expertize. In addition to experts drawn from the insurance and reinsurance sectors, the Board of
Kingdom and Austria and directors with extensive international experience;  A higher rate of female Board members pursuant to French law, which states that, as at 1 January 2014 and 1 January 2017, 20% and 40% of Board Members, respectively, must be women ; and
Denis Kessler, Chairman of the Board 61 French 04/11/2002 2017 04/05/2011
Concerning the duration and the grading of the duties of the Directors, the AFEP-MEDEF Code indicates (§14): (i) the duration of Directors' terms of office should not exceed a maximum of four years; (ii) terms should be staggered so as to avoid replacement of the entire body and to favor a smooth replacement of
At the Board of Directors meeting held on 31 March 2004, a new Internal Charter (the “Internal Charter”) was adopted in order to enhance or specify the missions of the Board. This Internal Charter was amended by the Board of Directors on 2 November 2005, 4 July 2006, 4 November 2010, 4 May 2011, 19 March 2012 and 5 November 2013. The main provisions of the Internal Charter are provided below:  Mission of the Board of Directors of the Company
Board’s duties and responsibilities are set out in SCOR SE’s bylaws (statuts).
Chief Executive Officer is required to submit to the Directors any information and documents necessary to complete their duties, and the Directors may submit requests for information to the Chairman and Chief Executive Officer. In addition,
The AFEP/MEDEF Corporate Governance Code of listed corporations also provides that, in order to be qualified as independent, a Director must not be or have been within the last five years an employee or corporate officer of a company consolidated by the parent company. However, the Group considers that any external Director who is a member of SCOR’s Board of Directors as well as a member of the Board of Directors of SCOR’s subsidiaries (such as SCOR Holding Switzerland, SCOR Switzerland AG, SCOR UK Company Ltd, or SCOR Reinsurance Asia Pacific Ltd) who satisfies all the other criteria set forth by such corporate governance code shall be considered as being independent.
2. must not have received remuneration greater than EUR 100,000 per year from the Company within the last five years, excluding that received as directors’ fees; 3. must not be a corporate officer in a company in which SCOR directly or indirectly is a director, or in which an employee has been appointed as such, or in which one of SCOR’s corporate officers (currently or within the last five years) is a director; 4. must not be a significant client, supplier, investment banker, commercial banker to the Group or for which
SCOR represents a significant share of the turnover. A significant share is a contribution to the turnover equal to the lesser of the following two amounts: more than 2% of SCOR’s consolidated turnover, or an amount greater than EUR 100 million; 5. must not have a close family relationship with one of the Company’s officers; 6. must not have been an auditor for the Group within the last five years;
Guylaine Saucier Yes Yes Yes Yes Yes Yes Yes Yes Yes
Claude Tendil Yes Yes Yes Yes Yes Yes Yes Yes Yes
Fields Wicker-Miurin Yes Yes Yes Yes Yes Yes Yes Yes Yes
On 4 November 2010, the Board of Directors defined in the Internal Charter the Lead Independent Director role (the
Code in the June 2013 revised version of such code: “It is recommended that an employee representative be a member of the Committee in charge of remuneration”.
2. In accordance with the law: The AFEP-MEDEF recommendation targets employee representatives as defined by the French Commercial Code, i.e. : - either the directors envisaged in Article L.225-27 (“directors elected either by the company’s employees, or by the company’s employees and those of its direct and indirect subsidiaries whose head offices are located on French territory”); - or the directors envisaged in the law on job security of 14 June 2013.
In fact, SCOR is governed by neither of the regimes mentioned above, because it has implemented a sui generis system in which an employee representative is elected globally to represent all of the Group’s employees, regardless of the country of domiciliation of the subsidiaries.
Having taken note of these points, the Board of Directors concluded that the current system, which has been in force since 2007, should be maintained.
A two-round election by universal suffrage, involving all of the Group’s employees, was held for this post in January and
The Board of Directors decided, in order to protect the corporate interests, to implement an internal control program to prevent risks of conflict of interest: 1. through a quarterly review by the Audit Committee of related party transactions, on which a report will be issued prior to examination by the Board of Directors; 2. through an annual review of each Director’s situation, in order to analyze his or her independent status and potential existing conflicts of interests; 3. through the reinforcement of its Internal Charter, according to which any Director in a situation of conflict of interests undertake to resign from his or her position if the conflict situation is not solved; 4. through the adoption of a Code of Conduct that was communicated to all employees in 2010 and to all new hired employees. This code establishes reinforced requirements as regards the prevention of situations with
The average attendance rate of the members of the Board was 94.9%(1).
(1) Director whose appointment ended by the Annual Ordinary General Meeting on 25 April 2013 (2) Representing Malakoff Médéric Group, Director (3) Directors appointed by the Annual Ordinary General Meeting of the Shareholders of 25 April 2013
Since 2003, SCOR’s Board of Directors has established four advisory committees to prepare the Board’s proceedings and make recommendations to it on specific subjects.
Derez, Peter Eckert, Charles Gave, Malakoff Médéric Group (represented by Guillaume Sarkozy), Guylaine Saucier,
Kory Sorenson, Claude Tendil, Daniel Valot and Fields Wicker-Miurin (the “Strategic Committee”), appointed by the
Board of Directors and selected among the members of the Board of Directors. Their term of office coincides with their term of office on the Board of Directors.
The Chairman of the Committee may hear any employee or officer likely to provide relevant information for a clear understanding of a given point, the presence and information provided by this individual being limited to the relevant items on the agenda. The Chairman of the Strategic Committee must exclude the non-independent members of the
Committee from the review of the discussions which might create an ethical problem or a conflict of interest.
On 4 November 2010, the Internal Charter of the Strategic Committee was modified by the Board of Directors.
In 2013, the Strategic Committee met on 5 occasions. These meetings lasted approximately 2 hours.
The average attendance rate of the Committee Members was 91%(1). The following table states the attendance rates of the members of the Strategic Committee in 2013: Board members Attendance rate (%)
(1) Representing Malakoff Médéric Group, Director (2) Strategic Committee members since 25 April 2013 (3) Strategic Committee members until 25 April 2013 2. The Audit Committee
The Audit Committee is composed of Daniel Valot (Chairman), Peter Eckert, Guillaume Sarkozy, Guylaine Saucier and
The Audit Committee has adopted an Internal Charter, setting forth two imperative missions: (1) This does not include the Board Members whose appointments ended on 25 April 2013
 Accounting mission, including the analysis of periodic financial statements, the review of the relevance of choices and correct application of accounting standard, the review of the accounting treatment of any material transaction, review of the scope of consolidation, review of off-balance sheet commitments, control of the selection and remuneration of statutory auditors, oversight of any accounting and financial reporting documents before they are made public.
The Committee may consult the Chief Financial and Accounting Officer, the Chief Internal Auditor and external auditors on these issues. During the financial year 2013, it met with the auditors, the Group Chief Financial Officer (during the review of the financial statements) and the Chief of Internal Audit. The review of the financial statements has been accompanied with a presentation made by the auditors underlying the major results of their works, as well as with a presentation made by SCOR’s Chief Financial Officer describing the risks exposure and its material off-balance sheets liabilities.
The Chairman of the Committee may hear any officer or employee likely to provide relevant information for a clear understanding of a given point, the presence and information provided by this individual being limited to the relevant items on the agenda. The Internal Charter of the Audit Committee, was approved by the Board of Directors on 18 March 2005 and modified by the Board of Directors on 4 November 2010.
Group Policies and Group Guidelines. The Audit Committee meetings lasted approximately 2 to 3 hours in 2013.
Sorenson (by decision of the Board of directors held on 5 November 2013), Claude Tendil, Daniel Valot and Fields
All members are independent. According to its Internal Charter, the Committee comprises between 3 and 8 members appointed by the Board and selected among the members of the Board.
The Internal Charter of the Risk Committee, was approved by the Board of Directors of the Company on 18 March 2005 and modified by the Board of Directors on 4 November 2010 and on 5 November 2013.
The Committee met 4 times in 2013, primarily to discuss the following matters: analysis of the main exposures of the
The average attendance rate of the Committee Members was 83%(1). The following chart states the attendance of the members of the Risk Committee in 2013: Board members Attendance rate (%)
The Compensation and Nomination Committee is composed of Claude Tendil (Chairman), Charles Gave, Guylaine
Saucier, Daniel Valot and Fields Wicker-Miurin (by decision of the Board of directors held on 5 November 2013).
Directors and its Committees. Its missions are described in the Internal Charter.
The Committee met 4 times in 2013. Its works dealt with the stock allotment and subscription plans, the modalities of remuneration of the Chairman and Chief Executive Officer and other members of the Executive Committee of the Group.
Company on 18 March 2005 and modified by the Board of Directors on 4 November 2010.
The Compensation and Nomination Committee meetings lasted approximately 2 to 3 hours in 2013.
The average attendance rate of the Committee Members was 94%(1). The following chart states the attendance of the members of the Compensation and Nomination Committee in 2013: Board members Attendance rate (%)
The Non-executive Directors Session has been put in place in 2012. It is composed of all the Directors, with the exception of employee Directors and corporate executive officers of the Company.
This session met twice in 2013 and has worked on the assessment of the Board of Directors.
(F) PRINCIPLES AND RULES STATED FOR THE DETERMINATION OF COMPENSATION AND IN-KIND BENEFITS FOR CORPORATE OFFICERS
The data on compensation for corporate officers appears in Sections 15 – Remuneration and benefits – and 17.2 –
Information on shareholding and stock options or company stock purchases by members of administrative and management bodies of the Registration Document.
Committee held on 10 February 2011, the Board of Directors held on 7 March 2011 fixed the conditions of the allotment, in order to encourage the attendance of the Directors. It was thus decided to award the Directors' fees, payable to each
Director as a fixed part, equal to EUR 28,000, payable in fourths and another part based on attendance by the Directors, amounting to EUR 2,000 per meeting and participant, except for the Chairman of the Audit Committee who receives an amount equal to EUR 4,000 per meeting as special fees for his function. The payment of the Directors fees is made at the end of each quarter. Moreover, the individual independent members of the Board received in 2013 the single sum of
With the exception of the Chairman of the Board of Directors and the Director representing the employees, the members of the Board are not entitled to stock option plans for the subscription or the purchase of shares nor stock allotment plans from the Company.
Following the recommendation of the Compensation and Nomination Committee on 26 February 2013, the meeting of the Board of Directors on 5 March 2013 decided that the Chairman and Chief Executive Officer:  will receive a fixed gross annual sum of EUR 1,200,000 payable in twelve monthly installments; and
The variable compensation for year n will be paid in year n+1, as soon as the financial statement of the Company for year n is approved by the Board of Directors.
For 2013, the variable compensation of the Chairman and Chief Executive Officer has been determined according to the following criteria:  financial criteria: Return on Equity (RoE) achieved by SCOR;  personal criteria: implementation of Solvency II, pursue the reinforcement of the ERM and finalization of the internal model ; continuation of an active policy of increasing the value of the Group in the opinion of the investors and analysts; deepening of the employees management policy; consolidation of the Group's commercial positions; general management.
Company’s financial statements for prior year are settled by the Board of Directors;  in addition, in the case of dismissal, the amount of the variable part of his compensation for current year will be
Compensation and Nomination Committee, will be met for the current year if at least 3 out of 4 criteria below are fulfilled.
On meeting on 5 March 2013, the Board of Directors, upon authorization granted by the Extraordinary general meeting of the Shareholders on 3 May 2012, and upon the recommendation of the Compensation and Remuneration Committee of 26 February 2013, decided to allot 125,000 performance shares to the Chairman and Chief Executive Officer. The granting will be effective at the end of a vesting period of two years and subject to the satisfaction of performance conditions as defined by the Compensation and Nomination Committee (see Section 17.3.1 - Stock options plans and see Section 17.3.2 – Free Share allocation plans). Such granting is also submitted to a non-transferability period of two years at the end of which the shares will be available and be freely assigned. The Chairman and Chief Executive Officer shall retain 10% of these shares in the registered form until he ceases to hold his duties of corporate officer. He shall also hold a number of shares equal to 5% of the shares freely assigned to him, as soon as these free shares become transferable.
An allotment of 100,000 share subscription options to the benefit of the Chairman and Chief Executive Officer was decided on 21 March 2013 by the Board of Directors held on 5 March 2013, upon authorization granted by the
Extraordinary general meeting of the Shareholders on 3 May 2012, and upon the recommendation of the Compensation and Remuneration Committee of 26 February 2013. The exercise of these subscription options is subject to the satisfaction of the same performance conditions as those of the performance shares. The Chairman and Chief Executive
Officer shall retain 10% of the shares due to the exercise of the options in the registered form until he ceases to hold his duties of corporate officer of the Company.
Moreover, the Chairman and Chief Executive Officer receives benefits in kind, of the following nature: (a) a health insurance policy under the terms of a contract dated 16 September 1988; (b) an “all causes” death or permanent disability insurance policy for Company Executives, dated 30 June 1993 and
The right to a supplementary pension is only acquired under the condition notably that the beneficiary is a corporate officer or an employee of the Company when he claims his rights for the pension, according to the rules in force at that time.
Chairman and Chief Executive Officer, who may be assisted by a Deputy Chief Executive Officer.
Appendix B – Report of the Chairman of the Board of Directors I. Terms and conditions for preparing and organizing the work of the Board of Directors (F) – Principles and rules stated for the determination of compensation and in-kind benefits for corporate officers
The Group remuneration policy does not provide for variable deferred compensation.
Section 17 – Employees 17.3 – Plans providing employee participation in Company 17.3.1 – Stock option plans
Severance pay No amount is payable in respect of the year ended
Section 20 – Financial information concerning the issuer’s assets and liabilities, financial position and profits and losses 20.1 – Historical Financial information : consolidated financial statements 20.1.6 – Notes to the consolidated financial statements 20.1.6.24 – Note 24 – Related party transactions
Refer to: Appendix A – Unconsolidated corporate Financial Statements of SCOR SE 1.5 – Notes to the corporate financial statements Note 14 – Compensation of the corporate officer
The modalities of the participation of the Shareholders to the General meetings and notably the mode of operating, the main powers of the Shareholders’ General meetings, the description of the Shareholders’ rights as well as the modalities of the exercise of the voting rights are set forth by the Article 19 of the Company’s bylaws, an electronic version of which is available on SCOR’s web site (www.scor.com).
integrated framework” published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)
in developing and formalizing the risk management and internal control systems.
The structure of this report is in line with the eight components of the COSO 2:  Components 1 and 2 are being dealt with in the paragraph “Internal environment and setting of objectives”
 Components 3, 4 and 5 are described in the paragraph “Identification and assessment of risks”.
Monitoring of the internal control procedures falls under the remit of the Group General Management. Since
Like any internal control system, the Group’s system cannot absolutely guarantee that the risks of not achieving the
The Group SCOR consists of the parent company SCOR SE, a European company having its registered office in Paris, avenue Kléber (France). Beyond its responsibilities of a parent company, the Company has operational responsibilities for cash management and functional responsibilities.
Within this environment, control responsibilities are exercised as follows:  SCOR SE’s Board of Directors relies on the Audit Committee and the Risk Committee to exercise its control responsibility over the objectives it has set for the Company. These committees are both chaired by independent directors;  SCOR SE is represented in the governance bodies of its principal subsidiaries. Eventually, SCOR SE’s Board of Directors, following a recommendation made by the Compensation and Nomination Committee, has decided to appoint independent directors of SCOR in each council of the principal foreign subsidiaries;  SCOR SE’s Executive Committee (the “COMEX”) is chaired by the Chairman and Chief Executive Officer of
 Monitoring of the internal control procedures falls under the remit of the Group General Management. The
These rules, and the participants, are described in detail in part c) of this report on control activities;  the operational entities of SCOR Global P&C and SCOR Global Life, the operational departments of SCOR
Group’s entities whatever the area following a methodical risk based approach in accordance with the
(quality) of processes and controls by their owners;  in accordance with its risk-based audit plan and through its periodic missions, the Group Internal Audit
Company. These Group policies are not intended to enumerate all the rules governing SCOR’s activities in the different countries in which the Group operates, but rather to establish certain rules intended to ensure that SCOR Group companies and employees share a common understanding of the Group’s Standards and that they work in compliance with these standards. When approved, these documents are made available to employees on the SCOR intranet on a dedicated page where Group policies are all grouped together. In 2013 two new Group Policies were published and one existing Group Policy was amended reflecting the latest legal and other requirements.
 The Business Continuity Plan Policy was amended including updates on Group BCP committee members, definition of capital charge for operational risk, introduction of inter and intra Hub cooperation, integration of
 To embed the latest Group Compliance Policies and other legal & compliance requirements (e.g. anti-fraud, anti-bribery, anti-money laundering and sanctions compliance, anti-trust/competition law) as per latest developments into the organization, training sessions targeted for underwriters, claims and accounting staff were also held during 2013 in all Hubs and other locations.
covering the years 2010 to 2013 was approved by the Board in July 2010. It was updated and publicly presented on the 7 September 2011 following the acquisition of Transamerica Re and the sale of our US equity indexed annuity business.
The updated strategic plan reaffirmed the three objectives set out in the initial version of the plan SMV1.0, i.e.: the optimization of the Group’s risk profile, a “AA” level of financial security and a profitability target of 1,000 basis points above the risk free-rate over the cycle. For the new initiatives set in the initial plan, SCOR has reinforced its ERM
through the development of specific indicators reported on a quarterly basis to the Group Risk Committee and the Board
 An Extreme Scenarios process: this process aims at reviewing and assessing the potential impact of selected extreme scenarios. Subject specific working groups constituted of experts across the Group, coordinated by the Group Risk Management Department with the support of the divisional Chief Risk Officer, then perform quantitative studies which are summarized in specific reports. The Group Chief Risk Officer presents the results to the Group Risk Committee and to the Board Risk Committee of the Company. Some of these scenarios are compared to the risk tolerances defined by the Group.
Global Investments) and of the Group actuarial function, Group Legal Department and Group Competitive
Because of its activities, SCOR SE is exposed to many risks: reinsurance related risks, market risks and other risks (e.g.
liquidity, rating). These risks are detailed in the Section 4 – Risk Factors of the Registration Document. This report does not detail these risks, but aims at summarizing the principal activities and participants of Risk Control for the following important areas.
The control activities described below are considered as the principal activities for controlling risks specific to those areas. In accordance with SCOR’s internal control system approach, these control activities are performed on group or company level, on core business and investment process level, or on supporting process level.
Modeling Department of the Group Risk Control Department, necessary to implement its underwriting and asset management policies and guidelines. Economic capital is allocated to SCOR Global P&C, SCOR Global Life and to the asset management, and constitutes the reference for deciding and verifying the profitability expected from each of them.
Middle East & Africa), Americas, Asia/Pacific). The review enables the analysis of technical results by underwriting year, by nature and by line of business.
 Cross reviews are initiated by SCOR Global P&C's Risk Management to evaluate the quality of underwriting, pricing and claims handling of particular business units or certain lines of business, to identify and assess risks, to evaluate the appropriateness and effectiveness of controls and to propose risk-management measures, including mitigating actions.
 The Risk Modeling & Global Natural Hazards Department is in charge of monitoring accumulations. A “Cat”
 In order to ensure an adequate and efficient control of the reserves, a report is established on a yearly basis by the Group Actuarial Department, reporting to the Group Chief Risk Officer, where the Group Chief Actuary gives his opinion on year end booked reserves‘ adequacy. The main objective of this report is to provide SCOR
For SCOR Global Life:  Business is underwritten throughout the year, the share of renewable business being comparatively low. The life business plan is updated on a quarterly basis with the business actually underwritten. These plans are approved by the COMEX.
Europe, North America, Asia/Pacific, Middle East, Others) and by line of business.
 Business opportunities going beyond the stipulations of the guidelines thus defined are subject to special referral procedures at two key levels: (1) by the Central Actuarial & Underwriting Department and where applicable the Risk Management Department, the Finance Department of SCOR Global Life, and the Group
 Claims exceeding a predefined threshold are reviewed by the Central Actuarial & Underwriting Department of
 Cross reviews are commissioned by SCOR Global Life's CEO to evaluate the quality of underwriting, pricing, medical underwriting and claims handling of particular business units, to identify and assess risks, to evaluate the appropriateness and effectiveness of controls and to propose risk-management measures, including mitigating actions.
 For SCOR Global Life, scenarios are established in conjunction with the Risk Management Department of
Department, includes Guaranteed Minimum Death Benefit (GMDB) products, long term care in France, health, and finally mortality and critical illness in UK /Ireland and health business, and mortality in the US. The Group
May 2009, SGI is certified by the French financial market regulatory body (AMF) as an asset management company.
 Investment decisions are implemented by SCOR Global Investments in accordance with the directives of the
 The Group Investment Committee meets at least once every quarter. Its role is to coordinate tactical asset allocation on a Group level and to supervise the application of objectives by the asset management company, observing the constraints established.
 The information systems used by SCOR Global Investments monitor transactions on publicly traded securities
(audit trail, valuation of securities). Since 2009, assets owned by all Group entities are monitored in one central information system and the accounting tools implemented in Paris in 2008 have been deployed in the Group’s subsidiaries. Risk monitoring tools are being deployed as well.
hereafter, comprise Risk Management, Treasury, Budget & Forecasting and functions relating to legal and tax issues, information systems, human resources and general service departments. These include:  The Group Risk Management Department’s primary focus is to develop and manage ERM mechanisms, promote ERM concepts throughout the Group and perform a second-level control over reinsurance underwriting as mentioned above.
Department, deals with all issues of information system security. Periodic audits of information security applications and procedures are conducted. For a number of years, SCOR has been improving its control procedures based on the COBIT guidelines (Control objectives for information and technology) covering the risks listed in the major processes of COBIT, in particular relating to the development, evolution and run of all solutions, and logical access to databases. The IT business continuity plan has been reviewed and reinforced with regards to the migration of production centers to a private cloud where the data is constantly replicated to a second remote site. In addition, the employees can be temporarily moved to any other Group Hub office, or even work from home with their laptop or personal computer.
 The budgetary control system for general expenses is organized and managed by the Group Cost Control &
 The General Secretary contributes on his side to the management of the following functions: (i) legal and functional governance of the Group, (ii) compliance, in connection with the Group Compliance Officer who reports to the General Secretary, (iii) regulatory control for the Group and coordination of the legal entities with the legal departments at hub level, (iv) Group’s insurance policies, in particular with respect to D&O and professional liability, (v) follow up of the Group Structuring (optimization of the Group structure and its entities).
 The Group Legal Department exercise a control function in areas such as the entry into agreements and the supervision of major disputes. This department is also involved where relevant in the aforementioned control with regards to underwriting of reinsurance business. It also monitors compliance with the Group’s filing obligations, including toward the “Autorité des marchés financiers” (AMF) and the Six Swiss Exchange (SWX).
request, it can also assist project managers in managing key projects. The Group Project Office regularly provides to the management key indicators on the project portfolio for an effective control of their status.
The accounting and finance function is the responsibility of the Chief Financial Officer (CFO), who manages all financial areas in order to have an overall view of the Group’s technical and financial results.
technical reinsurance accounting: premiums, claims, commissions, technical reserves, value of business acquired
(VOBA), deferred acquisition costs (DAC), funds held; and (2) financial asset accounting: securities, bank accounts, investment income and expenses.
Group or specific control reports. Quarterly inventories are also subject to specific control procedures.
SCOR Global Life. The Group Chief Actuary establishes reports on the adequacy of the reserves of SCOR Global P&C
The initial phases of this Program of defining the business requirements and developing a Core Solution (design, build & test) are complete, and the Core Solution validated. This solution was rolled-out in 2012 and 5 Hubs are now fully
SCOR Global Life, and the Head of the IFRS Center of Excellence. The key points are communicated to the Executive
SCOR believes that its risk management and internal control systems are appropriate and adapted to its activities and is engaged in an ongoing process to improve its internal control standards and their implementation. In 2013, the Group has pursued its efforts on compliance issues as briefly summarized in this report by releasing new Group policies, and by improving existing policies to align them with the Group’s developments.
Statutory auditors' report, prepared in accordance with article L. 225-235 of the French Commercial Code
In our capacity as statutory auditors of SCOR SE and in accordance with article L. 225-235 of the French Commercial
It is the Chairman's responsibility to prepare and submit for the Board of Directors' approval a report on internal control and risk management procedures implemented by the company and to provide the other information required by article
 confirm that the report also includes the other information required by article L. 225-37 of the French
*This glossary is a list of selected reinsurance terms. It is not a complete list of terms used in this Registration Document in the insurance or reinsurance industry.
The ratio of the sum of claims paid, the change in the provisions for unpaid claims and claim adjustment expenses in relation to earned premium.
Amount relating to actual or estimated claims expenses declared or not declared that occurred in the accounting year.
Reserves intended to cover the portion of the cost of claims not covered by the unearned premiums reserve, for the period between the accounts closing date and the contract expiration date.
Solvency Capital Requirement, i.e. required capital calculated by SCOR’s Group Internal Model (GIM), as 99.5% VaR of the change in economic value (negative result) distribution in the 12 months starting 1/1 of the year.
Pattern in which Property and Casualty insurance and reinsurance premiums, profits and availability of coverage rise and fall over time.
1 Operating and financial review of SCOR SE 410 2 Fluctuation of SCOR SE quotation throughout 2013 412 3 Social impact of SCOR’s activity 413 4 Environmental impact of SCOR’s activity 423 5 Information related to societal commitments in support of sustainable development 429 6 Additional information relating to the management report of the Company and the Group – Table of compliance 433 7 Statutory auditors’ report on the review of
The reinsurance result of SCOR SE as at 31 December 2013 is EUR 57,823,994 while the financial result is EUR
Pursuant to Article 223 quarter of the French General Tax Code, we remind you that the amount of the expenses and charges referred to in Article 39.4 of said Code totals EUR 92,347 for the previous fiscal year 2013 and the amount of taxation borne by the Company due to the non-deductibility of such charges should amount to a total of EUR 35,092.
None of the expenses referred to in paragraph 5 of Article 39 of the French General Tax Code are considered as nondeductible for tax income 2013.
d) Net Profit after taxes, depreciations and reserves 227 208 235 204 199
IV. - Salaries: c) Amount of paid employees benefits (Healthy contribution, others benefits, etc.) 29 22 17 21 12
Amount eligible for the deduction allowance specified by Article 158-3 of the French General Tax Code (2) EUR 1.20 EUR 1.10 EUR 1.10
Paris stock market by Euronext NYSE throughout the financial year 2013: TOTAL OF TRANSACTIONS EXTREME MARKET PRICE
des marchés financiers published on 2 December 2010 and available on the AMF’s website. It describes how the Group
("SCOR" or the "Group") accounts for the direct effects of its activity on its employees and outlines the policies, actions and programmes it has implemented in response, both at SCOR SE and its subsidiaries in France and abroad.
This chapter is divided into two sections. The first section presents a series of HR indicators that are consistent across the Group. The second section provides additional information and studies in further detail the actions and programmes implemented within the Group.
The items mentioned in the document pertain to the entire Group except ReMark (135 employees, fully consolidated entity), Telemed (37 employees), Réhalto (24 employees) and the Lloyd's Channel Syndicate (49 employees, fully consolidated entity). ReMark, Telemed and Réhalto are controlled 100% by SCOR Global Life SE. The Lloyd's Channel
Syndicate is controlled 100% by SCOR Global P&C SE. They are all managed independently from the Group in terms of human resources (HR policies, HR processes, HR rules and frames etc.).
December 2013) and Telemed (37 employees as at 31 December 2013) are 100% subsidiaries of SCOR Global Life SE, managed independently from the Group in terms of human resources and not aggregated in the division.
(3) SCOR Global Life SE controls 100% of the capital of ReMark. Due to its specific activity, its business model and its organization, ReMark’s human resources are managed independently of the Group in terms of human resources.
“fixed-term contract” as a signed working contract mentioning a termination date. We define “trainee” as an employee paid by the company under a tripartite agreement between the company, school and student employee.
(*2013 Group’s staff turnover: number of departures in 2013 (excluding dismissals, deceases and trainees) / headcount as at 31 December 2012)
As a global company organized into six Hubs located in the world’s main financial centers, SCOR offers competitive base salaries in order to position itself as a competitive player on the labor market and attract and retain talent.
Base salaries are set according to criteria that consider a variety of factors, such as conditions on the local labor market, professional education and professional experience before entering SCOR, accumulated expertise, the present position of the jobholder, and his/her responsibilities.
SCOR has established a “Partners” programme. This programme, which aims to involve the Partners in the capital of the
Indicator “Grenelle II”: Compensation (amounts of the employer social security contributions)
France All employees benefit from the basic scheme. In addition, there are supplementary schemes managed by AGIRC (“cadres”) and ARRCO
Defined Benefit Plan for a limited number of beneficiaries (with an executive status).
The current pension scheme is a defined contribution scheme run by
All the employees are obliged to have health insurance (basically: statutory health insurance).
pensions. The regular and unshortened pension is currently payable between age 65 and around age 67.
Employees earning more than EUR 53,550, can choose a private health insurance or can stay voluntarily in the statutory health insurance.
Pension"). The amount of full basic state pension for a single person is
Private Medical benefits for employees and their dependents : employees concerned.
Progressive formula based on the average monthly income (AIME: Average Indexed Monthly Earnings).
Cost is divided between SCOR and employee (around 500 employees in the Americas hub).
“defined credits” accrued to an individual’s pension account and the payment of a pension.
- National health insurance for all employees (salary payment during sick leave or absence due to an accident.
Central Provident Fund (CPF) is a mandatory retirement savings scheme for Singapore citizens and permanent residents. The maximum
- Working professionals who are Singapore citizens or permanent residents are automatically provided with a low-cost medical insurance – a basic tier of insurance protection for all
(*) Due to local laws, the age of the employees working in the hub Americas has not been taken into account in these figures 3.2.11 Distribution by type of working time
Distribution of the employees by type of working time (and by gender)
Sweden, 222 days in Switzerland, 225 days in Israel, 220 days in Germany, 222 days in Austria, 233 days in the USA, 245 days in Brazil (P&C), 247 days in Brazil (Life), 231 days in Canada
Malaysia, 229 days in South Korea, 230 days in Singapore, 219 days in Japan and 230 days in
The length of absence(*) within the Group is 9,778 days in France, 39 days in Belgium, 0 day in
Luxembourg, 2 days for Netherlands, 213 days in Spain, 471 days in Italy, 0 days in Russia, 7 days in South Africa, 266 days in Ireland, 1,604 days in United Kingdom, 697 days in Sweden, 2,014 days in Switzerland, 119 days in Israel, 3,969 days in Germany, 178 days in Austria, 11,056 days in the USA, 133 days in Brazil (P&C), 52 days in Brazil (Life), 863 days in Canada (P&C), 274 days in Canada (Life), 99 days in Mexico, 178 days in Colombia, 18 days in Chile, 42 days in
In 2013, the Works Council in Paris spent EUR 607,050 on social activities. This figure does not include operating expenses (or summer camp costs(**)). The main benefits for employees are:  “Crédit loisirs”: an annual lump sum credit proposed to each employee to reimburse theatre, cinema and show tickets, sporting activities, arts, culture and entertainment related outings, etc.
(*) For France, this figure includes the work councils meetings and the employee representative meetings (“délégués du personnel”). (**) The summer camps are managed by the Works Council (social activities) but their related expenses are deducted from a supplementary dedicated budget defined by the company. The amount of expenses for summer camps was EUR 116,362 in 2013.
“Grenelle 2” Indicator 8 meetings were held with the Group’s staff representatives to discuss local health and safety conditions (7 in France, 1 in Italy).
Health and security 2 occupational accidents(2) on the working place with sick leave were recorded as at 31 December 2013 (1 in France, 1 in Switzerland)(3).
- In Switzerland, specific actions have been implemented to support employees with stress management (including yoga and fitness), and solutions have been implemented to improve ergonomics at the workstation.
Description of the training policy 39 291(*) training hours have been offered by the Group in 2013. 16,155 training hours (EUR
570,631(**), 2,005 training participants) were offered in the Paris hub, 7,089 training hours (EUR
253,516, 335 training participants) were offered in the Zurich hub, 2,471 hours in the London hub (GBP 132,974, 153 training participants), 1,398 training hours (SGD 28,990, 91 training participants) were offered in the Singapore hub, 6,653 training hours (USD 211,715, 468 training participants) were offered in the Americas hub(***).
In 2013, on average, approximately 18 hours of training were followed per employee.(****)
(*) For the Paris hub, the Zurich hub and the London hub, the number of training hours is calculated on the basis of the attendance sheets. For the other hubs, the number of training hours is calculated on the basis of the information mentioned in the invoices sent by the providers (except for the P&C (USA) division where the data was collected from the employees).
 At the Compensation and Nomination Committee meeting on 25 July 2012, it was noted that SCOR had made progress towards achieving equality between women and men at work and that the initiatives must continue. Once again this year, particular attention was paid to the number of women with Partner status entering in the partnership : women accounted for more than half of the "partner” nominations during the annual process. This objective is part of the initiatives supported by SCOR to facilitate the access of the female employees to key positions within the Group and build the talent pool. This approach is also compliant with internal equity when increasing salaries, performing appraisals or promoting to Partner status (reminder of this principle sent to the managers with the guidelines) and with the recruitment process designed to eliminate any risk of discrimination.
 In 2012 and 2013, in collaboration with the Common European Companies Committee, a comprehensive study was launched on local “best practices” in terms of men and women equal treatment. The goal of this study is to set a framework for a future global agreement on this topic.
In parallel, the following commitments (resulting from the agreement) have been made at the
 In Germany: “Learning over Lunch” events are organized to discuss ways to help parents manage specific parental situations; there are two women on the local
In France, SCOR places particular importance on the subject of disability and implements practical actions to allow equal access to all positions and to support the entry and retention of disabled workers. The following actions to promote the integration of employees with disabilities have been taken within the Paris site: - Internal Training for supporting people with disabilities: for example hard-of-hearing employees and their managers have received personalized support and specific training to improve their exchange.
- The building was built and designed taking into consideration all the arrangements to facilitate the integration of disabled staff.
- The items pertain to the entire Group except ReMark, Telemed, Réhalto and the Lloyd's Channel Syndicate. These three entities are controlled 100% by SCOR Global Life SE and are managed independently of the Group in terms of human resources. The Lloyd's Channel Syndicate is controlled 100% by SCOR Global P&C SE and is managed independently from the Group in terms of human resources.
- The headcount is calculated on the basis of the employees registered at 31 December on fixed-term contracts (working contract signed directly between SCOR and the individual with a defined ending date) or permanent contracts (working 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.
- Employees on fixed-term contracts are considered as definitively leaving SCOR when their contracts expire.
Employees who signed a permanent contract in 2013 at the end of their fixed-term contract are not included in the fixedterm contract endings.
- For the employees who signed several similar working contracts during the year, only the initial hiring and the final departure are counted.
- The length of absence include sick leave, accident, maternity/paternity leave, sabbatical leave and exceptional leave.
Nations Global Compact since 2003, and the Kyoto Statement under the aegis of the Geneva Association since 2009, and since 2012 SCOR is also a founding signatory of the Principles for Sustainable Insurance, a global initiative placed under the umbrella of the United Nations Environment Program – Finance Initiative (UNEP-FI) and announced in the run up to the United Nations conference on sustainable development (RIO+20). These initiatives form the framework in which SCOR SE (the “Company”) and its main subsidiaries implement the Group’s environmental policy (“SCOR”).
Asia/Pacific, Singapore and in the Americas, Americas Hub) and monitored at Group level by the GreenSCOR manager who, besides its responsibility with regards to compliance with environmental information disclosure requirements under the law on the national commitment in favor of the environment, encourages, coordinates and mandates locally implemented environmental initiatives.
 With regards to facility management, beside the Zurich office whose operations are certified ISO 14001,
 With regards to its investment property portfolio, SCOR has undertaken a proactive approach to the environmental certification of its portfolio. The Group owns one of the first positive energy tertiary sector buildings of its size in the Parisian area (23,000 m2). Moreover, a far-reaching renovation programme is currently conducted on a Parisian surface area of 11,000 m2. This operation will aim at receiving a triple certification (HQE, LEED, BREEAM) with high levels of excellence, in addition to the granting of the BBC
Effinergie-Rénovation energy label. Besides this renovation program, SCOR has acquired “START”, a building of around 26,000 m² with the BBC-Effinergie label, the design and execution of which will be certified Very
Aside from the indications mentioned below, further details on the scope are available as necessary in the description and the 2013 data section of the environmental indicator table, which are set out in the same order as Decree n°2012557 of 24 April 2012 relating to the transparency obligations of companies in social and environmental terms.
France and abroad fully consolidated in the financial statements with the 3 main exceptions mentioned below. Therefore companies in which SCOR has a shareholding are excluded from the scope (Refer to Section 20.1.6 – Notes to the consolidated financial statements, Note 24 - Related party transactions, Associates and Joint Ventures). Besides the companies in which SCOR has a shareholding value, 3 group of companies fully integrated in the financial statements have been excluded from the scope of reporting: ReMark and its subsidiaries, the locations of Generali U.S. Holding Inc.
Moreover since the 2012 data collection the threshold of 30 employees is no longer applicable for the calculation of the environmental impact of air travel. Although information for all of the sites falling within the data collection scope is not available at this stage, data relating to the use of air travel now covers 88% of the legal entities fully consolidated in the financial statements in terms of headcounts. 99.5% of them were able to report on this indicator.
As the requested data were not available for all the legal entities covered by the environmental reporting protocol, a synthetic table is published at the end of this report with the rate of coverage for a selection of indicators.
In addition, the Group consolidates these indicators and presents them expressed in tons of CO2 equivalent. This conversion of the different energy sources into Green House Gas emissions is performed centrally on the basis of the conversion factors published by the French “Environment and Energy Management Agency” (Ademe) and extrapolated from the data effectively collected in each hub. The emissions calculated by the Group cover the following scope of the
 “Scope 2”: indirect emissions induced by electricity consumption, steam and cooling. For most of the location surveyed, most of these emissions are induced by electricity procurement and on some locations such as Paris from urban cooling.
Within this “Scope”, the main sources excluded are commuting and the so-called depreciation of furniture and property offices.
Environmental indicators: sections of the decree n°2012-557 on transparency obligations of companies with regards to social and environmental information
GENERAL POLICY WITH REGARDS TO THE ENVIRONMENT Information required by the decree n°2012-557
Company organization to manage, assess environmental issues and certification initiatives are developed in section : “Group’s environmental policy: general organization and main areas”
Group 2- Training and informing employees with regard to environmental protection
An entire section of the Code is devoted to the United Nations
The Group selectively monitors its waste, particularly on the most toxic products for the environment (electronic and computer waste, batteries, ink cartridges and toners, etc.). The production of paper and cardboard waste is also monitored and consolidated throughout the Group, although the reinsurance industry uses less paper than the insurance industry.
Paper recycling is a practice implemented in most of the locations surveyed. The volume of paper sorted and collected for recycling is higher than the volume of paper purchased over the year (88,6 tons). This difference is mainly due to archive clean-ups and to the inclusion of other waste in the "paper waste" category such as cardboard and newspapers.
Not material due to the nature of the Group’s activity (i.e. financial services). The direct impact of which are insignificant in terms of sound pollution
Description and 2013 Data Scope 8- Water consumption and procurement of water depending on local constraints
SCOR's offices are located in urban areas not subject to water stress. Total Group’s water consumption was 29,828 m3 in 2013 or 11 m3 per employee and contractor.
“green” standards are progressively integrated in various areas such as paper ream purchases reaching 88.6 tons in 2013 (i.e.
(lighting, heating, cooling – including data center - power for operating various equipment). Most of the energy consumed in the
the threshold of "30 employees" as at 31 December 2013 is not adopted) as stated in the methodology note.
Main Steps taken at Group level to improve energy efficiency are described in the section “Group’s environmental policy: general organization and main areas”. These global initiatives are supplemented by local initiatives, in particular on the premises for which local teams have undergone a process of certification.
11- Ground use Not material due to the nature of the activity (i.e. financial services). N/A
CONTRIBUTION TO CLIMATE CHANGE ADAPTATION Information required by the decree n°2012-557
Description and 2013 Data Scope 12- Green House Gas emissions In 2013, the Group’s emissions calculated as defined in the section
amounted for 20,046 tons of CO2 equivalent or 9.1 tons of CO2 equivalent per employee. Most of these emissions were driven by business transportation representing around 82% of the Group’s emissions of which air transportation accounted for 97.5%. The emission rate retained includes the preparatory phase (extraction, refining and transport of the fuel) and the combustion phase. With regard to transport, gases outside of the Kyoto protocol are also taken into account (mainly water vapour generated by jet engines).
If we exclude from the calculation gas not included in the Kyoto
Group is a member of the working group “Climate Risk and