Atlas IX On February 10, 2015 SCOR sponsored a catastrophe bond, Atlas IX Series 2015-1, which provides the Group with multi-year risk transfer capacity of USD 150 million for US named storms and US & Canada earthquake events. The issuer of the cat bond, Atlas IX Capital Limited, is a limited liability company created on August 2, 2013. The risk period for Atlas IX 2015-1 runs from February 11,
Atlas Capital UK Since June 1, 2019 SCOR sponsored a new catastrophe bond, Atlas Capital UK 2019 PLC, which provides the Group with multi-year risk transfer capacity of USD 250 million for US named storms, earthquakes in the US & Canada, and windstorms in Europe. The risk period for Atlas Capital UK 2019 runs from June 1, 2019, to
The risk period for Atlas Capital UK 2018 runs from June 1, 2018, to May 31, 2022.
Accounting In statutory accounts, the contract is accounted for as a reinsurance contract.
Mangrove Insurance PCC Limited – Quota Share Longevity Retrocession Agreement On December 18, 2019, as part of its policy of diversifying its capital protection tools, SCOR entered into a structured retrocession transaction with Mangrove Insurance PCC Limited, which provides the Group with a multi-year source of retrocessional capacity. The transaction covers longevity risks arising from nine existing in-force reinsurance treaties with clients in the United Kingdom. The risk period for Mangrove Insurance PCC Limited runs from October 1, 2019 until October 1, 2031.
Shares in and advances to land and real estate companies 287 374 - 29
Loans (related and associated companies) - - - - - - * Mergers contributions from SCOR Global Life SE, SCOR Global P&C SE and SCOR Holding Switzerland AG.
Other investments Other investments consist mainly of bonds for EUR 3,759 million, mutual funds for EUR 1,542 million, other shares and other variable income securities for EUR 446 million, marketable debt instruments for EUR 41 million and deposits with credit institutions for EUR 109 million.
• investments valued according to Article R.343-9 3,635 3,628 3,666 38 18,570 17,134 22,449 5,315• investments valued according to Article R.343-10 - -• investments valued according to Article R.343-13 - 20, 709 19,273 24,282 5,009• investments and forward instruments issued in OECD countries 2,009 344• investments and forward instruments issued in non-OECD countries 1,672 1,665 316 SCOR Universal Registration Document 2019
As of December 31, 2019, affiliates subject to impairment break down as follows: • SCOR Switzerland AG for EUR 1,386 million; • SCOR P&C Ireland Holding LTD for EUR 13 million; • SCOR Services Switzerland AG for EUR 11 million; • Revios Canada Holding Corporation LTD for EUR 11 million; • SCOR Underwriting LTD for EUR 4 million.
Loans and advances to subsidiaries As of December 31, 2019, loans and advances granted by SCOR SE to its subsidiaries amounted to EUR 790 million, breaking down as follows: • EUR 284 million with SCOR GIE Informatique; • CHF 125 million (EUR 114 million) with SCOR Switzerland AG; • EUR 112 million with SCOR Capital Partners SAS; • EUR 102 million with SCOR Auber SA; • USD 65 million (EUR 59 million) with SCOR US Corporation; • USD 55 million (EUR 50 million) with SGLA Reinsurance
LTD; • EUR 3 million with SCOR Management Services Ireland LTD; • EUR 2 million with Rehalto; • USD 2 million (EUR 1 million) with GIE Colombus; • EUR 1 million with Hokodo.
• SCOR UK GROUP LTD LUC 3 Minster Court, Mincing Lane, London EC3R 7DD
• FIDUCIE c/o BNP PARIBAS SECURITIES SERVICES, 9 rue du débarcadère, 93500 Pantin, France
• SCOR GLOBAL LIFE AMERICAS HOLDING INC. 101 South Tryon Street – 28280 Charlotte, USA
• M&S BRAZIL PARTICIPACOES LTDA Av. Rio Branco 1, Sala 1711, 20090-003 Rio de Janeiro – Brésil
• SCOR SWITZERLAND ASSET SERVICES AG General Guisan-Quai 26, 8022 Zurich, Switzerland
• SCOR P&C IRELAND HOLDING LTD 36 Lower Baggot Street Dublin 2, Ireland
• SCOR BRASIL PARTICIPACOES LTDA Avenida Paisagista José Silva de Azevedo Neto, 200 – Bloco 4 – Sala 404 Barra de Tijuca – Rio de Janeiro – Brasil
• SCOR SERVICES ASIA-PACIFIC PTE. LTD 160 Robinson Road, SBF Center, Singapore 068914
(1) Data based on 2019 IFRS accounts. (2) SCOR guarantees with limits as to the amounts listed above, the underwriting liabilities of its (re)insurance subsidiaries pertaining in particular to their obligations relative to the payment of claims. (*) OC: Original Currency
151Property, plant and equipment 12139 (17)17 6Deposits and security bonds 1 3 2 -
Depreciation, amortization and impairment Other intangible assets (excluding goodwill) (1) (51) (3) - (55)
Treasury shares As at December 31, 2019, the number of shares held as treasury shares amounted to 668,058 shares (0.36% of capital) for a total value of EUR 26,464,840. These shares were acquired in the context of anticipated awards to Company employees and corporate officers as part of share allocation plans.
* SCOR SE has signed a share option agreement with BNPP to which a EUR 28 million premium was paid and shown on the balance sheet in Treasury shares.
5.2.3. SHAREHOLDERS’ EQUITY The share capital comprising 187,049,511 shares with a par value per share of EUR 7.8769723 amounted to EUR 1,473,383,817 as at
Other movements during the periodIn EUR millions 2019 Shareholders' equity before allocation 2018 Shareholders' equity before allocation
• During 2019, the Board decided upon a share capital and additional paid-in capital reduction by cancellation of 1,278,077 treasury shares for a total amount of EUR 48 million; in addition, 5,267,339 shares were cancelled under the share buyback program for a total amount of EUR 200 million.
Financial liabilities include: Subordinated liabilities • CHF 125 million in fixed rate perpetual subordinated notes was issued on October 20, 2014. The notes are redeemable by SCOR from October 20, 2020 on an annual basis on the interest payment dates. The coupon has been set at 3.375% until October 20, 2020 and will be reset every 6 years at the prevailing 6-year CHF mid-swap rate plus a margin of 3.0275% thereafter. The notes are not hedged by a cross-currency swap.
• A subordinated debt of GBP 18 million (EUR 21 million) originally set up between the UK branch of SCOR Global P&C and SCOR Holding (UK) Ltd in December 18, 2014, with an interest rate of 4.70%.
• On June 5, 2015, SCOR issued EUR 250 million in dated subordinated notes, redeemable at interest payment dates from June 5, 2027. The coupon has been set at 3.25% until June 5, 2027 and will be reset every 10 years at the prevailing 10-year EUR mid-swap rate +3.20%.
• On May 27, 2016, SCOR issued EUR 500 million in dated subordinated notes, redeemable as at interest payment dates from May 27, 2028. The coupon was set at 3.625% until May 27, 2028 and will be reset every 10 years at the prevailing 10-year EUR mid-swap rate +3.90% until May 27, 2048, final redemption date.
• A subordinated debt of EUR 159 with a 6.20% interest rate towards SCOR Switzerland Asset Services (SSAG), maturing
• Debt of the Japanese branch for EUR 3 million. • Loans granted to SCOR SE by its subsidiaries for
• As of December 31, 2018, the breakdown was as follows: — EUR 33 million with SCOR Auber SAS; — EUR 10 million with SCOR Investment Partners SE; — EUR 3 million with SGF SAS.
For 2019, SCOR SE recognized EUR 13.7 million in financial income from loans with related companies and EUR 26.4 million in interest expenses on borrowings with related companies.
5.2.5. MATURITY OF ASSETS AND LIABILITIES The maturity of assets and liabilities at December 31, 2019 is as follows: In EUR millions More than 5 years TotalTotal Less than 1 year 1 to 5 years -2,192 2,470Accounts receivable from reinsurance transactions -2,192 205 -205 168Other accounts receivable Employee and other related receivable - - - - 81 - - 77Taxes and related receivable 81 - 82Receivables on related companies and other affiliates 30 30 - -1,051 420Cash deposits received from retrocessionaires -1,051
Liabilities arising from reinsurance operations 1,085 1,085 - - 3,534 195 15 - 61Other loans, deposits and guarantees received 210 - 27Employee and other related payable 45 45 -
Taxes and other related payable 69 69 - - 22 Payables on related companies and other affiliates 54 54 - - 12 5.2.6. CONTINGENCY RESERVES
Closing balanceIn EUR millions * Mergers contributions from SCOR Global Life, SCOR Global P&C and SCOR Holding Switzerland.
The breakdown of other accruals mainly consists of, as at December 31, 2019: • cross-currency swaps for EUR 58 million, premium/discount for EUR 11 million and foreign exchange derivative instruments for EUR 47 million as assets; • foreign exchange derivative instruments for EUR 15 million and premium/discount for EUR 33 million as liabilities.
Other Total Related companies Other affiliates Other Total Related companies Other affiliates
Liabilities 13 18 (5) (2)New-Zealand dollar 5.3. ANALYSIS OF KEY INCOME STATEMENT ITEMS
Dividends received from subsidiaries amount to EUR 166 million and mainly include SCOR Services Switzerland AG (EUR 80 million), SCOR Global Life Ireland (EUR 45 million), SCOR Auber SAS (EUR 18 million), SCOR Reinsurance Asia-Pacific Pte Ltd (EUR 13 million), MRM (EUR 3 million), SCOR Underwriting Limited (EUR 3 million) and SCOR Perestrakhovaniye (EUR 3 million).
Foreign currency transactions Foreign exchange income amounts to a EUR 3.1 million gain in 2019 compared to a EUR 4.4 million loss in 2018.
5.3.3. ANALYSIS OF GENERAL EXPENSES BY TYPE AND NON-RECURRING INCOME OR LOSS
Workforce 671 259Executives – Paris 75 30Employees/Supervisors – Paris Employees/branches 452 528
The teams of SCOR Global Life SE and SCOR Global P&C SE have been integrated in SCOR SE with the merger on January 1, 2019, bringing the total headcount to 1,159 (645 executives and 82 employees in Paris, 432 in branches).
Non-recurring result The non-recurring loss amounted to EUR (10) million mainly due to the following items: • recovery on the collection management contract with Unistrat for EUR 3 million. This profit relates to previous financial years; • litigation provision for EUR (13) million.
Total tax losses of the consolidated French tax group were EUR 1,205 million as at December 31, 2019 (EUR 1,117 million as at December 31, 2018).
The 2019 corporate tax loss of EUR (29.6) million relates mainly to: • the contribution of subsidiaries that are consolidated for tax purposes of EUR 19.6 million; • tax credit for the tax group for EUR 2.0 million; • tax expense for previous financial years for EUR (0.9) million, including tax audit settlements; • Income tax expense from SHS following the merger with
SCOR SE for EUR (0.8) million; • income tax expense from the branches for EUR (49.5) million, mainly from Germany EUR (25.6) million, Italy EUR (10.2) million, Singapore EUR (3.5) million and Argentina EUR (3.4) million 327SCOR Universal Registration Document 2019
5.3.5. STOCK OPTIONS The table below summarizes the status of the various stock option plans in force in 2019: 328 SCOR Universal Registration Document 2019
These calculations were performed individually and plan by plan, and rounded up to the nearest unit. The new basis for exercising the rights attached to the stock subscription and purchase options were calculated by entering the value of the pre-emptive subscription right on the one hand, and the value of the share after detachment of this right on the other, as determined from the average of the opening prices during all the trading days included in the subscription period.
In 2019, 509,135 options were exercised: 145,450 options exercised under the stock option plan of March 23, 2009 vested on March 23, 2013, 5,000 options exercised under the stock option plan of November 25, 2009 vested on November 25, 2013, 139,965 options exercised under the Stock option of March 18, 2010 vested on March 18, 2014, 2,500 options exercised under the stock option plan of October 12, 2010 vested on October 12, 2014, 11,500 options exercised under the stock option plan of March 22, 2011 vested on March 22, 2015, 3,000 options exercised under the stock option plan of September 1, 2011 vested on September 1, 2015, 63,000 options exercised under the stock option plan of March 23, 2012 vested on March 23, 2016, 51,345 options exercised under the stock option plan of March 21, 2013 vested on March 21, 2017, 55,500 options exercised under the stock option plan of March 20, 2014 vested on March 20, 2018 and 31,875 options exercised under the stock option plan of March 20, 2015 vested on March 20, 2019.
It should be noted that SCOR is committed to the neutral impact of each stock option and performance share allocation in terms of dilution. To achieve this, SCOR’s policy is to systematically neutralize, insofar as possible, the potential dilutive impact that could result from the issuance of new ordinary shares following the exercise of stock options, by covering the exposure resulting from the issuance of stock options through the purchase of ordinary shares under its share buyback program and by cancelling the treasury shares thus acquired as the options are exercised. Thus, there is no capital dilution resulting from the granting of stock options.
The amount of 2019 profit-sharing payouts has been estimated in the accounts and set aside for EUR 0.4 million.
5.3.7. COMPENSATION OF THE CORPORATE OFFICER The following table presents the gross cash compensation paid in 2018 and 2019 to the Group Chairman and Chief Executive Officer: Chairman and Chief Executive Officer
Variable compensation 1,184,400 1,120,020 Directors' compensation 76,000 70,000 2,460,400 2,390,020TOTAL CASH COMPENSATION
Ordinary course of business 15,0173,214 19,1458,173 11Confirmed credits, letters of credit and guarantees given 446 197 2,875
Other commitments given and received 19 6,748 9,333 17,944 - --Hybrid transactions -
Commitments received and given in the ordinary course of business Financial instruments received and given
In 2019, currency forward purchases and sales generated unrealized profits of EUR 28 million.
Securities pledged to financial institutions - - 311 - - -Investments in subsidiaries and affiliates pledged to financial institutions - Other guarantees given to financial institutions 141 - 2,564 11 2,875446 11197TOTAL
Capacity to issue letters of credit As of December 31, 2019, SCOR SE has an outstanding letter of credit capacity of EUR 155 million (EUR 47 million in 2018), recognized as a commitment received from banks. This outstanding capacity can be used to provide collateral on the forthcoming underwritten business. The allocation per bank is the following: • CACIB: USD 53 million (EUR 47 million); • BLB: USD 49 million (EUR 44 million); • Citibank: USD 34 million (EUR 31 million); • Deutsche Bank: USD 11 million (EUR 10 million); • JP Morgan: USD 11 million (EUR 9 million); • Natixis: USD 6 million (EUR 6 million); • Helaba: USD 6 million (EUR 6 million); • BNP Paribas: USD 2 million (EUR 2 million).
Other guarantees given In return of technical provisions, SCOR SE gave guarantee in the form of securities pledged to ceding companies for an amount of EUR 2,564 million (of which EUR 2,619 million from SCOR Global Life SE and SCOR Global P&C SE).
Commitments givenCommitments received 35 40Guarantees and securities 3 5 - - - -Assets pledged to ceding companies -Marketable securities pledged to financial institutions - - - - - -Contract termination indemnities -
As of December 31, 2019, SCOR SE has not received commitments related to parental guarantees due to the merger: in 2018, commitments received amounted to EUR 6,638 million coming from SCOR Global Life SE and SCOR Global P&C SE.
As of December 31, 2019, commitments given by SCOR SE for parental guarantees amount to EUR 8,812 million (EUR 17,521 million in 2018), and benefit mainly to: • SCOR Holding Switzerland AG: EUR 2,466 million (EUR 2,705 million in 2018); • SCOR Reinsurance Company: EUR 1,695 million (EUR 1,517 million in 2018); • SCOR Global Life America Holding Inc: EUR 1,139 million (EUR 963 million in 2018); • SCOR Global Life Ireland: EUR 1,492 million (EUR 2,203 million in 2018); • SCOR Life Ireland: EUR 573 million (EUR 0 million in 2018); • SCOR Global Life SE: EUR 0 million (EUR 5,250 million in 2018); • SCOR Global P&C SE: EUR 0 million (EUR 3,756 million in 2018).
Commitments given and received in respect of hybrid transactions Apart from commitments mentioned in the note above, 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 been brought to SCOR’s knowledge, which may have an adverse impact on cash flows, cash positions or on its liquidity requirements.
Comisión Nacional de la Competencia On November 12, 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 July 3, 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 constructions in Spain. Pursuant to such decision, SCOR was sentenced to pay a fine of EUR 18.6 million. Other insurers and reinsurers were also fined in relation to the same matter.
Opinion In compliance with the engagement entrusted to us by your Annual General Meeting, we have audited the accompanying financial statements of SCOR SE for the year ended December 31, 2019.
Basis for Opinion Audit Framework We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Technical reserves for Life reinsurance are submitted by ceding companies and completed by estimates calculated by Life actuaries using statistics based on historical data and information provided by underwriters. Your Company is required to have adequate reserves to cover its commitments after consideration of estimated investment returns, mortality, morbidity and lapse rates, and other assumptions.
Measurement of reinsurance premiums (see Notes 5.1.7 and 5.3.1 of the notes to the corporate financial statements)
SCOR SE gross written premiums amount to EUR 7,511 million, during 2019 financial year.
On December 31, 2019, investments in affiliates were recorded for a net book value of EUR 8,321 million. They are initially measured at historical acquisition cost. Subsequently, their value is determined based on their nature and holding period: • For active reinsurance companies, the fair value is the revaluated net assets value including the value of Life reinsurance portfolio and the forecasts of future profits of Non-Life reinsurance, net of taxes. At each reporting date, if the fair value of an investment in affiliates is below its historical cost, an analysis is conducted in order to determine if an impairment loss should be recorded. The assumptions and outcome of this analysis, conducted as at December 31, 2019, are detailed in 5.2.1 of the notes to the corporate financial statements.
Specific Verifications We have also performed, in accordance with professional standards applicable in France, the specific verifications required by French law.
Information with respect to the corporate governance We attest the existence, in the Management Report section on corporate governance, of information required by articles L. 225-37-3 and L. 225-37-4 of the French Commercial Code (Code de commerce).
Report on Other Legal and Regulatory Requirements Appointment of the Statutory Auditors We were appointed as Statutory Auditors of SCOR SE by the Annual General Meeting held on June 22,1990 for MAZARS and on May 13, 1996 for ERNST & YOUNG Audit.
As at December 31, 2019, MAZARS and ERNST & YOUNG were in the 30th year and 24th year of total uninterrupted engagement.
Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with French accounting principles and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Statutory Auditors’ Responsibilities for the Audit of the Financial Statements Objectives and audit approach Our role is to issue a report on the financial statements. Our objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with professional standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
• Assesses the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. This assessment is based on the audit evidence obtained up to the date of the audit report. However, future events or conditions may cause the Company to cease to continue as a going concern. If the Statutory Auditor concludes that a material uncertainty exists, there is a requirement to draw attention in the audit report to the related disclosures in the financial statements or, if such disclosures are not provided or inadequate, to modify the opinion expressed therein.
We also provide the Audit Committee with the declaration provided for in Article 6 of Regulation (EU) N° 537/2014, confirming our independence within the meaning of the rules applicable in France such as they are set in particular by Articles L.822-10 to L.822-14 of the French Commercial Code (Code de commerce) and in the French Code of Ethics (Code de déontologie) for Statutory Auditors. Where appropriate, we discuss with the Audit Committee the risks that may reasonably be thought to bear on our independence, and the related safeguards.
Jean-Claude Pauly Isabelle Santenac Patrick MenardGuillaume Wadoux 337SCOR Universal Registration Document 2019
ASSUMED BUSINESS Transaction whereby a reinsurer agrees to cover part of a risk already underwritten or accepted by an insurer.
BIOMETRIC RISKS Risks related to human life including mortality, disability, critical illness, health, long-term care and longevity.
CAPITAL SHIELD STRATEGY The capital shield strategy articulates the Group’s risk appetite. This strategy 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 four concepts: traditional retrocession, capital market solution, buffer capital and contingent capital.
CASUALTY INSURANCE Insurance primarily concerned with the losses caused by injuries to third parties by the policyholder and the legal liability imposed on the insured resulting therefrom.
CATASTROPHE (CAT) SCOR defines a natural catastrophe as events involving several natural risks including but not limited to flood, windstorm, earthquake, hurricane, tsunami, that give rise to an insurable loss. For reporting purposes, the Group separately considers catastrophes as events causing pre-tax losses, net of retrocession, totaling at least EUR 3 million.
CATASTROPHE (OR CAT) BOND A high-performance bond which is generally issued by an insurance or reinsurance company. If a predefined occurrence takes place (such as an earthquake, tsunami, hurricane etc.), the bondholder loses all or part of his investment in the bond. This type of insurance-linked security allows insurance and reinsurance companies to transfer peak risks (such as those arising from natural catastrophes) to capital markets, thereby reducing their own risks.
CESSION OR CEDED BUSINESS Transaction whereby an insurer (cedent or ceding company) transfers part of its risk to the reinsurer against the payment of a premium. The opposite of ceded business is assumed business.
COMMISSION RATIO The commission ratio is calculated by dividing Non-Life reinsurance commissions by Non-Life premiums earned. This ratio is net of retrocession.
COMMUTATION A transaction through which insurers or reinsurers surrender all rights and are relieved from all obligations under the insurance or reinsurance contract in exchange for a single current payment.
DEFERRED ACQUISITION COSTS (DAC) Costs associated with the acquisition of new contracts, mainly commissions, are recorded as assets and amortized on the basis of the residual term of the contracts for Non-Life business and on the basis of the recognition of future margins for Life contracts. DAC is subject to impairment testing conducted within the scope of the liability adequacy test.
INTERNAL MODEL SCOR’s internal model is used to quantify the risks that SCOR faces. In particular, it is used to calculate the Solvency Capital Requirement (SCR).
LIFE AND HEALTH REINSURANCE Collective term for the lines of business in connection with the insurance of people, i.e. life, pension, health, critical illness, longterm care and personal accident insurance.
LIFE TECHNICAL MARGIN The Life technical margin is calculated as a percentage of the net technical result plus income from funds held by ceding companies and the net of gross and ceded earned premiums.
MORBIDITY The probability that an individual in a given group develop a certain disease or disorder.
NATURAL CATASTROPHE RATIO The natural catastrophe ratio is calculated by dividing Non-Life claims arising from natural catastrophes by Non-Life premiums earned. This ratio is net of retrocession.
PROBABLE MAXIMUM LOSS (PML) The estimated anticipated maximum loss, taking into account ceding company and contract limits, caused by a single catastrophe affecting a broad contiguous geographical area, such as that caused by a hurricane or earthquake of such a magnitude that it is expected to recur once during a given period, such as every 50, 100 or 200 years.
RETURN ON INVESTED ASSETS (ROIA) The return on invested assets is used to assess the return on the Group's invested assets excluding funds withheld by cedents. This percentage, return is calculated by dividing the total investment income on invested assets by the average invested assets (calculated as the quarterly averages of the total invested assets).
SPECIAL PURPOSE VEHICLE (SPV) A legal entity created to fulfill specific or temporary objectives (conduct defined activities or hold assets, etc.). SPV's are typically used by companies to isolate the financial risk from the firm.
TAIL The period of time that elapses between either the writing of the applicable insurance or reinsurance policy or the loss event (or the insurer’s or reinsurer’s knowledge of the loss event) and the payment in respect thereof. A “short-tail” product is one where ultimate losses are known comparatively quickly; ultimate losses under a “long-tail” product may remain unknown for several years.
TECHNICAL RESULT The balance of income and expenses allocated to the insurance business and shown in the underwriting income statement.
UNEARNED PREMIUM RESERVES For each reinsurance contract, these cover the portion of premiums written during the year relating to future periods (between the reporting date and the date at which the reinsurance contract expires).
Therefore, the sections of the Universal Registration Document (URD) referred to in the correspondence table set forth under Section 6 hereafter, are fully incorporated in this Report of which they are deemed to be an integral part.
The information of the special report relating to the 2019 stock options plans established in accordance with Article L. 225-184 of the French Commercial Code and the special report relating to the 2019 free share allocation plans established in accordance with the Article L. 225-197-4 of the French Commercial Code, appear in Section 2.2.3.4 – Plans providing employee profit sharing.
Statements and information relating to the resolutions submitted to the Shareholders’ Meeting, pursuant to the provisions of Article R. 225-83, 4° of the French Commercial Code are presented in a separate report of the Board of Directors.
The total assets of SCOR SE as at December 31, 2019 amounted to EUR 27,903,418,601.
For additional information on the operating and financial situation of SCOR SE and its subsidiaries, as well as on the development of their business in 2019, see Section 1.3, Section 4 and Appendix C of the Universal Registration Document.
In application of the circular of the French Insurance Federation (Fédération Française de l’Assurance) of May 29, 2017, information presented in the table below, does not include the transactions linked to insurance and reinsurance contracts.
Article D.441 I.1: Unpaid received bills at the end of the financial year whose term is expired
Article D.441 I.2: Unpaid issued bills at the end of the financial year whose term is expired 91 days and more days
(C) Reference payment term used (contractual or legal term – article L. 441-6 or article L. 443-1 of the commercial law) Payment term used to calculate late payments 30 days end of the monthContractual term Legal term
III. Profit and loss per share: 0.05 2.87 4.16a) Net profit after taxes, and before depreciations and reserves 4.69 2.71 4.38b) Net profit after taxes, depreciations and reserves 4.85 2.59 (0.02) 3.36
IV. Salaries: c) Amount of paid employees benefits (Healthy contribution, others benefits, etc.) 80 34 33
1.2.2. DIVIDENDS DISTRIBUTED BY SCOR SE OVER THE LAST THREE FINANCIAL YEARS Over the three previous financial years, the amounts distributed by SCOR SE as dividends were as follows: 12/31/2017 12/31/2016Fiscal year ended on: 12/31/2018
EUR 1.75 Amount eligible for the deduction allowance specified by Article 158-3 of the French General Tax Code (2) EUR 1.65EUR 1.65
Following the delisting by SCOR of its American Depositary Receipts (ADRs) from the New York Stock Exchange (NYSE), the final listing of the ADRs on the NYSE occurred on June 4, 2007. Since this date, the ADRs are traded on the US over-the-counter market under the code SCRYY. In addition, SCOR announced on
6. ADDITIONAL INFORMATION PROVIDED IN THE MANAGEMENT REPORT OF THE COMPANY AND THE GROUP – CORRESPONDENCE TABLE
STATEMENTS DEALING WITH THE MANAGEMENT OF SCOR SE AND THE GROUP IN 2019: Analysis of the Company’s and the Group’s business development, results and financial position (including the debt situation)
Dividends distributed in the course of the three last years and dividends eligible to the 40% relief
Amount of the intercompany loans – Loans of less than two years granted by the Company, as an ancillary to its main activity, to micro businesses and SME or companies of an intermediate size with which it maintains economical relationships
Information on expenses and charges not deductible from taxes Appendix E – 1.1.2
Section 6Indication on the financial risks related to the effects of the climate change and presentation of the means taken by the Company to reduce them by implementing a low-carbon strategy at all stage of its activity
EADDITIONAL INFORMATION RELATING TO THE MANAGEMENT REPORT OF THE COMPANY AND THE GROUP – CORRESPONDENCE TABLE
• Summary statement on the transactions on titles by the persons referred to in Article L. 62118 -2 (persons discharging managerial responsibilities as well as the persons closely associated with them)
Financial sanctions and orders by the Competition Authority on express decision for anticompetition behaviors
Purchase of shareholdings during the financial year closed Sections 4.6 Note 3 and Appendix C – 5.2.1
Any remuneration paid or granted by a company included in the scope of consolidation within the meaning of Article L. 233-16 of the French Commercial Code
Sections 2.3.1.1, 2.3.1.3 and 5.1.7Direct or indirect shareholding interests in the Company of which it is aware pursuant to Articles L. 233-7 (threshold crossing) and L. 233-12 (cross-shareholding)
Agreements entered into by the Company which are modified or terminated in the case of a change of control of the Company
Agreements providing for damages to the members of the Board or the employees, if they resign or are dismissed without cause or if their employment is terminated because of a cash tender offer or an exchange tender offer
APPENDIX F CORRESPONDENCE TABLE – DELEGATED REGULATION (EC) OF March 14, 2019
Appendix 1 of the Delegated Regulation (EC) No. 2019/980 and No 2019/979 of the European Commission of March 14, 2019
Appendix B 3011.2. Declaration by person responsible Person responsible for the Annual Report
Place of registration, registration number and legal entity identifier of the issuer 4..3. Date of incorporation and the length of time of the issuer 1.2.1 Introduction 11 to 13 4.4.
Domicile and legal form of the issuer, legislation under which the issuer operates, its country of incorporation, address, telephone number of its registered office and website of the issuer 1.2.1 Introduction 352 SCOR Universal Registration Document 2019
Appendix 1 of the Delegated Regulation (EC) No. 2019/980 and No 2019/979 of the European Commission of March 14, 2019 5 BUSINESS OVERVIEW
Current strategic plan, Business overview & Non financial performance declaration and 257 to 2855.4. Strategy and objectives
1.2.3 Organizational structure of SCOR 14 to 156.1 Brief description of the Group and of the position of the issuer 6.2 List of issuer’s significant subsidiaries 1.2.3 Organizational structure of SCOR 14 to 15 7 OPERATING AND FINANCIAL REVIEW
Information concerning the issuer's capital resources 1.3.6 8.2. Sources and amounts of the issuer's cash flows 1.3.8 Cash Flows 40
Appendix 1 of the Delegated Regulation (EC) No. 2019/980 and No 2019/979 of the European Commission of March 14, 2019 10 TREND INFORMATION
Information on SCOR’s competitive position & revenues and earnings summary Events subsequent to December 31 2019 1.3.4 & 1.3.5 1.3.10
Known trends, uncertainties, demands, commitments and events reasonably likely to have a material effect on the issuer’s prospects 1.3.4 & 1.3.5 11 N/APROFIT FORECASTS OR ESTIMATES N/A
Administrative, management, and supervisory bodies and Senior Management conflicts of interest 2.1.3 Board of Directors
EXECUTIVE COMPENSATION AND SHARE OWNERSHIPCOMPENSATION AND BENEFITS 2.2 79 TO 11613
Information on service contracts of members of administrative and management bodies
Board of Directors’ Committees2.1.4 Information on the Audit Committee and the Compensation and Nomination Committee 2.1.1Corporate governance regime14.4 46Corporate governance principles 46Corporate governance principles2.1.1Potential material impacts on the corporate governance14.5
Appendix 1 of the Delegated Regulation (EC) No. 2019/980 and No 2019/979 of the European Commission of March 14, 2019 16 PRINCIPAL SHAREHOLDERS
Capital ownership2.3.1 Statement as to the absence of differences between the voting rights of various shareholders 2.3.1Direct or indirect control by a shareholder16.3 117 to 126Capital ownership 117 to 126Capital ownership2.3.1Agreement which could result in a subsequent change in control16.4
1.1.3Dividend distribution policy18.5. 9Dividend distribution policy 237 to 238Litigation4.6.25Litigation and arbitration procedures18.6.
Articles L. 451-1-2 of the French Monetary and Financial Code and 222-3 of the General Regulation of the AMF.
APPENDIX BSTATEMENT BY THE PERSON RESPONSIBLE FOR THE UNIVERSAL REGISTRATION DOCUMENT 301
Information about items that could affect a public offer, as required by Article L. 225-37-5 of the French Commercial Code
Information about share buybacks (Article L. 225-211, paragraph 2, of the French Commercial Code)
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