 Most of the business underwritten is renewed on agreed dates. This enables SCOR to establish annual underwriting plans, both qualitative (description of the environment) and quantitative (activity budget). These plans are approved by the COMEX.
 Underwriting and pricing guidelines, defined by SCOR Global P&C, specify the underwriting capacities delegated to each underwriter in each entity, as well as the underwriting rules and principles to be complied
with. These guidelines are subject to a regular review and approval process. SCOR's underwriting guidelines are more restrictive regarding certain areas with difficult or uncertain legal environments.
- Pricing guidelines and parameters are set to provide consistency and continuity across the organization but also to take into account differences between markets and lines of business as well as the geographical location of the client and the risks insured. Parameters are revised at least once a year to consider, as the case may be, the changing market conditions and environment. Contracts that meet certain risk thresholds are subject to mandatory peer reviews that have to be performed and documented before the pricing is completed. SCOR Global P&C employs a data system which allows management to monitor and review the results from the pricing tools.
 The underwriting teams are supported by the SCOR Global P&C Underwriting Management function, located in Paris and represented in the four hubs: Americas, Paris/London, Singapore and Zurich/Cologne. This function provides worldwide treaty and facultative underwriting guidelines, policies regarding the delegation of capacity, underwriting support to specific lines of business or individual risks when required, ceding company portfolio analysis and risk surveys and is responsible for monitoring and referral of non-standard business and for authorizing exceptions to the underwriting guidelines.
 Business opportunities going beyond the stipulations of the guidelines thus defined are subject to special referral procedures at two levels: (1) by the Underwriting Management function; and, where applicable, by the Legal Department and/or the Finance department, (2) and for cases which may have a significant impact on the balance sheet (thresholds and/or conditions defined in a procedure or specific guidelines) by the Group Risk Management Department and the CEO of SCOR Global P&C.
 SCOR Global P&C Treaty and Specialty Lines underwriting teams are also supported by the SCOR Global P&C actuarial pricing function, headed from Zurich. This function is responsible for the pricing methods and tools to be applied by the pricing actuaries, who team up with underwriters and modelers by market or by lines of business.
 The Risk Modeling & Global Natural Hazards Department is in charge of monitoring accumulations. A “Cat” sub-group of the P&C Risk and Capital Committee meets regularly to review accumulations and decide or arbitrate the allocation of Cat capacities by country. Earthquake and storm risks gross exposures are measured using proprietary external models from industry-leading catastrophe model suppliers, including Risk Management Solutions RiskLink® (“RMS”) and AIR Worldwide Catrader® (“AIR”). These tools enable the Group to quantify its exposure in terms of a probable maximum loss (“PML”) at various levels of probability for each peril and geographic location. The overall aggregate annual PML per peril, allowing for potential multiple events, provides the information required to determine the level of retrocession and other alternative risk transfer solutions (e.g., catastrophe bonds) that are needed to ensure that the net aggregate exposure is optimized for the group’s risk appetite and remains within predefined tolerance limits.
 The adequacy of SGP&C reserves are controlled based on specific procedures. For further information on how risks related to reserves are managed, please refer to Section 3.3.2.4 – Management of reserving risks.
 SCOR Global P&C's Risk Management organizes the quarterly P&C Risk and Capital Committee, which is responsible for highlighting the main risks to which the Non-Life division is exposed, regarding both assets and liabilities.
The Life Division is organized in order to be able to assess and control its risks at each level of its business.
 Life reinsurance treaties are underwritten by life reinsurance experts familiar with the specific features of their markets. The Life business is underwritten following internal underwriting and pricing guidelines. Mandates for underwriting life reinsurance business are assigned to teams on a mutually exclusive basis.
 Guidelines and other documents defined by SCOR Global Life specify the underwriting rules and principles to be complied with, underwriting capacities delegated to the underwriters and pricing actuaries in each of the markets in which the Group operates, as well as maximum acceptable commitments per risk and per event. Furthermore, they set out the retention of SCOR Global Life for various risks and types of covers. They are approved by the Chief Executive Officer, the Head of the Actuarial and Risk Department, the Chief Risk Officer and the Chief Financial Officer of SCOR Global Life. Revisions and updates follow a formalized approval process.
 Accumulations of risk particularly exposed to catastrophes in the Life business are regularly assessed in “footprint” scenarios and local cat scenarios as well as with dedicated software to track known group cover accumulation in selected geographic areas. Specifically designed retrocession programs aim at protecting its Life reinsurance business. One program protects assumed catastrophe excess of loss acceptances; another protects the retained lines in respect of all other acceptances. SCOR is making use of the RMS model for infectious diseases in order to assess the exposure to catastrophe risk arising from global and regional pandemics.
 The claims handling function for the Life Division is performed by local claims teams that implement, handle and monitor the local claims. Claims exceeding a predefined threshold are reviewed by the CREDISS, the global medical underwriting and claims research center of SCOR Global Life. Additionally, where deemed appropriate, audits are conducted on claims or lines of business at the ceding companies’ offices.
 In addition, “cross reviews” are commissioned by SCOR Global Life's CEO to evaluate, on one hand, the quality of underwriting, pricing, medical underwriting and claims handling of particular market areas or lines of business and, on the other hand, to identify and assess risks, to evaluate the appropriateness and effectiveness of controls and to propose risk-management actions.
The Group aims at diversifying its business and monitors its main accumulation risks and areas of dependencies across its business through regular risk monitoring and reporting mechanisms. SCOR manages its exposure to catastrophes through selective underwriting practices, especially by limiting its exposure to certain events in certain geographic zones, by monitoring risk accumulation on a geographic basis and by retroceding a portion of those risks to other selectively chosen reinsurers.
SCOR regularly reviews its methods for determining outstanding claims reserves and IBNR Reserves. However, it is difficult to accurately value the amount of reserves required, especially in view of changes in the legal environment, which could affect the reserve development.
When a claim is reported to the ceding company, its claims department establishes a reserve corresponding to the estimated amount of the ultimate settlement for the claim. The estimate is based on the cedent’s own methods of evaluation. The ceding company reports the claim and its suggested reserve amount to the Group entity with which it concluded its contract of reinsurance. The Group records the ceding company's suggested reserve and is free to establish greater or smaller reserves based on the review and analysis by SGP&C’s claims team. Such greater or smaller potential reserves are based upon the consideration of many factors, including the level of the commitments, seriousness of the claims and the SGP&C's assessment of the ceding company's claims' management. Conforming to applicable regulatory requirements and in accordance with industry practices, the Group maintains in addition to outstanding claims reserves, IBNR Reserves. These reserves represent:  the estimated final amount that may be paid by the Group on losses or events that have occurred, but are not yet reported to the ceding company or to the SCOR entity concerned; and
A table showing historical changes in reserves for Non-Life claims is provided in Section 4.6 - Notes to the consolidated financial statements, Note 16 – Net Contract liabilities.
Claim reserves for losses 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 IBNR. SCOR regularly reviews and updates its methods for determining outstanding claims reserves and IBNR Reserves. A table showing changes in the mathematical reserves in Life reinsurance is provided in Section 4.6 – Notes to the consolidated financial statements, Note 16 – Net Contract liabilities.
The level of retrocession is selected each year to ensure that SCOR's retained risk profile respects the specific Group risk appetite framework and to help the Group achieve its return on capital and solvency objectives.
SCOR aims to diversify its retrocession and risk mitigation instruments as well as counterparties in order to take advantage of all different sources of capacities on the market. This enables the retrocession and risk mitigation program to be constructed with complementary mitigation effects at optimized efficiency and also to avoid overdependence on a reduced number of counterparties.
For information on the Atlas structured entities, used as capital markets solutions and alternative risk transfer solutions in the Capital shield policy, refer to Section 4.6 – Notes to the consolidated financial statements, Note 2 – Consolidation perimeter. For information on the contingent capital used in the Capital shield policy, refer to Section 4.6 – Notes to the consolidated financial statements, Note 13 – information on share capital, capital management, regulatory framework and shareholders’ equity.
Retrocession procedures are centralized in the retrocession teams of the Non-Life and Life divisions:  Within the P&C Division, SCOR Global P&C Underwriting Management and Retrocession Department establishes and implements the external retrocession plan for P&C activities. This department is responsible for proper application of the plan, for monitoring the solvency of the retrocessionaires, the related counterparty risks and, when necessary, recovery of balances due.
 Within the Life Division, scenarios are established in conjunction with the Central Actuarial & Risk Department of SCOR Global Life in order to define the need for retrocession coverage. The retention and the retrocession structure are revised every year and subject to approval by the SGL Risk Committee, and for significant changes additionally by the Group Chief Risk Officer.
The availability and efficiency of SCOR’s retrocession and risk mitigation program is monitored at Group level on a regular basis in order to ensure that the Group’s overall exposure remain within pre-defined risk tolerances.
SCOR applies the prudent person principle when managing its investment portfolios and attaches great importance to several selection criteria including internal assessments, the rating provided by the rating agencies to the issuer and the liquidity of the securities purchased. Investments Guidelines approved by the Executive Committee and provided to internal and external asset managers define the investment universe and limits, including concentration limits. The strategic asset allocation sets limits by asset class and is approved by the Board. The portfolio positioning within these limits is defined by the Group Investment Committee.
Exposures to major risks are monitored on a regular basis and stress tests measure the impact of parametric or footprint scenarios on the invested assets portfolio. These scenarios cover changes in interest rates, inflation, equities, credit spreads and real estate market. Portfolio sensitivity analysis to major risks is an important management tool which is used when deciding portfolio reallocation or hedging.
For information on the maturities of financial assets and liabilities, related interest rates and sensitivities to interest rate fluctuations as well as the allocation of the fixed income securities portfolio by rating of the issuer, see section 3.2.3.7 – Sensitivity analysis.
For information on the ratings of the debt securities owned by SCOR, refer to Section 4.6 – Notes to the consolidated financial statements, Note 7 – Insurance related investments.
The Group’s objective is to develop and manage a high-quality diversified equity portfolio. The Group’s equity selection is predominantly based on a bottom up fundamental analysis with the goal to develop a diversified portfolio of stocks, Exchange Traded Funds (ETF), mutual funds and convertible bonds. Due to inherent higher volatility of equities, this asset class (direct positions and mutual funds) is monitored on a daily basis, facilitating quick arbitrage or portfolio re-allocation decisions. On a Group level, the equity exposure is set and reviewed at least quarterly by the Group Investment Committee. The equity risk is also controlled by the definition of maximum exposures per stock or mutual fund and is reviewed regularly (e.g., exposure to large-cap stocks will generally be greater than exposure to mid-cap stocks). The control ratios on mutual funds are also reviewed regularly, based on the mutual fund’s holdings.
Credit risk is actively monitored and managed. The processes for managing the respective risks and methods used to measure the risks are further described below.
An exposure analysis is performed at least on a quarterly basis (sector, geographical area, counterparty and rating) and enables critical risks to be identified and evaluated in order to take appropriate actions. For details on the debt securities portfolio, refer to Section 4.6 – Notes to the consolidated financial statements, Note 7 – Insurance Business Investments.
The retrocessionaires’ part in the reserves split by retrocessionaires’ financial rating is included in Section 4.6, Note 16 – Net Contract Liabilities.
SCOR assesses liquidity risks arising from both short-term and long-term liquidity needs. SCOR manages these risks via different mechanisms which consider:  actions to be taken by the insurance or reinsurance business areas to take into account both short term and long term liquidity risk (see maturity profiles in Section 3.2.5 – Liquidity risk); and
 the appropriateness of the composition of the assets in terms of their nature, duration and liquidity in order to meet the obligations as they fall due.
Short term liquidity, or cash management, includes the day-to-day cash requirements under normal business conditions.
In addition, SCOR monitors the level of transferability of liquid free assets between entities, depending on local and regulatory constraints.
Additional information on the timing of repayments and liquidity risks is included in Section 3.2.5 – Liquidity risks. For further information on liquid assets of SCOR Group, refer to Section 4.6 – Note 7 – Insurance Business Investments. Additional information on SCOR’s letter of credit facilities is included in Section 4.6 – Notes to the financial statement, Note 25 – Commitments Received and Granted.
 Proportionality: once operational risks are identified, management uses appropriate and proportionate responses, resources and procedures, focusing on key risks.
In order to support the staff, SCOR has developed Internal Control System (ICS) standards. According to the ICS standards, process owners should be in a position to identify the critical operational risks within the processes assigned to their area of responsibility. The process owners design, implement and operate appropriate key controls and maintain the net risk exposure at or below an acceptable level of possible damage. At Group level, for each category of operational risks, experienced staff members collect relevant information and analyses on operational risks, on a qualitative and quantitative basis. When relevant, they develop key indicators, with support from Group Risk Management. The Group has also implemented regular risk reporting mechanisms in order to provide for an overview of risks across the Group, as well as mitigate and monitor risks identified.
At legal entity level, depending on local requirements, specific operational risk management processes are implemented, where relevant. In addition, through its assignments, Group Internal Audit (GIA) contributes to the oversight of operational risk management.
On risks which may evolve rapidly, such as external fraud, SCOR frequently adapts its risk management, for example by organizing specific trainings and sending regular warnings and detailed instructions to its employees.
4 CONSOLIDATED FINANCIAL STATEMENTS In application of article 28 of the EC Commission Regulation No. 809/2004, the following information is incorporated by reference in this Registration Document:  The consolidated financial statements as at December 31, 2014 are included from pages 195 to 288 and the auditors’ report on these consolidated financial statements as at December 31, 2014 is included from pages 289 to 290 of the Registration Document filed with the Autorité des marchés financiers on March 20, 2015 under Number D.15-0181, (and from pages 190 to 278 and from pages 279 to 280, respectively, of the free translation into English of the above mentioned Registration Document. The translation is available on SCOR’s website www.scor.com).
TOTAL SHAREHOLDERS' EQUITY 6,363 5,729 Financial debt Note 14 3,155 2,232 Subordinated debt 2,613 1,743 Real estate financing 534 469 Other financial debt 8 20 Contingency reserves Note 15 300 297 Contract liabilities 27,839 25,839 Insurance contract liabilities Note 16 27,733 25,720 Investment and financial reinsurance contract liabilities Note 16 106 119 Other liabilities 3,948 3,309 Deferred tax liabilities Note 19 366 388 Derivative instruments Note 9 89 78 Assumed insurance and reinsurance payables Note 10 484 428 Accounts payable on ceded reinsurance transactions Note 10 1,195 1,168 Tax payables 102 87 Other liabilities 1,712 1,160
4.2 Consolidated statement of income For the year ended December 31
In EUR million 2015 2014 2013 Gross written premiums Note 4 13,421 11,316 10,253 Change in unearned premiums reserves
Note 20 744 637 517 Total income from ordinary activities 13,986 11,726 10,630 Gross benefits and claims paid
Note 22 (189) (153) (155) Total other current operating income and expenses (12,909) (10,855) (10,000)
Items that will not be reclassified subsequently to profit or loss
Attributable to: (1) Of which EUR (15) million related to adjustments requested by ASEFA’s local regulator
Disposals of consolidated entities, net of cash disposed of 2 -
Cash generated by issuance of financial debt Note 14 933 348
Net cash flows provided by / (used in) financing activities 417 (235) (107)
Net cash flows provided by / (used in) investing activities (533) (1,397)
Net cash flows provided by / (used in) financing activities 417 (235)
(26) million done in the context of the acquisition by SCOR). The payment of EUR (45) million made to exercise the purchase option on a real estate investment previously held under finance lease and the redemption of other real estate debt of EUR (5) million
(5) Cash received in respect of margin calls linked to cross-currency swaps for EUR 134 million following significant variation of the EUR/CHF exchange rate since the beginning of the year
Shareholders’ equity at December 31, 2013 4,807 Allocation of prior year net income - Net income for year ended December 31, 2013 549 Other comprehensive income net of tax
(89) Shadow accounting 29 Effect of changes in foreign exchange rates
(163) Net gains / (losses) on cash flow hedge 8 Taxes recorded directly in equity 9 Remeasurements of postemployment benefits 9 Other changes
10 million in additional paid-in capital). This resulted in the creation of 1,254,162 new shares during the year ending December 31, 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)
Shareholders’ equity at December 31, 2013 1,518 842 21 2,119 (142) 549 33 40 4,980 Allocation of prior year net income - - - 549 - (549) - - - Net income for year ended December 31, 2014 - - - - - 512 - (3) 509 Other comprehensive income net of tax - - 153 329 - - - - 482 Revaluation - Assets available for sale - - (36) - - - - - (36) Effect of changes in foreign exchange rates - - - 361 - - - - 361 Net gains / (losses) on cash flow hedge - - - (8) - - - - (8) Taxes recorded directly in equity employment benefits - - - 3 - - - - 3 Comprehensive income net of tax 1,518 841 174 2,754 (139) 512 34 35 5,729 (1) Movements presented above relate to the issuance of shares related to the exercise of stock options for EUR 12 million (EUR 6 million in share capital and
Shareholders’ equity at December 31, 2014 1,518 841 174 2,754 (139) 512 34 35 5,729 Allocation of prior year net income - - - 512 - (512) - - - Net income for year ended December 31, 2015 - - - - - 642 - - 642 Other comprehensive income net of tax - - (62) 344 - - - - 282 Revaluation - Assets available for sale - - 34 - - - - - 34 Effect of changes in foreign exchange rates - - - 316 - - - - 316 Net gains / (losses) on cash flow hedge - - - 35 - - - - 35 Taxes recorded directly in equity employment benefits - - - 3 - - - - 3 Comprehensive income net of tax 1,518 838 112 3,350 (172) 642 42 33 6,363 (1) Movements presented above relate to the issuance of shares related to the exercise of stock options for EUR 21 million (EUR 10 million in share capital and
4.6 Notes to the consolidated financial statements 4.6.1 NOTE 1 - ACCOUNTING PRINCIPLES AND METHODS
Certain reclassifications and revisions have been made to the financial information of the prior year to conform to the current year presentation. Certain mutual funds that the Group manages and controls are open to external investors. Until December 31, 2014, when certain conditions were met, some of these funds were consolidated in accordance with a “short cut method” under which only SCOR’s share of the assets was recognized as investments at fair value through income. Under this method, assets under management for third parties were thereby excluded from SCOR’s consolidated balance sheet. Starting from January 1, 2015, the short cut method has been amended to present assets under management for third parties on the line “Insurance business investments”, and their elimination as “Other liabilities”. Consequently, Insurance business investments and Other liabilities of the December 31, 2014 comparatives have been increased by EUR 240 million. These reclassifications had no impact on total shareholders’ equity or consolidated net income of the Group.
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 consolidated financial statements are as follows: EUR per foreign currency unit
Ending rate Average rate As at December 31, 2015 Q4 2015 Q3 2015 Q2 2015 Q1 2015
Ending rate Average rate As at December 31, 2013 Q4 2013 Q3 2013 Q2 2013 Q1 2013
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 in the reserve line denominated “currency translation adjustment”. The movement in the translation adjustment is primarily due to the translation of accounts of the subsidiaries and branches not using EUR as the functional currency. As at December 31, 2013, 2014 and 2015, the Group has one hedge of net investment remaining in place. 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 January 1, 2013, the functional currency of one group subsidiary, SCOR GLOBAL LIFE Reinsurance Ireland Ltd, was changed with prospective application from EUR to USD.
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 measured at historical cost; or - at the end of period exchange rates if they are measured 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’ equity. They are recognized in the statement of income upon the disposal of the net investments.
Certain specific reinsurance accounting principles are described directly within Notes 10 - Assumed and ceded insurance and reinsurance receivables and payables, 11 - Deferred acquisition costs, 16 - Net contract liabilities, and 21 - Net results of retrocession. Further accounting principles and methods related to reinsurance activities are described below: Classification and accounting of reinsurance contracts
Participations in syndicates operating at Lloyd’s of London are accounted for on an annual accounting basis with a delay due to the transmission of information from syndicates that the Group does not control. The Group recognizes its
 Amendments resulting from the Annual Improvements to IFRS cycles 2010-2012 and 2011-2013 did not materially impact the consolidated financial statements.
IFRS 9 requires financial assets to be classified based on the business model for managing the financial assets and their contractual cash flow characteristics. Based on their classification, financial assets will be measured at amortized cost, fair value through OCI or fair value through profit and loss. The new impairment model requires recognition of expected credit losses based on available historical, current and forecast information. The hedging model included in IFRS 9 aligns hedge accounting more closely with risk management but does not fundamentally change the types of hedging relationships or the requirements to measure and recognize hedge effectiveness. The European Union has not yet endorsed IFRS 9. The adoption of IFRS 9 will affect the classification and measurement of the Group’s financial assets as more financial assets are expected to be accounted for at fair value through profit or loss. SCOR’s impairment policies will also be affected as impairments will be recognized based on expected credit losses and no longer based on incurred credit losses only. There are no significant changes expected for the hedge accounting as applied by SCOR. The Group is in the process of determining the impacts of IFRS 9 on its financial position and performance as well as on disclosures in more detail.
On December 9, 2015, the IASB published an Exposure Draft to amend IFRS 4 – Insurance contracts, in order to address the temporary consequences of different effective dates of IFRS 9 and of the expected new Standard on insurance contracts. Applying IFRS 9 before the new Standard on insurance contract would potentially increase volatility in profit or loss. The IASB proposes two independent options to address such additional accounting volatility: a temporary exemption from applying IFRS 9 (“Deferral Approach”), and removing the incremental volatility from the profit or loss to other comprehensive income (“Overlay Approach”). The Deferral Approach would result in continued application of IAS 39 and some additional disclosures about the fair value of assets not meeting the “solely payments of principal and interest” criterion and information about their credit risk exposure until the new insurance accounting Standard becomes effective, however no later than January 1, 2021. This proposed approach is restricted to companies whose predominant activity is to issue insurance contracts. The Overlay Approach would result in applying IFRS 9 from January 1, 2018, but allows companies that issue insurance contracts to remove from profit or loss the incremental volatility caused by changes in the measurement of financial assets upon application of IFRS 9. Comments to the IASB were due by February 8, 2016. The IASB intends to finalize the amendments in 2016.
All material entities over which SCOR has control are fully consolidated. SCOR controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the entity’s activities.
Subsidiaries are consolidated from the time the Group takes control until the date control is transferred outside the Group or control ceases. Certain subsidiaries have been included within the Group financial statements under the equity method and are not fully consolidated on a line by line basis as they are not core business and as they are immaterial to the Group consolidated financial statements.
The Group’s investments in associated companies are recorded using the equity method. Associated entities are companies in which the Group exercises significant influence but no control or joint control. Significant influence generally occurs when the Group owns, directly or indirectly, between 20% and 50% of the outstanding voting rights. For certain associates accounted for under the equity method the Group uses consistently provisional financial year-end information and makes adjustments, if necessary, in the following reporting period.
Certain mutual funds that the Group manages and controls are open to external investors. When certain conditions are met, these funds are consolidated under a “short cut method” under which the total assets of the fund is recognized as investment at fair value through income on the line “Insurance business investments”, and the elimination of the third party share is presented as “Other liabilities”.
Structured entities are entities that have been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when voting rights relate to administrative tasks only and relevant business activities are directed by means of contractual arrangements.
The Group sponsors a number of mortality or catastrophe bond (“Cat bond”) notes issued by Atlas Special Purpose Vehicles (SPVs). In accordance with IFRS 10, these vehicles are not consolidated by the Group as SCOR does not control them, is not liable for any residual risk or benefit of ownership and has no ability to affect their return.
The Group sponsors a number of Special Purpose Vehicles (SPVs) designed to reduce SCOR’s exposure to catastrophe losses and to extreme mortality events through the transfer of risk to external investors.
For the year ended December 31, 2015 For the year ended December 31, 2014
Total assets - 13 27 3 2 17 - 6 Other liabilities - 17 30 - 1 19 - - Total liabilities - 17 30 - 1 19 - -
On September 11, 2013, SCOR Global Life entered into a risk transfer contract with Atlas IX Capital Limited (“Atlas IX Series 2013-1”), providing the Group with protection against extreme mortality events in the US, such as pandemics, natural catastrophes and terrorist attacks. The risk transfer contract provides USD 180 million of extreme mortality protection, for a risk period extending from January 1, 2013 to December 31, 2018.
The risk transfer contract is based on a US population mortality index that has been weighted by age and gender in order to reflect SCOR Global Life’s portfolio in the US. According to the structure of the arrangement, a payment will be triggered if, at any time during the risk period, the observed index value exceeds the defined attachment point of 102%. At any index level between the attachment point and the exhaustion point of 104%, Atlas IX Capital Limited will pay to SCOR a pro-rata amount of the notional USD amounts.
On January 13, 2016, and subsequent to year-end 2015, SCOR successfully sponsored a new catastrophe bond, Atlas IX Series 2016-1, which will provide the Group with multi-year risk transfer capacity of USD 300 million to protect itself against US Named Storm and US and Canada Earthquake events. The risk period for Atlas IX 2016-1 will run from January 13, 2016 to December 31, 2019.
On January 6, 2014, SCOR announced having successfully placed a fully collateralized sidecar, Atlas X Reinsurance Limited (“Atlas X”). It provides the Group with an additional three-year capacity of USD 55.5 million from a new panel of investors. Atlas X is an Irish-domiciled special purpose reinsurance vehicle. Atlas X and SCOR Global P&C SE have entered into a quota share retrocession agreement, effective January 1, 2014, under which Atlas X reinsures a proportional share of SCOR’s diversified property catastrophe portfolios in specific countries. This agreement is accounted for as a reinsurance contract.
There were no acquisitions or disposals of consolidated subsidiaries in 2015 and 2014.
On October 1, 2013, SCOR Global Life Americas Holding Inc., a subsidiary of SCOR Global Life SE, acquired 100% of Generali U.S. Holdings, Inc. (“Generali U.S.”), the holding company of Generali's U.S. life reinsurance operations. The transaction encompassed the stock purchase of Generali U.S. and its operating subsidiaries, including Generali USA Life Reassurance Company (“Generali USA”) and the recapture of the retrocession agreements between Generali USA and Generali Spa. The transaction resulted in a gain from bargain purchase of EUR 197 million and was financed by SCOR through the use of own funds and a limited debt issuance, including a short-term financing agreement of USD 228 million, without the issuance of new shares. The short-term financing agreement was fully repaid during the first quarter of 2014.
GENERALI U.S.: FAIR VALUE OF ASSETS AND LIABILITIES ACQUIRED AS AT OCTOBER 1, 2013
197 (1) Based on the EUR / USD exchange rate at the date of acquisition (2) Gain from bargain purchase valued at the October 1, 2013 EUR / USD exchange rate of 0.740192
Share of retrocessionaires in insurance and investments contract liabilities and Contract liabilities 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 197 million, was recorded in the consolidated statement of income of the Group for the year ended December 31, 2013.
GENERALI U.S.: STATEMENT OF INCOME FROM ACQUISITION DATE TO DECEMBER 31, 2013 In EUR million (1) Gross written premiums 209 Change in unearned premiums reserves
Investment income 4 Total income from ordinary activities 213 Gross benefits and claims paid
(1) Based on the EUR / USD average exchange rate between the acquisition date and December 31, 2013
While assessing the investment income of the Generali U.S. portfolio as at December 31, 2013, SCOR’s quarterly yields assumptions were applied from acquisition date to year-end. As such, no pro forma adjustment has been made to reflect the pre-acquisition period of 2013. A pro forma adjustment of EUR (3) million was made to reduce investment income for the amount of interest on cash balances that were used to pay a portion of the purchase price to Generali.
Acquisition related gain from bargain purchase resulting from the fair value of net assets acquired exceeding the consideration paid was recognized as at January 1, 2013. This gain is shown as a pro forma adjustment.
For the purpose of presenting pro forma information, acquisition related debt interest expenses that have been incurred by SCOR to finance the Generali U.S. acquisition have been assumed to be recorded beginning on January 1, 2013. They amounted to EUR (10) million.
On May 29, 2013, SCOR acquired 59.9% of the capital and the voting rights of MRM S.A., a French Real Estate Investment Trust holding a mixed portfolio of retail properties and offices. With this investment, SCOR strengthened and diversified its real estate investment portfolio. The acquisition has been made with a view to refocusing MRM S.A.’s activity towards a portfolio of similar retail assets.
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 in accordance with IFRS. The realization of gain from bargain purchase arising from the acquisition of MRM S.A. was possible because MRM S.A.’s finances needed to be restructured with the help of a third party investor. This was also supported by the fair value of the buildings acquired.
Share of MRM S.A. income included in the SCOR Group’s consolidated income
The following table sets forth the operating results for the Group’s operating segments and its corporate cost center for the financial years ended December 31, 2015, 2014, and 2013.
Gross written premiums 7,698 5,723 - - 13,421 6,381 4,935 - - 11,316 5,405 4,848 - - 10,253 Change in gross unearned premiums reserves
Interests on deposits 161 23 - - 184 158 22 - - 180 155 21 - - 176 Realized capital gains / (losses) on investments 34 136 - - 170 32 103 - - 135 32 98 - - 130 Change in fair value of investments 1 11 - - 12 - 8 - - 8 1 14 - - 15 Change in investment impairment and amortization
Insurance contract liabilities and share of retrocessionaires in insurance and investment contract liabilities for the Life segment, allocated on the same basis as gross written premiums, are as follows: As at December 31, 2015 As at December 31, 2014
Non-life, the two operating segments. The amounts previously reported for 2014 were Goodwill of EUR 45 million and EUR 743 million, Insurance business investments of EUR 11 973 million and EUR 13 244 million, and total assets of EUR 17 832 million and EUR 19 575 million for Life and Non-life, respectively 4.6.4.3 ASSETS AND LIABILITIES BY GEOGRAPHIC REGION
Pacific Total Insurance business investments 22,541 3,691 1,444 27,676 20,576 3,319 1,322 25,217 Share of retrocessionaires in insurance and investment contract liabilities 989 231 38 1,258 949 229 17 1,195 Total assets 32,723 6,067 2,815 41,605 30,032 5,073 2,301 37,406 Insurance Contract liabilities (20,013) (5,723) (2,103) (27,839) (19,187) (4,920) (1,732) (25,839)
Cash and cash equivalents at January 1 655 205 860 885 629 1,514 680 786 1,466 Net cash flows from operations 227 568 795 286 608 894 296 601 897 Net cash flows from investing activities 141 (674) (533) (233) (1,164) (1,397) (593) (73) (666) Net cash flows from financing activities (222) 639 417 (355) 120 (235) 545 (652) (107) Impact of foreign exchange on cash and cash equivalents 60 27 87 72 12 84 (43) (33) (76) Cash and cash equivalents at December 31 861 765 1,626 655 205 860 885 629 1,514
Goodwill arising on companies accounted for under the equity method is included within the carrying value of those investments.
VOBA relates to life reinsurance portfolios acquired in a business combination. VOBA is capitalized as the present value of the stream of expected future cash flows for the assumed and the retroceded reinsurance business using estimates of expected profits from future technical results and future investment income, generated by the investments to cover the reserves, less deductions for future portfolio administration expenses. The present value calculations of future profits reflect assumptions on mortality, morbidity, policyholder behavior and risk discount factors relevant at the date of acquisition.
The Group amortizes its other intangible assets with a finite life using the straight line method over a one to ten year period depending on the specific circumstances of each arrangement.
Total Gross value at December 31, 2013 969 1,855 231 3,055 Foreign exchange rate movements - 141
41 Impairment for the period - 25 Cumulative amortization and impairment at December 31, 2015 (181) (497)
CARRYING VALUE AS AT DECEMBER 31, 2014 788 1,455 2,385 CARRYING VALUE AS AT DECEMBER 31, 2015 788 1,600
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 aggregated 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 2014 embedded value, discount rates used were based on swap rates ranging between -0.14% and 12.95% depending on the currency and the duration adjusted for credit risk and extrapolation.
Other intangible assets at December 31, 2015 were EUR 162 million compared with EUR 142 million at December 31, 2014.
The amortization charge associated with other intangible assets with finite lives was EUR (14) million, EUR (7) million, and EUR (18) million, for the years ended December 31, 2015, 2014, and 2013 respectively.
Other intangible assets also include indefinite life intangible assets associated with Lloyd’s syndicate participations acquired through the Converium business combination. The Lloyd’s intangibles of EUR 11 million as at December 31, 2015 (compared with EUR 16 million as at December 31, 2014 due to the sale of one of the participations of the Group in a Lloyd’s syndicate) are deemed to have an indefinite life due to the ability to realize cash for these contractual rights through the Lloyd’s auction process. Other intangible assets having an indefinite useful life amounted to EUR 14 million as at December 31, 2015 compared with EUR 15 million as at December 31, 2014.
Own-occupied properties are classified as tangible assets. Some buildings may be partially occupied by entities of the Group. Properties 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 Land Indefinite (not depreciated) Buildings Building structure and exterior 30 – 80 years Insulation 30 years Technical installations 20 years Fixtures and fittings 10 – 15 years
Own-use properties are assessed for impairment whenever there is an indication that the property may be impaired. They are considered as corporate assets, which do not generate cash inflows independently. Hence, the assessment is made at the level of the cash-generating units (CGU) or groups of CGUs to which the properties belong. Should impairment indicators exist, the Group determines the recoverable amount of the CGU or of the group of CGUs to which the property belongs and compares it to its carrying amount.
Tangible assets as at December 31, 2015 were EUR 593 million compared to EUR 542 million as at December 31, 2014. These primarily relate to buildings used by SCOR as offices, office furniture and equipment, and building fixtures and fittings.
The Group’s insurance business investments by nature and level of valuation technique are presented in the following table: Investments and cash as at December 31, 2015
Total insurance business investments and cash and cash equivalents include mutual funds that the Group manages and controls and which are also open to investment by external investors. EUR 1,189 million (December 31, 2014: EUR 789 million), representing the net asset value of the assets under management, are eliminated in other liabilities for consolidation purposes.
Available for sale investments include EUR 65 million of investments which are measured at cost (2014: EUR 68 million). These investments include primarily equities and funds which are not listed.
Total impairment losses recognized in 2015 amounted to EUR 21 million (2014: EUR 3 million) of which EUR 8 million on the equity portfolio (2014: EUR 3 million) and EUR 13 million on the fixed income portfolio (2014: nil).
The fair value of financial instruments that are actively traded in organized financial markets is determined by reference to quoted market bid prices, at the close of business on the balance sheet date. If quoted market prices are not available, reference can also be made to broker or dealer price quotations. As the Group is responsible for determining the fair value of its investments, regular analysis is performed to assess whether prices received from third parties are reasonable estimates of fair value. The Group’s analysis includes: (i) a review of price changes made in the investment management systems; (ii) a regular review of pricing deviations between dates exceeding predefined pricing thresholds per investment categories; and (iii) a review and approval of extraordinary valuation changes noted. 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. For unlisted equity instruments, fair value is determined according to commonly used valuation techniques.
The Group provides disclosures on the measurements of financial instruments held at fair value using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The level in the fair value hierarchy 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. Assessing the significance of a particular input to the fair value measurement requires judgment, considering factors specific to the asset or liability. At each end of a reporting period, the Group considers the classification relevancy of financial instruments that are measured at fair value. The valuation methodology of financial instruments is monitored to identify potential reclassifications. The fair value hierarchy has the following levels:  Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Included in this level are financial instruments for which quoted prices or rates represent actual and regularly occurring transactions that are available from a stock exchange, dealer or broker. Such instruments comprise listed equities, government, covered and agency bonds, as well as short-term investments. For units in unitinked trusts, shares, 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 published bid values.
For available-for-sale equity securities which are listed on an active market, a line-by-line analysis is performed when there has been a decline in fair value as compared to the initial purchase price of more than 30%, or a consistent unrealized loss over a period of more than 12 months. The different factors considered in this analysis include the existence or inexistence of significant adverse changes in the technological, market, economic or legal environment in which the issuer operates. After consideration of these factors if a security remains unimpaired, the Group ultimately considers objective evidence of impairment, as per IAS 39, by reference to three further key criteria being the existence or not of:  a consistent decline of more than 30% for 12 consecutive months; or
 a duration of decline of more than 48 months without recovery in net asset value being observable and  the net asset value has not recovered above its initial purchase price after an additional 12 months period.
For financial instruments where the fair value cannot be measured reliably and which are measured at cost, a regular analysis is completed to determine if this remains appropriate given the nature of the investment and factors such as amounts realized and the appearance or re-appearance of a market or reliable value. Impairment assessments are completed dependent on the underlying nature of the investment and the expected future cash flows. 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.
A subsequent increase in value of an impaired available-for-sale equity instrument is not recognized in the statement of income. A subsequent increase in value on an impaired available-for-sale debt security is reflected in the income statement as a reversal of impairment if the increase in fair value of the instrument can be objectively related to an event occurring after the impairment losses were recognized.
Total Net book value at January 1, 2015 - - - 19 19 Change in FX - - - -
Change in scope of consolidation - - - - - Net book value at December 31, 2015 - - - 40
In EUR million Equity securities Debt securities Loans and receivables Derivative instruments
Income and expense recognized in statement of income - - - (40)
- Change in fair value through OCI - - - -
Real estate currently held by the Group is classified as investment property when it is held to earn rental income, or capital appreciation or both. Properties 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 Land Indefinite (not depreciated) Buildings Building structure and exterior 30 – 80 years Insulation 30 years Technical installations 20 years Fixtures and fittings 10 – 15 years
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.
In 2015, additions to real estate investments relate to renovation work on existing buildings for EUR 29 million. SCOR sold one building, resulting in a gain on sale of EUR 2.4 million. The 2014 additions to real estate investments relate to renovation work on existing buildings for EUR 39 million and the acquisition of land for EUR 21 million. In 2014, SCOR sold three buildings, resulting in a gain on sales of EUR 15 million.
Net book value Net unrealized gains / (losses) Net book value Net unrealized gains / (losses) Government bonds & assimilated France 14,611 56 13,991 216 Equity securities 1,514 90 1,383 56 TOTAL AVAILABLE FOR SALE AND FAIR VALUE THROUGH INCOME
AAA 3,352 23% 2,832 20% AA 4,599 31% 5,703 41% A 3,387 23% 2,786 20% BBB 1,703 12% 1,438 10% <BBB 963 7% 910 7% Not Rated 607 4% 322 2% Total debt securities 14,611 100% 13,991 100%
Short-term investments are carried at fair value for EUR 408 million and EUR 93 million at December 31, 2015 and 2014, respectively. Other loans and receivables are carried at cost which approximates their fair value at December 31, 2015 and 2014.
 where the hybrid instrument is not assessed at fair value through the statement of income.
Derivative financial instruments include the following items: Derivative assets Derivatives liabilities
Amounts recorded in the statement of income include transaction costs that are expensed at inception as financing expense. The change in fair value through income as presented above is recognized as other operating expense or other operating income.
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. As part of the usual analysis of accounts processes these third party valuations are checked for reasonableness against internal models. The total notional amount relating to these swaps is EUR 320 million as at December 31, 2015 (December 31, 2014: EUR 286 million). Net interest paid under these swaps amounted to EUR 9 million in 2015 (2014: EUR 9 million).
In order to hedge the foreign exchange risk associated with certain debts issued in CHF (CHF 650 million issued in 2011, CHF 315 million issued in 2012, 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 August 2, 2016, June 8, 2018 and November 30, 2018 respectively.
Included in the forward sales contracts at December 31, 2015 and 2014 respectively is a forward sale contract which has been designated as a hedge of a net investment (see Note 13 – Information on Share Capital, capital management, regulatory framework and shareholders’ equity).
Amounts are recorded in the balance sheet representing the instrument asset recognized at fair value through income 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 7 – Insurance Business Investments).
4.6.10 NOTE 10 - ASSUMED AND CEDED INSURANCE AND REINSURANCE RECEIVABLES AND PAYABLES
A reinsurance asset is recognized to reflect the amount estimated to be recoverable under the reinsurance contracts in respect of the outstanding claims reported under reinsurance liabilities assumed. The amount recoverable from reinsurers is initially valued on the same basis as the underlying claims provision except in the case of non-proportional retrocession whether by risk or by event, where it is SCOR’s policy to only recognize case or IBNR recoveries upon confirmation of the occurrence of a loss booked which triggers the retrocession contract.
Cash and cash equivalents comprise cash, net bank balances and short-term deposits or investments with a maturity less than three months at the date of purchase or deposit. Money market funds are also classified as cash equivalent, though only to the extent that the fund invested assets qualify as cash equivalents, or there are strict fund management policies and limits that allow the funds to qualify as cash equivalent.
The Group’s liquidity, defined as cash, cash equivalent, bank overdrafts and short-term government bonds with maturities above three months and below twelve months, which is well diversified across a limited number of banks, amounts to EUR 2,034 million as at December 31, 2015 (December 31, 2014: EUR 940 million).
Tax cash outflow during the year was EUR 190 million (2014: outflow of EUR 275 million and 2013: outflow of EUR 163 million). 2014 outflow included exceptional tax payments of EUR (144) million resulting mainly from an expected onetime payment in respect of the Generali U.S. acquisition.
4.6.13 NOTE 13 - INFORMATION ON SHARE CAPITAL, CAPITAL MANAGEMENT, REGULATORY FRAMEWORK AND SHAREHOLDERS’ EQUITY
A breakdown of the movements in the various reserves is provided in Section 4.5 – Consolidated statements of changes in shareholders’ equity.
Incremental external costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax from the proceeds of the issue in the line “additional paid-in capital”.
The caption “equity-based instrument” is used to offset the cost of services received in exchange for the granting of shares, stock-options or for employee stock purchase plans. As the instruments granted are subordinated to the fulfillment of a vesting period by the employee, the increase in equity is firstly recognized at the grant date in the line “equity based instrument”. Once the free-shares are fully vested, the shares are recognized as ordinary shares in the lines “share capital” and “additional paid-in capital”.
Dividends declared on ordinary shares are recognized as a liability when such dividends have been approved by shareholders at the relevant Annual General Meeting.
The authorized share capital of the Company at December 31, 2015 was 192,653,095 shares with a nominal value of EUR 7.8769723 each compared with authorized share capital of 192,691,479 shares with a nominal value of EUR 7.8769723 at the end of 2014 and with authorized share capital of 192,757,911 shares with a nominal value of EUR 7.8769723 at the end of 2013.
As at December 31 192,653,095 192,691,479 192,757,911 Nominal price per share in EUR 7.8769723 7.8769723 7.8769723 Share capital in EUR 1,517,523,093 1,517,825,443 1,518,348,726
In 2013, the movements were due to the following operations:  The Board of Directors held on April 25, 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).
 The issuances of shares relate to the exercise of stock options for EUR 12 million (EUR 6 million in share capital and EUR 6 million in additional paid-in capital). This resulted in the creation of 711,022 new shares throughout the year.
In 2015, the movements are due to the following operations:  The Board of Directors held on April 30, 2015 decided to reduce the Group capital by cancellation of 1,260,227 treasury shares for EUR (24) million (EUR (10) million in share capital and EUR (14) million in additional paid-in capital).
 The issuances of shares relate to the exercise of stock options for EUR 21 million (EUR 10 million in share capital and EUR 11 million in additional paid-in capital). This resulted in the creation of 1,221,843 new shares throughout the year.
SCOR’s Combined General Meeting of May 6, 2014 resolved to distribute, for the 2013 fiscal year, a dividend of one euro and thirty cents (EUR 1.30) per share, being an aggregate amount of dividend paid of EUR 243 million, calculated on the basis of the number of shares eligible for dividend as at the payment date. The ex-dividend date was May 12, 2014 and the dividend was paid on May 15, 2014.
As at December 31, 2015 As at December 31, 2014 In EUR million Book value Book value
The Group’s capital management policy is to optimize the utilization of its capital and debt structure in order to maximize the short-term and long-term profitability to shareholders while at the same time providing its customers with an adequate level of security as measured by internal capital allocation models, rating agencies and national regulators. The realization of the capital management policy objectives is ensured through an integrated supervision of regulatory constraints at Group level, annual strategic and financial planning process and regular updates of forecasts. The capital management process is ultimately subject to approval by the Board after a formal presentation to its audit committee. The Group’s Board and Executive Committee regularly review the Group’s risk profile to ensure that its risk appetite remains aligned with the Group’s strategy.
The objective of the Group’s overall capital management process is the setting of target risk adjusted rates of return for divisions, which are aligned to performance objectives and to promote the creation of value to shareholders. In this regard, and in line with its Group’s strategic plan “Optimal Dynamics” which is in effect from mid-2013 to mid2016, the Group aims to achieve the following two specific targets:  A ROE of 1 000 basis point above the three-month risk-free rate over the cycle;  A solvency ratio (1) in the 185-220% range (according to the Group Internal Model).
The Group also holds a solvency buffer (or buffer capital) in addition to the solvency capital required to support the retained (after retrocession) risk profile. The aim of this extra economic capital is to absorb a significant amount of the
volatility inherent to the reinsurance business, thereby limiting the frequency of turning to the market to maintain the Group’s available capital above the required solvency capital.
UBS is committed to subscribing to the new shares but does not intend to become a long-term shareholder of SCOR and will resell the shares by way of private placements and / or sales on the open market. In this respect SCOR and UBS have entered into a profit sharing arrangement whereby 50% of the gain, if any, will be retroceded to SCOR. If the resale of the new shares occurs immediately upon exercise through an off-market transaction, the profit share ratio owed to SCOR will be paid in the form of SCOR shares in order to limit the dilutive impact of the transaction for SCOR’s shareholders.
Regulators are primarily interested in protecting the interests of policyholders. They ensure that the Group maintains an appropriate solvency position to meet unforeseen liabilities arising from economic shocks or natural disasters. The Group is subject to regulatory requirements in each of the jurisdictions in which it conducts business, particularly in France, Ireland, Switzerland, the UK, the US, Canada, Singapore, Hong Kong, Australia and China. Regulatory agencies have broad supervisory and administrative powers over many aspects of the insurance and reinsurance industries.
Such regulations not only prescribe approval and monitoring of activities, but also impose obligations related to maintaining a certain 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 and aims to achieve full compliance in respect of all regulatory and solvency requirements in the countries in which it operates. 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 November 16, 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 calculates its solvency based on consolidated IFRS financial statements adjusted to be consistent with French Generally Accepted Accounting Principles (GAAP) requirements. This was first performed by the Group in 2008 and subsequently an update was performed each year at year end. The results of these assessments confirm that the Group meets the requirements of the “Solvency I” directive in 2015. The results for the year end 2015 are not currently available since the Group performs such assessments to coincide with statutory filing requirements which fall due after the publication of this document. From January 1, 2016 onwards, the Reinsurance Directive is repealed and superseded by the Solvency 2 Directive (see Section 1.3.7 - Solvency). On November 20, 2015 SCOR was officially notified by the Autorité de Contrôle Prudentiel et de Résolution (ACPR) of the approval of the Group’s internal model.
These items comprise various subordinated or unsubordinated bonds issued by the Group. These loans are classified as financial debts, in accordance with IAS 32 - Financial Instruments: Presentation.
The following table sets out an overview of the debt issued by the Group: As at December 31, 2015 As at December 31, 2014
SCOR’s subordinated debt is classified as liabilities as under the terms and conditions of the issuance contracts, SCOR does not have an unconditional right to avoid delivering cash to settle contractual obligations and based on projected cash flow there is no equity component of the instruments.
A 30-year subordinated note totaling USD 100 million was issued in 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 3month Libor rate plus (i) 0.80% for the first ten years and (ii) 1.80% thereafter. The Group decided not to redeem the USD 100 million of subordinated floating rate notes due 2029 at their first call date in June 2009.
On May 11, 2011, SCOR reopened its existing CHF perpetual subordinated notes placement by issuing an additional amount of CHF 225 million. The placement was increased to CHF 250 million at the settlement date of June 3, 2011, given the market appetite. The notes are fungible to those issued on February 2, 2011. The conditions and the accounting treatment are similar to the first placement. SCOR has entered into a cross-currency swap which exchanges the principal of the second tranche into EUR and exchanges the CHF coupon on the notes to EUR 6.925% and matures on August 2, 2016. Refer to Note 9 – Derivative Instruments.
On September 30, 2013, SCOR issued CHF 250 million perpetual subordinated notes, redeemable by SCOR each quarter as at payment of interest dates from November 30, 2018. The coupon has been set to 5.00% until November 30, 2018 and 3-month CHF LIBOR plus a margin of 4.0992% thereafter.
On June 5, 2015, SCOR issued EUR 250 million dated subordinated notes on the Luxembourg Euro market, redeemable by SCOR at each interest payment date, from June 5, 2027. The coupon has been set to 3.25% (until June 5, 2027, the first call date), and resets every 10 years at the prevailing 10-year EUR mid-swap rate +3.20% (until June 5, 2047, final redemption date).
Real estate financing relates to the acquisition of investment properties through property-related bank loans of EUR 534 million (EUR 469 million as at December 31, 2014), including real estate financing related to MRM S.A. properties for EUR 112 million (EUR 132 million as at December 31, 2014). The main property related bank loan amounts to EUR 163 million and is used to finance the Group’s head-office in Paris, avenue 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 9 – Derivative instruments). The other property-related bank loans bear fix interests or interests indexed to the three - months Euribor covered by interest rate swaps and redeemable between 2016 and 2025. They are used to finance other buildings owned by the Group.
In EUR million 2015 2014 2013 Interest on subordinated debt (7) (3) (3) Interest on perpetual subordinated debt
The maturity profile of financial debt is included in Note 3.2.5 – Liquidity risk.
Reserves for post employment benefits Other reserves Total At January 1, 2014 118 147 265 Acquisition of a subsidiary - - - Current year provision 1 (5) (4) Used reserves (15) (9) (24) Reversal of unused reserves - - - Foreign exchange rate movements 2 15 17 Adjusted discount rate 43 - 43 At December 31, 2014 149 148 297 Acquisition of a subsidiary - - - Current year provision 15 2 17 Used reserves (13) (32) (45) Reversal of unused reserves - - - Foreign exchange rate movements 7 17 24 Adjusted discount rate 7 - 7 At December 31, 2015 165 135 300
At December 31, 2015, the other reserves comprise EUR 121 million additional reserves covering liabilities related to the Generali U.S. acquisition in 2013 (2014: EUR 132 million). At December 31, 2015, the other reserves include provisions related to litigation of EUR 9 million (2014: EUR 8 million).
 socio-economic factors such as policyholder behavior. Reinsurance reserves are presented gross excluding shares retroceded to SCOR’s reinsurers and measured on the level of individual reinsurance contracts or homogeneous segments of contracts. Retroceded reserves are estimated under the same methods and assumptions and are presented as assets.
In determining the amount of its reserves, the Group generally uses actuarial techniques that take into account quantitative loss experience data, together with qualitative factors, where appropriate. The reserves are also adjusted to reflect the volume of business underwritten, reinsurance treaty terms and conditions, and diversity in claims processing that may potentially affect the Group’s commitment over time. However, it is difficult to accurately value the amount of reserves required, especially in view of changes in the legal environment, including civil liability law, which may impact the development of reserves. While this process is complicated and subjective for the ceding companies, the inherent uncertainties in these estimates are even greater for the reinsurer, primarily because of the longer time period between the date of an occurrence and the request for payment of the claim to the reinsurer, the diversity of contract development schemes, whether treaty or facultative, dependence on the ceding companies for information regarding claims, and differing reserve practices among ceding companies. In addition, trends that have affected development of liabilities in the past may not necessarily occur or affect liability development to the same degree in the future. Thus, actual losses and policy benefits may deviate, perhaps significantly, from estimates of reserves reflected in the Group’s consolidated financial statements. 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), and are calculated on the basis of their ultimate cost, undiscounted, except for workers’ compensation claims which are discounted in the US.
Assets and liabilities relating to reinsurance contracts are subject each year to a liability adequacy test under IFRS 4.
Embedded derivatives in reinsurance contracts that meet the definition of an insurance contract and are closely linked with the features and risks of the reinsurance host contract are not separated and measured in accordance with the reinsurance host contract. Derivatives embedded in reinsurance contracts that do not meet the definition of an insurance contract are separated, measured at fair value in accordance with IAS 39, with changes in their fair value recognized in profit or loss.
P&C Total Gross contract liabilities Gross claim reserves 4,896 11,750 16,646 4,428 11,088 15,516 Mathematical reserves 8,763 - 8,763 8,165 - 8,165 Unearned premium reserves 85 2,239 2,324 101 1,938 2,039 Total gross insurance contract liabilities 13,744 13,989 27,733 12,694 13,026 25,720 Reserves for financial contracts - 106 106 - 119 119 Total gross contract liabilities 13,744 14,095 27,839 12,694 13,145 25,839 Reinsurance recoverable Ceded claims reserves & claims expense reserves (346) (634) (980) (380) (619) (999) Ceded mathematical reserves (88) - (88) (52) - (52) Ceded unearned premium reserves (3) (187) (190) (2) (142) (144) Ceded contract liabilities (437) (821) (1,258) (434) (761) (1,195) NET CONTRACT LIABILITIES 13,307 13,274 26,581 12,260 12,384 24,644
Contract liabilities are subject to the use of estimates. Payments linked to these reserves are not usually fixed, neither by amount nor by due date. Liquidity information related to contract liabilities is included in section 3.2.5 - Liquidity Risks.
An aging analysis of reinsurance assets is also included in section 3.2.4 – Counterparty Default Risks.
The “cumulative redundancy / deficiency” line represents the cumulative change in estimates since the initial reserve was established. It is equal to the latest incurred claim amount less the initial reserve. The amounts in this line in the loss development tables are not a precise indication of the adequacy of the initial reserves that appear on the first and third line of the table. Trends and conditions that have affected development of liabilities in the past may not be indicative of future developments. Accordingly, it may not be appropriate to extrapolate future redundancies or deficiencies based on these tables.
A significant portion of SCOR Global P&C reserves relates to liabilities payable in currencies other than EUR. The fluctuations of the euro to those currencies are embedded in the data in the below table.
The following tables present the consolidated ten-year loss development of 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.
1 year later 2 years later 3 years later 4 years later 5 years later 6 years later 7 years later 8 years later 9 years later 10 years later
Gross cumulative inception to date incurred losses as at December 31, 2015
(1) The table includes balance sheet reserves for Converium for years from 2007 onwards only. Figures for 2007 reflect the completion of the initial accounting of the business combination with Converium
(2) At period end exchange rates (3) At average exchange rates (4) Includes net cumulative payments for all underwriting years as at each balance sheet date
The table below is a reconciliation of the beginning and ending liability for claims reserves and claims expenses of SCOR Global P&C for the years ended December 31, 2015 and 2014.
(1) Does not include claims which result in no ultimate cost and claims notified only for precautionary reasons for which the amount is not evaluated 4.6.16.2 SCOR GLOBAL LIFE
The change in Life mathematical reserves for the years ended December 31, 2015 and 2014 was as follows: In EUR million 2015 2014 Gross mathematical reserves as at January 1 8,165 7,834 Change in scope of consolidation - - Change in reserves from portfolio movements and actuarial calculation 188 43 Impact of foreign exchange movements 410 288 Gross mathematical reserves as at December 31 8,763 8,165 Reinsurance Recoverable - - Ceded mathematical reserves as at January 1 (52) (106) Change in scope of consolidation - - Change in reserves from portfolio movements and actuarial calculation (58) 39 Impact of foreign exchange movements 22 15 Ceded mathematical reserves as at December 31 (88) (52) NET MATHEMATICAL RESERVES AS AT JANUARY 1 8,113 7,728 NET MATHEMATICAL RESERVES AS AT DECEMBER 31 8,675 8,113
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 December 31, 2015 and 2014 is as follows: In EUR million
(81) (1) To limit credit risk related to retrocessionaires, certain unrated retrocessionaires are obliged to pledge assets to the value of their maximum potential contract liability, even though the actual retrocessionaire liability to SCOR recorded in the balance sheet is lower (2) The total collateral from retrocessionaires is related to the contract liabilities recorded in the balance sheet and also to potential losses that have not yet occurred 4.6.17 NOTE 17 - PROVISIONS FOR EMPLOYEE BENEFITS
For defined contribution plans the employer pays fixed contributions into a separate entity, with no legal or constructive obligation to pay further contributions. As a result, only contributions paid or due for the financial year are charged to the Group’s statement of income as administrative expenses. The payments made by the Group are expensed during the period in which the expense was incurred. 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, taking into consideration actuarial assumptions, salary increase, retirement age, mortality, turnover and discount rates. Assumptions defined are based on the macroeconomic environment of each country in which the Group operates. Modifications to actuarial assumptions or differences between these assumptions and actual amounts give rise to actuarial differences which are recorded in other comprehensive income during the period in which they occur, in accordance with Group accounting principles. 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.
The amounts paid under defined contribution plans were EUR 29 million, EUR 20 million, and EUR 19 million for the years ended December 31, 2015, 2014, and 2013 respectively.
The defined benefit pension plans and other long-term benefits relate mainly to Switzerland, North America, France and Germany. These locations represent 40%, 28%, 16% and 11% respectively, as at December 31, 2015, (36%, 28%, 18% and 13%, respectively, as at December 31, 2014), of the Group’s obligation under defined benefit plans. These plans are mostly pre-financed via payments to external organizations which are separate legal entities.
Discount rate SCOR plans: 5.07% 4.55% 2.36% 4.90% 3.24% Generali U.S.: 5.42%
An increase in the discount rate of 0.25% would result in a decrease in the estimated defined benefit obligation of EUR 14 million (2014: EUR 13 million) with the offsetting impact recorded in other comprehensive income. A decrease in the discount rate of 0.25% would result in an increase in the estimated defined benefit obligation of EUR 12 million (2014: EUR 13 million) with the offsetting impact recorded in other comprehensive income.
The average duration of plans by geographic area is disclosed in the table below: Euro Zone Switzerland US UK Canada Global Duration as at December 31, 2015 9 years 19 years 13 years 30 years 9 years 15 years Duration as at December 31, 2014 11 years 18 years 13 years 30 years 9 years 15 years
Service cost, net of plan amendments 11 5 6 - (3) 1 (1) (3) 10 4 6 - Interest cost on obligation 10 3 2 5 10 3 3 4 7 3 2 2 Interest income on plan assets (6) (1) (2) (3) (7) (1) (3) (3) (4) - (2) (2) Amortization of actuarial gains and losses through profit and loss for other long term benefits - - - - 1 1 - - 1 1 - - Administration expenses recognized in pension expense - - - - - - - - 1 - - 1 Settlement - - - - - - - - - - - - Total pension cost 15 7 6 2 1 4 (1) (2) 15 8 6 1
The actual returns on plan assets were EUR 6 million for the year ended December 31, 2015 (2014: EUR 13 million and 2013: EUR 10 million).
Effect of foreign exchange 408 130 165 113 358 128 130 100 296 102 115 79 RECONCILIATION OF FAIR VALUE OF PLAN ASSETS
Fair value of assets as at January 1 209 27 111 71 179 25 97 57 145 23 89 33 Interest income on plan assets
(10) (6) - (4) (10) (2) (4) (4) (8) (3) (3) (2) Asset gains / (losses) due to experience
Accrued / (prepaid) 165 101 28 36 149 101 19 29 118 78 18 22 Analysis of funded status
165 101 28 36 149 101 19 29 117 77 18 22 (1) In 2014, plan amendment to the defined benefit plan in Switzerland (reduction in the conversion rate, increase in the normal retirement age from 62 to 64 years and 1% increase in retirement credits), U.S. (plans frozen or terminated) and France (termination of the “congés de fin de carrière” on January 1, 2017 and termination of the “médailles du travail” as at July 14, 2019. In addition, implementation of a temporary scheme called “compte senior” during the second quarter of 2014)
(2) In 2013, acquisition / divestiture includes pension plans from the acquisition of Generali U.S. (3) Actuarial (gains)/losses due to change in assumptions include for 2015 actuarial (gains) / losses due to change in financial assumptions for EUR (4) million
million Europe Switzerland North America 2015 Equities 85 42% 26% 49% Government bonds 5 - - 6% Corporate bonds 116 13% 58% 44% Property 22 - 16% - Insurance contracts 12 41% - - Other 3 4% - 1% TOTAL 243 100% 100% 100% 2014 Equities 82 41% 25% 61% Government bonds 3 11% - - Corporate bonds 88 - 58% 33% Property 18 - 16% - Insurance contracts 13 48% - - Other 5 - 1% 6% TOTAL 209 100% 100% 100%
The Group has established various free share and stock option plans for the benefit of some of its employees (the plans are equity settled only). The terms of these awards are defined and approved by its Board of Directors at the grant date. The total expense for the 2015 relating to share based payment is EUR 45 million (2014: EUR 33 million), with EUR 2 million (2014: EUR 2 million) relating to share options granted from 2012 to 2015 plans (2014: 2010 to 2014) and EUR 43 million (2014: EUR 31 million) relating to free shares granted from 2011 to 2015 plans (2014: 2011 to 2014). The share-based payment plans are described below. There have been no cancellations or modifications to any of the plans during 2015.
The Group grants its employees options or share subscription plans under the following terms: Plan Date of award by the
Board Options exercisable on Date of expiration of plan Exercise price in EUR
The stock options can be exercised after four years regardless of whether the employee is still actively employed by the Group. The terms and conditions of the stock options plans of March 20, 2015 and of December 18, 2015, which are similar to those previously granted by SCOR (notably with regards to the presence condition), provide that the options allocated to Partners can be exercised at the earliest four years after the grant date, if the presence condition is met in addition to the satisfaction of certain performance conditions.
Average exercise price in EUR per share Outstanding options at January 1 7,234,382 19.07 7,324,168 18.23 Options granted during the period 712,131 30.36 703,875 25.05 Options exercised during the period 1,221,843 17.10 711,022 16.52 Options expired during the period 1,566 15.90 6,911 10.90 Options forfeited during the period 224,978 22.24 75,728 18.23
The Group also awards free shares to its employees under the following terms: Date of grant Date of vesting Number of shares originally granted Estimated price on grant date March 7, 2011 March 8, 2013 663,480 EUR 21.06 March 7, 2011 March 8, 2015 687,060 EUR 21.06 September 1, 2011 September 2, 2013 15,800 EUR 16.68 September 1, 2011 September 2, 2015 320,850 EUR 16.68 September 1, 2011 (LTIP) September 2, 2017 415,500 EUR 16.68 September 1, 2011 (LTIP) September 2, 2019 297,500 EUR 16.68 December 12, 2011 December 13, 2013 51,340 EUR 17.44 December 12, 2011 December 13, 2015 108,480 EUR 17.44 March 19, 2012 March 20, 2014 464,600 EUR 20.49 March 19, 2012 March 20, 2016 1,226,340 EUR 20.49 May 3, 2012 May 4, 2014 125,000 EUR 19.82 July 26, 2012 July 27, 2014 3,180 EUR 19.27 July 26, 2012 (LTIP) July 27, 2018 57,500 EUR 19.27 July 26, 2012 (LTIP) July 27, 2020 51,000 EUR 19.27 October 30, 2012 October 31, 2014 74,400 EUR 20.33 October 30, 2012 October 31, 2016 24,000 EUR 20.33 March 5, 2013 March 6, 2015 528,800 EUR 22.22 March 5, 2013 March 6, 2017 878,450 EUR 22.22 March 5, 2013 (LTIP) March 6, 2019 85,500 EUR 22.22 March 5, 2013 (LTIP) March 6, 2021 232,500 EUR 22.22 October 2, 2013 October 3, 2017 304,300 EUR 24.66 November 5, 2013 November 5, 2015 61,200 EUR 25.64
The terms and conditions of the performance share plans of March 4, 2015 (except Long Term Incentive Plan - LTIP), similar to those usually granted by SCOR (notably with regards to the presence conditions for the first two years) provide that after the vesting period of two 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 four years for beneficiaries not tax resident in France, the final acquisition of these shares will be subject to the condition of presence of two years and to the satisfaction of performance conditions.
The terms and conditions of the performance share “LTIP” plan of March 4, 2015, provide that after the vesting period of six 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 eight years for beneficiaries not tax resident in France, the final acquisition of these shares will be subject to the condition of presence of six years for each beneficiary and to the satisfaction of performance conditions.
The terms and conditions of the performance share plans of December 18, 2015, provide that after the vesting period of three years for all beneficiaries, the final acquisition of these shares will be subject to the condition of presence of three years and to the satisfaction of performance conditions.
French residents 20.47 20.85 9.94 20.05 21.64 - Non-French residents 20.47 18.71 8.25 17.98 19.42 18.68
Deferred taxes are not provided in respect of temporary differences arising from the initial recognition of goodwill, or from goodwill for which amortization is not deductible for tax purposes, or from the initial recognition of an asset or liability in a transaction which is not a business combination and affects neither accounting profit nor taxable profit or loss at the time of the transaction. 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
INCOME TAX (EXPENSE) / BENEFIT REPORTED IN EQUITY 13 (31) 9 4.6.19.2 RECONCILIATION OF EXPECTED TO ACTUAL CORPORATE INCOME TAX EXPENSE
Further to the 2014 Finance Bill which triggered an increase of the exceptional contribution on income tax (“contribution exceptionnelle sur l’impôt sur les sociétés”) which had led the overall French income tax rate to increase from 36.10% to 38.00% and which was applicable in 2013 and 2014, a new finance bill passed in 2015 extended the application of this surcharge for one additional year. As a result, the income tax rate of 38.00% is applicable for fiscal years 2013 to 2015
and will be 34.43% again from fiscal year 2016 onwards. This temporary tax rate change is not expected to have a material impact on the net deferred tax assets of the French tax group and, consequently, it has not been taken into account for the measurement of deferred taxes.
2013 included the recognition of tax-exempt gains from bargain purchase for the acquisitions of Generali U.S. and MRM S.A. of EUR 69 million and EUR 10 million respectively.
Corporate income taxes from prior years are mainly due to the finalization of corporate income tax returns. The standard tax rates for the primary locations in which the Group has operations are as follows: 2015 2014 2013 France 38.00% 38.00% 38.00% Switzerland 21.15% 21.15% 21.15% Germany 32.45% 32.45% 32.45% Ireland 12.50% 12.50% 12.50% United Kingdom 20.25% 21.50% 23.25% United States 35.00% 35.00% 35.00% Singapore 17.00% 17.00% 17.00%
/ benefit Net of tax amount Remeasurements of postemployment benefits (7) 2 (5) (43) 7 (36) 9 (3) 6 Items that will not be reclassified subsequently to profit or loss (7) 2 (5) (43) 7 (36) 9 (3) 6 Effects of changes in foreign exchange rates 316 8 324 361 7 368 (163) (2) (165) Revaluation of assets available for sale (112) 23 (89) 236 (56) 180 (89) 24 (65) Shadow accounting 34 (8) 26 (36) 9 (27) 29 (9) 20 Net gains / (losses) on cash flow hedges 35 (12) 23 (8) 2 (6) 8 (1) 7 Other changes 3 - 3 3 - 3 (19) - (19) Items that will be reclassified subsequently to profit or loss 276 11 287 556 (38) 518 (234) 12 (222) TOTAL 269 13 282 513 (31) 482 (225) 9 (216)
As at December 31, 2015, the operating tax losses available for carry-forward expire as follows: In EUR million Available tax losses carried forward
The tables below show the analysis by type of investment income and split by category of financial assets: 4.6.20.1 ANALYSIS BY TYPE
Interest income on funds withheld and contract deposit 196 193 191
Interest expense on funds withheld and contract deposit (12) (13) (15)
Other (including cash and cash equivalents), net of other investment expenses (215) (15) 35 4.6.21 NOTE 21 – NET RESULTS OF RETROCESSION
The increase of the net results of retrocession in SCOR Global Life is mainly driven by in-force optimization actions as well as claims and lapse experience in 2015.
In accordance with IAS 1 - Presentation of financial statements, the Group has opted to present expenses by function in the statement of income. The costs are allocated to four categories (acquisition and administrative expenses, claims settlement expenses, investment management expenses and other current operating expenses) based on allocation keys which are determined by management’s judgment.
Other operating and administrative expenses include expenses incurred by the Group, excluding gross commissions, as follows: In EUR million
These expenses are further allocated into categories by function as follows: In EUR million
776 650 599 (1) Operating and administrative expenses include Generali U.S. costs from October 2013 onwards
The Group audit fees for services rendered during the year follow a quarterly process of review and approval by the Audit Committee. All such audit fees presented in the table below have been approved in full by the Audit Committee.
Fully consolidated subsidiaries 804 669 13% 11% 114 73 3% 2% 918 742 10% 8% Other (3) 353 191 6% 3% 6 11 - - 359 202 4% 2% Legal, tax, social security
5,916 5,922 100% 100% 3,606 3,458 100% 100% 9,522 9,380 100% 100% (1) Statutory audit and certification of local and consolidated financial statements (2) Other specific audit assignment related to statutory audit. Additional audit fees incurred were due mainly to missions related to software development, review of actuarial disclosures as well as to mandatory diligence in conjunction with debts issued during the year (3) Other services, rendered by the Auditors to the fully-consolidated companies and due diligence
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 Group and held as treasury shares. For the calculation of diluted earnings per share, the weighted average number of outstanding shares is adjusted to assume conversion of all stock-options and share award plans.
The Group has several business relationships with related parties. Transactions with such parties are made in the ordinary course of business and on substantially the same terms and conditions including interest rates and collateral as those prevailing at the same time for comparable transactions with other parties.
2015 2014 2013 Fixed cash compensation 5,856,849 4,857,600 5,018,427 Variable cash compensation
Total compensation and benefits 25,668,706 18,722,818 19,637,306 (1) It should be noted that the figures stated above do not represent paid compensation but correspond to actuarial estimates in line with AFEP/MEDEF Code for the allocation of free shares and subscription options made during the reference period. The value is calculated according to the same assumptions as those used for the Group accounts (IFRS 2 standard)
(2) The total commitment of the Group for defined benefit retirement plans defined in France, Germany, United States and Switzerland for the Executive Committee members (including the Chairman and Chief Executive Officer) amounts to EUR 49 million as at December 31, 2015 (EUR 47 million as at December 31, 2014 and EUR 38 million as at December 31, 2013), i.e. 12% of the total commitment of the Group for pension plans of EUR 408 million. This amount takes into account the suppression of the additional tax of 45% for beneficiaries in France when pension annuities are above 8 annual social security ceilings
All of the following paragraphs form an integral part of the Group consolidated financial statements. They are disclosed in Section 3 – Risk factors.
Please refer to Sections 3.2.5 – Liquidity risks and 3.3.5 – Management of liquidity risks.
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. On December 21, 2009 SCOR filed an appeal to the sanctioning decision before the Administrative Chamber of the National Audience (Audiencia Nacional, or the "AN").
On December 28, 2012, the AN issued its judgment on the appeal, annulling the decision of the CNC. The AN accepted SCOR's grounds and declared that the company had not infringed the Competition Act. Consequently, the economic sanction imposed on SCOR by the CNC was annulled.
Litigation matters give rise to an accrual when they meet the recognition requirements of a provision under IAS 37 provision, contingent liabilities and contingent assets. See note 15 – Contingency Reserves for the detail of accruals booked. In certain instances, in accordance with IAS 37.92, some required information, in particular the amount of accruals, is not disclosed as they are expected to prejudice seriously the position of SCOR in a dispute with other parties.
4.7 Information on holdings The holdings held directly by SCOR SE are detailed in the following sections:  Section 1.2.3 – Organizational Structure of SCOR group;  Appendix C – Unconsolidated corporate financial statements of SCOR SE, Note 8.5.2 – Investments – Subsidiaries and affiliates.
On the date of the Shareholders’ Meeting called to approve the financial statements of the financial year ending December 31, 2019 4.8.2 ALTERNATIVE AUDITORS
On the date of the Shareholders’ Meeting called to approve the financial statements of the financial year ending December 31, 2019
On the date of the Shareholders’ Meeting called to approve the financial statements of the financial year ending 4.8.3 RESIGNATION OR NON-RENEWAL OF AUDITORS
 The report from the Statutory Auditors on the consolidated financial statements for the financial year ending December 31, 2013 published from pages 305 to 307 of the Registration Document filed with the Autorité des marchés financiers on March 5, 2014 under Number D.14-0117 (and from pages 297 to 299 of the free translation into English of such Registration Document, such translation being available on SCOR’s website www.scor.com).
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, 2015 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.
 Notes 7 and 9 to the consolidated financial statements describe the principles and methods used to estimate the valuation and impairment of investments and derivative instruments.
 Note 5 to the consolidated financial statements describes the principles and methods used to assess the valuation of goodwill, the value of business acquired attached to the Life reinsurance portfolios and the value of the other intangible assets. This note described the methods used to carry out the related annual impairment tests.
We have examined the approaches used in the amortization policies and in the impairment tests, the cash flow forecasts and the consistency of the assumptions used in this framework. We have verified that the information described in note 5 to the consolidated financial statements is appropriate.
 Note 19 to the consolidated financial statements describes the principles and methods used to perform the valuation of deferred tax assets as well as the deferred tax assets impairment test.
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.
Notes 1, 2 and 3 in appendix D of this registration document relate to the social and environmental impacts of SCOR's activities and the Group's social commitments. The information published in these paragraphs has been reviewed by one of the statutory auditors whose report is presented in appendix D.
5.1.2 SUMMARY OF THE BYLAWS AND INTERNAL REGULATIONS OF THE COMPANY CONCERNING THE MEMBERS OF ITS ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES
French corporate law and the Company’s bylaws provide for prior approval and control of transactions entered into between, directly or indirectly, the Company and one of its Directors, Chief Executive Officer (Directeur Général), Chief Operating 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 (i) the transaction is entered into in the ordinary course of business and under normal terms and conditions. Article L. 225-38 of the French commercial Code,and/or (ii) those agreement concluded between two companies where one of these holds, directly or indirectly, all of the capital of the other, where applicable, minus the minimum number of shares required to fulfil the requirements of article 1832 of the Civil Code or articles L. 225-1 and L. 226-1 of the Commercial Code, pursuant to the provisions set forth under article L.225-39 of the Commercial Code. Article L. 225-38 of the French Commercial Code, as amended by the ordinance (ordonnance) no. 2014-863 of July 31, 2014, now also provides that the prior approval of the Board of Directors must be justified by the transaction interest for the Company, in particular by specifying the financial conditions related thereto. The interested party has the obligation to inform the Board of Directors as soon as it is aware of the existence of the related party transaction, and a majority of the disinterested Directors must approve the transaction in order to validly enforce the transaction. If a related party transaction is pre-approved by the majority of the disinterested Directors, the Chairman must then report the authorized transaction to the statutory auditors within one month following the entering into of this transaction. The auditors must then prepare a special report on the transaction to be submitted to the shareholders at their next General Meeting, during which the shareholders would consider the transaction for ratification (any interested shareholder would be excluded from voting). If the transaction is not ratified by the shareholders, such absence of ratification would normally and except in the case of fraud have no impact on the validity of the transaction, but the
5.1.3 RIGHTS, PRIVILEGES AND RESTRICTIONS ATTACHED TO EXISTING SHARES VOTING RIGHTS
As of the date of this Registration Document, the voting right attached to shares is proportional to the portion of share capital they represent. During a period of two years from the reverse stock-split of the Company’s shares implemented on January 3, 2007, any old share gave the right to one vote and any new share to ten votes, so that the number of votes attached to the shares shall remain proportional to the portion of share capital they represent. The remaining old shares have been cancelled on January 3, 2009 and since then subject to applicable laws, all the shares of the Company give right to one voting right.
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 Company, pursuant to the seventeenth resolution of the Ordinary and Extraordinary Shareholders’ Meeting of May 16, 2006, shares which have been subject to the reverse split shall be entitled to an amount ten times greater than the amount to which shares which have not been subject to the reverse split shall be entitled.
The Shareholders’ Meeting may distribute all or part of the discretionary reserves in the form of a full or partial dividend or as an exceptional distribution. In this case, the resolution shall expressly indicate the sums to be deducted from each reserve.
Dividends are distributable to shareholders pro rata their respective holdings of Ordinary Shares. Dividends are payable to holders of Ordinary Shares outstanding on the date of the Shareholders’ Meeting approving the distribution of dividends or, in the case of interim dividends, on the date of the meeting of the Board of Directors approving the distribution of interim dividends. The actual dividend payment date and the modalities of such payment are determined by the Shareholders’ Meeting approving the declaration of the dividends or by the Board of Directors in case of distribution of interim dividends. 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 dividend or interim dividend in the form of Ordinary Shares. The determination of the portion, if any, of the annual dividend that each shareholder will have the option to receive in Ordinary Shares is also made at the Ordinary General Meeting of Shareholders following a recommendation by the Board of Directors.
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. 225208 of the French commercial Code);  Redemption in the context of a share buyback program (article L. 225-209 of the French commercial Code).
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.
Extraordinary General Meetings of shareholders are required for approval of matters such as amendments to the Company’s bylaws (statuts), modification of shareholders’ rights, approval of mergers, increases or decreases in share capital, the creation of a new class of shares and the authorization of the issuance of securities giving access, by conversion, exchange or otherwise, to our capital. In particular, shareholder approval will be required for any and all mergers in which we are not the surviving entity or in which we are the surviving entity but in connection with which we are issuing a portion of our share capital to the shareholders of the acquired entity.
Special Meetings of Shareholders of a certain class of shares (such as shares with double voting rights or preferred shares) are required for any modification of the rights associated with such class of shares. The resolution of the Shareholders’ General Meeting affecting these rights is effective only after approval by the relevant Special Meeting.
One or several shareholder(s), holding at least a certain percentage of SCOR’s share capital (computed on the basis of a formula related to capitalization which on the basis of our outstanding share capital as at December 31, 2015, would
The presence in person (including those voting by correspondence) or by proxy of shareholders holding not less than one fifth (in the case of an Ordinary General Meeting or an Extraordinary General Meeting where an increase in our share capital is proposed through incorporation of reserves, profits or share premium) or one-fourth (in the case of any other Extraordinary General Meeting) of the Ordinary Shares entitled to vote is necessary for a quorum. If a quorum is not present at any meeting, then the meeting is adjourned. On a second call, there is no quorum requirement in the case of an Ordinary General Meeting or an Extraordinary General Meeting where an increase in the Company’s share capital is proposed through incorporation of reserves, profits or share premium and the presence in person (including those voting by correspondence) or by proxy of shareholders holding not less than one fifth of the Ordinary Shares entitled to vote is necessary for a quorum in the case of any other Extraordinary General Meeting.
At an Ordinary General Meeting, a simple majority of the votes cast is required to pass a resolution. At an Extraordinary General Meeting, a two-third majority of the votes cast is required, except for an Extraordinary General Meeting where an increase in our share capital is proposed through incorporation of reserves, profits or share premium, in which situation, a simple majority is sufficient. However, a unanimous vote is required to increase liabilities of shareholders.
The General Meeting’s decisions are taken by a majority (either a simple majority for Ordinary General Meetings or a two-thirds majority for Extraordinary General Meeting) of the votes validly cast. Abstention by those present in person or by correspondence or represented by proxy is not deemed a vote against the resolution submitted to a vote.
In addition to rights to certain information regarding SCOR SE, any shareholder may, between the convocation of the meeting and the date of the meeting, submit to the Board of Directors written questions relating to the agenda for the
meeting. The Board of Directors is required to respond to such questions during the meetings, subject to confidentiality concerns.
Meetings are held at corporate head offices, or elsewhere as indicated in the notice of meeting. All shareholders may attend the meetings, in person or through an agent, with proof of identity and of the ownership of shares, either in the form of registration in his name or a certificate from an authorized intermediary designated as account holder. Subject to the terms and conditions set forth by the legal and regulatory provisions in force, shareholders may send their proxy voting forms or remote voting forms concerning any Shareholders’ Meeting either in paper format or, if approved by the Board of Directors, by an electronic means of communication. For instructions issued by shareholders via electronic means including proxy instructions or for electronic remote voting forms, the capture and electronic signature of the shareholder may be carried out directly, if applicable, on the dedicated website set up by the Company, by any reliable identification process that safeguards the link between the signature and the form as determined by the Board of Directors and in accordance with the conditions defined by the legal and regulatory provisions in force.
The deadline for the return of remote voting forms and proxies shall be determined by the Board of Directors. Such deadline cannot be less than one day before the date of the Shareholders’ Meeting. However, if authorized by the Board of Directors, electronic remote voting forms and instructions given by electronic methods involving a proxy or a power of attorney may validly be received by the Company up until 3 p.m. (Paris time) on the day preceding the Shareholders’ Meeting. The Board of Directors of the Company may also determine that shareholders may participate in and vote at any Shareholders’ Meeting by videoconference or by any other mode of telecommunication permitting the identification and effective participation of the shareholders, under the conditions set forth by the legal and regulatory provisions in force.
 The company becomes or ceases to be a subsidiary of such person(s).
Pursuant to Article L. 322-4-1 of the French Code of insurance, the ACPR shall also inform the European Commission, the European insurance and occupational pensions authority and the supervisory authorities of the other Member States of any acquisition of a stake that may grant control of a reinsurance company to a company whose registered office is located in a State not party to the European Economic Area agreement.
Upon application by the proper authority of the EU, the ACPR may object during a three-month period to any acquisition of a stake liable to have the consequences referred to under the previous paragraph. The three-month time limit may be extended by the EU Council’s decision.
In addition to the above statutory requirements, the Company’s bylaws (statuts) provide that any natural person or legal entity, acting alone or in concert, which comes to hold or ceases to hold, either directly or indirectly, a fraction of the share capital or of the voting rights of the Company equal to or greater than 2.5%, or 5%, or 10%, or 15%, must inform us by registered letter, return receipt requested, addressed to the registered office, within five trading days of the date of the crossing of such threshold, of the total number of shares and/or of securities giving access to share capital held either directly or indirectly or in concert by such natural person or legal entity. The failure to comply with this requirement is sanctioned, upon request of one or more shareholders holding at least 2.5% of our share capital, noted in the minutes of the Shareholders’ Meeting, by the suspension of voting rights from all shares in excess of the non-declared fraction for any Shareholders’ Meeting that may take place during a period of two years following the date of the regularization of the notification. Regulations of the AMF generally require, subject to limited exemptions granted by the AMF, any individual or entity that acquires, alone or in concert with others, shares representing 30% or more than SCOR’s share capital or voting rights, to initiate a public tender offer for all remaining outstanding securities of the company (including, for these purposes, all Ordinary Shares and all securities convertible into or exchangeable for or otherwise giving access to equity securities).
5.1.8 CONDITIONS GOVERNING MODIFICATIONS TO THE SHARE CAPITAL (OTHER THAN LEGAL PROVISIONS)
For further detail please refer to Section 4.6 Notes to the consolidated financial statement, Note 13 - Information on share capital, capital management, regulatory framework and shareholders' equity and to Appendix C – 5 Note to the corporate financial statement, Note 5 - Shareholders' equity.
5.4 Published information The bylaws of the Company are described in this Registration Document and can be found on the Internet website of the 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 French 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 found on the Company's Internet web site at the following address: www.scor.com.
Appendix G: Commission regulation of April 29, 2004 – correspondence table 313
The drawing up of the Chairman of the Board’s report implies preparatory work involving:  The Risk department
 The COO’s department 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.
1 TERMS AND CONDITIONS FOR PREPARING AND ORGANIZING THE WORK OF THE BOARD OF DIRECTORS For information on the composition of the Board of Directors, the gender balance on the Board and the conditions of preparation and organization of the Board of Directors’ work, please refer to Section 2.1.2 - Board of directors. For information on the Board of Directors’ committees, please refer to Section 2.1.3 - Board of Directors’ committees.
For information on the powers of the executive officers and specific limitations to the powers of the Chairman and Chief Executive Officer, please refer to Section 2.1.1 – Corporate governance regime. For information on the executives officer’s compensations and benefits, please refer to Section 2.2.1 – Remuneration of the executive corporate officers and directors.
The Group’s approach is based on the COSO 2 framework “Enterprise Risk Management – integrated framework” published by the “Committee of Sponsoring Organizations of the Treadway Commission” (COSO) to further develop and formalize the risk management and internal control systems.
This framework covers the following components: 1. defining the internal environment; 2. ensuring objectives are set; 3. performing a risk identification; 4. performing a risk evaluation; 5. defining a risk response; 6. documenting and formalizing control activities; 7. presenting the information and communication process; 8. ensuring monitoring of the risk management and internal control systems.
 The elements concerning accounting and financial reporting are separate and are presented in the last part.
SCOR’s ERM has reached a high level of maturity. Since November 2013, it is rated “Very Strong” by Standard & Poor’s. However, like any risk management and internal control system, the Group’s system cannot guarantee that the risk of not achieving the internal control objectives will be eliminated. For example, among the various limitations inherent in the effectiveness of internal controls relating to the preparation of financial documents, those involving decision-making errors based on human judgment are particularly high in a reinsurance company. In effect, the accounting data are subject to numerous estimates, primarily because of the evaluation by the reinsurer of claim reserves, either those not yet declared to the ceding companies or the reinsurer, or those for which development is uncertain or subject to a number of assumptions.
The Group has set up a functional organization structured around regional management platforms, or “Hubs”: London / Paris and Zurich / Cologne for Europe, Singapore for Asia and the Americas’ hub (New York, Charlotte and Kansas City). Each subsidiary, branch and representation office has a functional link to a given Hub. Each Hub includes the following functions: Legal and Compliance, Information Systems, Finance, Human Resources and Risk Management. Moreover several Group functions are carried out from different locations in order to fully benefit from the competencies disseminated across the world.
Following the organization of the Group in Hubs, the local support functions have been set up in each Hub. This organization enables the execution of centers of expertise and serves to strengthen the coherence and control of our activities. Thus the head of Hub (Hub CEO) is responsible for defining the business continuity plan and implementing it in all locations within his Hub.
Group COO area Group CFO area Group CRO area SCOR Global P&C SCOR Global Life SCOR Global Investments
 Group Treasury  Group Controlling  Corporate Communications  Investor Relations & Rating agencies Department  Group Financial Planning and Analysis  Group Tax  Group Investment
 Group Actuarial  Group Risk Management  Group Financial Analysis &
Transversal functions  Actuarial Pricing  Administration & Finance  Reserving  Claims Management  Legal Services Operations  Risk Management  Risk Modelling & Global
Global functions  Actuarial & Risks  Finance  Operations  Strategy & Development  Reserving 3 Market regions: Asia Pacific, EMEA and Americas 2 transversal lines: Global distribution solutions, Global financing solutions & longevity
Operational Departments  Portfolio Management  Portfolio administration  Reporting  Sales & Marketing
Group Investment Office  ALM, Risk & Investment control  Investment FP&A  Investment Datawarehouse
 Established in 2011, the Group Risk Committee meets quarterly and is a dedicated body of the COMEX in charge of the monitoring of the internal control system and risk management framework. The Group Risk Committee is made up of the COMEX members and of one additional voting member, the Group Chief Economist. Other assurance functions such as the risk management and control functions of the divisions, the Director of the Group Internal Audit are regularly convened to the Group Risk Committee meetings. The roles and responsibilities of the Group Risk Committee are set out in its internal charter;  Monitoring of the internal control procedures falls under the remit of the Group’s Executive Management. The Group departments and functional or transversal departments of SCOR Global P&C, SCOR Global Life and SCOR Global Investments with a control responsibility have the task of defining and controlling the implementation of rules pertaining to the areas of their responsibility and applicable to all of the Group’s entities. These rules, and the participants, are described in detail in part 1.3 of this report on control activities;  The three divisions as well as the Hubs’ support departments must apply the rules defined above. They carry out all of the first-level controls related to business management and ensure compliance with regulatory, accounting and fiscal laws, at both local and Group levels;  The Head of Group Internal Audit Department reports directly to the Chairman and Chief Executive Officer of SCOR SE and functionally to the Audit Committee of the Board of Directors of SCOR SE. This positioning gives it the necessary independence and objectivity, and allows for the largest possible room for investigation. The Group Internal Audit checks independently the effectiveness and relevance of the governance, risk management and internal control procedures for the Group’s entities following a methodical risk based approach, as promoted by the “International Standards for the Professional Practice of Internal Auditing” set out by the Institute of Internal Auditors and the Institute’s Code of Ethics. The SCOR Internal Audit Charter, approved by the Audit Committee, defines the position within the organization, the role and areas of activity, the principles and main operating procedures of the Group Internal Audit Department.
The Group Risk Management Department is supported in these tasks by the departments in charge of Risk Management at SCOR Global P&C, SCOR Global Life and SCOR Global Investments. In addition, the Hub risk managers are involved in these tasks at a local level. Compliance to local regulations and constraints is ensured by Hub General Counsels. SCOR operates an “Internal Control System Competence Center” (ICS-CC) which reports to the Group Risk Management Department. Core objective of this competence center is to bundle the ICS expertise in order to foster a consistent ICS approach and application of ICS standards across the Group. The ICS-CC consists of experts, who are dedicated to the coordination of the internal control activities formalization within the Group, its divisions and entities,
The COMEX defines the procedures for implementing the strategy and reviews the consistency of the operational plans or policies (e.g. underwriting, finance, retrocession, information technology) with the strategic plan. The COMEX also ensures that there is an optimal risk-based allocation of capital and diversification. Under the responsibility of the Group Chief Risk Officer, the Capital Shield Strategy sets risk limits to ensure a protection of the Group’s capital in line with the strategic plan’s objectives. The Capital Shield Strategy is approved and monitored by the Group Risk Committee and the Board Risk Committee.
 A ‘footprint scenarios’ process: this process aims at reviewing and assessing the potential impact on the Group of selected deterministic scenarios. This process provides an alternative perspective on the Group’s exposures. Working groups dedicated to specific subjects are composed of experts across the Group, and coordinated by the Group Risk Management Department with the support of the divisional Chief Risk Officers. These groups perform quantitative studies which are summarized in specific reports.;  An Emerging Risks process: This process is part of SCOR’s ERM Framework and is linked to other Risk Management processes such as the ‘footprint scenarios’ process. The process, governance, roles and responsibilities are set out in dedicated guidelines and reviewed on an annual basis. Emerging risks within SCOR is steered by an ad-hoc Committee composed of the CROs of the operating Divisions and the Head of Group Risk Management. The individual risk assessments are carried out by a dedicated team of experts from SCOR Global P&C, SCOR Global Life and of Group functions. Critical emerging risks are reported to SCOR’s Executive Management. SCOR, as a member of the CRO Forum, also actively participates and contributes to the CRO Forum Emerging Risks Initiative alongside other major insurers and reinsurers.
The Group Internal Model, which is deeply embedded in SCOR’s risk management system and contributes to the assessment of risks. SCOR uses its internal model for determining economic capital managed by the Group Financial Analysis & Risk Modeling Department. Its results are used to implement SCOR’s underwriting and asset management policies and guidelines.Where relevant, the outputs of these processes are reported to the Group Risk Committee and to the Risk Committee of SCOR SE’s Board of Directors (the “Board Risk Committee”) and to the Board of Directors on a regular basis.
For further information on how main underwriting risks related to the Non-Life and Life reinsurance business are managed, please refer to section 3.3.2 - Management of underwriting risks related to the Non-Life and Life reinsurance business.
Investments out of the scope of the Manual of Group Investment Guidelines are subject to special referral procedures managed by the Group Risk Management Department.
Middle office and Back office departments of the asset management company have been delegated to an external service provider in November 2014. Information systems remain those of SCOR and tools for monitoring and controlling transactions remain unchanged following this transfer of activity.
 The Group Treasury Department manages the Group’s operating cash flow, directly or indirectly and carries out a weekly centralized reporting of the Group’s cash situation;  The Consolidation, Systems & Process department plays a major role in both internal management reporting and external reporting, and the analysis thereof;  The IFRS Center of Excellence (IFRS CoE) determines Group IFRS accounting policies and handles the accounting of complex transactions;  Control of the Group information system stands at two complementary levels: IT processes and business processes all covered by IT solutions. For IT processes, a special unit of the Group Information System 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 its major processes, in particular relating to the development, evolution and run of all solutions, and logical access to systems and databases. The IT business continuity plan has been strongly reinforced with regards to the private cloud of the Group, which hosts all production applications and process and insure a systematic replication of all data bases to a second remote site. In addition, 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 & Budget Department;  The Group Financial Planning & Analysis Department establishes an annual financial plan for the Group by company and monitors actual data in relation to this plan on a quarterly basis. The purpose of the plan is to enable effective management and control of the business to deliver against the strategic targets set by the Group. Detailed annual financial plans are developed by the business engines at a company level, by geographic market and line of business, and incorporated into a Group-wide plan against which in-depth analysis of the actual quarterly results is conducted. The results and analyses are presented to the COMEX every quarter, highlighting variances against expectation to allow identification of appropriate management actions. The plan, and the quarterly results against plan, are additionally reported in detail to the Board.;  The objective of the Group Tax Department is to ensure that the various entities of SCOR meet their tax obligations and promote the use of best practices in this domain;  The General Secretary contributes to the management of the following functions: (i) legal and functional governance of the Group, (ii) compliance, with the Group Chief Compliance Officer reporting to the General Secretary (special attention is given to anti-trust / competition law, anti-money laundering and terrorism financing, sanctions and embargoes, anti-bribery, anti-fraud, data protection and privacy, insider trading and conflicts of interest) (iii) management of the regulatory supervision of the Group and coordination at legal entity level with the relevant legal departments, (iv) Group’s insurance policies, in particular with respect to D&O and professional liability;  Within the General Secretariat, the Group Legal Department exercises 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);  The Prudential Affairs Department monitors the prudential regulations and advises the Group. It ensures the Group actively positions itself vis-à-vis the different jurisdictions and requirements to which it is exposed or could be exposed. It also coordinates the preparation of the Group relating to new major prudential regulations, such as Solvency II or ComFrame;  The Group Project Office monitors the Group project portfolio and defines standard project methodology. It regularly provides to the management key indicators and recommendation on the project portfolio for an effective management. On COMEX request, it can also manage strategic projects.
2.4 Information and Communication  Financial communication: The establishment and centralization of all financial information - particularly press releases, intended for the market, investors, financial analysts, and the press - are the responsibility of the Corporate Communications Department and the Investor Relations & Rating Agencies Department, which respects a formalized process. Financial information intended for rating agencies is the responsibility of the Investor Relations & Rating Agencies Department. All of this information is ultimately controlled by General Management.
In addition SCOR is implementing regular and dedicated ad-hoc educational programs across the Group aiming at maintaining and developing the skills of all SCOR’s staff in accordance with the strategy and the objectives of the Group.
2.5 Monitoring of the Internal Control System and risk management system The monitoring of the internal control system and risk management system is ensured by a number of complementary mechanisms with the support of several departments across the Group. In particular,
 Through its Internal Control Competence Center, the Group Risk Management Department monitors the documentation and formalization status of the processes deemed critical, according to Group standards. Through a comprehensive set of regular and ad-hoc reporting processes in place, SCOR’s risk management system is regularly reviewed and continuously improved.
 The Group Internal Audit provides independent, objective assurance and consulting services designed to add value and improve the Group’s operations. The internal audit activity helps the Group to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management and control processes. Furthermore, the Group Internal Audit must inform the Senior Management (COMEX) and the Audit Committee of any unsatisfactory conditions or risks.
When the Group Internal Audit concludes that the management has accepted a level of risk that may be unacceptable to the organization, it must discuss the matter with the executive management (COMEX). If the head of Group Internal Audit determines that the matter has not been resolved, he/she must communicate the matter to the Audit Committee. The Group Internal Audit produces an audit plan (revised at least annually) in a risk-based manner, taking the organization’s risk management framework and including risk appetite levels set by management for the different activities, or parts of the organization, into account. The inputs of Senior Management and the Audit Committee are considered in this process. Once reviewed and approved by the Audit Committee, it is communicated internally and headlines are published on the SCOR portal.
 Furthermore, the Finance Department manages the “internal management representation letters” process, detailed in part 2.6 on financial reporting, which also incorporates certain points relative to internal control of accounting and financial reporting.
2.6 Financial Reporting 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.
the accounting departments of SCOR Global P&C, SCOR Global Life and SCOR Global Investment who assist him in coordinating aspects relative to the processes, methods and reporting. General accounting for SCOR subsidiaries is supported by two main auxiliary group of accounting systems, namely (1) 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.
 The reinsurance treaties are either reviewed individually or are pooled within an affiliation treaty based on certain criteria defined in advance;  The treaties are then subject to reserving estimates, which are reviewed at each quarterly closing either by the actuaries or at meetings attended by underwriters, technical assistants and actuaries; A quarterly liability adequacy test performed for portfolios that are subject to broadly similar risks and managed together as a single portfolio.
SCOR Global Investments: Monitoring of financial assets and cash flow is provided through various operating methods. The information systems used provide an audit trail of the transactions carried out. In certain entities, accounting activities are delegated to external service providers; controls implemented by these entities make it possible to verify the proper recording of accounting data and consistency of the figures. “Cash” reconciliations are made on a daily basis, for the most part, and security transactions are reconciled the following day (D+1) with reports from the various custodians. Portfolios managed directly are monitored in real time.
 The formalization of the reconciliations between the systems or auxiliary accounting methods with the general and consolidation accounting systems;  At least three levels of control of the consistency and completeness of the consolidation package, one by the entity in question, another by the finance departments of SCOR Global P&C and SCOR Global Life relative to technical accounting and the third by the Group Finance Department;  Systematic analyses of the results, shareholders’ equity, taxation and cash flow;  internal monitoring of changes in legislation and accounting standards, together with the Group’s external consultants and auditors;  the work of the IFRS Center of Excellence whose objectives are to (1) communicate developments in accounting standards to all contributors, (2) determine Group IFRS accounting policies and (3) coordinate justification and documentation of accounting treatments for complex operations;  An audit performed by external auditors as at December 31, and a limited review as at June 30.
At the end of 2009, SCOR decided to fully review all its Finance applications by launching a Group wide “one ledger” Program. The main objective of this Program is to simplify, through an innovative approach based around SAP, and vastly improve the Finance function for all SCOR entities. This program includes:  The use of one single chart of accounts (with minimum local specificities, aligned with existing source systems);  One system for one IT solution;  Streamlined, integrated and standardized processes across the Group;  Limited and automatized mappings between systems;  Extended capabilities for Reporting (including drilldown from Financial to source system data);  Enhanced audit trail. The roll out of this solution in all locations was finalized in 2015.
2.7 Conclusion on the control procedures implemented 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 2015, 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. The full review of all its Finance application across the Group continues to enable to simplify and vastly improve the Finance function for all SCOR entities
3 STATUTORY AUDITORS’ REPORT, PREPARED IN ACCORDANCE WITH ARTICLE L. 225-235 OF THE COMMERCIAL CODE, ON THE REPORT PREPARED BY THE CHAIRMAN OF THE BOARD OF DIRECTORS OF SCOR SE This is a free translation into English of a report issued in French and it is provided solely for the convenience of English speaking users. This report should be read in conjunction with and construed in accordance with, French law and professional standards applicable in France.
The professional standards require that we perform the necessary procedures to assess the fairness of the information provided in the Chairman's report in respect of the internal control and risk management procedures relating to the preparation and processing of the accounting and financial information. These procedures consist mainly in:  obtaining an understanding of the internal control and risk management procedures relating to the preparation and processing of the accounting and financial information on which the information presented in the chairman's report is based and of the existing documentation;  obtaining an understanding of the work involved in the preparation of this information and of the existing documentation;  determining if any material weaknesses in the internal control procedures relating to the preparation and processing of the accounting and financial information that we would have noted in the course of our work are properly disclosed in the Chairman's report.
We confirm that the report prepared by the Chairman of the Board of Directors also contains the other information required by article L. 225-37 of the French Commercial Code (Code de commerce).
2 DECLARATION BY PERSON RESPONSIBLE  I declare that, having taken all reasonable care to ensure that such is the case, the information contained in this Registration Document is, to the best of my knowledge, in accordance with the facts and contains no omission likely to affect its import.
 I confirm that, to the best of my knowledge, the financial statements have been drawn up in accordance with applicable accounting standards and accurately show the position of the assets and liabilities, the financial position and the profit or loss of the company and of all businesses and firms included within the scope of the consolidated group, and that the management report, mentioned in Appendix F, accurately reflects the evolution of the business, the results and the financial position of the company and of all businesses and firms included within the scope of the consolidated group, and describes the main risks and contingencies which they are faced with.
 I have obtained an audit completion letter from the statutory auditors, in which they indicate that they have verified the information concerning the financial situation and the accounts provided in this Registration Document, and have read the entire Registration Document. The historical financial information included in the Registration Document was certified by the auditors and their reports are reproduced in Section 4.9 and Appendix C of this document as well as the historical financial information is incorporated by reference for financial years 2014 and 2013, in section 20.2 and Appendix A of the 2014 and 2013 Registration Documents. The audit report on the 2013 corporate financial statements includes a comment.
APPENDIX C: UNCONSOLIDATED CORPORATE FINANCIAL STATEMENTS OF SCOR SE Pursuant to Article 28 of Regulation (EC) No. 809/2004 of the European Commission, the following information is included by reference in this Registration Document: (i) The corporate financial statements for the year ended December 31, 2014 and the Auditors’ Report pertaining thereto published on pages 325 to 357 and 358 to 359, respectively, of the registration document filed with the “Autorité des marchés financiers” on March 20, 2015 under number D. 15-0181 and from pages 314 to 344 and from pages 345 to 346, respectively, of the free translation into English of the Registration Document filed with the Autorités des marchés financiers with such translation being available on SCOR's website www.scor.com.
SCOR’s unconsolidated corporate financial statements for the financial year ended December 31, 2015 are shown below: 1 SIGNIFICANT EVENTS OF THE YEAR “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
During 2015, SCOR SE earned EUR 775 million in dividends from its affiliates: EUR 541 million from SCOR Global P&C SE, EUR 100 million from SCOR Global Life SE, EUR 81 million from SCOR AUBER SAS, EUR 22 million from SCOR Holding Switzerland, EUR 3 million from MRM SA, EUR 2 million from SCOR Investment Partners SE and USD 28 million from SCOR US (EUR 26 million).
On June 5, 2015, SCOR SE issued EUR 250 million dated subordinated notes, redeemable as at payment of interest dates from June 5, 2027. The coupon has been set to 3.25% (until June 5, 2027), and resets every 10 years at the prevailing 10-year EUR mid-swap rate + 3.20%.
Redemption of the outstanding amount of the USD 100 million subordinated bonds
On June 25, 2015, SCOR SE fully redeemed the remaining balance of USD 11 million (EUR 9 million) of its USD 100 million subordinated bonds issued in June 1999.
On July 21, 2015, SCOR SE granted a USD 125 million loan to SCOR Reinsurance Company. The interest rate of 5.111% is fixed until its term on July 30, 2035.
Redemption of the EUR 93 million subordinated notes held by SCOR Holding Switzerland
In EUR million Net Net Intangible assets Note 3 4 - 4 4
Reinsurance reserves (Life) - - - - Loss reserves (Life) - - - - Unearned premiums reserves (Non-Life) 174 - 174 - Loss reserves (Non-Life) 299 - 299 25 Other underwriting reserves (Non-Life) - - - -
Other assets Note 3 305 (32) 273 258 Property, plant and equipment 129 (32) 97 80 Cash and cash equivalents 4 - 4 38 Treasury shares 172 - 172 140
In EUR million Gross transactions Retroceded transactions 2015 net transactions 2014 net transactions UNDERWRITING ACCOUNT, NON LIFE
Earned premiums 1,349 (294) 1,055 1,216 Written premiums 1,356 (467) 889 1,272 Change in unearned premiums (7) 173 166 (56)
Claims expenses (846) 237 (609) (764) Benefits and costs paid (747) (32) (779) (722) Claims reserve expenses (99) 269 170 (42)
Acquisition and administration costs (410) 118 (292) (339) Acquisition expenses (395) - (395) (321) Administration expenses (15) - (15) (18) Commissions received from reinsurers - 118 118 -
transactions Retroceded transactions 2015 net transactions 2014 net transactions UNDERWRITING ACCOUNT, LIFE
Expenses for Life reinsurance and other underwriting reserves 34 - 34 21
Acquisition and administration costs (108) 3 (105) (66) Acquisition expenses (99) - (99) (64) Administrative expenses (9) - (9) (2) Commissions received from reinsurers - 3 3 -
Other investment expenses - - - (1) Realized losses from investments (3) - (3) (4)
Investment expenses (155) (140) Internal and external investment management expenses and interest expenses (119) (96) Other investment expenses (6) (10) Realized losses from investments (30) (34)
Rate swaps - - - - Rate and currency swaps (cross-currency swaps) - 1,120 1,120 1,011 Foreign currency forward purchases 175 118 293 495 Letters of credit - 408 408 461 Endorsements and sureties - - - - Parental guarantees 2,799 - 2,799 2,260
Other commitments on investment securities, assets or revenues 10 973 983 973
5.1 Note 1 – Accounting policies The corporate financial statements for the year ended December 31, 2015 are presented in accordance with the European Directive of December 19, 1991, the French Decree 94-481 of June 8, 1994, and the Order of June 20, 1994 as amended by the Order of July 28, 1995, for which the application has been extended to include reinsurance companies. The income statement was split between the 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.
Intangible assets consist of:  Software acquired or created by the Company which are capitalized and amortized over a period ranging from one to five years;  Non-depreciable goodwill.
Investments are initially recorded at historical acquisition cost, excluding expenses. After initial recognition, investments are valued based on the asset category to which they belong and on the length of time during which they are expected to be held.
Investments in associates are initially recorded at historical acquisition cost, including expenses. The fair value of investments in associates is an estimated value based on the usefulness of the investment to the Company and on its market value (in light of its actual share price, the revalued shareholders’ equity, the actual results and the future outlook).
For active reinsurance companies, the fair value is estimated based on consolidated net assets, excluding goodwill and before elimination of shares, including unrealized capital gains or losses and by the Embedded Value for Life Reinsurance and forecasts of future profits for Non-Life Reinsurance, net of tax. It does not include the value of future business for Life Reinsurance.
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. For listed securities, it corresponds to the share price at the balance sheet date. For unlisted securities, the fair value is based on net assets.
Bonds and other fixed-income securities are recorded at cost, excluding accrued interests. In compliance with article
Provision for liquidity risk on underwriting commitments (“Provision pour Risque d’Exigibilité”)
An allowance for bad debts relating to accounts receivable from reinsurance transactions and other receivables is recorded to the extent that the recoverability is uncertain.
The Company records all liabilities relating to employee benefits on its balance sheet.  End retirement indemnities: employees benefit from additional retirement benefits paid in full upon retirement.
In Opinion 2008-17 dated November 6, 2008 relating to the accounting of stock options and free share allocation plans, the CNC redefined the accounting of such benefits granted to employees and the accounting for impairment of treasury shares held for such plans. In the event of delivery of existing shares, the expense should be recognized over the vesting period if the attribution of shares is based on the employee remaining with the Company over the vesting period. As such, at each period end, a provision for risk is recorded for the estimated cost (calculated as the difference between the cost to acquire the shares and nil value) to which a pro rata is applied, from the date of attribution, to the end of the vesting period, over the entire vesting period.
Overall, the premiums recorded for the year (premiums reported in the accounts received from cedents and estimated premiums) correspond to the estimated premium expected at the time the policy was underwritten. Estimated claims expenses are recorded in loss reserves.
The retrocessionaires’ share in estimates of assumed premiums and commissions is shown in liabilities under “Liabilities arising from reinsurance operations”.
Pursuant to the provisions of article R. 341-7 of the French Insurance Code, foreign currency transactions of the Company are recorded in their original currency. For purposes of financial statements’ presentation, balance sheet amounts are converted into Euro using the year end exchange rates or the rate of the closest prior date. Since January 1, 2008, SCOR has applied the new rules relating to the accounting of transactions in foreign currencies by entities subject to the rules of the Insurance Code as required by the CNC in its opinion n° 2007-02 dated May 4, 2007.
The objective of the “net translation adjustments” account on the balance sheet is to ensure symmetrical treatment with the accounting of the exchange difference generated by the underlying instrument:  When the derivative is linked to a structural element, the “net translation adjustments” account remains on the balance sheet until the structural element is realized;  When the derivative relates to a strategic investment, the “net translation adjustments” account remains until the investment is made;  When the derivative is related to an operational item, in the context of a strategic divestiture or investment, or the derivative is linked to a non-structural financial debt, the “net translation adjustments” account is recorded in income.
The use of and accounting for financial instruments comply with European Directive 2005/68/CE (also known as the Reinsurance Directive) ; with the French General Statement of Accounting Principles (“Plan Comptable Général”) of 1982 ; and with French Decree No 2002-970 dated July 4, 2002, relating to the use of forward financial instruments by French insurance companies.
Impact of foreign exchange on opening balances Acquisitions creations Disposals Closing balances In EUR million Land - - - - - Buildings - - - - - Shares in and advances to land and real estate companies 207 - - - 207 Equity interests 4,319 - 1 403 3,917 Cash deposited with ceding companies (related & associated companies) 28 (3) 1,628 - 1,653 Loans (related and associated companies) 1,502 14 641 118 2,039 Other investments 348 32 2,568 1,679 1,269 Cash deposited with other ceding companies - - - - - Total 6,404 43 4,838 2,200 9,085
Shares in and advances to land and real estate companies 1 - - - 1 Equity interests 186 - - 73 113 Loans (related and associated companies) - - - - - Other investments 3 - - 1 2 Total 190 - - 74 116
During the year, the variation of other investments is mainly due to the increase by EUR 588 million of the fixed deposits (mainly in the Chinese branch), by EUR 156 million of UCITS and by EUR 64 million of the bonds.
The decrease in equities mainly stems from the transfer of 20% of SCOR Holding Switzerland to SCOR Global P&C SE for an amount of EUR 389 million.
At 31 December 2015, provisions against equity investments can be analyzed as follows:  SCOR US Corporation: EUR 104 million in 2015 compared to EUR 176 million in 2014. 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 by the creation of future value determined using the Discounted Cash Flow (DCF) method. Projected income was used for the DCF method.  ASEFA: EUR 6 million in 2015 (EUR 6 million in 2014)
The cash deposited with ceding companies breaks down into:  SCOR Global Life SE: EUR 1 234 million  SCOR Global P&C SE Milan: EUR 348 million
 SCOR SOUTH AFRICA: EUR 15 million  SCOR PERESTRAKHOVANIYE.O.O.O: EUR 6 million.
On December 18, 2015, SCOR SE completed the transfer of 20% of SCOR Holding Switzerland AG to SCOR Global P&C SE for an amount of EUR 400 million, recognizing a gain of EUR 11 million.
On December 31, 2015, loans and advances granted by SCOR SE to its subsidiaries amount to EUR 2,039 million. The breakdown of loans and treasury advances granted by SCOR SE as of December 31, 2015 is as follows:  EUR 800 million with SCOR Global P&C SE
 EUR 731 million with SCOR Global Life SE  EUR 141 million with SCOR AUBER SAS
 EUR 135 million with SCOR AUBER SAS  EUR 102 million with SCOR GIE Informatique
 USD 24 million (EUR 19 million) with SCOR Global Life SE.
 EUR 400 million with SCOR Global P&C SE. For 2015, SCOR SE recognized EUR 73.8 million in financial income from loans with related companies and EUR 6.4 million in interest expense on borrowings with related companies.
Avenida Paisagista José Silva de Azevedo Neto, 200 - Bloco 4 - Sala 404 Barra de Tijuca - Rio de Janeiro – Brazil
775 (1) Data based on IFRS accounts 2015 (2) SCOR guarantees with limits as to amounts listed above, the underwriting liabilities of its subsidiaries pertaining in particular to their obligations relative to the payment of claims. In return, SCOR GLOBAL P&C SE and SCOR GLOBAL LIFE SE
creations Disposals Closing balance Treasury shares Number 6,593,132 6,421,518 (6,353,650) 6,661,000 Amount 139,798,499 195,617,015 (162,917,913) 172,497,601
Loans 2,039 - 925 2,964 1,501 - 309 1,810 Cash deposits with ceding companies 1,653 - - 1,653 28 - - 28
Accounts receivable 456 - 273 729 2,018 - 232 2,250 Accounts receivable from reinsurance transactions 289 - 205 494 1,903 - 150 2,053
Accrued income and deferred charges 60 - 266 326 40 - 111 151
Accrued interests and rent 24 - 1 25 3 - 1 4 Deferred acquisition costs - assumed (Non-Life) 31 - 106 137 33 - 75 108
Cash deposits received from retrocessionaires 159 - 1 160 - - - -
Other liabilities 279 - 1,075 1,354 540 - 205 745 Liabilities arising from reinsurance operations 200 - 8 208 1 - 1 2 Financial liabilities 14 - 861 875 507 - 119 626 Other creditors 65 - 206 271 32 - 85 117
Deferred commissions received from reinsurers (Non-Life) 63 - - 63 - - - -
The list of material related-party transactions required by French accounting standard CRC 2010-06 issued on October 7, 2010 is not applicable to SCOR SE as all related-party transactions are with 100%-owned entities.
In EUR million Maturity Net book value Fair value Net book value Fair value Other capital base EUR 350 million Perpetual 264 270 262 278 CHF 650 million Perpetual 613 625 552 573 CHF 315 million Perpetual 298 318 268 285 CHF 250 million Perpetual 230 247 208 223 CHF 125 million Perpetual 115 123 103 103 EUR 250 million Perpetual 249 253 249 254 Total other capital base 1769 1836 1642 1716 Financial liabilities USD 100 million 06/06/2029 - - 9 10 EUR 100 million 07/05/2020 - - 93 93 EUR 600 million 06/08/2046 592 578 - - EUR 250 million 06/05/2047 252 252 - - Total Financial liabilities 844 830 102 103
 On July 28, 2006 SCOR issued a perpetual super-subordinated note (Tier 1 type) in an aggregate principal amount of EUR 350 million to finance the acquisition of Revios Rückversicherung 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 July 28, 2016;  SCOR Holdings Switzerland (SHS) repurchased part of the subordinated perpetual debt (350 million) for EUR 93 million. This repurchase resulted in the cancellation of the debt (EUR 93 million) on July 27, 2009. In SCOR 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; On December 10, 2015, SCOR SE performed an early redemption of the EUR 93 million subordinated notes that SCOR Holding Switzerland repurchased on the market in 2009.
 Initial USD 100 million, reduced to USD 67 million after repurchase of USD 33 million in 2011, subsequently reduced to USD 20.8 million after repurchase of USD 46.2 million in 2013 and finally reduced to USD 10.8 million after repurchase of USD 10 million in 2014, 30-year subordinated bonds issued on June 7, 1999, callable by SCOR quarterly as from the tenth year. These floating-rate bonds bear interest based on the 3month Libor rate plus (i) 0.80% for the first ten years of the issue, and (ii) 1.80% thereafter; On June 25, 2015, SCOR SE fully redeemed the remaining balance of USD 10.8 million (EUR 9 million).
 Initial EUR 100 million (EUR 93 million after repurchase of EUR 7 million during 2009) 20-year subordinated bonds, issued on July 6, 2000 callable by SCOR quarterly as from the tenth year following their issuance. These subordinated notes were fully redeemed on July 6, 2015;  On June 5, 2015, SCOR SE issued EUR 250 million dated subordinated notes, redeemable as at payment of interest dates from June 5, 2027. The coupon has been set to 3.25% (until June 5, 2027), and resets every 10 years at the prevailing 10-year EUR mid-swap rate + 3.20%.
 On December 7, 2015, SCOR SE issued EUR 600 million dated subordinated notes, redeemable as at payment of interest dates from June 8, 2026. The coupon has been set to 3.0% (until June 8, 2026), and resets every 10 years at the prevailing 10-year EUR mid-swap rate + 3.25%.
The maturity of debt at December 31, 2015 is as follows: In EUR million
The breakdown of the reinsurance estimates – assumed that have been reclassified is as follows as at December 31, 2015:  The reinsurance estimates ─ assumed ─ Life (EUR (1) million) includes premiums for EUR 387 million, commissions payable of EUR (85) million and claims payable amounting to EUR (318) million, and EUR 15 million of accrued interests on the cash deposit ;  The reinsurance estimates ─ assumed ─ Non-Life (EUR 463 million net) includes premiums for EUR 934 million, commissions payable of EUR (260) million and claims to pay for EUR (233) million and EUR 23 million of accrued interest on the cash deposit.
 The issuance of shares relating to the exercise of options until December 31, 2015 for a total of EUR 20.9 million were allocated to the share capital of the Company for EUR 9.6 million and to additional paid-in capital for EUR 11.3 million. The exercise of options resulted in the creation of 1,221,843 shares;  During 2015, the Board decided upon a share capital reduction by cancellation of a total of 1,260,227 treasury shares for a total amount of EUR 9.9 million;  SCOR SE launched a new 3-year contingent capital facility to replace, as at January 1, 2014, the contingent capital facilities which came to an end on December 31, 2013. 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.
Contingency reserves amount to EUR 141 million, of which:  EUR 40 million for free share allotment plans with the following expiry: EUR 15 million at 2016, EUR 13 million at 2017, EUR 8 million at 2018, EUR 4 million at 2019 and beyond.
5.3 Analysis of key income statement items 5.3.1 NOTE 8 - BREAKDOWN OF PREMIUMS AND COMMISSIONS
Breakdown of premiums by geographic region (country where cedent is located)
In EUR million 2015 2014 France 407 349 North America 77 84 South America 41 49 Asia 734 573 Europe 353 381 Africa 58 65 Rest of world 78 85 Total 1,748 1,586
In EUR million Prior years 2015 Total Prior years 2014 Total Premiums 54 1,697 1,751 62 1,520 1,582 Portfolio entries 2 23 25 2 20 22 Portfolio transfers (19) (9) (28) (12) (6) (18) Movements (17) 14 (3) (10) 14 4 Total 37 1,711 1,748 52 1,534 1,586
Currency earnings were EUR 1.7 million in 2015 compared to a loss of EUR (2.9) million in 2014.
The non-recurring loss amounts to EUR (4.6) million and is mainly due to the following items:  Impairment of EUR (5.0) million on a receivable;  French legal provision on acquisition costs by EUR (0.8) million;  EUR 0.4 million gain realized in the merger with SAS MOBILITY for the sake of simplification of the Group structure; assets and liabilities were contributed at their carrying value.
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 December 31, 2002, of January 7, 2004 and of December 12, 2006. Thus, according to the provisions of Article R.228-91 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 November 13, 2006 and the value of the shares that would have been obtained in case those rights were exercised prior to said capital increase. 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 share subscription and purchase options have been calculated by entering the value of the preferential 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 2015, 1 221 843 rights of options were exercised: 175,920 options exercised under the stock option plan of September 16, 2005 vested on September 16, 2009, 141,771 options exercised under the stock option plan of September 14, 2006 vested on September 14, 2010, 20,993 options exercised under the stock option plan of December 14, 2006 vested on December 14, 2010, 234,549 options exercised under the stock option plan of September 13, 2007 vested on September 13, 2011, 123,900 options exercised under the stock option plan of September 10, 2008 vested on September 10, 2012, 142,320 options exercised under the stock option plan of March 23, 2009 vested on March 23, 2013, 6,000 options exercised under the stock option plan of November 25, 2009 vested on November 25, 2013, 169,690 options exercised under the stock option plan of March 18, 2010 vested on March 18, 2014, 9,700 options exercised under the stock option plan of October 12, 2010 vested on October 12, 2014, 93,500 options exercised under the stock option plan of March 22, 2011 vested on March 22, 2015 and 103,500 options exercised under the stock option plan of September 1, 2011 vested on September 1, 2015.
In EUR thousands 2014 2013 2012 2011 2010 Amount distributed under the profit-sharing plan 1,055 1,247 1,153 815 1,115
In EUR thousands 2015 2014 2013 2012 2011 Profit sharing (1) 674 722 619 373 501 Net voluntary payments
(1) paid out in the financial year for the previous financial year (2) The voluntary payments shown include payments to all employee shareholding funds (FCPE), including PERCO (3) including PERCO
The following table presents the gross cash compensation paid in 2014 and 2015 to the Group Chairman & CEO: Chairman and CEO
In EUR million 2015 2014 2015 2014 Ordinary business operations 4,620 4,227 17,376 11,704 Financial instruments 1,413 1,506 1,270 1,463
Other commitments given and received 2,799 2,260 16,088 10,221 Hybrid transactions - - - - TOTAL 4,620 4,227 17,376 11,704
 JP Morgan: USD 10 million (EUR 9 million),  Helaba: USD 80 million (EUR 74 million),
 CACIB: USD 44 million (EUR 41 million),  Citibank: USD 47 million (EUR 43 million).
In consideration of its commitments relating to technical reserves, SCOR SE has granted letters of credit in the amount of USD 6 million (EUR 6 million) to cedents compared to EUR 408 million in letter of credit capacity received from banks.
The guarantee given in consideration for underwriting commitments with the cedent ACE was USD 14 million (EUR 12 million). This guarantee was in the form of securities pledged to ceding companies.
To the Shareholders, In compliance with the assignment entrusted to us by your annual general meeting, we hereby report to you, for the year ended December 31, 2015, on:  The audit of the accompanying financial statements of SCOR SE;  The justification of our assessments;  The specific verifications and information required by law.
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:  As stated in notes 5.1.7 and 5.1.9 to the financial statements, the technical accounts specific to reinsurance are estimated on the basis of reinsurance commitments or on statistical and actuarial bases, particularly the technical estimates accounted for under receivable from reinsurance transactions, gross and ceded technical reserves, and deferred acquisition costs. The methods used to calculate these estimates are described in the notes to the financial statements.
 Notes 5.2.5- note 6 and 5.3.10- note 17 to the financial statements describe the uncertainties relating to the potential litigation encountered by your company.
This appendix is prepared in accordance with the regulations referred to in the Article 225 of the law on the national commitment to the environment. The presentation also takes into account Recommendation No. 2013-18 of the Autorité des marchés financiers published on November 5, 2013 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 programs it has implemented in response, both at SCOR SE and its subsidiaries in France and abroad.
 Limitation of data collection and reliability Definitions of social indicators may differ slightly from one country to another. Nevertheless, the SCOR indicators used in the tables below remain consistent and meaningful at Group level. Unless otherwise indicated, no estimate is performed to calculate these indicators.
(2) SCOR Global Life SE holds 100% of the capital of ReMark. Due to its specific activity, to its own business model and its own organizational structure. ReMark’s human resources are managed independently from the Group
“Grenelle II” Indicator: Distribution of employees by gender 1.2.3 DISTRIBUTION BY STATUS
(1) Definition of the Partner: see “Note 1.2.8 – Total Compensation: Elements relating to the remuneration policy." The Corporate Officer is included in this population. This figure includes the decisions taken during the 2016 partners promotions and nominations process which took place at the end of 2015 1.2.4 DISTRIBUTION BY DEPARTMENT
Total 2,706 2,555 2,450 (1) For 2013 the former Transamerica Re employees are included in the SCOR Global Life division. Starting from 2014, the former Transamerica Re employees are included in the divisions according to the global organization of the Group. For 2013, 2014 and 2015, Rehalto (29 employees at 31 December 2015) and Telemed (39 employees at 31 December 2015), subsidiaries (100%) of SCOR Global Life SE, are managed independently from the Group in terms of human resources and are not aggregated financially (and then socially) in the division
(2) The “Group Functions and Support” division includes the Group’s Finance, Risk and Operations departments as well as the departments directly managed by the Chairman and Chief Executive Officer. SCOR SE controls 59.9% of the capital of MRM (5 employees at 31 December 2015). Due to its specific activity , its business model and its organization, MRM’s human resources are managed independently from the Group
(4) For 2013, 2014 and 2015, the Lloyd's Channel Syndicate (100 employees at 31 December 2015) is a subsidiary of SCOR Global P&C SE, managed independently from the Group in terms of human resources and not aggregated financially (and then socially) in the division 1.2.5 DISTRIBUTION BY TYPE OF CONTRACT
SCOR had 91 trainees as at 31 December 2015 (37 in France, 17 in Switzerland, 20 in Germany, 1 in the US, 1 in Canada, 11 in the United Kingdom, 2 in Russia, 1 in Spain, 1 in Brazil). The trainees’ working contracts differ according to country and training objectives. All trainee programs aim to introduce the students to the world of work, whether through internships during studies or vocational training courses for learning about specific professions
“Grenelle II” Indicator: Departures 2015 2014 2013 Male Female Total Male Female Total Male Female Total Retirement 20 13 33 21 14 35 14 9 23 Resignation 74 66 140 67 52 119 45 43 88 Dismissal 17 19 36 15 14 29 27 22 49 End of Fixed-term contract 8 14 22 6 8 14 2 7 9 Decease 2 - 2 4 - 4 1 2 3 Company transfer 1 3 4 4 4 8 - - - Trainees 52 59 111 49 54 103 58 65 123
In 2015, the Group’s staff turnover rate was 8.1%*. (*2015 Group’s staff turnover: number of departures in 2015 (excluding dismissals, deceases, company transfers and trainees) / headcount as at December 31, 2014)
All employees have access to a full description of the Group’s remuneration policy on the Company intranet. This policy is consistent across all the Hubs and applies to the entire Group. In accordance with the Group’s values, one of the policy’s objectives (beyond retaining employees and rewarding performance) is to discourage excessive risk-taking. As a global company organized into four 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.
SCOR maintains a holistic approach to compensation. Compensation for both Partners and employees comprises multiple components: a fixed and a variable part, an immediate and a deferred part, an individual and a collective part. The components include base cash salary, annual cash bonus, shares and options where applicable, pension schemes and any other benefits. 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 reviews the base salaries on a yearly basis to reward individual performance as well as when new responsibilities are assumed by the job-holder. An automatic adjustment to inflation is not applied as a general rule and is only granted in the few countries where it is legally required. SCOR has established a “Partners” program. This program, which aims to involve the Partners in the capital of the Group, applies to approx. 25% of the total number of employees. It is a specific and selective program in terms of information sharing, career development and compensation schemes. There are four main Partner Levels: Associate Partners (AP), Global Partners (GP), Senior Global Partners (SGP), and Executive Global Partners (EGP). With the exception of the EGP level, these levels are then divided into two levels, allowing seniority or special achievement promotions.
For non-Partners employees, the SCOR cash bonus rewards individual performance over the previous year. Depending on the rating received in the individual appraisal by the employee’s direct superior, the bonus varies between 0% and 6% of the annual base salary. This scale is increased by a multiplier (2 or 3) in some Hubs in order to take account of specific local labor markets.
The Partners of SCOR are also eligible for free shares and stock options. However, this does not mean that an allocation has to occur every year or that every Partner will receive an allocation. In addition, free shares are allocated to some partners based on their performance measured over 6 years. The goal of this compensation scheme, the Long Term Incentive Plan (LTIP), is the retention of certain key employees over the long term. The process is supervised by the Compensation and Nomination Committee which consists only of independent members of the Board of Directors who are informed of all the individual shares and options grants.
By age 2015 2014 2013 Less than 31 years 247 213 206 31-40 years 606 559 527 41-50 years 582 512 480 51-60 years 351 349 348 More than 60 years 72 59 47 Total 1,858 1,692 1,608
(1) Sick leave, accident, maternity/paternity leave, sabbatical leave, exceptional leave are included (2) In 2015, this figure includes the days of absence during which the employees are not paid at all in order to be consistent with the calculation method applied in the other locations (3) From 2015, this figure excludes the paid vacation 1.3.2 SOCIAL RELATIONS
“Grenelle II” Indicator 4 European Committee meetings were held in 2015 (in Paris) on January 29, 2015, on April 9, 2015, on July 2, 2015 and on October 8, 2015.
Organization of employee /management dialogue 9 collective agreements were signed within the Group in 2015 (6 agreements were signed in France on February 19, 2015 “avenant n°4 relatif aux congés”, on March 31, 2015: “accord relatif au télétravail”, on March 31, 2015 “avenant n°1 à l’accord collectif relatif au vote électronique”, on March 31, 2015 “avenant n°1 à l’accord collectif relatif au vote électronique”, on April 29, 2015 “protocole d'accord préélectoral ”, on July 16, 2015 “avenant n°1 relatif à la GPEC”, on July 10, 2015 “Procès-Verbal de la Négociation Annuelle Obligatoire”, 1 agreement was signed in Germany on April 1, 2015 “Extension of Pilot Project Mobile Office”, 2 agreements were signed in Brazil on February 4, 2015 “Convenção Coletiva de Trabalho do Estado de Rio de Janeiro” and on February 9, 2015 “Convenção Coletiva de Trabalho do Estado de São Paulo”).
“Grenelle II” Indicator 15 meetings were held with the Group’s staff representatives to discuss local health and safety conditions (6 meetings in France, 1 in Italy,1 in Germany, 1 in Argentina, 5 in Colombia, 1 in Mexico).
Health and security 3 occupational accidents (2) on the working place with sick leave were recorded as at December 31, 2015 (2 meetings in France, 1 in Germany)(3).
- In Spain, employees are offered an annual medical check-up (general medical examination and occupational risk prevention).
- In the United Kingdom, eye test and work station assessments, pre-employment screening, medicals offered to staff after being employed for a year with the company - In Ireland and in Sweden, health screening offered to the employees.
SCOR identified the number of occupational accidents within the Group to provide rudimentary information on this subject 1.3.4 PROFESSIONAL TRAINING
The strategic objectives of this policy are:  To have one consistent SCOR-wide training approach to ensure career development for all employees;  To maintain and develop employees’ technical and transverse skills, thus contributing to the Group’s performance;  To apply a stringent process for analyzing, controlling and monitoring SCOR’s strategic needs;  To make the training policy a powerful means of developing and retaining staff while adhering to local legal requirements.
(2) For technical reasons, this amount excludes taxes for France 1.3.5 DIVERSITY AND EQUAL OPPORTUNITIES
A Code of Conduct was introduced in 2009, in which SCOR committed to providing a work environment free from discrimination and/or harassment based on gender, sexual orientation, race, religion, disability, or acting as a staff representative or participating in a trade union.
 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, a particular attention was paid to the number of women with Partner status entering in the partnership: women accounted for 50 % of the "partner” nominations during the 2016 partners and nominations process which took place at the end of 2015. 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.
 A European charter for equality of men and women was signed on 29 January 2015 at the European level by the management and members of the European Committee. It offers innovative features and actions to promote diversity.
In parallel, the following commitments (resulting from the agreement) have been made at the Paris site: 1 / Develop and maintain diversity in employment and recruitment, especially via the participation in the “Financi’Elles” network.
2 / Promote and ensure equal treatment in terms of pay and training between women and men working in equivalent fields, similar functions and having the same skills, experience, responsibilities, performance and education; 3 / Ensure that absences related to maternity do not affect career development and salary; 4 / Promote compatibility between work and family life, especially through teleworking.
 In Austria: adherence to measures specified in the collective agreement of the Austrian Insurance Association (equal treatment, etc.).
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 workers with disabilities. The following actions to promote the integration of employees with disabilities have been taken within the Paris site: - The building was built and designed taking into consideration all the arrangements to facilitate the integration of staff with disabilities.
- In Italy, specific measures has been taken to improve the ergonomics of workstations for some employees.
- The “Silver Trophy” for the category “Benefits and Remuneration”. The other nominees were Accor, Areva, Devoteam and Société Générale.
These trophies, awarded in Paris on December 8, 2014, are designed to reward the actions and initiatives taken by the HR managers of more than 150 large groups, as elected by a jury of more than 80 professionals. They notably recognize the best initiatives in terms of the quality of working life, talent management and training policy.
Methodological note - The report covers a 12-month period from January 1, to December 31, of the year under review. - The items pertain to the entire Group except ReMark, Telemed, Réhalto, MRM 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 by SCOR Global P&C SE and is managed independently from the Group in terms of human resources. MRM is controlled by SCOR SE and is managed independently from the Group in terms of human resources.
- 2015 Group staff turnover: number of departures in 2015 (excluding dismissals, deceases, company transfers and trainees)/headcount as at December 31, 2014.
- The average fixed remuneration is calculated on the basis of the annual remuneration of reference paid to employees, prorated to actual hours worked. The average bonus includes profit sharing scheme for France. It takes into account bonuses equal to 0 for unsatisfactory performance.
- The length of absence includes sick leave, accident, maternity/paternity leave, sabbatical leave and exceptional leave.
 SCOR has also undertaken a proactive approach to the environmental certification of our real estate pure investment portfolio. The surface area subject to environmental objectives is about 116,000 m2 for the sole French real estate portfolio through the acquisition of environmentally efficient buildings and the renovation of existing ones. In particular, the Group owns one of the first positive energy tertiary sector buildings of its size (23,000 m2) in Meudon la Forêt. Moreover, a far-reaching renovation program has been started in 2013 on a Parisian surface area of 11,000 m2. This operation will aim at receiving a triple certification (HQE Renovation, LEED, BREEAM) with high levels of excellence, in addition to the granting of the BBC Effinergie-Rénovation energy label. SCOR has also acquired “START” (France), a building of around 26,000 m² with the BBCEffinergie label, the design and execution of which have been certified Very Good by HQE and BREEAM. More recently, a far-reaching renovation program on surface area of more than 20,000 m2, including the construction of new building has been launched in 2014. The latter has been designed with a view to comply with the Paris Climate Plan as well as receiving a double certification (HQE Renovation and BREEAM) with high levels of excellence. Besides these large-scale operations, a renovation project in the center of Paris city regarding the whole façade of a building of a 2,400 m2 surface area has been launched. This project aims to increase the energy efficiency of the building and to be certified HQE Renovation.
(2) With a view to reduce energy intensity of the information technology system (“GREEN IT”), actions have been taken in the field of data management and IT furniture.
As part of the French Business Climate Pledge announced in November 2015, SCOR has reaffirmed our commitment to proactively keep promoting complementary initiatives in terms of both mitigating and adapting to climate change by 2020. This includes the definition of quantified objectives in terms of both of greenhouse gas emissions and investments in green real estate and infrastructure. In addition, the Group announced our divestment from companies deriving more than 50% of their turnover from coal and undertakes, across our entire asset portfolio, to make no new financial investments in such companies in the future.
2.4 Environmental indicators: scope, methodology and limitations This report is established in accordance with regulatory requirements as set out by the article 225 of the law on the national commitment in favor of the environment and takes into account the AMF recommendation n°2013-18 published on November 5, 2013 and available on the AMF website.
This environmental report covers the parent company (“SCOR SE”) and the main locations of its main subsidiaries in France and abroad fully consolidated in the financial statements with the exception of Remark Group (125 employees) and M.R.M (5 employees). These companies account for 4.8% of the employees fully consolidated in the financial statements. Aside from Channel Syndicate (100 employees, 3.7% of the employees fully consolidated in the financial statements), companies in which SCOR has a shareholding are excluded from the scope (Refer to Section 4.6.24 – Notes to the consolidated financial statements, Note 24 - Related party transactions, Associates and Joint Ventures).
Consolidated data covers a 12 month period, generally from November 1, 2014 to October 31, 2015.
 “Scope 3”: other indirect emissions. In this Scope, are included emissions derived from the use of offices (socalled depreciation), business travel, commuting, waste and so on. In this Scope, SCOR is focused on air travel (the most important source of emissions) as well as train transportation and paper purchasing.
2.5 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
Company organization to manage, assess environmental issues and certification initiatives are developed in section: “Group’s environmental policy: general organization and main areas”.
Aside from these corporate communication methods, employees are kept informed about environmental protection through environmental certification procedures undertaken in various sites operated by SCOR (leaflets and posters promoting the reasonable use of resources and raising the awareness of the General Services department, organization of themed events during the Sustainable Development week in France, etc.).
The Group has not made any provisions and guarantees regarding environmental risks, since SCOR has not been subject of any convictions or any litigations invoking its civil liability.
Not material due to the nature of the activity (i.e. financial services). Green House Gas emissions are reported below in the section “greenhouse gas emissions” of this report. Due to the nature of its activity, other discharges in air, water or ground seriously affecting the environment are not significant and are covered by an environmental management system in the premises the Group’s affiliate are the main manager (see section with respect to the “resources dedicated to prevent environmental risk and pollution” and the description of “SCOR’s environmental policy: general organization and main areas”).
The Group selectively monitors its wastes, 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 due to less desktop publishing.
Moreover, condensed water used for the cooling of the data center on very few of the locations subject to the environmental reporting is excluded from the scope of reporting.
Financial services activities do not consume directly raw materials, rather indirectly through their procurement of furniture, office equipment, Information Technology (IT) equipment and the acquisition of property offices. Where the Group has a centralized function dedicated to the purchase of offices supplies such as IT, environmental standards have been globally considered in the selection of equipment (see section: “Group’s environmental policy: general organization and main areas” on the “GREEN IT” policy). This holds true for the acquisition of property offices where a clear focus has been put on “green” credentials (i.e. environmental certification of the conception and the realisation). Otherwise, furniture and office equipment are managed locally and “green” standards are progressively integrated in various areas such as paper ream purchases reaching 85.6 tons in 2015. Recycled paper and paper carrying the FSC or PEFC label represented around 87% of these purchases (81% in 2014). NB: printed document ordered to printing companies are excluded from the scope of reporting.
Energy consumption and measures taken to improve energy efficiency and the use of renewable energies
NB: energy consumption originating from outsourced data centers is not factored conversely to data centers hosted in the premises hosting SCOR’s employees.
Not material due to the nature of the activity (i.e. financial services). Ground use is limited to the surface area of office building hosting the Group’s employees.
Excluding from the calculation the gas not included in the Kyoto Protocol, the Group’s emissions fall to 13,103 tons of CO2 equivalent of which air transportation accounts for 68%.
Our contribution to adaptation strategy with respect to climate change is backed at the highest level of our Group. SCOR’s Chairman and Chief Executive Officer co-chairs the Extreme Events and Climate Risks working group since May 2015.
Besides, SCOR is involved alongside other re/insurance companies in the consultation with respect to the program InsurResilience. This project led under the aegis of the G7, aims to increase by up to 400 million the number of people
in the most vulnerable developing countries who have access to insurance coverage against the negative impact of climate change related hazards by 2020 und support the development of early warning systems.
Although this category of information is not material due to the nature of the activity (i.e. financial services), some of the Group locations contribute to their scale to the preservation of biodiversity. As an illustration Paris and London have hives on their roof or ecoroof and gardens made of diversified plant species and varieties.
(2) Of which electricity (68%), fuel and gas (10%), other heating source (4%) and other cooling source (18%)
3 INFORMATION RELATED TO SOCIETAL COMMITMENTS IN SUPPORT OF SUSTAINABLE DEVELOPMENT The information below, which relates to the Group’s societal commitments in favor of sustainable development, are presented in accordance with the regulatory provisions set out in Article 225 of the law on France’s national commitment to the environment. The sections are presented in the same order as Decree n° 2012-557 of April 24, 2012 relating to the transparency obligations of companies in social and environmental terms. Unless otherwise specified, this information covers the Group and its direct impacts.
Aside from its employees, for whom the conditions for dialogue are set out in Note 1.3.2 - Social relations of this document, SCOR maintains relationships with a broad range of stakeholders directly concerned by our activities. These stakeholders notably include:  Shareholders and investors;  Clients and reinsurance brokers;  Financial and non-financial rating agencies;  National supervisory authorities for the insurance and reinsurance industries in countries in which the Group has subsidiaries (e.g. Autorité de Contrôle Prudentiel et de Résolution - France, Prudential Regulation Authority – United Kingdom, Monetary Authority of Singapore - Singapore, Central Bank of Ireland - Ireland, Autorité Fédérale de Surveillance des Marchés Financiers – Switzerland, as well as the insurance commissioners of the States in which the Group American subsidiaries are registered in the United-States of America);  Professional associations representing the interests of the insurance and reinsurance industry (e.g. Fédération Française des Sociétés d’Assurance, Association professionnelle de la réassurance in France, Insurance Europe, The Geneva Association, American Council of Life Insurers, Reinsurance Association of America, CFO Forum, CRO Forum, Reinsurance Advisory Board, Global Reinsurance Forum, CRO Forum);  Non-governmental institutions such as the United Nations Program for the Environment via its financial initiative, and the United Nations Global Compact.
In addition to the stakeholders mentioned above and aside from the relationships maintained with a number of institutions, in the context of partnerships concluded in the interests of promoting actuarial science (e.g. Institut des
The SCOR Global Life Research Centers maintain close ties with the medical world and finance research operations in the fields for instance of cardiovascular disease (partnership with the Assmann Foundation in Germany), AIDS (partnership with the Pierre & Marie Curie University at the Pitié-Salpêtrière hospital).
Founded in partnership with Nanyang Technological University in March 2011 and part of Nanyang Business School, The Insurance Risk and Finance Research Center (IRFRC) sponsors and conducts primary research on insurance and insurance related risk research in the Asia-Pacific area. In 2015, besides a successful fourth annual conference dedicated to the most recent trends in the field of risk and risk management research in emerging countries, the IRFRC has been selected to conduct the Cyber Risk Test Bed Project, a research program sponsored by the Monetary Authority of Singapore (MAS). This project aims to enhance Cyber risk insurability notably through the set-up of a collaborative and data sharing platform in relation to Cyber Risk. This information should notably help companies to understand their potential Cyber risk exposures and losses. In France, SCOR has launched significant research partnerships in the field of economics and finance, notably in collaboration with the Foundation Jean-Jacques Laffont – Toulouse School of Economics (TSE) chaired by the 2014 Nobel Prize, Jean Tirole. The two chairs financed by SCOR, the “Market Risk and Value Creation” (since 2008) and “Finance” (since 2009), have enabled Jean Tirole and the researchers at TSE to conduct outstanding theoretical and empirical research into risk, which may be consulted on the SCOR Global Risk Center and has given rise to numerous publications in the best international academic journals. This collaboration gives SCOR real-time access to the most recent academic risk research results, and furthers “the art and science of risk” constituting its comparative advantage.
Since its very early days, the Foundation has been financing seminars and colloquiums on various scientific grounds such as emerging infectious diseases, longevity risk for our modern retirement schemes, anticipations from economic agents in an economic crisis context. In 2015, the Foundation partnered with the Toulouse School of Economics, and the Geneva Association to organize an international scientific seminar on the issue of the anticipation and insurability of climate risks. This seminar, which received the COP 21 label, brought together in SCOR’s Parisian office, economists, climatologists, natural catastrophe modelling experts, actuaries and insurance and reinsurance professionals?
Also part of its working program, the Foundation funds research and technical cooperation programs. In 2015, the Foundation board of directors and Board of Directors selected two new projects on (i) the modelling of life expectancy at older ages, and (ii) a project aiming to develop a Global Forecast Earthquake System with a potential set up of early
warning system. These new projects add to the commitments taken by the Foundation over the last few years: a project on risk management behaviors of insurance companies located in the United-States, a EUR 1 million over 5 years to the Foundation for the research on Alzheimer’s disease, and a project with the ISFA of the University Claude Bernard from Lyon, aiming to promote the development of actuarial science in Africa through the creation of a training network.
Aside from the involvement described above in the development and diffusion of scientific knowledge, SCOR runs a number of sponsorship programs throughout the world, which involve its offices and its teams in the life of the local population. Steered locally in order to be as close as possible to the needs of the communities in question, the Group’s offices strive to develop and roll out their own program of commitment to society, taking account of the specific cultural and/or regulatory features of the countries from which they conduct their activities.
By way of illustration, the SCOR Global Life Americas teams in North Carolina (Charlotte, United States), with the support of the executive management, are encouraged to volunteer and support a number of charity operations, including the “Give4Others” program, which enables staff to devote four hours per month to voluntary work for the nonprofit associations of their choice. Another social program consists of a partnership with various schools, which with very high proportion of underprivileged children. Other charity organizations such as United Way are also supported by SCOR Global Life America.