APPENDIX E Glossary 323 APPENDIX F Additional information relating to the management report of the Company and the Group – correspondence table 329
SCOR SE and its insurance and reinsurance subsidiaries are subject to regulatory capital requirements in the jurisdictions where they do business, which are designed to monitor capital adequacy and to protect insureds. While the specific regulatory capital requirements (including the definition of admitted assets and methods of calculation) vary between jurisdictions, an insurance or reinsurance company’s required capital can be impacted by a wide variety of factors including, business mix, product design, sales volume, invested assets, liabilities, reserves and movements in the capital markets, including interest rates and equity markets.
SCOR Global P&C, the Group’s Non-Life division, operates worldwide through two of the three main global reinsurance companies of the Group (SCOR Global P&C SE and SCOR SE) and their insurance and reinsurance subsidiaries and branches in the EMEA region, including Spain, Italy, Switzerland, the UK, Germany, South Africa, Russia, the America region and the Asia-Pacific region, including Australia, China, India, South Korea, Hong Kong and Singapore. SCOR Global Life, the Group’s Life division, operates worldwide through two of the three main global reinsurance companies of the Group (SCOR Global Life SE and SCOR SE) as well as their insurance and reinsurance subsidiaries and branches in the EMEA region including Germany, the UK, Ireland, Italy, Spain, Switzerland, the Netherlands, Sweden, Belgium, Russia, South Africa, in the Americas region including Canada, the US, Latin America, and the Asia-Pacific region
The Group’s main Specialty reinsurance activities include Credit and Surety, Decennial Insurance, Aviation, Space, Marine, Engineering, Agricultural Risks and Alternative Solutions. SCOR underwrites these risks through proportional and non-proportional treaties as well as facultative reinsurance.
SCOR’s Business Ventures and Partnerships business area historically included the provision of capital to third-party businesses, including Lloyd’s syndicates. SCOR contributes to several Lloyd’s syndicates, including Channel 2015, for which SCOR is the sole capital provider.
The impact of alternative retrocession coverage, Atlas IX 2015 and 2016 catastrophe bonds (SCOR Global P&C) and Atlas IX mortality risk transfer contract (SCOR Global Life) (See Section 3.3.5 – Retrocession and other risk mitigation techniques) are not included in the net cost of retrocession as the products are accounted for as derivatives.
In 2017, gross written premiums increased by 6.9% compared to 2016 from EUR 5,639 million to EUR 6,025 million. At constant exchange rates the growth is 8.8% and is consistent with the trend indicated after January 2017 renewals, driven by Property and Casualties treaties.
SCOR Global P&C achieved a net combined ratio (1) of 103.7% in 2017 against 93.1% in 2016 and 91.1% in 2015.
SCOR Global Life has established itself as a recognized provider for longevity reinsurance, focusing on longevity risk transfer transactions for large in-payment pension portfolios, creating a new business pipeline with growth opportunities. The Longevity product line accounts for 9% of SCOR Global Life’s gross written premiums in 2017 and is one of the main drivers of premium growth (11.1% increase in gross written premiums in 2017). The main active market to date for SCOR Global Life is UK with a portfolio from recent years and new business signed in 2017.
The Group has a leverage ratio of 25.7% at December 31, 2017, as compared to 24.4% at December 31, 2016 and 27.5% (1) at December 31, 2015. This ratio is calculated as the percentage of subordinated debt compared to total shareholders’ equity plus subordinated debt. The calculation of the leverage ratio excludes accrued interest from debt and includes the swaps effect related to the CHF 315 million and CHF 250 million subordinated debt issuances.
Denis Kessler joined the Group on November 4, 2002, with the objective of turning the Company around in the face of a very difficult financial situation. The Board of Directors considered that, in order to achieve this, it was preferable to entrust him with the powers of Chairman of the Board of Directors and of Chief Executive Officer. When his term was renewed in May 2011 and April 2017, the Board of Directors considered that Denis Kessler had demonstrated the benefit of combining the offices of Chairman of the Board of Directors and Chief Executive Officer during the turnaround period experienced by SCOR between 2003 and 2007, and then during the economic crisis between 2007 and 2011. The Board of Directors thus felt it was in the best interests of SCOR, its shareholders and all its employees, for Denis Kessler to be re-appointed as Chairman and Chief Executive Officer and to continue the development of the Group.
Member of the Compensation and Nomination Committee and Corporate and Social Responsibility Committee
Swiss – Age: 58 – ROTHSCHILD BANK AG Zollikerstrasse 181 CH – 8008 Zurich, Suisse
●● Director of Europ Assistance Holding (France) ●● Director of Generali France (France) ●● Director of Generali Vie (France) ●● Director of Generali IARD (France) ●● Director of Eramet (France)* ●● Chairman of RVS (association) (France) ●● Member of the Executive Committee of MEDEF (France) ●● Chairman of the Institut pour l’innovation économique et sociale (2IES) (France)
Moreover, three training sessions were organized in 2017 for Board members on the following topics: ●● Solvency II – Pillar 3 – RSR/SFCR on February 21, 2017; ●● SCOR Global Life training session: Putting the client at the center, on July 26, 2017; ●● IFRS 17 on October 25, 2017.
The Risk Committee is composed of Bruno Pfister (Chairman), Thierry Derez, Vanessa Marquette, Kory Sorenson, Claude Tendil and Fields Wicker-Miurin. Each of its members is independent except Thierry Derez and Claude Tendil.
Aside from the mandatory conditions (1) and (2), if the observed average solvency ratio (condition (3)) is lower than the “Target Solvency Ratio”*, the options will be exercisable according to the sliding scale set out in the table below: Difference between the average solvency ratio and the “Target Solvency Ratio”*
●● Participation in international bodies dedicated to the fight against climate change and extreme events
The structure of the Chairman and Chief Executive Officer’s compensation is in line with market practice and is mainly composed of cash compensation, including a fixed part and an annual variable part, as well as variable long-term compensation and a supplementary pension scheme.
●● 50% on the basis of the achievement of personal objectives (quantitative or qualitative), defined at the beginning of each year by the Board of Directors on the recommendation of the Compensation and Nomination Committee.
In addition, notwithstanding the total or partial achievement of the two conditions described above, the definitive acquisition of shares and stock-options would be subject, in any event, to strict compliance by all the beneficiaries with the Group’s ethical principles as set out in the Group’s code of conduct (the “Group Code of Conduct”). The Group Code of Conduct covers mandatory aspects of corporate responsibility, including: integrity, data protection and privacy protection, combating corruption, strict compliance with sanctions and embargos, prevention of money laundering, transparency, promoting equal opportunities in all areas of employment, encouraging the notification of ethical issues via an alerts procedure, together with the promotion of and respect for the principles of the United Nations Global Compact. In the event of non-compliance by the Chairman and Chief Executive Officer with the Group Code of Conduct, none of his shares may be acquired (clawback policy).
In the event of a change in control of the Group, if members of the Executive Committee are dismissed (except for serious or gross misconduct) or if they decide to resign within a twelve-month period, they will benefit from (i) a cash payment equal to the amount of fixed and variable compensation paid to them by the Group for the two financial years prior to their departure, (ii) a cash payment compensating them for their inability to exercise stock options granted prior to their departure date and which they would be unable to exercise due to the vesting period conditions set forth in the applicable stock option plan, in an amount to
The final vesting of half of the options granted is subject to the fulfilment of the following conditions: (1) that the conditions set out in the Plan are fulfilled and in particular that the beneficiary remains an employee or a corporate officer of the SCOR Group until March 10, 2021 inclusive, except as otherwise provided by the Plan; (2) that the beneficiary respects the Group’s ethical principles as described in its Code of Conduct; (3) that the average SCOR ROE over three years (from January 1, 2017 to December 31, 2019) is equal to the average SCOR ROE strategic target (the “Target ROE”) over the same period.
On April 27, 2016, the Shareholders’ Meeting of the Company, in its 25th resolution, authorized the Company’s Board of Directors, under the provisions of Articles L. 225-197-1 to L. 225-197-6 of the French Commercial Code, upon a proposal of the Compensation and Nomination Committee, on one or more occasions, to grant employees of the Company and related companies or groups pursuant to Article L. 225-197-2 of the French Commercial Code, as well as to corporate officers as described by Article L. 225-197-1-II of the French Commercial Code, free allocations of existing, already issued and fully paid up ordinary shares of the Company.
The Company’s Board of Directors’ meeting of February 21, 2017, on the proposal of the Compensation and Nomination Committee meeting of February 21, 2017, decided to allocate 125,000 performance shares to the Chairman and Chief Executive Officer and 140,000 performance shares to the French tax resident members of the Executive Committee.
Achievement of the performance conditions of the performance shares plans vested in 2017
SCOR Global Life’s technical margin ≥3% on average in 2015 and 2016 7.1% Yes
April 27, 2016 Decided by the Board of Directors on April 27,
The total number of new shares authorized at the date of the Registration Document, including the shares that could be issued in connection with the implementation of (i) stock option plans, (ii) securities granting access to the capital and (iii) the current delegations and authorizations is 106,278,883.
See: ●● Section 2.2.3 – Stock options and performance shares; ●● Section 2.3.1.6 – Share capital; ●● Section 4.6 – Notes to the consolidated financial statements, Note 14 – Provisions for employee benefits; ●● Section 4.6 – Notes to the consolidated financial statements, Note 16 – Stock options and share allocations; and
The following paragraphs are added: ●● Addition of a second paragraph to Article 2 – Title III: “As from January 1, 2017 and concerning the Chief Executive Officer, the acquisition of any additional conditional rights per new year of seniority in the Company is limited to 3% of the Reference Income instead of 5%, until a maximum amount of 50% of the Reference Income is reached minus the annuities acquired under the external plans listed in article 5 of the title II, but this amount can in no case exceed 45% of the Reference Income.
(B) SCOR’s average solvency ratio for the three financial years preceding the date of departure of the Chief Executive Officer exceeds the average of SCOR’s strategic solvency ratio target (defined in the strategic plan) calculated over the same period (the «Target Solvency Ratio»); it is specified that in the event that the strategic plan sets a targeted or «optimal» interval, the lower bound of this interval is considered for calculation purposes as the Target Solvency Ratio.
We hereby inform you that we have not been notified of any agreements or commitments previously approved by the General Meeting of Shareholders, whose implementation continued during the year ended.
RISK FACTORS AND RISK MANAGEMENT MECHANISMS03 Strategic risks 3.2.3.2. OTHER LEGAL AND REGULATORY DEVELOPMENTS
Since August 2011, the majority of the mortality reinsurance business in the US related to the former Transamerica Reinsurance business flows into SCOR via retrocession from AEGON companies. Not all underlying reinsurance agreements between cedents and AEGON have been novated; an AEGON insolvency might reduce or terminate cedent premiums passed on to SCOR. In this case, the value of business acquired (“VOBA”) would have to be reassessed and this could result in a material adverse effect on SCOR.
Historically, reinsurers have experienced significant fluctuations in operating income due to volatile and unpredictable developments, many of which are beyond the control of the reinsurer including general economic conditions, levels of capacity offered by the market, and the level of competition with regards to pricing. In particular some of SCOR’s lines of business which are directly linked to financial activities are more exposed to global economic recessions (e.g. systemic crisis post Lehman Brothers): as an example specialty lines such as credit and surety or liability risk such as Errors & Omissions and Directors & Officers Liability.
●● Accumulations of risk particularly exposed to catastrophes in the Life business are regularly assessed in “footprint” scenarios and local CAT scenarios. Specific tools are used to monitor known Group cover accumulation in selected geographical areas. Specifically designed retrocession programs aim at protecting the Life reinsurance business. One program protects assumed catastrophe excess of loss acceptances; another one protects the net retained lines in respect of proportional and per risk acceptances. SCOR uses the RMS model for infectious diseases in order to assess the potential exposure to risk arising from global pandemics.
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.
Beyond traditional retrocession, purchased for all main lines of business, SCOR has implemented a Capital Shield Strategy, which combines the following solutions: ●● traditional retrocession (proportional or non-proportional); ●● capital markets solutions and alternative risk transfer solutions (collateralized retrocession, Insurance-Linked Securities including catastrophe bonds); ●● solvency buffer; SCOR has set out a solvency scale with clear and well-defined buffers safeguarding the Group’s franchise; ●● contingent capital facilities, designed as tools of last resort, to partially replenish the Group’s capital base in case of very remote pre-defined events. The current contingent capital guaranteed equity line is providing the Group with EUR 300 million coverage. It is innovative in that it protects the Group against both natural catastrophes and extreme mortality events.
SCOR’s reinsurance business may also be exposed to interest rate risk. The Group has certain Life insurance contracts which are sensitive to fluctuations in interest rates. However, for most discounted Life liabilities there is no accounting impact from a 100 basis point change in the interest rate because valuation interest rates are typically locked-in.
Real estate risks, either for properties owned directly or through funds, are risks arising from a variation in the real estate market valuation or a change in rental market conditions, the two being closely linked.
The Group’s equity selection is predominantly based on a bottom-up fundamental analysis with the goal to develop a diversified portfolio of stocks and convertible bonds directly or through mutual funds. Due to the inherent 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. Equity risk is also monitored by establishing 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 holding’s ratios on mutual funds are also reviewed regularly, based on the mutual fund’s portfolio.
The Group recognized a net foreign exchange loss of EUR 27 million for the year ended December 31, 2017 (2016: gain of EUR 11 million and 2015: gain of EUR 16 million).
Credit risk on future cash flows from Life reinsurance policies arises from two risk factors: ●● the payment of future cash flows expected under Life reinsurance contracts requires that the cedent is financially sound. Therefore, SCOR risks a reduction in the value of its portfolio of Life contracts in the event of a deterioration in the financial strength of the cedent. This may lead to the impairment of SCOR’s intangible assets, i.e. the value of business acquired (VOBA) and deferred acquisition costs (DAC); ●● a reduction in the value of future cash flows could arise from material unexpected lapsation of policies following a deterioration of the cedent’s credit rating or standing or an event which has a negative effect on the cedent’s reputation.
CONSOLIDATED FINANCIAL STATEMENTS 04Consolidated statement of cash flows 4.4. CONSOLIDATED STATEMENT OF CASH FLOWS
(1) Includes a EUR 301 million one-off cash in-flow from the repayment of a cedent’s fund withheld. (2) Cash related to the acquisition of 80% of the capital and voting rights of Château Mondot, see Note 3 – Acquisitions and disposals. (3) Partial disposal of Asefa in 2017 for EUR 3 million (2016: EUR 8 million). (4) Acquisitions and disposals of other insurance business investments also include movements relating to bonds and other short-term investments with a maturity of less than three months, and classified as cash equivalents.
Certain specific reinsurance accounting principles are described directly within Notes 8 – Accounts receivable from and payable on assumed and ceded insurance and reinsurance transactions, 10 – Deferred acquisition costs, 15 – Net contract liabilities, and 19 – Net retrocession result. Further accounting principles and methods related to reinsurance activities are described below: Classification and accounting of reinsurance contracts
Depending on the design of the risk transfer agreement with the SPV, the transaction is classified as either a derivative instrument or as an insurance contract. Derivatives are accounted for as at fair value through income and are included in the balance sheet line item “Derivative instruments”. Future payments to the SPV scheduled in the risk transfer contract are recognized as “Other liabilities”. Assets from the agreements designated as insurance contracts, are recognized in the balance sheet line item “Share of retrocessionaires in insurance and investment contract liabilities”. Payments to the SPV are recognized in the income statement as “Retroceded written premiums”.
Change in impairment and amortization of investments (1) (28) - (29) (2) (29) - (31) (3) (40) - (43)
Net cash flows provided by/(used in) investing activities (356) (924) (1,280) (259) (109) (368) 141 (674) (533)
The properties held by the Group and considered as investment property are owned either by wholly-owned subsidiaries of SCOR or by MRM (a listed real estate investment company). They consist of office buildings (wholly-owned subsidiaries and MRM), and retail buildings (MRM).
The movements in real estate investments are analyzed as follows: In EUR million Real estate investments Finance leases Total
As at December 2017, revaluation reserves of EUR 156 million (as at December 2016: EUR 134 million) also include: ●● tax effects on available for sale securities net unrealized gains and losses of EUR (48) million (2016: EUR (32) million); ●● net of tax foreign exchange gains and losses of EUR (10) million (2016: EUR 7 million); ●● net of tax shadow accounting impacts of EUR 7 million (2016: EUR 32 million); ●● elimination of assets under management for external clients net unrealized gains and losses in other liabilities of EUR (5) million (2016: EUR 1 million); ●● investments in associates net unrealized gains and losses of EUR 1 million (2016: EUR 1 million); ●● net of tax unrealized gains and losses relating to funds withheld of EUR 0 million (2016: EUR (7) million).
The table below presents the estimated maturity profiles of financial assets, for which the Group is expected to generate cash inflows to meet cash outflows on financial and reinsurance contract liabilities: In EUR million As at December 31, 2017 As at December 31, 2016 in 2017
A significant catastrophic event (US or Canadian Earthquake or a US Named Storm) covered by Atlas IX Series 2015-1 or Atlas IX Series 2016-1 and occurring during the coverage period of the respective bonds, could lead to an increase in the fair value of the derivative instrument.
Other intangible assets with finite useful lives as at December 31, 2017 amounted to EUR 159 million (December 31, 2016: EUR 152 million).
The increase in tangible assets in 2016 was mainly related to the continuation of the construction of the Singapore office, to the acquisition of a new office in Paris and to improvements to other properties for a total of EUR 63 million. These increases were partially offset by the disposal of fully amortized assets (furniture and office equipment).
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 with performance objectives and promote the creation of shareholder value.
During 2017, SCOR purchased 172,742 shares at an average purchase price of EUR 34.69 for an aggregated amount of EUR 5.9 million with the intention to cancel these shares.
Service cost, net of plan amendments 11 4 7 - 10 4 6 - 11 5 6 -
Ceded claims reserves & claims expense reserves (461) (1,175) (1,636) (466) (660) (1,126)
Ceded DAC – end of year 2 1 - 1 5 7 8 10 14 13 9
The change in SCOR Global Life mathematical reserves for the years ended December 31, 2017 and 2016 was as follows: In EUR million 2017 2016
(1) 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.
The Group also allocates 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
SCOR will monitor developments in the course of 2018. SCOR is currently exploring alternate business structures to adapt to the new environment. The implementation process of certain potential business structures currently under consideration may result in a day one, non-recurring, tax expense during 2018 of between nil and approximately USD 350 million. Uncertainties may not be fully resolved by year end 2018.
In accordance with IFRS deferred tax netting rules, the amount of deferred tax liabilities and deferred tax assets stated in the balance sheet are as follows: Balance sheet amounts as at December 31 (in EUR million) 2017 2016
Key management personnel are those individuals having responsibility and authority for planning, directing and controlling the activities of the Group. The Group considers that the members of the Executive Committee and the Board constitute key management personnel for the purposes of IAS 24.
As at December 31, 2017, M&S Brazil continues to be included in the Group’s consolidated financial statements as an equity method investee. The equity value of SCOR’s investment into M&S Brazil amounts to EUR 8.1 million as at December 31, 2017 and M&S Brazil’s contribution to the 2017 net income of the Group is EUR 1.9 million.
The consideration paid by SCOR for the additional 51% share is BRL 28 million (EUR 7.3 million). The assets and liabilities acquired will be 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 during the first quarter of 2018.
ERNST & YOUNG Audit Pierre Planchon Tour First – 1, Place des saisons 92037 Paris-La Défense cedex, France CRCC of Versailles May 6, 2014 April 28, 2017 4.8.3. RESIGNATION OR NON-RENEWAL OF AUDITORS
CONSOLIDATED FINANCIAL STATEMENTS 04 Auditing of historical consolidated financial information 4.9. AUDITING OF HISTORICAL CONSOLIDATED FINANCIAL INFORMATION
In compliance with the engagement entrusted to us by your Annual General Meeting, we have audited the accompanying consolidated financial statements of SCOR SE for the year ended December 31, 2017.
To cover the risk on the measurement of technical reserves, our audit approach was the following: ●● we obtained an understanding of the report of the Group chief actuary on the global adequacy of reserves; ●● we updated our understanding of the procedures and methods of measurement used in determining the technical reserves; ●● we obtained an understanding of the internal controls framework and tested the efficiency of key controls established by management in order to assess the completeness and reliability of the data and of the implemented models; ●● we examined the relevance of actuarial methods and parameters used as well as the assumptions chosen for a selection of contracts; ●● we performed procedures to analyze differences between expected claims and occurred claims in order to control subsequently the quality of estimates produced by the management; ●● we performed, with the support of our Non-Life actuarial team, a recalculation using our own assumptions and tools, of technical reserves for the most sensitive actuarial segments reserves; ●● for Non-Life business, we analyzed the documentation supporting measurement of reserves related to catastrophes, both man-made and natural; ●● we included within our team members with specific skills in IT systems to perform procedures aiming at evaluating the internal control environment of the systems used by the management and test the functioning of several automated processes; ●● we checked the methodology and outputs of the liability adequacy tests carried out by management.
VERIFICATION OF THE MANAGEMENT REPORT AND OF THE OTHER DOCUMENTS PROVIDED TO SHAREHOLDERS
After approval of the financial statements and recognition of the existence of distributable funds in the form of earnings for the financial year less prior losses plus, if applicable, any profit carried forward, the Shareholders’ Meeting shall distribute them as follows: ●● sums to be transferred to reserves pursuant to legal requirements; ●● 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 among all shares in proportion to their unredeemed paid-up value.
At least 35 days prior to the date set for any Ordinary or Extraordinary Shareholders’ Meeting, a preliminary written notice containing, among other things, the agenda and a draft of the resolutions to be considered, must also be published in the BALO.
The calculation of underwriting reserves (including IBNR – Incurred But Not Reported) which have a significant impact on the balance sheet and income statement, is largely based on contractual and accounting data provided by ceding companies, the relevance of which is verified upstream. This calculation of underwriting reserves is subject to the following successive controls: ●● by the actuaries in charge of reserves through control reports for which the proper implementation is verified by the Actuarial Department of the division and of the Group; ●● by the Chief Actuary, particularly for methods, tools and results.
On March 6, 2017, SCOR SE reduced its share in ASEFA from 19.97% to 9.97% exercising the option to sell the second portion of shares to the buyer.
The corporate tax rate will decrease gradually to settle at 25.83% in 2022.
(1) Data for financial years 2017 and 2016 are before appropriation of net income. (2) The balance sheet presentation was revised to include a “Subordinated liabilities” category for EUR 1,362 million in 2016.
Internal and external investment management expenses and interest expenses (15) (127)
UNCONSOLIDATED CORPORATE FINANCIAL STATEMENTS OF SCOR SEC Notes to the corporate financial statements 5. NOTES TO THE CORPORATE FINANCIAL STATEMENTS
●● The EUR 301 million cash advance to SCOR Global P&C SE was partly reimbursed for EUR 233 million.
●● The USD 14 million (EUR 13 million) cash advance granted to SCOR Reinsurance Asia-Pacific Pte Ltd in 2016 was completely reimbursed.
●● EUR 250 million in fixed rate perpetual subordinated notes was issued on October 1, 2014. The notes are redeemable by SCOR from October 1, 2025 on an annual basis on the interest payment dates. The coupon has been set at 3.875% until October 1, 2025 and will be reset every 11 years at the prevailing 11-year EUR mid-swap rate plus a margin of 3.70% thereafter.
●● On June 5, 2015, SCOR issued EUR 250 million in dated subordinated notes, redeemable at interest payment dates from June 5, 2027. The coupon has been set at 3.25% (until June 5, 2027), and will be reset every 10 years at the prevailing 10-year EUR mid-swap rate +3.20%.
Other loans, deposits and guarantees received 27 27 - - 32
Payables on related companies and other affiliates 59 59 - - 70 5.2.6. CONTINGENCY RESERVES
The reinsurance activity of SCOR SE comprises four internal quota share retrocession treaties, one with SCOR Global P&C SE, another with SCOR Global Life SE, a third with SCOR South Africa and a fourth with SCOR Perestrakhovaniye, non-proportional retrocession from the Argentinian branch of SCOR Global P&C SE, from SCOR Switzerland AG, and from SCOR Global Life Reinsurance Ireland and the business underwritten by the Beijing and Indian branches.
Share of retrocessionaires in underwriting reserves 704 - - 704 616 - - 616
Deferred income and accrued expenses 78 - 11 89 75 - 18 93
Foreign currency loss amounts to a EUR 8.8 million loss in 2017 compared to a EUR 13.8 million loss in 2016.
It breaks down into non-recurring income for EUR 0.2 million and non-recurring expenses for EUR (1.4) million.
In 2016, 554,112 options were exercised: 193,526 options exercised under the stock option plan of September 14, 2006 vested on September 14, 2010, 78,507 options exercised under the stock option plan of December 14, 2006 vested on December 14, 2010, 40,739 options exercised under the stock option plan of September 13, 2007 vested on September 13, 2011, 7,000 options exercised under the Stock option of May 22, 2008 vested on May 22, 2012, 38,800 options exercised under the stock option plan of September 10, 2008 vested on September 10, 2012, 33,530 options exercised under the stock option plan of March 23, 2009 vested on March 23, 2013, 2,000 options exercised under the stock option plan of November 25, 2009 vested on November 25, 2013, 44,510 options exercised under the stock option plan of March 18, 2010 vested on March 18, 2014, 500 options exercised under the stock option plan of
(1) The Group had no particular difficulties in hiring in 2017.
The Company has a formal, carefully designed procedure for appointing and promoting Partners implemented every year during an Executive Committee meeting. Candidates must have consistently demonstrated their skills, leadership and commitment in the past.
No collective agreement related to health and safety in the workplace was signed in 2017.
In 2017, a number of measures for health protection/prevention were implemented: ●● in Germany, a variety of medical services is offered in cooperation with the Company doctor (e.g. eye examinations, vaccinations, massages, nutritional advice offer, organization of a 'health day', offer of ergonomic keyboard/mouse). A health and safety committee is in place; ●● in Switzerland, specific actions have been undertaken to support employees with stress management (including yoga and fitness classes, sports club membership), and solutions have been implemented to improve ergonomics at the workstation and to take care of employees’ health (e.g. promoting a balanced diet); ●● in France, the document for the evaluation of occupational risks is reviewed by an external expert and updated to prevent all occupational risks by job type with the SCOR joint works committee (UES), regular medical appointments are organized for employees by the Occupational Health Department, support is provided for stress management especially through the sports association (a fitness room is located in the Kléber site), support is provided to employees experiencing difficulties at work: counselling (Réhalto). In 2017, SCOR created a steering committee focusing on the initiatives related to the health and safety topics; ●● in Spain, employees are offered an annual medical check-up (general medical examination and occupational risk prevention) and two training courses (“Cardiopulmonary resuscitation” and “Resilience: how to handle adversity humanly?”); ●● in the United Kingdom, employees benefit from eye test and work station assessments, pre-employment screening, medicals offered to staff after one year with the Company. Wellbeing day is held in the office twice a year to promote facilities available to employees (health checks, gym membership); ●● in Ireland, a flu vaccination campaign has been implemented; ●● in Sweden, a health care contribution is in place (training card).
●● The SIGN network has been presented to the employees in Korea.
In accordance with the recommendations of the Autorité des Marchés Financiers, this report includes information on the methodology used as well as on its potential limitations. This section of the report also includes ancillary information, as well as immaterial categories, for which SCOR applies the “comply or explain” principle.
One of the two sites in London is BREEAM (BRE Environmental Assessment Method) certified whilst the Group’s office premises in Cologne have a European energy efficiency label. In Paris, the Group owns two buildings for its own use. One of them is HQE (Haute Qualité Environnementale) certified for the design and the construction phase. The other one that has been hosting part of the Parisian staff since April 2017 and rated “excellent” for the design phase under the HQE certification scheme. In Singapore, SCOR’s team moved into new offices in April 2017, inside a newly built building which was awarded a Green Mark Platinum certification label from the Building Construction Authority of Singapore
2.3.5. MAIN INDICATORS AND COVERAGE RATIO AS A PERCENTAGE OF SCOR’S TOTAL WORKFORCE
(2) Of which electricity (67%), fuel and gas (12%), other heating sources (5%) and other cooling sources (16%).
Data was collected on a target scope including all active Group sites with more than 30 employees for all of the reporting indicators. This target scope accounts for 85.2% of employees (as of December 31, 2017) of legal entities fully consolidated in the financial statements plus Channel Syndicate which is located in the Group’s London premises.
Lastly, in Asia, SCOR employees took action on several occasions in defense of the environment. As an example, in October 2017, the SCOR Singapore teams participated alongside the French Chamber of Commerce to the 32nd Singapore coastal clean-up day.
SOCIAL AND ENVIRONMENTAL INFORMATION DStatutory Auditor’s report on the review of selected SCOR SE environmental and social indicators 4. STATUTORY AUDITOR’S REPORT ON THE REVIEW OF SELECTED SCOR SE ENVIRONMENTAL AND SOCIAL INDICATORS
Report by the independent third party, on the consolidated human resources, environmental and social information included in the management report
Transaction whereby a reinsurer agrees to cover part of a risk already underwritten or accepted by an insurer.
Transaction whereby an insurer (cedent or ceding company) transfers part of its risk to the reinsurer against the payment of a premium. The opposite of ceded business is assumed business.
Percentage of total gross sales of the year, without taxes 25.01% 2.07% 0.37% - 9.84% 12.27%
Amount eligible for the deduction allowance specified by Article 158-3 of the French General Tax Code (2) EUR 1.65 EUR 1.50 EUR 1.40
Main characteristics of the internal control and risk management procedures Section 3.8, Appendix A
20.3 Financial statements 4 Consolidated financial statements 153 to 239 20.4 Auditing of historical consolidated financial information 4.9 Auditing of historical consolidated financial information 234 to 239 20.5 Date of most recently audited financial information 4.9 Auditing of historical consolidated financial information 234 to 239 20.6 Interim and other financial information N/A N/A N/A