On October 1, 2013, SCOR acquired the Generali life reinsurance operations in the US (Generali U.S. Holdings, Inc. “Generali U.S.”) for a total consideration of EUR 573 million (USD 774 million).
On September 7, 2015, Standard & Poor’s (S&P) upgraded SCOR’s Financial Strength Rating to “AA- stable outlook” from “A+ positive outlook” and raised the Group counterparty credit ratings to “AA-/A-1” from “A+/A-1” having taken into account the fact that, according to S&P's statement, “the Group has demonstrated its very strong competitive position through resilience in pricing and technical profitability in its P&C book and has reinforced its leading position in the U.S. Life reinsurance market.”
The Group is organized into three divisions, of which two operating segments and one corporate cost center referred to as “Group Functions”. The operating segments are: the SCOR Global P&C business, with responsibility for the property and casualty insurance and reinsurance (also referred to in this Registration Document as “Non-Life”); and the SCOR Global Life business, with responsibility for the life reinsurance (also referred to in this Registration Document as “Life”). These two businesses represent SCOR's two “operating segments” for purposes of IFRS 8 – Operating segments, and are presented as “operating segments” in its consolidated financial statements, included in Section 4 – Consolidated Financial Statements. Each operating segment underwrites different types of risks and offers different products and services, which are marketed via separate channels; responsibilities and reporting within the Group are established on the basis of this structure. SCOR Global Investments is the asset management division of the Group. Its role is complementary to the two operating segments as it manages SCOR Global P&C’s and SCOR Global Life’s investment assets associated with the contract liabilities. SCOR Global Investments also manages third party assets, however these activities are currently considered not material. Therefore SCOR Global Investments is not considered a separate reportable operating segment for purposes of IFRS 8 – Operating segments.
SCOR's casualty treaties typically cover original risks of general liability, products liability or professional indemnity. Accordingly, they include treaties covering motor liability and general third-party liability. Motor liability reinsurance covers property damage, bodily injuries and other risks arising from the coverage of both drivers and passengers in private vehicles and commercial fleets.
Industrial & Commercial Risks provides coverage to manufacturing and heavy industries (automotive, pulp and paper, aeronautics / defense, high tech) and finance and services (infrastructures, intellectual services, general contractors, distribution and trading).
In 2008, SCOR decided to internalize the management of its insurance business investment portfolio, in order to implement its investment strategy centrally and globally, with a strict monitoring of the risk appetite and a dynamic positioning according to an enhanced Asset-Liability Management (“ALM”) process, integrating economic and market expectations.
In Cologne, SCOR moved in 2012 into its new office building with more than 6,000 m² located at 10, Goebenstrasse, held by the German branch of SCOR SE “SCOR Rückversicherung Direktion für Deutschland, Niederlassung der SCOR SE”, and fully occupied by SCOR.
The Group cost ratio (1) calculated as the total of all management expenses less certain non-controllable expenses (e.g. bad debts), legal settlements, brokerage commissions and amortizations, divided by gross written premium, was 5.0% for the year ended December 31, 2015, flat from 5.0% in 2014 (2013: 5.1%). The management expenses for the years ended December 31, 2015, 2014 and 2013 were EUR 776 million, EUR 649 million and EUR 599 million respectively, on a comparative basis.
Operating income for the year ended December 31, 2015 amounted to EUR 1,048 million as compared to EUR 826 million in 2014 and EUR 581 million in 2013 benefiting from the strong technical performance of SCOR Global Life, the robust profitability of SCOR Global P&C and a rather benign year in terms of natural catastrophes.
SCOR generated a net income of EUR 642 million in 2015, compared to EUR 512 million and EUR 549 million respectively for the years ended December 31, 2014 and 2013.
(4) The effective tax rate calculation method has been adjusted to exclude the share in results of associates from the income before tax. The effective tax rates previously reported in the 2014 Registration Document were 24.5% and 14.2% for 2014 and 2013, respectively
Impairments / amortization on invested assets (43) (31) (97) Fair value through income on invested assets (1) 11
This full, holistic model was developed internally over the last 10 years, on the basis of SCOR’s experience and expertise. It covers all known material quantifiable risks to which the Group is exposed (Life and P&C underwriting risk, market and credit risk, operational risk) and reflects SCOR’s risk profile and strategy. This model is founded on high scientific standards, using systematically stochastic simulations and modelling dependencies across risks, based on cutting-edge methodologies. SCOR’s model is used extensively to help to prepare management decisions which involve risk management or solvency considerations. The solvency position of the Group is followed on SCOR’s dynamic solvency scale which defines SCOR’s solvency target – the “optimal range” being between 185% and 220% – as well as the various management actions to be taken depending on the solvency position, as shown below. At Year-end 2015, SCOR’s solvency ratio, adjusted for the intended calls of the two debts callable in Q3 2016, stands at 211% (1)(2), within the optimal solvency range of 185%-220% as defined in the“Optimal Dynamics”plan.
Average invested assets (2) 17,462 15,074 14,056 Total investment income on invested assets
(29) 63 (16) Weighted average shareholders' equity 6,073 5,196 4,832 ROE
SCOR decided to adapt one provision stated in the Afep-Medef Code:  Section 9.4 of the Afep-Medef Code related to the independence of the directors of the Company who hold a term in a Group’s subsidiary
BPCE 50 avenue Pierre Mendès France 75201 Paris Cedex 13, France
 Director of GMF Vie (France)  Chairman of the Board of Directors of Azur-GMF Mutuelles Assurances Associées (France)  Director and Vice-Chairman of Covéa Ré - Société de Réassurance Mutuelle – (France)  Director of Barrières Frères (France)  Director of Union de Groupe Mutualiste Mutaris (France)  Permanent Representative of Azur-GMF Mutuelles Assurances Associées at the Board of Directors of
The Board of Directors of SCOR SE decided, in order to protect the corporate interests, to implement an internal control program to prevent risks of conflict of interest through: 1. A review by the Audit Committee of related party transactions;
Moreover, three training sessions were organized in 2015 for Board members on the following topics:  Demonstration of the accounting software One Ledger, on March 3, 2015;  Training session on Life Reinsurance, on July 27, 2015;  Training session on Corporate Governance under Solvency 2, on November 3, 2015.
The Audit Committee is composed of Kory Sorenson (Chairman), Marguerite Bérard-Andrieu, Peter Eckert, Vanessa Marquette and Fields Wicker-Miurin. Each of its members is independent. Due to the experience and positions held by its members during their career, the Committee has a high level of financial expertise.
The Chairman and CEO attends the Compensation and Nomination Committee on topics relating to appointments and to the compensation policy of members of the Executive Committee of the Group.
The Compensation and Nomination Committee met 5 times in 2015, each meeting lasting approximately 2 to 3 hours.
Indemnities or benefits due or which may become due as a result of termination or change of duties
Start date of mandate : 11/04/2002 (1st nomination date) Closing date of mandate : 2017
In addition to these conditions specified above, the Board of Directors decided that for all the 2009 grants and following ones, the Corporate Officer is required to retain on the market a number of shares equal to 5% of the shares freely assigned to him as soon as these shares may be sold.
Fixed gross annual sum EUR 1,200,000 Following the recommendation of the Compensation and Nomination Committee on February 23, 2015, the meeting of the Board of Directors on March 4, 2015 decided that the Chairman and Chief Executive Officer will receive a fixed gross annual sum of EUR 1,200,000, payable in twelve monthly instalments. The fixed remuneration of Chairman and Chief Executive Officer has not changed since January 1, 2008.
In accordance with the Group Compensation policy applicable to all Partners within the Group, the variable annual compensation of the Chairman and Chief Executive Officer may benefit, in the event of outperformance, from a multiplier applied to personal (capped to a maximum of 150% of the personal objectives target part) and financial objectives (capped to a maximum of 130% of the financial objectives target part) which will carry the variable annual compensation of the Chairman and Chief Executive Officer to a ceiling of 140% of his variable annual target compensation. Moreover, the Group policy states that, for participation and strong contribution to the success of specific strategic projects, an additional and exceptional bonus (“Exceptional Contribution Bonus” - ECB) may be granted; the ECB can reach a maximum of 25% of the target variable annual compensation of the Chairman and Chief Executive Officer. The total cash variable annual compensation of the Chairman and
The assessment of the achievement by objective is as follows:  Internal model (approval of SCOR’s internal model): SCOR
This variable annual compensation is paid in one time in March 2016.
Directors, upon the recommendation of the Compensation and Nomination Committee, will be met for the current year if at least 3 out of 4 criteria below are fulfilled.
Transfer date 2011 – 2019 Long Term Incentive Plan 40,000 - - 09/02/2019 2012 Plan 40,000 - - 03/20/2016 2013 Plan 40,000 - - 03/06/2017 2013 – 2021 Long Term Incentive Plan 40,000 - - 03/06/2021 2014 Plan 40,000 - - 03/05/2018 2015 Plan 40,000 - - 03/05/2019 Total 352,000 2,527,055 Benjamin Gentsch 2007 Plan 2008 Plan 24,000 17.55 421,200 05/08/2012 2009 Plan 32,000 18.885 604,320 03/17/2013 2010 Plan 40,000 19.815 792,600 03/03/2014 2011 Plan 40,000 30.28 1,211,200 03/08/2015 2011 – 2019 Long Term Incentive Plan 40,000 - - 09/02/2019 2012 Plan 40,000 - - 03/20/2016 2013 Plan 40,000 - - 03/06/2017 2014 Plan 40,000 - - 03/05/2018 2015 Plan 40,000 - - 03/05/2019 Total 386,000 3,787,820 Mark Kociancic 2006 Plan 4,000 14.88 59,520 07/05/2008 2007 Plan 7,000 15.17 106,190 05/25/2011 2008 Plan 7,500 16.55 124,125 08/27/2012 2009 Plan 7,500 18.885 141,638 03/17/2013 2010 Plan 7,500 19.815 148,613 03/03/2014 2011 Plan 7,000 30.28 211,960 03/08/2015 2011 – 2019 Long Term Incentive Plan 7,000 - - 09/02/2019 2012 Plan 13,000 - - 03/20/2016 2013 Plan 40,000 - - 03/06/2017 2013 – 2021 Long Term Incentive Plan 40,000 - - 03/06/2021 2014 Plan 40,000 - - 03/05/2018 2015 Plan 60,000 - - 03/05/2019 Total 240,500 792,046 Paolo De Martin 2007 Plan 50,000 15.17 758,500 05/25/2011 2008 Plan 36,000 17.55 631,800 05/08/2012 2009 Plan 48,000 18.885 906,480 03/17/2013 2010 Plan 48,000 19.815 951,120 03/03/2014 2011 Plan 48,000 30.28 1,453,440 03/08/2015 2011 – 2019 Long Term Incentive Plan 48,000 - - 09/02/2019 2012 Plan 48,000 - - 03/20/2016 2013 Plan 48,000 - - 03/06/2017 2013 – 2021 Long Term Incentive Plan 48,000 - - 03/06/2021 2014 Plan 60,000 - - 03/05/2018 2015 Plan 60,000 - - 03/05/2019 Total 542,000 4,701,340 Simon Pearson 2006 Plan 7,000 14.88 104,160 11/24/2008 2007 Plan 10,000 15.17 151,700 05/25/2011 2008 Plan 12,000 16.55 198,600 08/27/2012 2009 Plan 10,000 18.89 188,850 03/17/2013 2010 Plan 12,000 19.815 237,780 03/03/2014 2011 Plan 10,000 30.28 302,800 03/08/2015 2011 – 2019 Long Term Incentive Plan 10,000 - - 09/02/2019 2012 Plan 10,000 - - 03/20/2016 2013 Plan 12,000 - - 03/06/2017 2013 – 2021 Long Term Incentive Plan 12,000 - - 03/06/2021 2014 Plan 40,000 - - 03/05/2018 2015 Plan 40,000 - - 03/05/2019
Aside from the mandatory conditions (1) and (2), if the observed average solvency ratio (condition (3)) is lower or higher than the Target Solvency Ratio, the shares will be acquired in accordance with the progressive scale set out in the table below: Difference between the average solvency ratio and the Target Solvency Ratio
Following the authorization by the Shareholders' Meeting on December 18, 2015, the Company's Board of Directors of December, 18 2015, on the proposal of the Compensation and Nomination Committee of November 2, 2015, decided to grant performance shares to a new member of the Executive Committee in 2015 and to the French tax residents members of the Executive Committee, to the other Partners and to designate partners with a promise of allocation at hiring. The Company's Board of Directors of December 18, 2015, on the proposal of the Compensation and Nomination Committee of November 2, 2015, decided to allocate 100,000 performance shares to the French tax resident members of the Executive Committee and 40,000 performance shares to the new member of the Executive Committee in 2015. The Chairman and CEO, under the authority given by the Board of Directors held on December 18, 2015 for the implementation of this plan, allocated on December 18, 2015 409,224 performance shares to the other French tax resident Partners (240 Partners) and 42,105 free shares to French tax resident Non Partners of the Company (417 Non Partners), under the collective Plan.
In 2015, the Compensation and Nomination Committee observed the validation of 100% of performance conditions attached to the 2013 performance shares plans as defined in the 2013 reference document. The following table shows the free shares plans currently in force within the Group.
The plans which shares are definitely acquired and for which the holding period is over are not presented below.
During the 2015 allocation, the rights vested into shares by the ten employees of the Company and of any company included in its consolidation whose number of shares thus obtained is the highest represent 315,500 shares. Those rights concerned, for the tax residents of France, the Free Share Plan of March, 5 2013 and November 5, 2013 whose transfer occurred on March 6, 2015 and November 6, 2015, for the not tax resident in France, the Free Share Plans of March 7, 2011 and September 1, 2011 whose transfer occurred on March 8, 2015 and September 2, 2015.
According to the decision of the Shareholders General Meeting of the Company dated April 30, 2015, in its 23rd resolution, the Board of Directors of the Company decided on April 30, 2015 the share capital reduction of EUR 9,926,773 by cancellation of 1,260,227 treasury shares to reduce the share capital from EUR 1,522,151,515.10 to EUR 1,512,224,741.93, divided by 191,980,457 ordinary shares. The reason for such decision of capital reduction is to avoid any dilutive effect of the exercise of stock options upon the share capital. According to the decisions of the Extraordinary Shareholders General Meetings of the Company dated (i) May 31, 2005 in its sixth resolution, (ii) May 16, 2006 in its fifth resolution, (iii) May 24, 2007 in its 21st resolution, (iv) May 7, 2008 in its 19th resolution, (v) April 15, 2009 in its 22nd resolution, (vi) April 28, 2010 in its 19th resolution and (vii) May 4, 2011 in its 28th resolution to authorize the Board to grant to officers and employees options to subscribe for or purchase of shares and to acknowledge, if necessary, at its first meeting following the year end of the Company, the number and amount of new shares issued during that period following the exercise of options, the Board of Directors of SCOR SE acknowledged, on February 23, 2016, the capital increase of EUR 5,298,350.89 by creation of 672,638 shares with a nominal value of EUR 7.8769723 each.
Due to the exercise of 7,920 stock options since December 31, 2015, on the date of the Registration Document, the registered share capital of SCOR SE is EUR 1,517,585,478.44 divided into 192,661,015 shares with a par value of EUR 7.8769723 each.
19th resolution (Delegation of authority granted to the Board of Directors for the purpose of making determinations with respect to the issuance, in the context of an offer referred to in paragraph II of Article L.411-2 of the French Monetary and Financial Code, of shares and/or of securities granting access to capital or entitling the holder to a debt instrument, with cancellation of preferential subscription rights)
In accordance with article L.225-102-1 of the French commercial code, during the year 2015 there have been no agreements concluded directly or through a third party between, on one hand, the chief executive officer, one of the directors or one of the shareholders holding a fraction of the voting rights greater than 10 %, of SCOR SE and, on the other hand, SCOR SE or another company whose SCOR SE owns directly or through a third party more than half of the capital or with executive officers and directors in common with SCOR SE, unless such agreements are ordinary transactions concluded under normal conditions.
With regard to the notional cash-pooling scheme, each participating entity receives remuneration from BNP Paribas of its account’s positive balance, under the terms and conditions negotiated for the Group and otherwise, pay interest to BNP Paribas on the negative balance of their account, at an agreed rate for the Group.
The amendment # 6 to the Facility Agreement was signed on March 27, 2015. This Facility Agreement, as amended, gave rise to remuneration of USD 1,500,000.
such a designation is a risk of higher capital charges with the Basic Capital Requirement (BCR) and Higher Loss Absorbency (HLA) and greater regulatory burdens such as the establishment of resolution plans. On the other hand, there is a possibility that G-SIIs could benefit from a market perception of an implicit state guarantee. Were SCOR’s competitors to receive such a designation and SCOR were not, there could be a risk of SCOR’s market perception weakening relative to these peers. In the meantime, the International Association of Insurance Supervisors (“IAIS”) has been developing a common framework for internationally active insurance groups (“IAIGs”), the ComFrame. It is the IAIS’s intention to develop Insurance Capital Standards (“ICSs”) to be applied to all IAIGs starting 2020. This development could jeopardize the extent of recognition of diversification effects or the use of internal models, and there is a risk that these rules could have an impact on capital management aspects.
An insolvency of AEGON might impair the value of business acquired (VOBA) of SCOR Global Life
In Life reinsurance, a severe pandemic is a major risk. In the past century, three major outbreaks of influenza occurred and claimed millions of lives. The occurrence of a similar event could cause large losses to SCOR due to an increased
SCOR’s ability to grow or maintain its portfolios in the Non-Life and Life reinsurance divisions may also be subject to external factors whose evolutions may be linked, such as economic and political risks: For instance, slowdowns in economic growth or recessions in the major markets may lead households and companies to take out less insurance, to suspend certain premium payments, or to terminate the insurance policies underlying the existing Non-Life and Life treaties earlier than anticipated. Similarly, social and political instability in certain markets, in which both divisions operate, is particularly significant in emerging markets. These risks could lead to significantly reduced business growth in these target markets.
The projections for insurance liabilities of the Life segment have been prepared on a best estimate basis. The amounts below represent the estimated maturity profile of the gross liabilities. For long-term life reinsurance, benefit payments are typically settled net of premiums (for treaties with periodic premium payments). Where liabilities are deposited with the cedent, the settlement normally also includes certain other account items, primarily the release of the deposits. For contracts where funds withheld are used to offset the amounts settled between SCOR and its cedents, funds withheld to cover the life insurance liabilities in the table below mature at the same date as the respective life insurance liabilities. The table below reflects gross cash outflows: Life insurance liabilities < 1 year 1-5 years 6-10 years > 10 years Total In EUR million
SCOR manages efficiently its capital allocation and fungibility between subsidiaries having regard to the legal and regulatory constraints. SCOR is continuously leveraging, in its day-to-day activity, on various tools that are core to the reinsurance activity (such as intra-group reinsurance, intra-group financing, portfolio transfer, capital transfer or collateral posting).
P&C Division is organized in order to be able to assess and control its risks at each level of its business.
 The claims handling function is performed by the claims teams, which review, process and monitor reported claims. SCOR Global P&C’s Claims & Commutations Department is in charge of the implementation and overview of the overall claims handling and commutation management policy for the Non-Life division, implementing worldwide control and reporting procedures and managing commutation of portfolios and commitments. It supports and controls the day-to-day activity and takes over the direct management of large, litigious, serial and latent claims. Additionally, periodic audits are conducted on specific claims and lines of business, and claims processing and procedures are examined at the ceding companies’ offices with the aim of evaluating their claims adjusting process, valuation of case reserves and overall performance. When needed, recommendations are given to underwriters and local management.
3.3.2.3 MANAGEMENT OF INTERDEPENDENCE AND ACCUMULATION RISKS BETWEEN SCOR’S AREAS OF BUSINESSES
The two main principles driving the operational risk management approach are:  Exhaustiveness: Ensure that a complete and exhaustive identification of all the risks within the Group is carried out.
 The consolidated financial statements as at December 31, 2013 are included from pages 198 to 305 and the auditors’ report on these consolidated financial statements as at December 31, 2013 is included 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 198 to 305 and from pages 305 to 307, respectively, of the free translation into English of the above mentioned Registration Document. The translation is available on SCOR’s website www.scor.com).
The consolidated financial statements were presented by Group Management to the Audit Committee. The Management and the Audit Committee report to the Board of Directors, which authorized the consolidated financial statements on February 23, 2016.
The consolidated financial statements as at and for the year ended December 31, 2015 will be presented for approval at the Annual General Meeting which will take place on April 27, 2016.
Assumed and ceded reinsurance transactions that do not transfer significant reinsurance risk are recognized in accordance with IAS 39 - Financial Instruments: Recognition and Measurement. Amounts collected are not recognized as premiums, reserves and deferred acquisition expenses but are classified as “investment and financial reinsurance contract liabilities” and “financial contract assets” on the balance sheet. These liabilities are assessed only on the basis of contractual flows and no longer on the basis of estimated ultimate results as required by accounting principles applicable to insurance transactions. Income from these transactions is equal to SCOR’s net fee or spread and is recorded in “other income and expense”.
Investments 867 Share of retrocessionaires in insurance and investment contract liabilities
Share of Generali U.S. income included in the 2013 SCOR consolidated income
Revenues associated with financial reinsurance contracts 8 - - - 8 4 - - - 4 3 - - - 3 Gross benefits and claims paid
Other operating income 4 1 - - 5 9 17 - - 26 - - - - - OPERATING RESULT (BEFORE IMPACT OF ACQUISITIONS)
Goodwill (1) 49 739 788 49 739 788 Value of business acquired
(21) Cumulative amortization and impairment at December 31, 2014 (181) (532)
The additions to tangible assets in 2014 were mainly related to the on-going construction of the Singapore office in which SCOR purchased four units of an additional floor and to the leasehold improvements in other properties for a total of EUR 17 million. These additions are partially offset by the sale of office space in a building also located in Singapore, on November 17, 2014.
In 2015 and 2014 respectively, there were no material gains or losses realized on the disposal of available for sale investments which were previously carried at cost.
4.6.7.3 MOVEMENTS IN LEVEL 3 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE
Repairs and maintenance costs are charged to the statement of income during the financial period in which they are incurred. All costs directly associated with purchases or constructions of properties are capitalized. All subsequent value enhancing capital expenditures are capitalized when it is probable that future economic benefits related to the item will flow to the Group. Every five years, each investment property is subject to an in-depth analysis of its market value by an independent
The Group is planning to sell four investment properties in the course of 2016. One of these disposals was realized in February 2016.
As part of its real estate investment activities described above, SCOR leases its investment buildings. The leases generally conform to the local market conditions and have annual indexation clauses for the rental payments. The estimated minimum rental income is as follows: 2015 2014 In EUR million Minimum rental income Minimum rental income
16,125 146 15,374 272 (1) During 2015 and 2014, SCOR has no investment exposure related to sovereign risk of Portugal, Ireland, Italy, Greece or Spain
The table below presents the estimated maturity profiles of financial assets, which are expected to generate cash inflows to meet cash outflows on financial and insurance contract liabilities: In EUR million As at December 31, 2015 As at December 31, 2014 4.6.8 NOTE 8 - LOANS AND RECEIVABLES
The Company issued, in 2000, EUR 100 million in 20-year subordinated bonds, redeemable by SCOR each quarter as from the tenth year following their issuance. These floating-rate bonds bear interest indexed on the 3-month Euribor plus (i) 1.15% for the first ten years, and (ii) 2.15% thereafter. The Group decided not to redeem the EUR 100 million of subordinated bonds due 2020 at their first call date in July 2010.
Certain real estate financing contracts contain accelerated repayment clauses and other debt covenants. Such covenants define certain ratios to comply with, among which loan to value ratios (LTV), defined as the relation between the carrying amount of the financing and the market value of the real estate being financed, interest coverage rates (ICR), representing the percentage at which interest charges are covered by rental income, and debt service coverage ratios (DSCR), representing the percentage at which debt amortization and interest expense are covered by rental income. Under existing financing contracts LTV ratios vary between 55% and 90% and ICR / DSCR between 130% and 200%. As at December 31, 2015, the Group is in compliance with the LTV and ICR / DSCR covenants.
These benefits amount to EUR 165 million and EUR 149 million at December 31, 2015 and 2014 respectively, and include post-employment benefits related to pension plans of EUR 163 million (2014: EUR 146 million) and long service awards provisions of EUR 2 million (2014: EUR 3 million).
In the Life business, treaty linked liabilities include mathematical reserves, unearned premium reserves and claim reserves.
The next section of the table shows the portion of the initial year-end net reserves that was paid (claims paid) as at the end of the subsequent calendar year. Claims paid are converted to EUR at the average foreign exchange rates of the
Ceded cumulative inception to date incurred losses as at December 31, 2015
In EUR million As at December 31, 2015 As at December 31, 2014 As at December 31, 2013 Defined benefit obligation 408 358 296 Plan assets 243 209 179 Deficit 165 149 117 Asset ceiling limitation - - 1
The following table summarizes the movements in accrued (prepaid) balances recorded in the consolidated balance sheets as at December 31, 2015, 2014 and 2013: In EUR million
New shares issued subject to option plans 2005 September 16, 2005 September 16, 2009 September 15, 2015 15.90 623,269 2006 September 14, 2006 September 15, 2010 September 14, 2016 18.30 795,771 2006 December 14, 2006 December 15, 2010 December 14, 2016 21.73 394,500 2007 September 13, 2007 September 13, 2011 September 13, 2017 17.58 1,417,000 2008 May 22, 2008 May 22, 2012 May 21, 2018 15.63 279,000 2008 September 10, 2008 September 11, 2012 September 10, 2018 15.63 1,199,000 2009 March 23, 2009 March 23, 2013 March 22, 2019 14.92 1,403,500 2009 November 25, 2009 November 25, 2013 November 25, 2019 17.12 88,500 2010 March 18, 2010 March 19, 2014 March 19, 2020 18.40 1,378,000 2010 October 12, 2010 October 13, 2014 October 13, 2020 17.79 37,710 2011 March 22, 2011 March 23, 2015 March 23, 2021 19.71 701,500 2011 September 1, 2011 September 2, 2015 September 2, 2021 15.71 308,500 2012 March 23, 2012 March 24, 2016 March 24, 2022 20.17 938,000 2013 March 21, 2013 March 22, 2017 March 22, 2023 22.25 716,000 2013 October 2, 2013 October 3, 2017 October 3, 2023 24.65 170,000 2013 November 21, 2013 November 22, 2017 November 22, 2023 25.82 25,000 2014 March 20, 2014 March 21, 2018 March 20, 2024 25.06 694,875 2014 December 1, 2014 December 2, 2018 December 1, 2024 24.41 9,000 2015 March 20, 2015 March 21, 2019 March 21, 2025 29.98 666,881 2015 December 18, 2015 December 19, 2019 December 19, 2025 35.99 45,250
The exercise of the stock options allocated on December 18, 2015 is subject to performance conditions which are based on the strict observance of the principles set forth in the SCOR Code of Professional Conduct, on the solvability ratio and the SCOR group’s ROE in 2015 and 2016.
granted Estimated price on grant date November 5, 2013 November 5, 2017 13,500 EUR 25.64 December 18, 2013 December 18, 2016 9,500 EUR 25.14 December 18, 2013 December 18, 2018 28,000 EUR 25.14 March 4, 2014 March 5, 2016 641,335 EUR 24.70 March 4, 2014 March 5, 2018 1,263,695 EUR 24.70 March 4, 2014 (LTIP) March 5, 2020 31,500 EUR 24.70 March 4, 2014 (LTIP) March 5, 2022 88,500 EUR 24.70 July 30, 2014 July 31, 2016 3,490 EUR 24.24 November 5, 2014 November 6, 2016 7,500 EUR 24.48 November 5, 2014 November 6, 2018 27,500 EUR 24.48 December 1, 2014 December 2, 2017 7,000 EUR 25.18 December 1, 2014 December 2, 2019 21,000 EUR 25.18 March 4, 2015 March 5, 2017 365,000 EUR 29.36 March 4, 2015 (LTIP) March 5, 2021 40,000 EUR 29.36 December 18, 2015 December 19, 2018 1,511,663 EUR 34.59 December 18, 2015 (LTIP) December 19, 2021 106,432 EUR 34.59
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) 2015 2014 2013 Deferred tax liabilities (366) (388) (366) Deferred tax assets 794 825 813 Net deferred tax assets (liabilities) 428 437 447 4.6.19.5 EXPIRATION OF TAX LOSSES AVAILABLE FOR CARRY-FORWARD
The operating losses which have not been recognized as deferred tax assets relate primarily to the French Tax Group.
Please refer to Sections 3.2.2 – Underwriting risks and other risks related to the P&C and Life reinsurance business and 3.3.2 - Management of underwriting risks and other risks related to the P&C and Life reinsurance business.
Not applicable 4.8.4 FEES PAID BY THE GROUP TO THE AUDITORS
This is a free translation into English of the statutory auditors’ report on the consolidated financial statements issued in French and it is provided solely for the convenience of English-speaking users. The statutory auditors’ report includes information specifically required by French law in such reports, whether modified or not. This information is presented below the audit opinion on the consolidated financial statements and includes an explanatory paragraph discussing the auditors’ assessments of certain significant accounting and auditing matters. These assessments were considered for the purpose of issuing an audit opinion on the consolidated financial statements taken as a whole and not to provide separate assurance on individual account balances, transactions or disclosures. This report also includes information relating to the specific verification of information given in the group’s management report.
Our work consisted in assessing the data and assumptions on which the estimates are based, with regard to the experience of your company, its regulatory and economic environment, as well as the overall consistency of these assumptions.
The Report of the Chairman of the Board of Directors featured in Appendix A, has been the subject of a report by the SCOR statutory auditors, which is also included in Appendix A.
5.2 Description of SCOR share capital 231 5.3 Third-party information and statements by experts and declarations of any interest 232 5.3.2 Information from third parties 232
For further detail please refer to the Section 2.1 – Corporate officers executives and employees.
At all meetings, each shareholder has as many votes as the number of shares he holds or represents without limitation other than those which may result from legal requirements and the stipulations above. The difference between the distribution of share capital and the distribution of voting rights arises from the existence of treasury shares with no voting rights. Following an amendment of the articles of association of the Company decided by the Shareholders’ Meeting on April 30, 2015, no double voting right, as referred to in the provisions of article L. 225-123 of the French commercial Code, introduced by law no. 2014-384 of March 29, 2014, may be attributed to or benefit, in any manner whatsoever, any of the shares of the Company.
Other Ordinary or Extraordinary Meetings may be convened at any time during the year. Meetings of Shareholders may be convened by the Board of Directors or, if the Board of Directors fails to call such a meeting, by the statutory auditors, by the liquidators in case of bankruptcy, by shareholders owning the majority of the Ordinary Shares or voting rights after having launched a takeover bid or by an agent appointed by a court. The court may be requested to appoint an agent either by shareholder(s) holding at least 5% of our share capital, or a duly authorized association of shareholders holding their Ordinary Shares in registered form for at least two years and holding together a certain percentage of our voting power (computed on the basis of a formula related to capitalization which on the basis of the Company’s outstanding share capital as at December 31, 2015, would represent approximately 1% of our voting power) or by any interested party, including the Workers’ Council (“Comité d’entreprise”) in cases of urgency. The notice calling such meeting must state the agenda for such meeting.
The rights of a holder of shares of a class of the Company’s capital stock, including the Ordinary Shares, can be amended only after a Special General Meeting of all shareholders of such class has taken place and the proposal to amend such rights has been approved by a two-thirds majority vote of shares of such class present in person (including those voting by correspondence) or represented by proxy. The Ordinary Shares constitute our only class of capital stock.
The authorization granted to the acquisition or increase of stakes, whether directly or indirectly, may be subject to the compliance with commitments taken by one or several of the applying persons.
and support the business process owners where necessary. The ICS standards are applied based on the principle of proportionality. ICS processes have been documented accordingly, focusing on those considered the most critical. The ICS documentation is being progressively deployed across the Group and regularly reviewed for continuous improvement.
In addition, a number of new Group policies were drafted or amended reflecting latest legal and other requirements, in particular with regards to the Solvency II Directive (e.g. Group Policy on Capital Management, Group Fit & Proper Policy, and Group Supervisory Reporting Policy).
Other loans, deposits and guarantees received 875 626 Other liabilities 271 117 Deferred income and accrued expenses Note 4 73 - Deferred commissions received from reinsurers (Non-Life) 63 - Reinsurance estimates - Retrocession - - Other accruals 10 -
Investment revenues 938 470 Investment income 860 403 Other investment income 67 59 Realized gains 11 8
In the unconsolidated corporate profit and loss statement of SCOR SE under French GAAP, the Non-Life segment encompasses personal accident reinsurance in accordance with article A. 343-1 of the Insurance Code. Personal accident reinsurance belongs to the Life segment in Group consolidated financial statements under IFRS.
In EUR million Related companies Other affiliates Other Total Related companies Other affiliates Other Total ASSETS (Gross) Investments 7,814 - 1,271 9,085 6,050 - 354 6,404 Investment properties 205 - 2 207 205 - 2 207 Shares other than variable-
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, and the business underwritten by the Beijing branch.
 Reversal of tax related provisions of EUR 0.8 million. It breaks down into extraordinary income for EUR 1.2 million and extraordinary expenses for EUR (5.8) million.
The CEO benefits from a company car and a shared driver. Total pension benefits commitments relating to the corporate officer (“mandataire social”) amount to EUR 23.5 million.
 Notes 5.1.2, 5.1.10, 5.1.12, 5.2.1-note 2 and 5.3.8- note 15 to the financial statements describe the principles and methods used to estimate the valuation and impairment of investments and derivative instruments.
Total 2,706 2,555 2,450 (1) The headcount is calculated on the basis of employees registered as at 31 December. Each hub covers a region and may encompass several countries. For example, the Paris/London hub covers France, UK, Spain, Italy, Belgium, the Netherlands, Russia, Ireland and South Africa. As temporary workers and external service providers are managed according specific rules in each site, this data is not mentioned in the headcounts this year. For detail of countries per hub, please refer to section 2.1.5
2015 2014 2013 Male Female Total Male Female Total Male Female Total Full-time employees 1,325 1,076 2,401 1,241 994 2,235 1,204 936 2,140 Part-time employees 28 152 180 26 156 182 23 152 175 Total 1,353 1,228 2,581 1,267 1,150 2,417 1,227 1,088 2,315
 In the United-Kingdom, following the Gender Diversity Day, several partnerships have been implemented: corporate membership with the City parents (professional network promoting
- Annual working time: annual period of time (calculated in days) that an individual spends at work. This definition is based on the legal (or conventional) approach and does not take into account the absence for sick leave, maternity leave, sabbatical leave etc.
With regards to the source of emissions (to be distinguished from the volume of emissions) within each “Scope”, the rate of coverage is estimated to around 100% for the “Scope 1” (refrigerant liquid volumes are not estimated) and to 100% for the “Scope 2”. The rate of coverage for the “Scope 3” is limited to approximately 10% since the Group has adopted a pragmatic approach with a clear focus on business transportation which has an important environmental footprint. Within this “Scope”, the main sources excluded are commuting as well as the so-called depreciation of furniture and property offices such as the outsourcing of data center. Due to methodological adjustment on the calculation of air transportation greenhouse gas emissions, the total greenhouse gas emissions calculated in 2015 cannot be directly compared with last year figure. Indeed, applying this new method to the activity data reported in 2014, the total volume of greenhouse gas emissions would have amounted for 20,769 tons of CO2 while the reported and published figure at that time was 22,263 tons of CO2.
Signatory of both the Geneva statement on climate resilience and adaptation as well as the United for Climate Resilience statement, SCOR supports a broad range of initiatives aiming to advancing knowledge on the impact of climate change on our society while contributing to their resilience. To this end, SCOR closely monitors development in the arena of climate change, notably as part of the steering of emerging risks (ECHO – Emerging or Changing Hazards’ Observatory) but also through the enhancement of our climate risk capabilities. With respect to the latter, SCOR is one of the very early supporter of OASIS, a British non-profit organisation developing a free, open source platform for the modelling of climate events. SCOR’s corporate foundation is also involved in the promotion of climate research. In 2015, the Foundation organised a scientific seminar combining a range of disciplines (climate, economy, actuarial, with a keynote speech delivered by Jean Tirole, Nobel prize of economy). This seminar has been awarded the label COP 21.
Moreover, SCOR employees, notably in the United States and Great Britain as well as in Asia, are also very active in terms of fundraising for various different causes. These funds, collected on the initiative of employees, may also be topped up by an equivalent contribution by the company.
We performed our work in accordance with the professional standards and with the order dated May 13, 2013 defining the conditions under which the independent third party performs its engagement and with ISAE 3000 (1)1concerning our conclusion on the fairness of CSR Information.
Risk-management technique aimed at earning adequate returns and protecting capital by simultaneously managing the duration and other relevant characteristics of assets and liabilities.
Funds that would be available under a pre-negotiated agreement if a specific contingency (such as a natural disaster) occurs.
Solvency Capital Requirement, i.e. required capital, under the Solvency II framework, calculated by SCOR’s Group Internal Model (GIM), as 99.5% VaR of the change in economic value (negative result) distribution in the 12 months starting 1/1 of the year.
IV. - Salaries: a) Number of salaries 716 b) Gross wages amount 124 77 79 54 c) Amount of paid employees benefits (Healthy contribution, others benefits, etc. 27 29 22 17 (1) Subject to adjustment according to the April 27, 2016, shareholders' meeting’s decision as per the allocation of 2015 income 1.2.2 DIVIDENDS DISTRIBUTED BY SCOR SE OVER THE LAST THREE FINANCIAL YEARS