• On August 9, 2011, SCOR acquired the mortality portfolio of Transamerica Re, a division of AEGON N.V., for USD 919 million. The transaction also included the acquisition of an Irish entity, which underwrote certain Transamerica Re’s business risks.
• a Research Chair on Macroeconomic Risk in cooperation with the Paris School of Economics (PSE), is dedicated to the macroeconomic modeling of tail events, the consequences of uncertainty on the macroeconomic equilibrium and the contagion of extreme macroeconomic risks and crises. For SCOR, the related cost is EUR 900,000 spread over three years.
2020 was impacted by several large losses, including natural disasters (August U.S.Midwest Derecho, an active Atlantic hurricane season with no less than 30 named storms), man-made events, most notably the catastrophic explosion which devastated the port of Beirut, as well as the losses triggered by the Covid-19 pandemic. Demand for non-life reinsurance has remained strong, and market conditions have continued to firm throughout the year. Both pricing and terms and conditions have improved, reflecting an uptick in risk aversion, stable capacity, and an increased focus on technical profitability from insurers and reinsurers given the current low interest rate environment.
Refer to Section 1.3.5.1 – Covid-19 and Section 4.6 – Notes to the consolidated financial statements, Note 2 – Significant events of the year and Covid-19 for further information on the financial impact.
The contract has been accounted for as a derivative, in accordance with IAS 39 – Financial instruments: Recognition and Measurement.
Succession of the Chairman and Chief Executive Officer At its meeting of December 16, 2020, the SCOR Board of Directors reached a decision on the succession of Denis Kessler, Chairman & Chief Executive Officer.
The Board has unanimously expressed the wish that Denis Kessler continue his work as Chairman, and a resolution to this effect will be submitted to the 2021 General Meeting. Denis Kessler will remain Chief Executive Officer of SCOR until Benoît RibadeauDumas is appointed to the post in the spring of 2022.
1.3.5.3. SCOR GLOBAL P&C SCOR Global P&C is a leading P&C reinsurer with a worldwide footprint.
Impact of natural catastrophes SCOR defines a natural catastrophe as a natural event involving several risks and causing pre-tax losses, net of retrocession, above or equal to EUR 3 million.
Typhoons Haishen and Maysak, Fires in Australie and in the US, Storm Gloria and Ciara/Sabine, Flooding in Indonesia, UAE, China and in the US, cyclone Amphan and coal windstorm in Newcastle.
01SCOR GROUP Market and financial review 1.3.9.6. LIFE TECHNICAL MARGIN The Life technical margin is calculated as a percentage of the net technical result plus income from funds held by ceding companies and the net of gross and ceded earned premiums.
Acting on the proposal of the Compensation and Nomination Committee, the Board of Directors unanimously considered that, while the combination of the roles of Chairman and Chief Executive Officer has proved appropriate since 2002, separating the roles of Chairman and Chief Executive Officer is now the best way to ensure an efficient executive management transition, in full compliance with SCOR’s interests and those of all its stakeholders. The change in governance also meets the expectations expressed by a certain number of shareholders. Furthermore, it is aligned with the recommendation issued in July 2020 by France’s insurance and reinsurance regulator (ACPR), which states that the entities under its supervision should separate the roles of Chairman and Chief
MAIN POSITION • Chairman and Chief Executive Officer of SCOR SE (France)
MAIN POSITION • Chairman and Chief Executive Officer of Aéroports de Paris (France) (1)
Augustin de Romanet, a French citizen, is a graduate of the Institut d'études politiques in Paris and a former student of the École nationale d’administration. He was previously Chief Executive Officer of Caisse des dépôts et consignations, between 2007 and 2012, and chaired the Fonds stratégique d’investissement between 2009 and 2012. Prior to that, he was Deputy Finance Director at Crédit Agricole S.A. and a member of the Executive Committee. Augustin de Romanet also served as Deputy Secretary General to the French President, between June 2005 and October 2006, and held positions in various ministerial offices. In particular, between 2002 and 2005, he was Chief of Staff to Alain Lambert, Minister Delegate for the Budget, Deputy Chief of Staff to Francis Mer, Minister for the Economy, Finance and Industry, Chief of Staff to Jean-Louis Borloo, Minister for Employment, Labor and Social Cohesion, and lastly, Deputy Chief of Staff to French Prime Minister Jean-Pierre Raffarin. Awarded the Légion d’honneur in 2007, Augustin de Romanet has received a number of awards, notably “Capitalist of the Year” awarded by the Le Nouvel Économiste magazine in 2008 and “Financier of the Year” awarded by Minister of the Economy in 2012. Augustin de Romanet has been Chairman and Chief Executive Officer of Aéroports de Paris since 2012 and Chairman of Paris Europlace since July 2018.
FABRICE BRÉGIER Director Member of the Strategic Committee and Risk Committee
LAUREN BURNS CARRAUD Director representing employees Member of the Compensation and Nomination Committee
First appointed: Term of office expires: 2023 French – Age : 37 Aéma group 17-21, place Étienne-Pernet 75015 Paris, FranceIndependent: Yes Board meeting attendance rate: 100%
POSITIONS THAT EXPIRED DURING THE LAST FIVE YEARS • Chief Executive Officer of Macif group (France) • Chief Executive Officer of Macif Sgam (France) • Vice-Chairman of the Supervisory Board of Inter Mutuelles Assistance SA (France) • Member of the Management Committee of Siem (France) • Member of the Investment Committee of Sferen Innovation (France) • Member of the Supervisory Board of Ofi Asset Management (France) • Director of Apivia Mutuelle (France) • Member of the Supervisory Board of Apivia Santé (France) • Member of the Board of Directors of GIE Macif Finance Épargne (France) • Chairman of the Management Board of Macifin’ (France) • Chairman of the Investment Committee of Macif Innovation (France) • Deputy Chief Executive Officer of GIE Macif Finance Épargne (France) • Deputy Chief Executive Officer of Macif Sam (France) • Deputy Chief Executive Officer of Macif Sgam (France) • Chairman of the Management Board of Mutavie (France) • Director of Ofi Holding (France) • Director of Prévoyance Aésio Macif (France) • Director and Chairman of the Audit Committee of SAPS (Algeria) • Chairman of the Supervisory Board of Securimut (France) • Deputy Chief Executive Officer of Umg Macif Santé Prévoyance (France) • Permanent representative of Macif Samon the Board of Directors of Ofi Holding (France) • Permanent representative of Macif Samon the Board of Directors of Socram Banque (France)
Bruno Pfister, a Swiss citizen, lawyer registered with the Geneva Bar and an MBA graduate from UCLA Anderson School of Management, was Chairman of the Board of Directors of Rothschild& Co Bank AG from December 2014 to September 2019. He was Vice-Chairman of the Swiss Insurance Association, Chief Executive Officer and Chairman of the Swiss Life AG group, member of the Executive Committee of the Credit Suisse Banking division and Chief Financial Officer and member of the Executive Board of LGT group AG.
(1) Mr. Jean-Marc Raby resigned from his duties with effect from November 5, 2020.
• Member of the Supervisory Board of Bank Gutmann AG (Austria)
French 428 2 Yes June 16, 2022 <1 year • Member of the Strategic Committee
Operating procedures and duties of the Board of Directors of the Company The Board of Directors defines the strategic guidelines of the Company's business activities and ensures their implementation in accordance with its corporate interests, taking into consideration the social and environmental aspects of its activity. Without prejudice to the powers expressly invested in Shareholders’ Meetings, and within the limits of the Company’s purpose, the Board of Directors deals with all matters relating to the conduct of the Company's business and decides all pertinent issues through its resolutions. It ensures the sound and prudent management of the Company, and regularly reviews the opportunities and main risks (e.g. financial, legal, operational, social, societal and environmental risks), as well as the measures taken accordingly. To this end, the Board of Directors receives all of the information needed to carry out its duties, particularly from the executive corporate officers. The Board is informed each quarter by Executive Management of the financial situation, cash position and commitments of the Company. It is also informed about market developments, the competitive environment and the most important issues at hand, including in corporate social and environmental responsibility. It takes into account the Own Risk and Solvency Assessment (“ORSA”) when it makes a decision likely to have a significant impact on the Company. The Board also carries out the verifications and controls it deems necessary.
02REPORT ON CORPORATE GOVERNANCE Corporate Governance principles, Shareholders’ Meetings, Board of Directors, Executive Committee, employees, and information required by Article L. 22-10-11 of the French Commercial Code
3 Shall not be an executive corporate officer of a company in which the Company holds, directly or indirectly, a directorship, or in which an employee designated as such or an executive corporate officer of the company (current or in the last five years) holds a directorship.
The Board of Directors noted that Denis Kessler and Claude Tendil cannot be deemed independent.
8 Shall not represent a significant shareholder of the Company with the stipulation that: • a shareholder is deemed significant if he or she holds more than 5% of the shares or voting rights (calculation consolidating his or her various holdings); • below this threshold, the Board, based on a report of the Compensation and Nomination Committee, systematically takes into account the structure of the Company’s capital and the existence of a potential conflict of interest when evaluating independence.
In conclusion of its analysis, the Board of Directors confirmed that, with the exception of Denis Kessler, Fiona Camara, Lauren Burns Carraud and Claude Tendil, all SCOR SE directors can be deemed independent.
• Review and approval of the succession plan of the Chairman and Chief Executive Officer
2.1.3.7. ASSESSMENT OF THE BOARD OF DIRECTORS Pursuant to the recommendations of the AFEP-MEDEF corporate governance code and to the provisions of the Internal Charter of the Board of Directors of SCOR SE, a formal assessment of the Board of Directors and of its Committees was conducted between November 2020 and January 2021.
During the joint sessions of the Audit and Risk Committee: • Review of the actuarial function report • Review of the internal control system • Review of the regulatory reports (Solvency and Financial
Fields Wicker-Miurin 100 * Member of the Audit Committee until June 16, 2020. ** Member of the Audit Committee since June 16, 2020.
The Risk Committee met four times in 2020, each meeting lasting on average two and a half hours. Four joint sessions of the Audit Committee and Risk Committee were also held in 2020.
• Review of the succession plan for the Chairman and Chief Executive Officer and the members of the Group Executive Committee
• Follow-up of a study on the relation between biodiversity and insurance activities
02REPORT ON CORPORATE GOVERNANCE Board of Directors and Executive Committee member compensation, and share ownership 2.2. BOARD OF DIRECTORS AND EXECUTIVE COMMITTEE MEMBER COMPENSATION, AND SHARE OWNERSHIP
2.2.1.1. PRINCIPLES AND RULES SET FOR THE DETERMINATION OF THE COMPENSATION AND BENEFITS OF DENIS KESSLER AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER FOR 2020
Following the recommendation of the Compensation and Nomination Committee at its February 25, 2020 meeting, the Board of Directors decided at its February 26, 2020 meeting that the Chairman and Chief Executive Officer could receive target variable annual compensation of EUR 1,200,000 (100% of his fixed compensation), unchanged since 2015.
Therefore, the total variable annual compensation of the Chairman and Chief Executive Officer may not exceed 165% of his target variable annual compensation of EUR 1,200,000 or, consequently, 165% of his fixed annual compensation.
In its 4th resolution and in accordance with the provisions of Article L. 225-42-1 of the French Commercial Code, the Ordinary and Extraordinary Shareholders’ Meeting of April 26, 2018 approved the following commitments made by the Board of Directors to the Chairman and Chief Executive Officer.
The guaranteed pension amount is calculated according to a reference compensation based on the average contractual annual gross compensation paid by SCOR SE over the last five years and considered to constitute “wages and salaries” under French tax law.
Denis Kessler April 28, 2020 125,000 2,748,750 April 29, 2023 April 29, 2023 Yes, see above
Gross written premiums (in million EUR) 13,826 14,789 15,258 16,341 16,368
(1) Director whose term of office began on November 6, 2020.
The compensation policy for the Group's corporate officers is adopted by the Board of Directors and reviewed annually in light of the recommendations of the Compensation and Nomination Committee, based on a precise analysis of all of its components.
Principles and rules for determining the Chairman and Chief Executive Officer’s compensation The compensation policy for the Chairman and Chief Executive Officer is set by the Board of Directors and reviewed annually in light of the recommendations of the Compensation and Nomination Committee.
The compensation policy for the Chairman and Chief Executive Officer is aligned with the compensation policy applied to the Group’s employees. For all Partners within the Group around the world, the components comprising their compensation follow a similar structure and include several dimensions: a fixed portion and a variable portion, a portion that is paid immediately and a portion that is deferred, and an individual portion and a collective portion.
Consequently, market studies are regularly conducted by an external company for the Compensation and Nomination Committee, in order to ensure the competitiveness of the amount and structure of the Chairman and Chief Executive Officer’s compensation compared to a panel of peers including the main global reinsurers selected by premium income and for which information on the pay of top management is available (Alleghany, Arch Capital Group, Axis Capital Holdings, Everest Re, Great West Lifeco, Hannover Re, Munich Re, Reinsurance Group of America and Swiss Re). The benchmark study was conducted by Mercer in 2020 based on available data for the previous year. The Chairman and Chief Executive Officer’s total compensation for 2019 was equal to 91% of the median.
The variable compensation is designed to encourage the Chairman and Chief Executive Officer to achieve the annual performance objectives set by the Board of Directors on the proposal of the Compensation and Nomination Committee, in line with the Company’s strategy. In accordance with the AFEP-MEDEF corporate governance code, the potential amount of variable compensation is expressed as a percentage of the fixed compensation.
The personal objectives are mainly set based on the following categories: • Solvency; • Strategy; • Risk management; • Corporate Social Responsibility (CSR).
Each year, the Board of Directors examines, and then validates, the number, description and weight of the personal objectives.
In order to take into account the shareholder votes on the compensation policy and the opinions expressed by certain shareholders, the Board of Directors has taken the following decisions about the compensation arrangements in the event that the Chairman and Chief Executive Officer leaves during the year: Should the Chairman and Chief Executive Officer leave during the current year: • his variable compensation for the previous year will be payable during the current year; • in the event of dismissal, the amount of his variable compensation for the current year will be determined by the Board of Directors prorata temporis to his presence within the Group, without applying any other specific provision; • no variable portion will be paid for the current financial year in the event of dismissal for misconduct.
For 40% of the allocation: • Achievement over the performance measurement period (three years) of an average ROE equal to the average of SCOR’s strategic target
of the performance shares authorized by the Shareholders' Meeting; • the allocation of 100,000 stock options represents 6.7% of the stock options authorized by the Shareholders' Meeting.
Severance pay Since 2011, the Chairman and Chief Executive Officer benefits from a severance pay scheme that was last reviewed by the Board of Directors at its meeting on February 21, 2018 and approved by the Ordinary and Extraordinary Shareholders' Meeting of April 26, 2018 in its 5th resolution.
Moreover, the rights to the performance shares and options allocated before their departure would be maintained while remaining subject, in their entirety, to the performance conditions of each of the plans.
2.2.3.1. STOCK OPTIONS HELD BY THE MEMBERS OF THE EXECUTIVE COMMITTEE AND THE EXECUTIVE CORPORATE OFFICER IN OFFICE AS AT DECEMBER 31, 2020
The table below presents the total number of stock options allocated in 2019 and 2020 by category of beneficiary within the Group: Total number of stock options allocated in 2020
No options have been allocated by a related company as defined by Article L. 225-180 of the French Commercial Code.
The shares allocated to the Chairman and Chief Executive and the Executive Committee members will vest provided: (1) that the beneficiary remains an employee or corporate officer of the SCOR Group until April 28, 2023 inclusive, except as otherwise provided by the plan; (2) that the Group’s ethical principles as described in its Code of Conduct are respected; (3) that the annual corporate social responsibility (CSR) training obligations are met. This condition will be deemed met if a SCOR Group e-learning course on CSR-related topics is completed and the corresponding test is successfully passed.
Agreements submitted for approval to the Annual General Meeting We hereby inform you that we have not been notified of any agreement authorized and entered into during the year ended December 31, 2020 to be submitted to the Annual General Meeting for approval in accordance with Articles L225-38 of the French Commercial code (code de commerce) and R. 322-7 of the French insurance code (code des assurances).
The main risks are the uncertain economic environment due to the current Covid-19 pandemic and that may affect SCOR’s growth, in both emerging and advanced economies, and the poor returns on financial markets exacerbating the adverse competitive environment.
The most material natural catastrophes to which SCOR is exposed include windstorms in Europe, hurricanes in North America, and earthquakes in North America and Japan.
SCOR is exposed to single or multiple terrorist attacks through some P&C treaties and national terrorism pools. The US market in particular is exposed to significant terrorism risks due to the insurance obligation stipulated by law. However, federal aid is also provided by the Terrorism Risk Insurance Program Reauthorization
The global and systemic impacts of Covid-19 in 2020 further highlights the complex and evolving interdependence and accumulation of risks across the risk universe.
The principal internal sources of the Group’s liquidity are reinsurance premiums, cash flows from its investment portfolio and other assets, consisting mainly of cash or assets that are readily convertible into cash.
External sources of liquidity in normal markets include a variety of short and long-term instruments, such as repurchase agreements, commercial paper, medium and long-term debt, junior subordinated debt securities, capital securities and raising additional funds in the equity markets. For further information on SCOR’s debt, including related financial covenants, see Section 4.6 – Notes to the consolidated financial statements, Note 14 – Financial liabilities.
Details on financial liabilities are presented in Section 4.6 – Notes to the consolidated financial statements, Note 14 – Financial liabilities.
For managing liquidity risks, SCOR holds insurance business investments amounting to EUR 30,283 million and cash amounting EUR 1,435 million as at December 31, 2020. Maturity analyses of financial assets that are held for managing liquidity risk are presented within Section 4.6 – Notes to the consolidated financial statements, Note 8 – Insurance business investments.
— Pricing guidelines and parameters apply to all treaties priced within the P&C business unit. There are additional guidelines related to Natural Catastrophes and others specific to certain products which include Agriculture, Credit & Surety and Cyber. These guidelines seek to ensure that the analyses provide: i) a best estimate of the costs and profitability of a treaty as well as the uncertainty surrounding estimates; ii) assistance with underwriting decisions and iii) the suitable outputs needed for the risk management process, in particular the internal model, such as probability distributions for losses/Net Present Value (NPV), cash flow patterns for premium/losses, etc. They 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, 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 pricing is completed. SCOR’s P&C business unit uses a data system that allows management to monitor and review the results from pricing tools.
• The P&C Pricing & Modeling department is responsible for the pricing of the reinsurance business which is done by individual treaty. Guidelines, methods and tools are set and maintained at the global level which are used by the pricing team across the SCOR offices. Delegation authorities specify criteria under which the underwriters may price certain contracts still subject to the use of the Pricing Guidelines and tools. Pricing results quantify expected underwriting statistics (such as loss and expense ratios), volatility measures, and profitability measures (such as NPV, Return on Risk Adjusted Capital (RORAC), and Profit Excess Targets). The results are also used as criteria for referrals within Underwriting teams. Pricing actuaries, team up with underwriters and modelers by market or by line of business.
• Business opportunities going beyond the stipulations of these guidelines and documents are subject to a special referral process in order to ensure that the business complies with established risk-adjusted return criteria and risk tolerance limits. These cases are examined at the Life business unit level by the Business Acceptance department and, where applicable, the Finance department. Cases which may have a significant impact on the balance sheet of the Group are submitted for a second review by the Risk Coverage department. Thresholds or conditions for a second referral to Group Risk Management are outlined in specific guidelines.
Sensitivity to changes in interest rates is analyzed on a weekly basis.
For details on the debt securities portfolio, see Section 4.6 – Notes to the consolidated financial statements, Note 8 – Insurance business investments.
Financial assets at fair value through income 148 UNIVERSAL REGISTRATION DOCUMENT SCOR 2020
The four general objectives sought through the application of a risk management system and, within it, of an internal control system are: 1. ensure that strategic objectives are properly implemented in the Group; 2. ultimately achieve better operating efficiency and use of resources; 3. ensure compliance with applicable laws and regulations; 4. ensure reliable accounting and financial information.
“Principal activities and participants of risk control”, “Information and communication”, and “Monitoring of the risk management and internal control system” sections; • the elements concerning accounting and financial reporting are separate and are presented in the last section.
03 RISK FACTORS AND RISK MANAGEMENT MECHANISMS Internal control and risk management procedures 3.3.1. INTERNAL ENVIRONMENT
Operational departments • Portfolio Management • Portfolio administration • Reporting • Sales & Marketing
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 the underwriting of reinsurance business. It also monitors compliance with the Group’s filing obligations, including toward the AMF and the Six Swiss Exchange (SWX).
• The Group Tax function sets the Group tax policy with the purpose of ensuring that the various entities of SCOR meet their tax obligations and promote the use of best practices in this domain.
The processes for technical accounting and the calculation of technical reserves, which are predominantly within the single information system (OMEGA), are applied by Group entities.
SCOR Global Life The recognition and measurement of technical reserves (in particular mathematical reserves) and related intangible assets (including deferred acquisition costs and value of acquired portfolio) are based on contractual and settlement data and subject to the following controls: • 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.
Impact from the U.S. tax reform Note 18 - - (68)
Net cash flows provided by/(used in) investing activities (464) (219) (101)
Effect of change in foreign exchange rates on cash and cash equivalents (114) 11 22
Taxes recorded directly in equity - - (99) (4) - - - - (103)
Taxes recorded directly in equity - - 85 11 - - - - 96
The consolidated financial statements were presented by Group Management to the Audit Committee. Management and the Audit Committee report to the Board of Directors, which approved the consolidated financial statements on February 23, 2021.
Instruments. The final version of IFRS 9 replaces the previously published versions of IFRS 9 on classification and measurement and hedge accounting. It also replaces IAS 39 – Financial Instruments: Recognition and Measurement and covers classification and measurement, impairment and hedge accounting. IFRS 9 is effective for annual periods beginning on or after January 1, 2018 with earlier application permitted. The EU endorsed IFRS 9 on November 22, 2016. However, as described below, SCOR opted for the Deferral Approach for IFRS 9 as granted by IFRS 4 and thus can defer application of the standard until January 1, 2023, if such effective date will be endorsed by the EU. To avoid a simultaneous first time application with IFRS 17 for operational reasons, SCOR proposed to adopt IFRS 9 one year earlier than IFRS 17, on January 1, 2022.
• On September 12, 2016, the IASB published an Amendment to IFRS 4 – Insurance contracts, in order to address the temporary consequences of different effective dates of IFRS 9 and IFRS 17. The EU endorsed this amendment on November 3, 2017. Applying IFRS 9 before IFRS 17 would potentially increase volatility in profit or loss. The amendment introduces two independent options to address such additional accounting volatility: a temporary exemption from applying IFRS 9 (“Deferral Approach”) and reclassifying the increased volatility from 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 asset meeting the “solely payment of principal and interest” criterion and information about their credit risk exposure until IFRS 17 becomes effective. The deferral option is restricted to companies whose predominant activity is to issue insurance contracts. SCOR has assessed it would meet the predominance criteria and will defer the application of IFRS 9. SCOR’s predominant activity is issuing (re)insurance contracts, which is reflected in the significance of liabilities arising from (re)insurance activities representing more than 90% of total liabilities. Liabilities connected to (re)insurance activities amounted to EUR 32.9 billion compared to total liabilities of EUR 35.2 billion as at December 31, 2015. For calculating the predominance ratio, subordinated debt, accounts payable on assumed and ceded reinsurance transactions, pension liabilities and deferred tax liabilities have been considered in addition to the contract liabilities in the scope of IFRS 4.
SCOR Switzerland Asset Services AG Switzerland 100 100 100 100 Full
Change in unearned premiums reserves - (47) - (47) (11) (435) - (446) (42) (161) - (203)
Investments at fair value through income 1,632 246 1,386 - -
In EUR millions Equity securities Debt securities Loans and receivables Derivative instruments Total
There were no material transfers between level 1 and level 2 in 2020 and 2019, respectively. There were also no changes in the purpose of a financial asset that subsequently resulted in a different classification of that asset.
Cumulative depreciation and impairment at December 31, 2020 (142) - (142)
The following table summarizes the debt and equity securities and unrealized gains/(losses) by class of securities classified as available-forsale and at fair value through income: In EUR millions
In order to hedge the foreign exchange risk associated with debts issued in USD (USD 625 million issued in 2018 and USD 125 million issued in 2019, see Note 14 – Financial debt), SCOR entered into cross-currency swaps which exchange principal and coupons on the notes from USD into EUR. The swaps mature on March 13, 2029.
At December 31, 2020 and 2019, one forward currency contract is designated as a hedge of a net investment (see Note 13 – Information on share capital, capital management, regulatory framework and consolidated reserves).
Cumulative depreciation and impairment at December 31, 2020 (71) (69) (1) (1)
Impairment losses during the year - - - - - - - - -
Cash and cash equivalents comprise cash, net bank balances and short-term deposits or investments with a maturity of less than three months at the date of purchase or deposit. Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. Money market funds are also classified as cash and cash equivalents, though only to the extent that the fund assets qualify as cash equivalents, or there are strict fund management policies and limits that allow the funds to qualify as cash equivalents.
Net cash flows provided by/(used in) operations 988 841 891 in 2020 in 2020
On October 20, 2014, SCOR issued CHF 125 million in perpetual subordinated notes, redeemable by SCOR on each interest payment date from October 20, 2020. The coupon has been set at 3.375% (until October 20, 2020), and resets every 6 years at the prevailing 6-year CHF mid-swap rate +3.0275%.
Real estate financing relates to the acquisition of investment property financed by bank loans of EUR 487 million (December 31, 2019: EUR 517 million), including real estate financing related to MRM property for EUR 77 million (December 31, 2019: EUR 78 million). The main real estate debt finances the Group's head office in Paris, avenue Kléber, and amounts to EUR 199 million as of December 31, 2020.
Impact of decrease in discount rate by 0.25 bp 19 19 * The result of change in discount rate is recorded with the offsetting impact in the other comprehensive income.
The following table summarizes the movements in accrued (prepaid) balances recorded in the consolidated balance sheet as at
Contracts not meeting risk transfer criteria Reserves for investment or financial reinsurance contract liabilities are recognized for reinsurance contracts that do not meet the risk transfer criteria described in IFRS 4.
Net claims reserves & estimates – end of year 9,284 9,837 10,167 10,062 10,469 11,116 11,124 11,143 11,532 11,953 12,030
The terms and conditions of the stock option plans of April 28, 2020 and November 5, 2020, which are similar to those previously granted by SCOR, provide that the options allocated 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, which are based on the strict compliance with the Group's ethical principles as set out on the Group's code of conduct (the "Group Code of Conduct"), on the fulfilment of the corporate social responsibility (CSR) training obligation, on the solvency ratio and the SCOR Group’s ROE (in fiscal year 2020, 2021 and 2022 for the two last conditions). The plan of November 5, 2020 also provides for a performance condition on the Total Shareholder Return (TSR) of SCOR among a panel of peers.
Deferred tax assets and liabilities are assessed at the tax rate applicable in the fiscal year in which the asset will be realized or the liability settled, based on the tax rates (and tax regulations) that have been enacted or substantially enacted at the reporting date.
In 2019 and 2018, the French corporate income tax rate was 34.43% for companies with a turnover exceeding EUR 250 million.
Note•19 INVESTMENT INCOME The tables below show the analysis by type of investment income and split by category of financial assets: Note•19.1 ANALYSIS BY TYPE
Note•20 NET RETROCESSION RESULT The table below shows the net retrocession result for the years ended December 31, 2020, 2019 and 2018: In EUR millions
(1) Statutory audit and certification of local and consolidated financial statements. (2) Other specific audit assignments related to the statutory audit engagement. Additional audit fees incurred were due mainly to review of actuarial disclosures, review of CSR report, review of Solvency II reports as well as various mandatory procedures. (3) Other services, provided by the Auditors to the fully consolidated companies and due diligence.
The term of office of the firm ERNST & YOUNG, titular Statutory Auditor, has expired at the end of the General Meeting called to approve the financial statements for the financial year ended December 31, 2019, which took place on June 16, 2020. The firm ERNST &YOUNG was replaced by the firm KPMG SA during this General Meeting.
Net income attributable to ordinary shareholders 234 186,243 1.26 422 185,759 2.27 322 187,341 1.72
There is no shareholder (except key management personnel) meeting the criteria of a related party according to IAS 24 – Related Party Disclosures, for the years ended December 31, 2020,
The date of the most recently audited financial information is December 31, 2020.
Measurement of reinsurance premiums (Please refer to notes 1 and 5 of the notes to the consolidated financial statements)
An asset of EUR 538 million related to tax losses carried forward is recognized in the balance sheet of the Group at financial year ended 2020.
To SCOR’s knowledge, based on public threshold notifications, SCOR SE’s share capital is distributed as follows as at December 31, 2020: As at December 31, 2020 Number of shares % of capital % voting rights (1)
(3) Overall number of shares held by employees and executive directors (including performance shares granted prior to the publication of Law No. 2015-990 of August 6, 2015).
On November 12, Norges Bank declared that its shareholding fell below the threshold of 5.0% of the capital and voting rights in SCOR SE and that it held 9,294,109 shares or 4.98% of the capital and 9,294,109 voting rights or 4.98% of the voting rights in SCOR SE.
On November 20, Norges Bank declared that its shareholding fell below the threshold of 5.0% of the capital and voting rights in SCOR SE and that it held 9,052,798 shares or 4.85% of the capital and 9,052,798 voting rights or 4.85% of the voting rights in SCOR SE.
On November 25, Norges Bank declared to have exceeded the threshold of 5.0% of the capital and voting rights in SCOR SE and that it held 9,431,134 shares or 5.05% of the capital and 9,431,134 voting rights or 5.05% of the voting rights in SCOR SE.
Objectives of the transactions carried out in the course of the financial year 2020 and allocation of the treasury shares As at December 31, 2020, the treasury shares owned by SCOR SE represented 0.14% of the share capital. On such date, the portfolio of treasury shares was allocated as follows: • 142,572 treasury shares allocated to the stimulation of the secondary market or provision of liquidity to the Company’s shares; • 50,210 treasury shares allocated to the hedging of any form of allocation to employees and/or corporate officers (mandataires sociaux) of the Company and/or of affiliated companies; • 0 treasury shares allocated to the retention and subsequent remittance in exchange or as payment; • 0 treasury shares allocated to the compliance with all obligations related to the issuance of securities granting access to capital; • 66,785 treasury shares allocated to their cancellation.
Given the exercise of 131,000 options for the subscription of shares since January 1, 2021, on the date of the Universal Registration Document, SCOR SE’s existing share capital amounts to EUR 1,471,899,519.60 divided into 186,861,076 shares with a nominal value of EUR 7.8769723 each.
05 SCOR SHARES, SHARE CAPITAL AND GENERAL INFORMATION Share capital & shareholders
It is specified that the information included in the Company's website (www.scor.com) is not part of this Universal Registration Document, unless such information is expressly incorporated by reference in this Universal Registration Document. In this respect, such information has not been reviewed or approved by the AMF.
Special Meetings of Shareholders of a certain class of shares (such as shares with double voting rights or preferred shares) are required for any changes to the rights associated with said class of shares. The resolution of the Shareholders’ Meeting affecting these rights is effective only after approval by the relevant Special Meeting.
5.3.2.7. DISCLOSURE THRESHOLDS French law provides that any individual or legal entity, acting alone or in concert with others, that holds, directly or indirectly, more 90%, or 95% of the shares or the voting rights attached to the shares, or whose holding decreases below any such thresholds, must notify the Company within four trading days of crossing that threshold, of the number of shares and voting rights it holds. An individual or a legal entity must also notify the AMF within four trading days of crossing these thresholds. Any shareholder who fails to comply with these requirements will have their voting rights in excess of such thresholds suspended for a period of two years from the date notification is served and may have all or part of their voting rights suspended for up to five years by the
5.3.3. THIRD-PARTY INFORMATION AND STATEMENTS BY EXPERTS AND DECLARATIONS OF ANY INTEREST
Since it was created, the SCOR Corporate Foundation for Science has financed seminars and conferences on subjects such as emerging infectious diseases, longevity risk for modern retirement schemes, and the expectations of economic agents in an economic crisis, as well as an international seminar in Paris on meteorites in collaboration with the French national Museum of Natural History. The Foundation also jointly organizes similar events. It also supports research projects across a variety of disciplines, as well as scientific and actuarial awards and research chairs.
The coordination and execution of the aforementioned action plan, which is shaped by this CSR approach, is entrusted to a crossfunctional internal committee that brings together representatives from the three business units mentioned in Section 6.1.1 of this statement, and Group functions (e.g. Risk Management, Human Resources, Compliance, Investor Relations, Communications, and Group Hub representatives). This committee is led by the Group’s Head of Sustainability under the authority of the General Secretariat. Its operational role aims to promote a cross-functional approach to CSR and the management of non-financial risks, in order to harmonize the initiatives taken by the Group and ensure the consistency of the action plans drawn up by each business unit and Group function.
“Partners” program The “Partners” program involves approximately 25% of the total number of employees (excluding SCOR Channel). In addition to specific compensation plans, this program gives access to selective information and proposes specific career development solutions.
In 2020, the turnover rate was 6.9% (number of departures in 2020, excluding dismissals, deaths, internal mobility and trainees as a proportion of the overall headcount as at December 31, 2019). This rate is at an acceptable level with regard to talent retention.
The promotion of diversity, an integral part of the #WorkingWellTogether program from the outset, is a major focus area of this approach, and has taken shape through the deployment of initiatives that help spread a culture of openness. In addition to promoting diversity and gender equality, the other areas covered by this program directly concern diversity matters: • promoting a multicultural environment ; • leveraging generational diversity ; • facilitating employment and integration of disabled employees; • ensuring tolerance of employee’s sexual orientations and gender identity.
The time horizon set by the Board of Directors correspond to a policy for gender diversity within the aforementioned bodies, which are both proactive and compatible with SCOR’s three-year action plan.
• Internal Network: The governance of SIGN (SCOR International Gender Network), a diverse and autonomous network of employees, was reviewed in 2020 in order to fully integrate the Group's CSR objectives and align joint efforts to promote inclusion. The scope of the network, renamed SIGN+ (SCOR Inclusive Global Network), has also been broadened to include all forms of diversity. Many initiatives have been proposed in 2020 by the network for this purpose, in the form of lectures and informal talks. For example, five interview sessions have been proposed (one with a member of the Board of Directors and two with a member of the Group’s Executive Committee) to share their experience and other career advice while reaffirming their commitment to diversity and inclusion issues.
With approximately 65 nationalities and the resulting cultural differences, the Group pays close attention to the conditions necessary for a collaborative work environment and the integration and development of employees, regardless of their origin or nationality.
Regarding intergenerational diversity, the Group encourages the integration of new employees, and supports the older and younger employees in the company. SCOR’s ambition is to encourage employees to work together more effectively and better share their knowledge globally, accelerate the integration of new hires, offer new development opportunities for older employees and improve the visibility of young employees.
Employees that report having disabilities account for 0.58% of SCOR’s workforce, or 18 employees, and all work in the EMEA region, which accounts for 61% of SCOR’s total workforce. Over the last five years, this percentage has remained stable.
In addition, SCOR continues its commitments with the Manifesto for the Inclusion of People with Disabilities in Economic Life. Signed in 2019, this Manifesto presents ten key actions for the hiring, the inclusion and development of people with disabilities. It aims to strengthen dialogue and the contacts between companies, associations, civil society and jobseekers with disabilities.
As part of the "SCOR for Good" project in 2020, the Group has set up an online social engagement platform promoting and facilitating employees’ involvement in solidarity initiatives, while taking into account local cultural and/or regulatory specificities.
In 2020, numerous activities, collections, donations and other sporting events were organized to support or raise funds for research, education, the treatment of diseases such as cancer, the fight against poverty and insecurity, and other solidarity initiatives related to Covid-19.
In Latin America, community outreach is just as present. In Brazil, employees have given back to the community through donations to retirement homes (Amparo Thereza Christina) and the distribution of water to the homeless during lunch breaks. In Argentina, masks to protect against Covid-19 were delivered to the Gutierrez & Garrahan children's hospitals as part of the "A cake for a smile" program organized by the "El Atardecer" association, blankets were made for the homeless and meals were distributed for the "Conidarte" association. In Colombia, collections for clothing and school supplies were organized in support of the Esperanza Mariana Foundation for children with Down’s syndrome, and funds were raised to help people affected by Covid-19 (donations of food, medicines, PPE for doctors, mechanical ventilation equipment, school supplies for students in rural areas, etc.), supporting more than 400 families.
4 – Developing employees’ skills SCOR University supports the Group in its ambition to become an agile and global learning and development organization, driving SCOR’s self-driven learning culture and fostering a sense of initiative : • by developing SCOR’s knowledge society through building learning communities, crafting training pathways and experiences, and enabling knowledge sharing; • by providing employees with the necessary resources to put them at the center of their professional development.
• Support for IFRS 17 and the implementation of the associated training strategy with the launch of two IFRS 17 e-learning modules.
Theoretical working time is the annual period of time (calculated in days) that an employee spends at work. This definition is based on the legal (or conventional) approach and does not take into account absences for sick leave, maternity leave, sabbatical leave, etc.
Limitations 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 are consistent and meaningful at Group level. Unless otherwise indicated, no estimates are made in calculating these indicators.
Failure to comply with the principles of SCOR’s Code of Conduct may result in disciplinary action, which could lead to criminal or regulatory proceedings in compliance with the applicable laws. In addition, as per the Group Compensation Policy and as outlined in Section 6.1.3.5 of this statement, breaches of the Code of Conduct could prevent performance shares and stock options from vesting.
6.3.8. TAX In the course of its activities, the Group does not engage in any artificial structure that lacks corporate purpose or economic substance. The use of tax havens to avoid paying taxes due for business activities that take place elsewhere is not a practice adopted by the Group. The Group ensures that the pricing of SCOR’s intragroup transactions complies with the OECD Transfer Pricing Guidelines and local regulations. Accordingly, SCOR pays its income taxes in the country where the business activities are performed.
(2) 2019 Sustainable investment report “Focus on climate risk – Resilient together”, available on the Group’s website.
Climate change risks The Group naturally draws on its expertise in understanding climate change risks to better grasp their impact on its investment portfolio, while at the same time exploring various methods of assessing the impact of its portfolio's performance on the environment: • firstly, the identification and assessment of climate change risks that could affect the value of the assets held in the portfolio is subject to various analyses, some of which are still in an experimental stage. SCOR therefore analyzes the "acute" physical risks that could affect its portfolio of real estate debt, infrastructure debt and direct real estate, and assesses transition risk through a mapping of the sectors most exposed to transition risk (1). Carried out in 2018, this initial study (2) was extended with a new analysis in 2019, with the constant aim of better understanding the risks that could affect the investment portfolio. SCOR used the scenarios provided by the 2° Investing Initiative (2°ii) report (3) to measure the exposure of its assets to transition risk in 2025 and to physical risk in 2060. This analysis has been supplemented in 2020 with stress tests on transition risks following the specifications provided by the French insurance and reinsurance regulator (Autorité de contrôle prudentiel et de résolution – ACPR). While this type of analysis is useful for a more detailed understanding of the potential risk factors, and for raising awareness of the Group's governance bodies, uncertainties surrounding the robustness of the results make it impossible at this stage to establish an investment strategy based on this type of analysis. Additional information on the results of this work is provided in the Group's climate report, to be published at a later date; • secondly, the impact assessment of SCOR’s investment portfolio on the climate is based on two main metrics: its carbon footprint and the alignment of the asset portfolio with the Paris agreement. However, the methodologies used by the service providers conducting these calculations are not yet standardized, which limits the significance of the results. Furthermore, the carbon footprint is backward-looking, only providing an indication at a given point in time, and little information is given on the approach or commitment of issuers with regard to climate risk, or on how SCOR can efficiently manage its assets with regard to risks related to greenhouse gas emissions. The ratio of total CO2 emissions to the amount of investments made by SCOR (metric tons of CO2 equivalent per EUR million invested) reflects the impact of SCOR’s portfolio on the environment and depends directly on the investment strategy pursued. The carbon intensity per EUR million invested was 280 metric tons at the end of 2020, down by 9% compared to the end of 2019. The calculation covers 84% of the Group’s portfolio at the end of 2020. SCOR also analyzes the alignment of its investment portfolio with the Paris agreement.
Integration of ESG criteria The integration of ESG criteria is measured primarily by assessing the quality of the asset portfolio. Given the extremely high level of diversification of its investments, the Group works with non-financial ratings agency ISS-ESG to assess its portfolio’s standard instruments (government bonds, corporate bonds and listed equities). For debt instruments (infrastructure and real estate debt), SCOR relies on the expertise of its subsidiary SCOR Investment Partners, a recognized leader in the debt instrument management industry.
Using data provided by ISS-ESG, SCOR is able to rate 77% of its asset portfolio based on non-financial criteria. A line-by-line analysis is regularly performed ex post. Issuers with the lowest ratings may be placed under review. In addition to applying the ex ante screening mentioned in the following section, SCOR may make portfolio adjustments following these analyses, as was the case in 2019.
Aside from climate change, SCOR actively participates in the expansion of the knowledge society by investing in high-quality, medium-sized companies working in the production and publication of certified knowledge. In a world abundant with information, this approach targets a modern-day risk: cognitive risk. SCOR defines this risk as the risk of biased judgment or misunderstanding, which is often the result of low-quality information or insufficient access to knowledge. This policy of “cognitive protection” has been demonstrated by the creation of Humensis, the result of the merger between PUF and Editions Belin and is in line with the many initiatives undertaken by the Group to develop the knowledge society (e.g. SCOR Corporate Foundation for Science).
In addition to these two orientations, the Group has also developed strong expertise in the underwriting of Environmental Impairment Liability (EIL) insurance through its Lloyd’s syndicate. SCOR Channel has developed a proprietary rating tool comprising 16 environmental indicators, which informs underwriters about the discipline of the company seeking EIL coverage. This direct insurance product not only incentivizes insureds to better manage risks by offering reduced premiums to companies with good ratings, it is also a source of capital that helps to restore the environment when it has been damaged by an insured’s activities.
The Group factors environmental considerations into its extension or relocation projects for the offices it owns. It opts for sustainable and eco-responsible construction, and is therefore particularly attentive to obtaining energy efficiency and environmental certifications, whether for design and construction or for renovation. These considerations may be subject to a tradeoff with other criteria such as the location of the office or its availability.
Among the other measures implemented by the Group to protect itself against cyber risks, and in response to the widespread practice of phishing, SCOR has installed a feature that enables employees to report any suspicious messages to the teams in charge of information system security. When the message is deemed a phishing attempt, the teams take the appropriate steps to block the source of these attempts. In addition, in order to make Group employees aware of this type of threat, the security teams conduct tests by carrying out fake phishing campaigns to help employees become familiar with signs of such activity. The Group has conducted eight campaigns of this kind since they were first introduced at the end of 2018. Due to the increase in phishing attempts during the pandemic, SCOR decided to supplement these exercises with a specific e-learning module that has to be completed by employees that fail the test.
Articles L.22-10-36 et L. 225-102-1, III, R. 225-104 et R. 225-105 of the French Commercial Code
The Statement has been prepared in accordance with the entity’s procedures (hereinafter the “Guidelines”), the main elements of which are presented in the Statement (and on request from the entity’s head office).
The M&S Brazil Participacoes Ltda shares has been contributed to SCOR Brazil Participacoes Ltda (EUR 22 million). The capital of SCOR Brazil Participacoes Ltda has been further increased by EUR 9 million to reflect the acquisition of Agrobrasil.
Issuance of new loan to SCOR Reinsurance Company On December 14, 2020, SCOR SE granted of new loan of USD 75 million (EUR 67 million) to SCOR Reinsurance Company.
The decrease in the gross value of investments in affiliates of EUR (53) million mainly consists of: • sale of SCOR Underwriting Ltd shares to SCOR Switzerland AG for a book value of EUR 18 million; • contribution in kind of M&S Brazil Participações Ltda to SCOR Brasil Participações Ltda for a book value of EUR 15 million; • reduction in the value of the Trust by a withdrawal of USD 20.5 million (EUR 14 million); • sale of CFDP Assurances shares for book value of EUR 4 million.
Loans The change in loans of EUR 390 million mainly consists of: • loan granted to SGLA Holding Inc for USD 352 million
EUR 1,696 million; • mutual fund not exclusively invested in fixed-income securities for
EUR 321 million; • other shares and other variable income securities for
General Guisan-Quai 26, 8022 Zurich, Switzerland EUR 492 18 100.00% 519 519 - - - - 18 30 • SCOR SERVICES SWITZERLAND AG
BCE Place TD Canada Trust Power 161, Bay Street, Suite 5000 PO Box 615, TORONTO, ONTARIO M5J 2S1 CAD 30 112 100.00% 148 148 - 3 222 280 34 24
• SCOR SERVICES ASIA-PACIFIC PTE. LTD 160 Robinson Road, SBF Center, Singapore 068914 SGD 1 (1) 100.00% 1 1 5 7 - 73 (3) -
• EUR 500 million in dated subordinated notes was issued on May 27, 2016. The notes are redeemable by SCOR from May 27, 2028 on an annual basis on the interest payment dates. The coupon was set at 3.625% until May 27, 2028 and will be reset every 10 years at the prevailing 10-year EUR mid-swap rate +3.90% until May 27, 2048, final redemption date.
5.2.5. MATURITY OF ASSETS AND LIABILITIES The maturity of assets and liabilities at December 31, 2020 is as follows: In EUR millions
In EUR millions Opening balance Increase Use over the period Reversal without use Closing balance
B UNCONSOLIDATED CORPORATE FINANCIAL STATEMENTS OF SCOR SE Notes to the corporate financial statements 5.3.2. ANALYSIS OF INVESTMENT INCOME AND EXPENSES
These calculations were performed individually and plan by plan and rounded up to the nearest unit. The new basis for exercising the rights attached to the stock subscription and purchase options were calculated by entering the value of the pre-emptive subscription right on the one hand, and the value of the share after detachment of this right on the other, as determined from the average of the opening prices during all the trading days included in the subscription period.
On March 9, 2017, the CNMC issued a resolution in which it confirmed SCOR’s fine at the amount of EUR 18.6 million. SCOR has appealed the CNMC’s resolution in front of the AN, and on April 25, 2019, the AN has rejected SCOR’s appeal. Subsequently, on June 5, 2019, SCOR has appealed this decision in front of the Spanish Supreme Court. On January 30, 2020 SCOR was notified that the Spanish Supreme Court has not accepted SCOR’s appeal, thereby triggering the requirement to pay the EUR 18.6 million fine. On February 25, 2020 SCOR has filed an appeal to the Spanish Constitutional Court against the decision of the Spanish Supreme Court. On September 25, 2020, SCOR had been informed that the Spanish Constitutional Tribunal declared SCOR’s appeal inadmissible. This decision is final.
B UNCONSOLIDATED CORPORATE FINANCIAL STATEMENTS OF SCOR SE Certification of audit of historical financial information
On December 31, 2020, investments in affiliates were recorded for a net book value of EUR 7,043 million. As stated in the Note 5.1.2 of the notes to the corporate financial statements, they are initially measured at historical acquisition cost. Subsequently, their value is determined based on their nature and holding period: For active reinsurance companies, the fair value is the revaluated net assets value including the value of Life reinsurance portfolio and the forecasts of future profits of Non-Life reinsurance, net of taxes. At each reporting date, if the fair value of an investment in affiliates is below its historical cost, an analysis is conducted in order to determine if an impairment loss should be recorded. The assumptions and outcome of this analysis, conducted as at December 31, 2020, are detailed in 5.2.1 of the notes to the corporate financial statements.
We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the management report of the Board of Directors and in the other documents provided to shareholders with respect to the financial position and the financial statements, except for the below mentioned observation, reminded that it is not our responsibility to conclude on the fairness or consistency with the financial statements of the solvency related information required by article L. 355-5 of the French Insurance code (Code des assurances).
RETURN ON EQUITY (ROE) Return on equity is based on the Group’s share of net income divided by average shareholders’ equity (calculated as shareholders’ equity at the beginning of the period adjusted for the effect of all movements during the period using a prorata temporis). This return is annualized when calculated quarterly.
RETURN ON INVESTMENT (ROI) The return on investment is used to assess the profitability of the Group's investments, including funds withheld by cedents and other deposits less cash deposits. This percentage return is calculated by dividing the total net investment income by the average investments (calculated as the quarterly averages of the total investments).
UNIT-LINKED CONTRACT Life insurance contract or capitalization certificate for which the amount guaranteed, and bonus amounts are expressed, not in a specific Euro amount, but by reference to one or more units of account such as mutual fund units or real estate investment trust units. Contractual guarantees are directly linked to upward or downward variations in a security listed on a regulated market or in the value of a real estate asset.
The information of the special report relating to the 2020 stock options plans established in accordance with Article L.225-184 of the French Commercial Code and the special report relating to the 2020 free share allocation plans established in accordance with the Article L.225-197-4 of the French Commercial Code, appear in section 2.2.3.4 – Plans providing employee profit sharing.
Liabilities due to suppliers Pursuant to the provisions of Article L. 441-6-1 of the French Commercial Code, except in specific situations (such as litigation regarding invoices received), suppliers’ invoices are paid upon receipt or within 30 days of the end of the month.
(1) Number of shares of the Company, with a par value of EUR 7.8769723, outstanding at the time of distribution of the related dividend, including treasury shares. (2) For natural persons only: the dividend paid in 2018, 2019 and 2020 for the financial years 2017, 2018 and 2019 gave entitlement to a 40% deduction
(except where the beneficiary opted for fixed-rate taxation on dividends (prélèvement libératoire forfaitaire, where applicable).
Table of the Company’s results in the course of the five last financial years Article R. 225-102 of the French Commercial Code
Articles L. 233-29, L. 233-30 and R. 233-19 of the French Commercial Code
• Employee share ownership Article L. 225-102, paragraph 1 of the French Commercial Code
ADDITIONAL INFORMATION RELATING TO THE MANAGEMENT REPORT OF THE COMPANY AND THE GROUP – CORRESPONDENCE TABLE
Exercise of the option to request the return of variable remuneration Article L. 22-10-9, I., 3° of the French Commercial Code
Clear and concise presentation of the compensation policy for corporate officers, describing all the components of fixed and variable compensation and explaining the decision-making process followed for its determination, review and implementation
E CORRESPONDENCE TABLE – DELEGATED REGULATION (EC) OF MARCH 14, 2019
Place of registration, registration number and legal entity identifier of the issuer 268
Information on service contracts of members of administrative and management bodies 2.1.3 Board of Directors 43 to 71
19.1 Share capital 5.2.1.4 Description of SCOR’s share capital 260 19.2 Charter and Bylaws 5.3.2 Charter and Bylaws 269 to 275 20 MATERIAL CONTRACTS 5.3.5 MATERIAL CONTRACTS 275 21 DOCUMENTS ON DISPLAY 1.3.11 DOCUMENTS ON DISPLAY 39 366 UNIVERSAL REGISTRATION DOCUMENT SCOR 2020
• The report of the Statutory Auditors regarding said financial statements (see Section 4.9 and Appendix C Unconsolidated corporate financial statements of SCOR SE, §6)