SCOR 2005 Net up 75% to $158 Million

France’s SCOR Group announced positive results for 2005 with net income after tax increasing by 75 percent to €131 million ($158 million), compared to €75 million ($90.5 million) in 2004.

Other earnings highlights were listed as follows:
• Gross written premiums: €2.407 billion [$2.9 billion] (-6 percent compared to 2004)
• Operating result: €242 million [$292 million] (+22 percent compared to 2004)
• Shareholders’ equity at 31 December 2005: €1.719 billion [$2.07 billion] (+29 percent compared to 31 December 2004)
• Return on Weighted Average Equity (RoE) for 2005: 8.6 percent
• Proposed dividend of 5 euro cents per share (6 cents) per share, subject to approval by the General Shareholders’ Meeting
• Proposed regrouping of shares to exchange 1 new share for 10 old shares, subject to approval by the General Shareholders’ Meeting
• Net income per share: € 0.148 [17.86 cents] (+59 percent compared to 2004)
• Book value per share: € 1.792 [$2.163] (+9 percent compared to 2004)

SCOR also noted that its combined ratio for its P/C or non-life business was 102.8 percent “excluding CRP (106.5 percent including CRP).” The “Impact of major natural catastrophes on the combined ratio for Non-Life business in 2005 was 12 points.”

The bulletin said “SCOR’s profitability level was satisfactory during a year marked by exceptional natural catastrophes.”

Chairman and CEO Denis Kessler commented: “Despite an environment marked by historic natural catastrophes, SCOR has seen its profitability level increase significantly. Net income at €131 million is up 75 percent, and net income per share has increased by 59 percent. A dividend of 5 Euro centimes per share will be proposed at the General Meeting.

“These results confirm the pertinence of the strategic choices made three years ago, notably the decision to follow a prudent and diverse underwriting policy centered on the markets and lines of business which the Group knows well. 2005 demonstrated the balance achieved between Life and Non-Life reinsurance, as well as the reorientation of our business towards Europe and Asia.

“The SCOR group is progressively achieving the objectives it set as part of the Moving Forward Plan, and is proving that its equity capital is fully commensurate with its underwritings, as its reserves are to its commitments. It is demonstrating its capacity to create value in a context of heightened competitiveness and increased loss occurrence.”

The full report may be obtained on the Group’s Website at www.scor.com.