NU Online News Service, March 3, 2:53 p.m. EST

SCOR reported 2009 fourth-quarter profits increased 163 percent compared with the period in 2008, citing improved investment returns and risk management.

The Paris-based insurer posted fourth-quarter net income of EUR92 million ($126 million) versus EUR35 million ($48 million) in 2008, driven by robust performances from all business units.

For the full year the company said it had net income of EUR370 million ($508 million), up 17.6 percent compared to 2008. Twelve months' earnings per share stand at EUR2.06 ($2.82).

Denis Kessler, SCOR chairman and chief executive officer, commented in a statement, "In 2009 the group grew significantly, by further strengthening its franchise and improving its technical performance and its financial results, whilst increasing its solvency."

He said both property and casualty and life reinsurance businesses grew significantly while generating operating cash flows which totaled EUR851 million ($1.17 billion).

The group, Mr. Kessler related, while following "a very cautious asset management policy," recorded a rising return on its investments despite difficult economic conditions.

He noted that 2009 also saw "SCOR make further progress in the field of risk management, allowing it to manage a universe of rapidly developing risks through a very rigorous underwriting policy."

The firm, said Mr. Kessler, managed to exceed its medium-term return-on-equity objective while increasing its shareholders' equity which reached EUR3.9 billion ($5.4 billion).

SCOR, he said, "is well positioned to further strengthen its competitive position, as seen by the success of the last renewals campaign."

The company listed as key points in its statement:

o Total gross written premiums for 2009 reach EUR6.4 billion ($8.8 billion), up 9.8 percent compared to 2008 (plus 10 percent at constant exchange rates).

o Return on equity for 2009 was 10.2 percent, exceeding SCOR's target.

o SCOR Global P&C had a 2009 combined ratio of 96.8, excluding 2 points from the one-off World Trade Center arbitration outcome and including 5.1 points of natural catastrophe claims.

o SCOR Global Life had an operating margin of 5.8 percent, similar to the 6 percent achieved last year.

o Operating cash flow reached EUR851 million ($1.17 billion).

o SCOR Global Investments (SGI) pursued a "rollover" investment strategy and reduced the group's liquidity position to EUR1.7 billion ($2.3 billion) by Dec. 31, 2009 from EUR3.7 billion ($5 billion) at the end of December 2008).

o Net return on investments reached 3.5 percent in the fourth quarter of 2009 and 2.4 percent on average for full-year 2009.

o Shareholders' equity grows by 14.2 percent (EUR485 million, or $666 million) compared to year-end 2008, reaching EUR3.9 billion ($5.4 billion); book value per share stands at EUR21.80($29.93).

o SCOR has proposed a dividend of EUR1.00 ($1.37), representing a payout ratio of 48 percent, with an option proposed to the shareholders to receive the dividend in SCOR shares.

Special Reports /

SCOR Says 4th Quarter Net Was Up 163%

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