ANNUAL REPORT - Scor

AN N UAL R E PORT
2008
SCOR Sweden Reinsurance Co Ltd

Contents
Management Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Profit and Loss Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Shareholder’s equity report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Cash flow analyses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Five-year overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
SWEDEN REINSURANCE CO LTD
(Sverige Återförsäkringsaktiebolag [publ])
Company registration number 502018-7695
– EU: SE502018 769501
BOARD OF DIRECTORS
Appointed by the Shareholders’ Meeting
Chairman:
Simon Pearson, Head of Market Unit 4,
SCOR Global Life UK
Ordinary members:
Gilles Meyer, Chief Executive Officer,
SCOR Global Life SE
Dr. Norbert Pyhel, Deputy Chief Executive Officer,
SCOR Global Life SE
Frank Engeländer, Chief Financial Officer,
SCOR Global Life SE
Fredrik Sundberg, Managing Director,
Sweden Reinsurance Co Ltd
The shareholder of the company is
SCOR Global Life SE to 100%
MANAGING DIRECTOR
Fredrik Sundberg
AUDITOR
Appointed by the Shareholders’ Meeting
Lars-Ola Andersson, Authorised Public
Accountant, SET Revisionsbyrå AB
PARENT COMPANY
Nearest parent company
Immeuble SCOR, 1 Avenue du Général de Gaulle,
92074 Paris La Défense Cedex, France
RCS Nanterre 433 935 558,
Siret 433 935 558 00026, Société Europaea
Outermost parent company
SCOR SE
1 Avenue du Général de Gaulle,
92800 Puteaux, France
RCS Nanterre 562 033 357, Société Européenne
ADDRESS
Sweden Reinsurance Co Ltd
Drottninggatan 82
SE-111 36 Stockholm, Sweden
Telephone: +46 8 440 82 50
Fax: +46 8 440 82 72
E-mail: info@swedenre.se
Homepage: www.scor.com

Management Report
OPERATIONS
The company (Sweden Re) reinsures life, health and
personal accident insurance (referred to collectively as
life reinsurance). In geographical terms, the company
is responsible for the Group’s reinsurance operations
within the Nordic countries.
The Company holds an A- (Strong) rating from
Standard & Poor’s, with a ”stable outlook”.
CHANGES IN THE OWNERSHIP
AND GROUP STRUCTURE
The last 7-8 years have been characterised by a
number of relatively extensive changes at the Group
and shareholder level. These changes have not had
any direct effect on the company’s business activities.
However, it has meant a lot of changes regarding
the internal processes, steering and reporting in
the Group etc.
In July 2006, following extensive analyses and negotiations,
an agreement was entered into between the
SCOR Group and the owner of the Revios Group. The
agreement meant that SCOR purchased 100% of the
shares in Revios Rückversicherung AG with the intention
of merging the SCOR Group’s life reinsurance
operations with that of the Revios Group. In November
2006 the purchase could be concluded which,
among other things, led to the change back to our old
name Sverige Återförsäkringaktiebolag (with the registered
parallel name “Sweden Reinsurance Co Ltd”).
This deal means that we are once again part of a very
large international financial group. The SCOR Group
is a publicly owned global listed company, registered
on stock exchanges in Paris and Zurich. As such, this
provides us with access to international risk capital
for future development and expansion.
During 2008 a reorganisation was carried out within
the Group regarding the responsibility of the operations
in the business market, in which Sweden Re
was transferred to ”Market Unit 4”, which covers
2 |
SCOR – Annual Report 2008
Great Britain, Ireland and the Nordic countries.
Sweden Re’s mandate and responsibility for the
Nordic countries remains unchanged.
Sweden Re’s position as a wholly-owned subsidiary
in the legal Group structure is shown in the chart below.
SCOR Holding
SCOR GLOBAL LIFE
SCOR GLOBAL P&C
Market Unit 4
Sweden Re
BUSINESS IDEA AND STRATEGY
Our overall objective is to be the leading life reinsurance
company in the Nordic countries. In order to
reach our objective, we are working purposefully on
establishing long-term close relationships with our
customers. By maintaining a high level of competence,
good market knowledge and understanding of
customers’ needs and problems, our aim is to be able
to produce individually customized solutions and concepts
quickly, and to present and provide these to our
customers.
In addition we provide our customers with consulting
and other services in our specialist areas. We have
through our own actuarial competence, and our international
network of specialists in the life insurance
area, a high capacity to provide professional actuarial
and financial consulting both to our existing customers
and to other players on the market.
Another strategically important area for us is risk
assessment and claims adjustment, in which we are
purposefully working in the long term to expand and
improve our services. In addition, there are a number
of reinsurance administrative tasks that we perform
for several customers.

STAFF AND ORGANISATION
The personnel situation of the company is good even
if the workload during 2008 has been periodically
high. In consequence of forthcoming retirements and
maternity leaves we have recruited two new employees
and hired another two persons on a consultant
basis.
An absolute prerequisite for successfully implementing
the company’s strategy is a motivated and highly
qualified staff. This is particularly important in our line
of business, providing qualified financial and risk
management services. We therefore consider it crucial
that the organization and the staff possess a very
high level of competence and integrity, and have
good trust on the market and with our customers.
A good knowledge of the market, both locally and
globally, is also a critical success factor for us. By
active participation in a number of courses and seminars
and by continually maintaining contact and
communicating with customers and other players on
the market, and not least by means of the Group’s
international network of insurance experts, our aim is
to uphold a high and up-to-date level of knowledge
and competence.
In order to attract and keep competent staff, it is very
important that employees have a good and pleasant
work environment, a sound balance between work
and private life, and good health. During the past years
we have continuously worked with these questions
and have taken measures to ensure a good work environment
for all employees, regarding both ergonomic
as psycho-social and health-related conditions.
An indication that we have so far succeeded relatively
well in this respect at Sweden Re is the continued
very low level of sickness absence within the company.
During 2008, the average sickness absence was
only 1.2% (1.3%) of normal working time. There was
no sickness absence of more than 60 days. If we
look at the division between men and women, the
average sickness absence for men was 1.5% (1.0%)
and for women was 1.1% (1.4%).
A comparison with the 2007 statistics (later figures
are not yet available) regarding all salaried employees
in the insurance industry shows that Sweden Re
has a clearly lower sickness absence than the industry
in general. One should take into account, however,
that we have relatively few employees and that
no-one was sick-listed on a long-term basis in 2007
or 2008.
Total absence due Sweden Re, Salaried employees
to sickness as a 2008 in the Swedish
percentage of insurance industry
normal working time in 2007
All 1.2% 3.7%
Women 1.1% 4.9%
Men 1.5% 2.4%
ACTIVITIES AND BUSINESS
DEVELOPMENT IN 2008
| MANAGEMENT REPORT |
During 2008 we have continued to experience a relatively
high level of activity in respect of marketing
and different business development projects. In
October, in accordance with tradition, we carried out
our 13th annual life insurance conference.
We have carried out several business projects of
varying extents during the year, several of which have
resulted in concrete business. Among the highlights
of the year, it can be mentioned that we have concluded
two major business agreements with foreign
reinsurance companies in order to further improve the
spread of risks in our reassurance portfolio. These
transactions have also led to a substantial increase of
the premium income for 2008, mainly depending on
a portfolio premium of SEK 1.700 million concerning
the takeover of the responsibility for an American life
insurance portfolio.
A very important tool for our operations is the Group’s
insurance medicine guidelines: GEM, which stands
for Global Electronical Manual GEM, which is an
SCOR – Annual Report 2008 | 3

| MANAGEMENT REPORT |
Internet-based risk assessment tool, has been developed
for several years within the Group and was
launched globally 6–7 years ago, and has subsequently
become an important aid for us and for our
customers in connection with new business and
claims adjustment. During 2008 an extensive work
has started in the SCOR Group in order to further
develop and in principle build a new global medical
underwriting tool. Considerable resources have been
devoted to this project and will so be in the next coming
years. Until the new tool is finished GEM will be
distributed and supported in the same manner as
today.
4 |
SCOR – Annual Report 2008
Sweden Re has during the last two years also developed
a medical underwriting tool for juvenile insurance.
This web-based tool is specifically developed
for the Nordic market and will be launched in the
beginning of 2009.
TOTAL RESULT FOR THE YEAR
Underwriting operations
The volume measured in terms of premium income
increased by fully 112% from SEK 1 581 million in
2007 to SEK 3 344 million in 2008. The balance
sheet total also increased, from SEK 3 728 million in
2007 to SEK 5 793 million in 2008. These large volume
increases depend mainly on the above mentioned
takeover of an American life insurance portfolio.
Asset management
The company's asset management has for some
time been outsourced to a professional investment
manager. From September 2003, Svenska Handelsbanken
has the task of being responsible for this
management.
The investment strategy applied means that we have
a combination of so-called strategic shares portfolio
management and active fixed income securities
management. Assets equivalent to our technical liabilities
are invested in fixed income securities, whilst
assets equivalent to our equity capital are managed
both in a shares portfolio and in fixed income securities.
The return in 2008 on our own managed assets
including unrealised gains and losses amounted to
4.6% (2.8 %). See also the table Total yield in the 5year
overview.
Our own managed assets, which include reserves
under our own management as well as our equity
capital, amounted on average to SEK 1 288 (1 275)
million.

Operating costs
Operating costs for the year increased by SEK 6.1
million in comparison with the previous year.
Operating costs expressed as a percentage of premium
income dropped substantially from 1.8% in
2007 to 1.0% in 2008, an extremely low level in our
opinion.
Total result
For the entire business, we saw a significant increase
in net profit this year as compared to last year. The
profit for the year increased from SEK 97.2 million in
2007 to SEK 130.4 million in 2008, i.e., an increase
of SEK 33.2 million or with 34%.
DEVELOPMENT 1997–2008
In 1997, the company obtained an exemption from
the prevailing ban on life insurance companies paying
dividends.
The following charts provide a description, in terms of
key ratios, of the trend from 1997 up until the present.
As can be seen from the charts, the company
has in terms of all important key figures had a very
strong and sustained development during the past
twelve years.
a) Premiums for reinsurance accepted, SEK million
3500
3000
2500
2000
1500
1000
500
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Note: The extremely high premium income for 2001
is due to the taking over of the run-off risk for a
| MANAGEMENT REPORT |
claims portfolio. This business generated a lump-sum
premium of SEK 1 291 million. Regarding the premium
income for 2008 se above.
b) Operating costs as a percentage of premium
income
12
10
8
6
4
2
0
c) Net profit in SEK million
140
120
100
80
60
40
20
0
Note: There has not been a recalculation of net profits
before 2007 in conjunction with the adoption of
new accounting principles as from 2007.
EQUITY
1997
1998
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
The sharp growth of recent years and the new solvency
demands has led to that the company gradually,
through retained earnings and shareholder’s
contribution, has increased the equity.
SCOR – Annual Report 2008 | 5

| MANAGEMENT REPORT |
Equity in SEK million
700
600
500
400
300
200
100
0
PROSPECTS FOR 2009
The positive trend is expected to continue also during
2009, with a further good net result. When estimating
the premium volume for 2009 we have to
take into consideration that the main part of the
increase in 2008 was of single nature.
6 |
1997
1998
SCOR – Annual Report 2008
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Stockholm, 11 March 2009
PROPOSED APPROPRIATION
OF PROFITS
The following amount is at the disposal of the Annual
General Meeting (figures in SEK).
Brought forward from 2007 506 753 567
Shareholder’s contribution 2 775 542
Dividends to shareholders -100 000 000
Profit for the year 130 450 213
Total 539 979 322
The Board of Directors and Managing Director propose
that the profit is appropriated as follows
(amounts in SEK):
Dividend to shareholders 0
Profit carried forward to new account 539 979 322
Total 539 979 322
Simon Pearson
Chairman
Dr. Norbert Pyhel Gilles Meyer
Frank Engeländer Fredrik Sundberg
Managing Director
Our Auditors’ Report was submitted on 11 March 2009.
Lars-Ola Andersson
Authorised Public Accountant

Profit and Loss Account
TECHNICAL ACCOUNT 2008 2007
LIFE INSURANCE OPERATIONS
Premium income for own account
Reinsurance accepted Note 3 3 356 180 683 1 580 936 106
Premiums, reinsurance ceded -1 801 710 717 -399 868 295
1 554 469 966 1 181 067 811
Return on capital, income Note 4 126 212 871 92 952 376
Claims incurred for own account
Paid claims
Note 5
Before reinsurance ceded -801 624 760 -554 698 598
Reinsurers' share 255 029 878 158 698 145
-546 594 882 -396 000 453
Change in allocation for outstanding claims
Before reinsurance ceded -49 965 680 -396 718 552
Reinsurers' share 1 108 219 685 94 126 058
1 058 254 005 -302 592 494
Change in other technical allocations for own account
Life insurance allocations Note 5
Before reinsurance ceded -1 620 455 642 147 197 361
Reinsurers' share 1 826 791 174 719
-1 618 628 851 147 372 080
Bonuses and rebates Note 6 -731 580 276 -701 167 272
Operating costs Note 7 378 651 076 107 170 698
Return on capital, costs Note 8 -44 770 873 -16 372 692
Unrealised losses on investments Note 9 -11 434 399 0
Technical result, life insurance operations 164 578 637 112 430 054
NON-TECHNICAL ACCOUNT
Technical result, life insurance operations 164 578 637 112 430 054
Tax on profit for the year Note 10 -15 183 476
-34 128 424
PROFIT FOR THE YEAR 130 450 213 97 246 578
SCOR – Annual Report 2008 | 7

Balance Sheet
ASSETS
2008 2007
Investments
Buildings and land Note 12 2 316 728 2 316 728
Other financial investment assets Note 13
Shares 11 080 467 40 602 705
Bonds and other interest bearing securities 824 255 602 1 057 723 523
Deposits with ceding companies Note 14 2 956 471 380 1 834 303 869
3 794 124 177 2 934 946 825
Reinsurers' share of technical reserves Note 15
Life insurance allocation 3 221 355 1 398 744
Allocation for outstanding claims 1 193 963 696 382 763 495
1 197 185 051 384 162 239
Receivables
Receivables concerning reinsurance Note 16 331 601 304 204 202 058
Other receivables 3 783 433 2 911 953
335 384 737 207 114 011
Other assets
Tangible assets Note 17 1 198 175 1 898 324
Cash and bank balances Note 18 449 385 919 184 320 926
450 584 094 186 219 250
Prepaid expenses and accrued income Note 19
Accrued interest income 15 415 877 15 451 758
Other prepaid expenses and accrued income 707 469 652 003
16 123 346 16 103 761
ASSETS TOTAL 5 793 401 405 3 728 546 086
8 |
SCOR – Annual Report 2008

SHAREHOLDERS' EQUITY,
ALLOCATIONS AND LIABILITIES
| Balance Sheet |
2008 2007
Shareholders' equity
Restricted
Share capital (100 000 shares à nominal SEK 1000) 100 000 000 100 000 000
Share premium reserve 25 000 000 25 000 000
Fund for fair value
Unrestricted
Note 20 20 430 187 -2 410 654
Profit carried forward 409 529 109 409 506 989
Profit for the year 130 450 213 97 246 578
685 409 509 629 342 913
Allocation of technical reserves
(before reinsurance ceded) Note 21
Life insurance allocation (incl. allocated bonus) 1 731 640 151 113 791 558
Allocation for outstanding claims 2 112 971 141 2 467 273 617
3 844 611 292 2 581 065 175
Allocation for other risks and expenses
Tax provision Note 22 24 781 748 607 081
Deposits from reinsurers Note 23 1 038 929 708 297 675 835
Liabilities
Liabilities concerning reinsurance Note 24 110 773 707 211 386 439
Other liabilities Note 25 79 408 220 1 602 990
190 181 927 212 989 429
Accrued expenses and deferred income
Other accrued expenses and deferred income Note 26 9 487 223 6 865 653
SHAREHOLDERS' EQUITY,
ALLOCATIONS AND LIABILITIES, TOTAL 5 793 401 407 3 728 546 086
Memorandum items
Pledges and equivalent collateral to secure own
liabilities and commitments reported as provisions Note 27 729 884 564 660 274 902
Contingent liabilities None None
SCOR – Annual Report 2008 | 9

Shareholder's
equity report
EQUITY RESTRICTED UNRESTRICTED TOTAL
Share Share Fund for Profit carried Profit
capital premium fair value forward for the year
2008 reserve
Balance brought
forward 100 000 000 25 000 000 -2 410 654 409 506 989 97 246 578 629 342 913
Appropriation of
profits for former year 97 246 578 -97 246 578 0
Paid dividends -100 000 000 -100 000 000
Shareholder's contribution 2 775 542 2 775 542
Change in fund for fair value
Gross 30 127 509 30 127 509
Pertaining deferred tax -7 286 667 -7 286 667
Profit for the year 130 450 213 130 450 213
Balance carried
forward 100 000 000 25 000 000 20 430 187 409 529 109 130 450 213 685 409 509
EQUITY RESTRICTED UNRESTRICTED TOTAL
Share Share Fund for Profit carried Profit
capital premium fair value forward for the year
2007 reserve
Balance brought
forward 100 000 000 25 000 000 5 559 023 274 804 027 83 768 064 489 131 114
Appropriation of
profits for former year 83 768 064 -83 768 064 0
Reallocation of
Negative unrealised profit -934 898 934 898 0
Pertaining deferred tax 233 725 233 725
Paid dividends -50 000 000 -50 000 000
Shareholder's contribution 100 000 000 100 000 000
Change in fund for fair value
Gross -9 691 338 -9 691 338
Pertaining deferred tax 2 422 835 2 422 835
Profit for the year 97 246 578 97 246 578
Balance carried
forward 100 000 000 25 000 000 -2 410 654 409 506 989 97 246 578 629 342 913
10 |
SCOR – Annual Report 2008

Cash flow analyses
2008 2007
Operating activities
Technical result, life insurance operations Note 1 164 578 637 112 430 054
Current tax -16 436 873 -15 183 476
Adjustments of items without impact on liquidity Note 2 -47 412 943 547 727 394
Cash flow from operating activities 100 728 821 644 973 972
before change of working capital
Change in other financial investment assets 274 424 558 -157 971 164
Change in receivables and liabilities concerning reinsurance 401 804 610 -303 426 180
Change in deposits with ceding companies -1 122 167 511 -319 899 345
Change in deposits from reinsurers 741 253 873 63 453 447
Change in other operating receivables and operating liabilities 78 732 184 -69 113 773
Change in allocation of technical reserves -109 851 542 147 372 080
Cash flow from changes in working capital 264 196 172 -639 584 935
Cash flow from operating activities 364 924 993 4 568 686
Investment activities
Disposal of tangible assets 140 000 0
Investments of tangible assets 0 -1 180 555
Cash flow from investment activities 140 000 -1 180 555
Financial activities
Shareholder's contribution 0 100 000 000
Dividends -100 000 000 -50 000 000
Cash flow from financial activities -100 000 000 50 000 000
Cash flow for the period 265 064 993 54 208 482
Cash equivalents, opening value 184 320 926 130 112 444
Cash equivalents, calculated closing value 449 385 919 184 320 926
Sweden Re's cash flow analysis is established according to the indirect method, i.e.
it is based on results prior to tax adjustments for entries that do not affect liquidity
entries and changes in the balance sheet that have had an inpact on cash flow.
IAS 7, Cash flow analysis, is applied with the adaptions necessary with respect to Sweden
Re's activities. In the establishment of the cash flow analysis, the net reporting has been
made of changes with respect to purchases and sales of investment assets. Bank balances
are reported as liquid assets.
* Note 1 Interest income and expenses
Interest income 104 236 543 82 250 407
Interest expenses -21 771 924 -14 442 756
82 464 619 67 807 651
SCOR – Annual Report 2008 | 11

| CASH FLOW ANALYSES |
2008 2007
* Note 2 Adjustments of items without impact on liquidity
Depreciations 627 585 820 351
Gains from disposal of tangible assets -67 436 0
Allocated SCOR shares 2 775 542 0
Unrealised gains/losses on investments 18 693 110 7 337 913
Operating costs -414 763 696 82 170 698
Bonuses and rebates 694 406 805 701 167 272
Change in other technical allocations for own account 1 618 628 850 24 658 400
Change in allocation for outstanding claims -1 058 254 005 302 592 494
Paid claims 427 568 033 396 000 453
Return on capital, income -40 039 200 -52 952 376
Premium income for own account -1 296 988 531 -914 067 811
Total -47 412 943 547 727 394
12 |
SCOR – Annual Report 2008

Notes
Note 1 Applied accounting principles
The Annual Report has been prepared in accordance with the Act (1995:1560) on Annual
Reporting in Insurance Companies and in accordance with the rules and general guidelines
(FFFS 2006:17) of the Swedish Financial Supervisory Authority. The Swedish Financial
Supervisory Authority refers in these guidelines to International Financial Reporting
Standards, IFRS and RFR2.1, Reporting for legal entities.
Published but not set IFRS standards are not deemed to have any significant impact on the
company's financial reports.
Important evaluations and estimations
Evaluations and estimations that form the basis for accounting and valuations of the balance
sheet items such as technical liabilities and associated deposits have a significant
impact on the financial reports. The basis for these calculations are described below under
technical provisions.
Applied valuation principles
Foreign exchange
Transactions in foreign currencies are converted to the functional currency, which is
Swedish kronor, based on the exchange rate on the date of the transaction. Monetary
assets and liabilities in foreign currencies are recalculated to the functional currency on balance
sheet day. Exchange rate differences arising from this conversion are reported in the
profit and loss accounts.
Buildings and land
Investment property under Buildings and land is valued at fair value. This value has been
established through individual valuation.
Financial instruments
Financial instruments are reported and valued in accordance with IAS 39. Financial instruments
in the balance sheet includes liquid assets, accounts receivables, shares, bonds and
deposits. Liabilities include accounts payable and deposits from reinsurance liabilities.
A financial asset or liability is recognized in the balance sheet when the company becomes
a party in accordance with the terms and conditions of the agreement. A financial asset is
derecognized from the balance sheet when the rights in the agreement are realised, expire
or the company looses control over them.
IAS 39 classifies financial instruments into categories. The classification depends on the
intention behind the acquisition of the financial instrument. The following categories are
applied by the company:
Financial assets available for sale
The company classifies bonds and shares in this category. Assets in this category are continuously
valued to fair value with changes in value included in shareholders equity. When
the asset is disposed, the accumulated profit/loss that was previously included in shareholder’s
equity is recognized in the profit and loss accounts. In case of an assessed permanent
fall in value, the asset is written down and the fall in value is reported in the profit and
loss account.
All bond and share valuation are based on market listed rates.
SCOR – Annual Report 2008 | 13

| NOTES |
14 |
Loans and accounts receivables
Loans and account receivables in the balance sheet consist of deposits, recoverables
related to reinsurance, other recoverables and liquid assets. These assets are valued at the
accrued acquisition value. At the time of every report, the company assesses whether there
are objective indications that loans and accounts receivables need to be written down.
Financial liabilities
Financial liabilities consist of deposits from reinsurers, liabilities related to reinsurance and
other liabilities which are valued at accrued acquisition value.
Tangible assets
Machiney and equipment have been valued at the acquisition value after deduction
for depreciation and write-downs, if any. Depreciation is according to a 3-year plan (ITequipment)
or a 5-year plan (company cars and other equipment).
Premium income
Premiums related to reinsurance contracts where the insurance period starts before the
end of the financial year are reported as premium income.
Technical provisions
Technical provisions consist of life insurance provisions and the provisions for outstanding
claims, and correspond to the value of the reinsured established obligations in accordance
with the Technical Guidelines and the calculation basis applied. This is applicable on own
allocations as well as on deposited provisions. The Technical Guidelines are registered with
the Swedish Finacial Supervisory Authority.
Operating expenses
The section Operating costs in the Profit and Loss Account includes acquisition costs and
administrative costs.
Operating costs for claims settlements are reported as a part of Paid claims while operating
costs for asset management and property management costs are reported as Asset
Management cost included in the Operational costs, buildings and land.
It should be specially noted that the item Commissions and profit shares in reinsurance
ceded, which is reported under Operating costs in the Profit and Loss Account, mainly cosists
of profit shares which have been settled as Bonuses and rebates in reinsurance accepted.
As a result, operating costs are shown as a positive value in the Profit and Loss Account.
Taxes
The company’s total tax comprises current tax and accrued tax. Current tax consists of
income tax based on the company’s taxable earnings and tax on investment returns.
Deferred tax is based on temporary differences, i.e. the difference between taxable and
accounting values of assets and liabilities.
The Company's occupational pensions
The Company's occupational pensions have been financed through insurance in Försäkringsbranchens
Pensionskassa (FPK). In accordance with the IAS 19 recommendation, these
pension plans are reported as defined contribution plans, as there is not sufficient information
to facilitate reporting according to a defined benefit plan.
Performance analyses
The Company conducts business exclusively in one branch, reinsurance accepted for which
reason any particular profit analysis, i.e. distribution of profits in various business branches
are not current.
SCOR – Annual Report 2008

Events after closing
No significant events have occured after closing.
Transactions with associated companies
Associated parties include Group companies and key persons in leading positions. The
latter group includes the Managing Director, Management Group and financial supervisors.
Some transactions with the group in management positions are not reported.
With respect to Group companies, transactions can be divided into business transactions
and transactions regarding service costs. Business transactions essentially entail retroceded
business that have been created on the same terms as the Company's accepted business,
i.e. marketrelated conditions. Transactions have been sprecified in note 12.
Service costs apply to the Company's share of common costs within the Group, such as development,
and maintenance of common medical guidelines, costs for IT support and common
systems and other overhead expenses. Throughout the course of the year the company
according to market-based terms has been debited SEK 1.7 million with respect to such service
costs.
Note 2 Financial instruments
Classification of the company's financial instrumnets are shown in the following table
2008
Assets and Liabilities
ASSETS
Buildings
and land
Loans and
receivables/
liabilities
Assets afs Non-monetary
assets and
liabilities
Total Actual
value
2,3 2,3 2,3
Shares 11,1 11,1 11,1
Bonds and other interest
bearing securities
Deposits with ceding
companies
Reinsurers' share of
technical reserves
Receivables concerning
reinsurance
824,2 824,2 824,2
2 956,4 2 956,4 2 956,4
1 197,2 1 197,2 1 197,2
331,6 331,6 331,6
Other receivables 3,8 3,8 3,8
Tangible assets 1,2 1,2 1,2
Cash and bank
balances
Accrued
interest income
Prepaid
expenses
449,4 449,4 449,4
15,5 15,5 15,5
0,7 0,7 0,7
Total 5 793,4 5 793,4
| NOTES |
SCOR – Annual Report 2008 | 15

| NOTES |
2008
Assets and Liabilities
LIABILITIES
Allocation of technical
reserves
16 |
SCOR – Annual Report 2008
Loans and
receivables/
liabilities
Assets afs Non-monetary
assets and
liabilities
Total Actual
value
3 844,6 3 844,6 3 844,6
Tax provision 24,8 24,8 24,8
Deposits from reinsurers 1 038,9 1 038,9 1 038,9
Liabilities concerning
reinsurance
110,8 110,8 110,8
Other liabilities 79,4 79,4 79,4
Other accrued expenses 9,5 9,5 9,5
Total 5 108,0 5 108,0
2007
Assets and Liabilities
ASSETS
Buildings
and land
Loans and
receivables/
liabilities
Assets afs Non-monetary
assets and
liabilities
Total Actual
value
2,3 2,3 2,3
Shares 40,6 40,6 40,6
Bonds and other interest
bearing securities
Deposits with ceding
companies
Reinsurers' share of
technical reserves
Receivables concerning
reinsurance
1 057,7 1 057,7 1 057,7
1 834,3 1 834,3 1 834,3
384,2 384,2 384,2
204,2 204,2 204,2
Other receivables 2,9 2,9 2,9
Tangible assets 1,9 1,9 1,9
Cash and bank
balances
Accrued
interest income
Prepaid
expenses
184,3 184,3 184,3
15,5 15,5 15,5
0,7 0,7 0,7
Total 3 728,6 3 728,6

2007
Assets and Liabilities
LIABILITIES
Allocation of technical
reserves
Loans and
receivables/
liabilities
Assets afs Non-monetary
assets and
liabilities
Total Actual
value
2 581,1 2 581,1 2 581,1
Tax provision 0,6 0,6 0,6
Deposits from reinsurers 297,7 297,7 297,7
Liabilities concerning
reinsurance
211,4 211,4 211,4
Other liabilities 1,6 1,6 1,6
Other accrued expenses 6,9 6,9 6,9
Total 3 099,3 3 099,3
| NOTES |
2008 2007
Note 3 Premium income
Reinsurance accepted from Group Company 135 482 143 396
Reinsurance accepted from Other 3 356 045 201 1 580 792 710
Premiums, reinsurance ceded to Group Company -347 244 341 -241 163 546
Premiums, reinsurance ceded to Other -1 454 466 376 -158 704 749
With some single minor exceptions, business as
a whole stems from Scandinavia.
1 554 469 966 1 181 067 811
Note 4 Return on capital, income
Operating surplus, buildings and land
Rental income 55 061 41 805
Operating costs -255 217 -90 008
Received dividends
Interest income
2 663 651 3 513 439
Bonds 33 906 503 26 479 729
Interest on deposits, reinsurance accepted, Group Company 110 058 96 106
Interest on deposits, reinsurance accepted, Other
Interest on technical balances,
44 595 884 39 182 285
reinsurance accepted, Group Company 805 -1 447
Interest on technical balances, reinsurance accepted, Other 17 107 885 11 332 575
Other interest income 8 515 408 5 161 159
Exchange gains, net
Capital gains, net
0 1 278 502
Shares 0 5 595 944
Interest bearing securities 19 512 833 362 287
126 212 871 92 952 376
SCOR – Annual Report 2008 | 17

| NOTES |
2008 2007
Note 5 Claims incurred
Paid claims
Before reinsurance ceded
Claims, Group Company -57 753 -237 555
Claims, Other -801 567 007 -554 460 506
Cancellations and surrenders, Group Company 0 -537
Reinsurers' share
-801 624 760 -554 698 598
Claims, Group Company 214 118 335 143 843 042
Claims, Other 40 911 543 14 855 103
Change in allocation for outstanding claims
Before reinsurance ceded
255 029 878 158 698 145
Known disability and waiver of premium claims 3 844 100 -83 652 114
Other known claims -22 071 992 -9 757 975
Unknown claims (IBNR) -31 737 788 -303 308 463
Reinsurers' share
-49 965 680 -396 718 552
Known disability and waiver of premium claims 727 715 091 7 869 450
Other known claims 1 989 307 663 612
Unknown claims (IBNR) 378 515 287 85 592 996
Change in allocation for life insurance
1 108 219 685 94 126 058
Before reinsurance ceded -1 620 455 642 147 197 361
Reinsurers' share 1 826 791 174 719
-1 618 628 851 147 372 080
Note 6 Bonuses and rebates
Allocated surplus, life insurance allocation -388 434 -1 459 558
Premium rebate -143 078 391 -127 225 220
Profit commissions paid -588 113 451 -572 482 494
-731 580 276 -701 167 272
Note 7 Operating costs, life insurance operations
Acquisition costs -2 186 437 -18 237
Administration costs -35 750 518 -29 311 004
Services costs 1 824 335 1 506 778
Commissions and profit shares in reinsurance ceded 414 763 696 134 993 161
Total (operating costs in Profit and Loss Account) 378 651 076 107 170 698
18 |
Operating costs in Profit and Loss Account 378 651 076 107 170 698
Investment management -1 894 409 -1 929 936
Property management -255 217 -90 008
Less commissions and profit shares in reinsurance ceded -412 577 259 -134 993 161
Total of operating costs -36 075 809 -29 842 407
Personnel costs -25 838 699 -20 250 758
Office costs -2 244 582 -2 734 492
Depreciations -560 148 -820 351
Consultants -2 494 726 -1 380 034
Overhead costs -1 495 477 -2 096 624
Investment management -1 894 409 -1 929 936
Property management -255 217 -90 008
SCOR – Annual Report 2008

| NOTES |
2008 2007
Miscellaneous -3 116 886 -2 046 981
Operating income 1 824 335 1 506 778
Operating costs before functional classification -36 075 809 -29 842 407
Note 8 Return on capital, costs
Financial operating costs
Interest expenses
-1 894 409 -1 929 936
Interest on deposits, reinsurance ceded, Group Company -8 351 303 -8 758 608
Interest on deposits, reinsurance ceded, Other
Interest on technical balances, reinsurance ceded,
-2 560 445 -1 737
Group Company -3 497 393 -2 458 180
Interest on technical balances, reinsurance ceded, Other -7 256 239 -2 915 829
Other interest costs -106 544 -308 402
Exchange losses, net
Capital loss, net
-680 731 0
Shares -20 423 809 0
-44 770 873 -16 372 692
Note 9 Unrealised losses on investments
Depreciation of equity fund -11 434 399 0
-11 434 399 0
Note 10 Tax on profit for the year
Income tax and tax on interests -36 872 682 -15 183 476
Change in deferred tax 2 744 258 0
-34 128 424 -15 183 476
Note 11 Reinsurance accepted and ceded with Group company
Reinsurance accepted
Premium income 135 482 143 396
Interest on deposits 110 058 96 106
Interest on technical balances 805 -1 447
Claims incurred -57 753 -237 555
Cancellations and surrenders 0 -537
Change in allocation for outstanding claims -921 024 18 360
Commissions and profit shares -16 433 -15 532
Reinsurance ceded
-748 865 2 791
Premium income -347 244 341 -241 163 546
Interest on deposits -8 351 303 -8 758 608
Interest on technical balances -3 497 393 -2 458 180
Claims incurred 163 147 620 143 843 042
Change in allocation for outstanding claims 50 970 714 -6 255 491
Commissions and profit shares 153 269 325 109 501 365
8 294 622 -5 291 418
Change of deposits received -37 187 807 -10 897 613
SCOR – Annual Report 2008 | 19

| NOTES |
Note 12 Buildings and land
2008 2007
Acquisition value 2 316 728 2 316 728
Actual value 2 316 728 2 316 728
Tax value, building 1 382 000 1 382 000
Tax value, land 359 000 359 000
1 741 000 1 741 000
Note 13 Shares, Swedish listed
Acquisition value
HBF Mega Sverige Index; 135 309,1590 shares 22 514 876 20 929 825
XACT OMX S30; 0 shares 0 24 975 503
Actual value
22 514 876 45 905 328
HBF Mega Sverige Index; 135 309,1590 shares 11 080 467 18 210 111
XACT OMX S30; 0 shares 0 22 392 594
Bonds, Swedish listed
Accrued acquisition value
11 080 467 40 602 705
Swedish Government 187 833 320 478 141 830
Swedish housing finance institutions 255 823 570 105 414 199
Other Swedish issuers 175 101 166 320 265 350
Foreign Governments 178 584 243 151 813 726
Actual value
797 342 299 1 055 635 105
Swedish Government 204 515 950 501 172 837
Swedish housing finance institutions 259 870 679 112 610 408
Other Swedish issuers 176 134 879 293 110 957
Foreign Governments 183 734 094 150 829 321
824 255 602 1 057 723 523
Note 14 Deposits with ceding companies
Group company
Life insurance allocation 0 105 316
20 |
Allocation for outstanding claims
Other known claims 0 2 622 205
0 2 622 205
Group total 0 2 727 521
Other companies
Life insurance allocation 1 576 050 002 5 741 144
Allocation for outstanding claims
Known disability and waiver of premium claims 795 136 298 1 200 675 180
Other known claims 44 881 855 41 005 187
Unknown claims (IBNR) 540 403 225 584 154 837
1 380 421 378 1 825 835 204
Other total 2 956 471 380 1 831 576 348
Total 2 956 471 380 1 834 303 869
SCOR – Annual Report 2008

| NOTES |
Note 15 Reinsurers' share of technical reserves
Group company
2008 2007
Life insurance allocation 1 769 956 1 398 744
Allocation for outstanding claims
Known disability and waiver of premium claims 132 195 087 139 293 021
Other known claims 15 066 441 13 311 632
Unknown claims (IBNR) 186 178 648 128 775 780
333 440 176 281 380 433
Group total 335 210 132 282 779 177
Other companies
Life insurance allocation 1 451 399 0
Allocation for outstanding claims
Known disability and waiver of premium claims 499 514 179 25 031 482
Unknown claims (IBNR) 361 009 341 76 351 580
860 523 520 101 383 062
Other total 861 974 919 101 383 062
Total 1 197 185 051 384 162 239
Reinsurers' share of technical reserves, specification of changes
Life insurance allocation
Balance brought forward 1 398 744 1 204 616
Change of exchange rate -4 180 19 408
Change of the year 1 826 791 174 720
Balance carried forward 3 221 355 1 398 744
Allocation for outstanding claims, life insurance
Balance brought forward 382 763 495 284 260 827
Portfolio transfer 298 109 321 -164 765
Change of exchange rate 1 089 837 4 541 376
Change of the year 512 001 043 93 961 293
Balance carried forward 1 193 963 696 382 763 495
Total Balance carried forward 1 197 185 051 384 162 239
Note 16 Receivables concerning reinsurance
Group company 0 1 014 780
Other companies, ie not Group Companies 331 601 304 203 187 278
331 601 304 204 202 058
Note 17 Tangible assets
Acquisition value
Balance brought forward 5 481 590 5 010 460
Purchases of the year 0 1 366 429
Disposals of the year -334 909 -895 299
5 146 681 5 481 590
SCOR – Annual Report 2008 | 21

| NOTES |
Accumulated depreciations
2008 2007
Balance brought forward -3 583 266 -3 472 340
Sales of the year 262 345 709 425
Depreciations of the year -627 585 -820 351
-3 948 506 -3 583 266
Total book value 1 198 175 1 898 324
Note 18 Cash and bank balances
Cash in hand 18 546 22 866
Banks 449 367 373 184 298 060
449 385 919 184 320 926
Note 19 Prepaid expenses and accrued income
Accrued interest income 15 415 877 15 451 758
Other prepaid expenses and accrued income 707 469 652 003
16 123 346 16 103 761
Note 20 Fund for fair value
Shares 0 -5 302 623
Bonds and other interest bearing securities 26 913 303 2 088 418
Deduction of deferred tax
26 913 303 -3 214 205
Shares 0 -1 325 655
Bonds and other interest bearing securities -6 483 116 522 104
Balance carried forward
-6 483 116 -803 551
Shares 0 -3 976 968
Bonds and other interest bearing securities 20 430 187 1 566 314
20 430 187 -2 410 654
Note 21 Allocation of technical reserves
Group Company
Life insurance allocation 0 105 316
22 |
Allocation for outstanding claims
Other known claims 0 3 207 207
Unknown claims (IBNR) 0 219 045
0 3 426 252
Group total 0 3 531 568
Other companies
Life insurance allocation
Guaranteed bonus 122 317 179 71 789 437
Conditional bonus 0 0
Other allocation 1 609 322 972 41 896 805
Allocation for outstanding claims
1 731 640 151 113 686 242
Known disability and waiver of premium claims 916 745 731 1 265 676 940
Other known claims 136 288 383 115 617 021
Unknown claims (IBNR) 1 059 937 027 1 082 553 404
2 112 971 141 2 463 847 365
Other total 3 844 611 292 2 577 533 607
Total 3 844 611 292 2 581 065 175
SCOR – Annual Report 2008

| NOTES |
2008 2007
Allocation of technical reserves, specification of changes
Life insurance allocation
Balance brought forward 113 791 558 261 106 408
Portfolio transfer -3 102 292 0
Change of exchange rate 495 243 -117 489
Change of the year 1 620 455 642 -147 197 361
Balance carried forward 1 731 640 151 113 791 558
Allocation for outstanding claims, life insurance
Balance brought forward 2 467 273 617 2 049 231 491
Portfolio transfer -408 661 364 -607 453
Change of exchange rate 4 393 208 21 931 028
Change of the year 49 965 680 396 718 551
Balance carried forward 2 112 971 141 2 467 273 617
Total balance carried forward 3 844 611 292 2 581 065 175
Note 22 Tax provision
Deferred tax on unrealised gains 3 738 858 0
Income tax liability, RSV 21 042 890 607 081
24 781 748 607 081
Note 23 Deposits from reinsurers
Group company
Life insurance allocation 1 769 956 1 398 744
Allocation for outstanding claims, life insurance
Known disability and waiver of premium claims 107 288 632 128 699 479
Other known claims 14 657 580 13 311 632
Unknown claims (IBNR) 62 359 818 79 853 938
184 306 030 221 865 049
Group total
Other companies
186 075 986 223 263 793
Life insurance allocation 1 451 399 0
Allocation for outstanding claims, life insurance
Known disability and waiver of premium claims 499 199 736 24 649 947
Unknown claims (IBNR) 352 202 587 49 762 095
851 402 323 74 412 042
Other total 852 853 722 74 412 042
Total 1 038 929 708 297 675 835
Note 24 Liabilities concerning reinsurance
Group company 79 356 092 12 424 825
Other companies 31 417 615 198 961 614
110 773 707 211 386 439
Note 25 Other liabilities
Other liabilities 79 408 220 1 602 990
SCOR – Annual Report 2008 | 23

| NOTES |
Note 26 Accrued expenses and deferred income
2008 2007
Social security contributions 817 847 136 658
Other accrued expenses and deferred income 8 669 376 6 728 995
9 487 223 6 865 653
Note 27 Pledges and equivalent collateral to secure own
liabilities and commitments reported as provisions
Assets charged with special priority right
Shares 10 712 596 40 602 705
Bonds 582 189 097 607 354 208
Buildings and land 2 316 728 2 316 728
Bank balances 570 070 746 455 538 522
Receivables from reinsurers 0 0
Special priority right
1 165 289 167 1 105 812 163
The policyholders' priority right, unconditional 729 884 564 660 274 902
Insurance policy holders have priority to the stated amount
in the above registered assets in the event that the company
declares bankruptcy or seeks foreclosure.
Note 28 Staff, salaries and consultant fees
Salaries, other emoluments and payroll overheads (SEK 000)
24 |
The Company's pension commitments have been covered
by payment to insurance companies.
2008 Salary Bonus
SCOR
shares
Other
benefits
The Managing Director is entitled to have a period of notice representing
6 months plus a redundency payment of 18 monthly salaries.
Pension costs
(incl. payroll tax)
Payroll
overheads
MD 1 624 226 1 277 100 283 835 4 345
Management
Group (3 p)
2 174 529 1 286 176 653 1 329 6 147
Other employees 8 079 1 105 213 286 1 844 2 911 14 438
11 877 1 860 2 776 562 2 780 5 075 24 930
2007 Salary Bonus
SCOR
shares
Other
benefits
Pension costs
(incl. payroll tax)
Payroll
overheads
MD 1 375 150 0 96 242 526 2 389
Management
Group (3 p)
2 608 210 0 239 653 797 4 506
Other employees 7 366 502 0 279 1 587 2 645 12 379
SCOR – Annual Report 2008
11 349 862 0 614 2 481 3 968 19 274
Total
Total

No remuneration is paid to the Board.
In accordance with an agreement, special bonus rules apply for the Managing
Director with a limit of 40% of the yearly salary. For the Mangement Group
corresponding limit is 30% and for other employees 4% of the yearly salary.
The size of the bonus, which is decided in conjunction with the Annual General
Meeting, depends on how well financial and other predetermined goals have
been achieved.
With the change of ownership all employees have got an offer to paticipate in
SCOR's incentive program by receiving shares and options in the SCOR concern.
Receiving shares is conditional to continuous employment.
There are two existing share award plans. During 2008 the employees have
received SCOR shares for the first plan. The second plan is valid until May 2011
and will be settled with SCOR shares.
The accounted expense is based on the actual value which corresponds to the
market value of the shares.
Average number of employees
2008 2007
Office staff
Of which
22 21
- men 10 9
- women 12 12
Absence due to sickness
Total absence as share of regular working hours 1,2% 1,3%
Total long term sickness (continuous more than 60 days) 0,0% 0,0%
as share of regular working hours
Auditor fees
SET Revisionsbyrå AB 924 350 691 500
Consultant fees 129 400 0
Note 29 Risks and risk management
Risk management goals
Sweden Re is an independent life insurance company and the fundamental goal
for risk management is to be able to run a sound and profitable operation over the
long term while being able to ensure solvency requirements accounting to the regulations
of the Swedish Financial Supervisory Authority FFFS 2005:21 and
Insurance Business Act (7:23).
Risk management controlling
In Sweden Re it is
- the Board that makes decisions on all assumption of risk. The Board sets
1. Pricing Guidelines for the company, including rules for retention, types of business
to be conducted and the framework for their pricing.
2. Guidelines and documentation for technical insurance calculations. These
guidelines are submitted to the Swedish Financial Supervisory Authority.
3. Investment strategy and investment guidelines.
| NOTES |
SCOR – Annual Report 2008 | 25

| NOTES |
26 |
-the Chief Executive Officer (CEO) who appoints the Company’s operating management.
These managers in turn are responsible for internal control. The Group
also has specially appointed internal auditors assigned to assess and increase efficiency
in risk management and management processes.
Risk management and risk exposure
Risk management is intended to identify, quantify and manage the relevant risks that arise.
Risks are considered the random variations in various risk factors that can be quantified.
Within certain boundaries, risks can be handled through diversification or matching, for
example.
Changes that cannot be quantified are handled first and foremost through proper
internal control.
Risks are divided into three risk categories: insurance risks, financial risks and operational
risks.
Insurance risks Financial risks Operational risks
Interest rate risk Market risks External events
Inflation risk -interest rate and inflation risk Non-functional processes
-price risk Human error
-currency risk Personnel turnover
Reserve risk
Premium risk Credit risk
Liquidity risk
Insurance risks are controlled by the Chief Actuary. Financial risks are controlled by
the CFO (Chief Financial Officer). Operational risks are handled by those in operational
management under the control of the CEO.
Insurance risks
Interest rate and inflation risk
Matchable insurance risks are the risks that can be matched with financial assets.
Such risks are interest rate and inflation risks. Technical provisions are discounted
depending on assumptions of future risk and inflation. These assumptions thereby
constitute an insurance risk.
The majority (77%) of the technical provisions are matched against deposits with
the ceding company with fixed agreement on yields and an inflation guarantee that
corresponds to current assumptions for calculation of technical liabilities. This
means that the interest rate and inflation risk for this part of the technical liabilities
has been eliminated for normal fluctuations.
The remaining part of the technical liabilities, 23%, consists of:
1. Own allocation of reserves (20%)
2. Unconditional bonus reserve (3%)
The first part is matched against an interest-bearing portfolio of Swedish bonds
and foreign government bonds. Investment in foreign currencies should correspond
SCOR – Annual Report 2008

to associated foreign obligations. The second part is placed according to contracts
meaning that the customers hold the total financial risk.
Since there is currently significant room to increase the discount rate according to
the Swedish Financial Supervisory Authority’s rules on maximum interest rate, the
interest rate and inflation risk is actually very limited even for this part of the
matched liability.
Reserve risk
Reserve risk is the anticipated change in technical provisions resulting from
stochastic fluctuations of assumption. Assumptions here include
- Recovery
- Death
- Change in compensation level
- Evaluation of unknown claims
Fluctuations in recovery, death and change of compensation level are limited. The
company’s claims portfolio, which includes claims portfolios throughout Northern
Europe therefore, has a very large risk diversification element. The means that there
is a large element of risk balancing and as a result, isolated variations within one
given occupation do not impart a significant effect on total cost. Yearly follow-up is
conducted of the most significant parameter in this context- recovery. Up to this
point the results have been that there is a certain margin in the assumption compared
with the actual outcome, which means a certain annual release of reserves.
Focus on this risk management is therefore placed on forecasting future trends
that may affect the abovementioned parameters.
Another risk is the evaluation of unknown claims. Various assessments are made
for different customers (companies) depending on observed and expected lag in
reporting of claims. Provisions for unknown claims are followed up annually for the
different insurance companies included. Corrections to the reserves are made
according to the outcome of the analyses.
For arrangements entailing large assumption of reserves, comprehensive followups
are made on a quarterly basis of all parameters included in the reserve calculations
for the purpose of being able to make the necessary corrections of
assumptions in the reserve calculations early on.
Below follows a sensitivity analysis of important parameters in the reserve calculations.
Change of assumptions only has a direct effect on the reserves for known
disability claims. IBNR reserves are not assumed to be affected.
Change Change of technical liability
million SEK %
Increase of actual interest
assumption by 1 percentage unit -46 -5%
10% increase in recovery -73 -8%
10% increase in death -9 -1%
| NOTES |
SCOR – Annual Report 2008 | 27

| NOTES |
28 |
An equivalent reduction of the parameters causes an equally large inverse change.
To illustrate the concentration, the table below shows the division of technical liabilities
over customer companies according to extent of claims. The technical allocation
for the customer company No. 1 is a premium reserve regarding life insurance
which not is affected of stochastic fluctuations in assumptions and which reserve
thereby can be ignored in this context.
Customer Technical liabilities, Technical liabilities,
company No. million SEK %
1 1 570 41%
2 716 19%
3 325 8%
4 290 8%
5 243 6%
6 163 4%
Other 538 14%
TOTAL 3 845 100%
Premium risk
Premium risk here refers to the risk that means that claims cost is higher than
observed when setting the premiums. This is perhaps the single greatest risk.
In order to accept insurance risk for reinsurance, it is necessary according to our
contract with the customer for the risk to have been essentially evaluated according
to the medical insurance guidelines that we have at our disposal (GEM) or
according to some other equivalent guidelines. Reinsurances (risks) that we accept
are thereby evaluated according to guidelines that we have approved. During 2008
a substantial portfolio premium was received as a single payment regarding an
American life insurance portfolio. The analysis of this business shows a low and
stable claims ratio. This business is continuously analysed.
A comprehensive analysis is conducted every year on the customer level with
regard to frequency of claims and results for the purpose of correcting the premium
level when this is deemed necessary. Since very in-depth analyses precede the
setting of premiums in the contract with the customer, it is meanwhile extremely
unusual for a correction in premiums to be deemed necessary on the basis of
unfavourable outcome of claims for a company.
Through a comprehensive reinsurance programme, the company’s risks are significantly
limited. The company’s liability for individual risk is limited to SEK 2 million
through reinsurance.
Distribution of premium risks is presented in the table below. When analysing the
distribution of the premium risks you can ignore customer company No 1 where
the premiums mainly refer to the above mentioned premium reserve.
SCOR – Annual Report 2008

Customer Premiums, Premiums,
company No. million SEK %
1 1 793 53%
2 326 10%
3 292 9%
4 190 6%
5 169 5%
6 118 3%
7 92 3%
Other 376 11%
TOTAL 3 356 100%
Financial risks
Market risks
Market risks apply for investment assets that have not been matched against technical
liabilities and which therefore correspond to equity. These investment assets
include the entire shares portfolio and approximately 50% of the bonds portfolio
and that part of the shares portfolio not placed on customers account as unconditional
bonus reserve.
Market risks are the risk for market value to be changed on the basis of some single
factor such as, market interest rates, inflation and exchange rates or changed because
of something that cannot be imputed to any particular factor, so-called price risk.
For the company’s part, interest rate and inflation risks include the bond portfolio
and price risks the stock portfolio.
In order to reduce price risk on shares, this portfolio is covered by what is known
as structured shares administration, with limits on maximum losses. For our part
this means that a potential loss in shares will not exceed 10% of the portfolio’s
market value. At year-end no part of this portfolio was placed in shares.
The table below shows a sensitivity analysis of market risks regarding equity and bonds
Change Investment assets, Equity,
1% interest rate increase,
million SEK million SEK
bonds -18.2 -18.2
In terms of currency risk, currency exposure takes place in conjunction with reinsurance
accepted in NOK, DKK and EUR. The currency risk is limited or eliminated
by having assets approximately equalling the associated technical provisions
deposited with the ceding company or placed in currency accounts or in government
bonds in equivalent currencies.
Below follows a table of the company’s assets and liabilities in foreign currencies at
year’s end. Amounts are stated in millions SEK. “Net” with respect to the technical
provisions and deposits refer to business accepted with deductions for business ceded.
| NOTES |
SCOR – Annual Report 2008 | 29

| NOTES |
30 |
Currency Assets Liabilities
Bonds Bank Deposits Total Technical
Net provisions, Net
NOK 131.1 48.4 40.2 219.7 154.0
DKK 41.2 41.8 -23.9 59.1 15.3
EUR 11.5 0.4 0.1 12.0 23.2
USD 0.0 1.8 1 569.5 1 571.3 1 569.6
The most important correction of this matching is made after every annual account.
This change and monthly follow-up of assets and liabilities in foreign currencies
and associated adjustment of matching keep this not insignificant risk at a satisfactory
level. The total currency exchange rate profits and losses over the last few
years have been in the range of SEK 1 million.
Credit risks
Credit risk in terms of financial investment assets refers to the risk of a
counterparty not fulfilling their payment obligations towards the company.
Shares are placed in equity funds with Svenska Handelsbanken.
Share portfolio million SEK
HBF Mega Sverige Index; 135 309 shares 11.1
S&P rating of bonds stated below
Bond portfolio million SEK
AAA 651.1
AA 2.8
A 6.4
Not rated 164.0
TOTAL 824.3
Concerning deposits in companies that have ceded reinsurance, these claims
are balanced against a matching liability under technical allocations. Based on
the Bankruptcy Act’s offset rules, no credit risk should arise for the majority of
deposits, referring to known claims or premium reserve.
Regarding the reserves for unknown claims, (IBNR reserves), the same probably
applies but the interpretation of the Bankruptcy Act is not entirely clear on this point.
Claims on the reinsurer – primarily the parent company – are balanced in a corresponding
way, for their part of technical provisions of an associated deposit debt
with Sweden Re.
The table below illustrates how the largest deposits are distributed over various
customer companies.
SCOR – Annual Report 2008

Customer Deposits in customer Deposits in customer
company No. company, million SEK company, %
1 1 569 53%
2 624 21%
3 243 8%
4 206 7%
5 52 2%
6 35 1%
Other 227 8%
TOTAL 2 956 100%
Liquidity risk
Liquidity risk is defined as costs incurred through shortage of liquid funds. The
company’s financial assets have a high degree of liquidity and are either placed in
a bank account or available on the general securities market. This ensures that the
company has a sufficient amount of liquid funds.
Operational risks
External events
This pertains to the risk that the company will be affected by losses as a result of
catastrophe, accidents or criminal acts. These types of risk are managed primarily
through having various types of property protection, such as alarms and special
solutions regarding IT security.
Non-functional processes and similar
This pertains to the risk that the company will be affected by losses as a result of
outages and interruptions in daily processes and working methods. This risk is not
considered to be especially great since focus is always placed on effective and
appropriate processes intended to deliver proper service to our customers. Control
and mapping of processes is significantly easier in a company of our size than in
other larger life insurance companies. During the year internal auditors in the
Group have audited the company’s working procedures. The audit didn’t cause any
serious remarks. However, the audit led to some further improvements of the companies
working procedures.
Human error
This pertains to losses incurred as a result of an employee inadvertently committing
an error or deviating from rules and routines. These risks are managed primarily
through training of personnel and establishment of clear rules throughout the
company. This risk is not deemed to be especially significant, either, in a company
of our size that places high demands on quality assurance.
Personnel turnover
Risks pertaining to personnel turnover are significant in a company of our size with
key persons in many positions without the possibility of having a complete backup
available and ready for each and every position. This is a common dilemma of the
smaller company and is managed by working to ensure a pleasant working environment,
market-standard salaries and good opportunities for development. Low
rates of absence due to sickness and personnel turnover in the company indicates
that we have successfully managed these risks up to this point.
| NOTES |
SCOR – Annual Report 2008 | 31

Five-year overview
The five-year overview has been recalculated for all
years in accordance with the accounting principles
from 2007.
Amounts in SEK 000 2008 2007 2006 2005 2004
Result
Life insurance operations
Premium income for own account 1 554 470 1 181 068 876 414 702 077 675 384
Return on capital, net 70 008 76 580 55 805 91 807 40 113
Claims incurred -1 106 970 -551 221 -461 046 -382 298 -444 507
Bonuses and rebates -731 580 -701 167 -465 140 -421 411 -270 586
Technical result 164 579 112 430 96 663 94 067 79 321
Result for the year 130 450 97 247 83 425 87 362 64 701
Financial position
Investments, actual value 3 794 124 2 934 947 2 418 497 2 093 741 2 073 004
Allocation of technical
reserves for own account 2 647 426 2 196 903 2 024 872 1 899 092 1 831 865
Consolidation funds
32 |
Shareholders' equity 685 410 629 343 489 131 351 363 285 144
Surplus/Loss value of real estate 0 0 0 0 608
Reversed deferred tax 0 0 1 853 1 821 340
685 410 629 343 490 984 353 184 286 092
Capital Base (after dividends) 685 410 529 343 439 131 268 363 258 144
Required solvency margin 527 248 412 075 256 891 221 836 217 650
Solvency margin % (capital base /
required solvency margin) 130% 128% 171% 121% 119%
Key figures
Result, life insurance operations
Operating costs* SEK 000 33 926 27 804 27 074 23 424 22 033
as percentage of premium income 1,0% 1,8% 2,3% 2,3% 2,2%
as percentage of the avarage of assets
in the balance sheet, actual value 0,6% 0,8% 0,9% 0,9% 0,9%
* Refers to operating costs excl. financial costs, commissions in reinsurance
accepted and commissions and profit shares in reinsurance ceded.
SCOR – Annual Report 2008

Total yield
The total yield below includes for each year the value of unrealised gains and
losses.
a) Assets, own management
The result of own managed assets, i.e. assets managed according to investment
guidelines which are described in the management report.
| FIVE-YEAR OVERVIEW |
Assets, own management,
at year-end, SEK 000 1 302 455 1 300 416 979 968 730 513 413 678
Direct yield % 3,2% 3,1% 1,7% 2,3% 1,6%
Total yield % 4,6% 2,8% 3,0% 9,6% 3,5%
The interest on deposits and technical balances is excluded. The yield respectively
is thereafter put in relation to the average amount at the beginning and
end of the year of the sum of investments (excl deposits) and cash and bank
balances and the net amount of interest bearing receivables and liabilities during
the year.
b) Total of all managed assets
The total result from all managed assets plus all net deposits with cedents.
Managed assets are placed and handled according to corporate asset management
guidelines whereas deposits and return from deposits are regulated in the
reinsurance contracts with the cedents.
Total yield at year-end, SEK 000 3 219 996 2 837 043 2 515 273 2 118 128 1 906 398
Total yield % 3,5% 3,8% 3,6% 5,7% 3,7%
Financial position
2008 2007 2006 2005 2004
2008 2007 2006 2005 2004
Consolidation funds as percentage
of premiums for own account 44% 53% 56% 50% 42%
SCOR – Annual Report 2008 | 33