4.4 Legal risk - Scor

Assets and liabilities sold were as follows as at closing date:
In EUR million 2011
Assets
Investments 939
Other assets 265
Cash and cash equivalents 32
TOTAL ASSETS 1,236
Liabilities
Contract liabilities 1,153
Other liabilities 27
TOTAL LIABILITIES 1,180
Consideration received 41
Loss on sale, before tax 15
The cumulative income or expenses recognized in other comprehensive income related to Investors Insurance Corporation
were as follows:
In EUR million 2011
Currency retranslations, net of taxes (1)
Fair value adjustments on available-for-sale financial instruments, net of taxes (1)
CUMULATIVE INCOME OR EXPENSES RECOGNIZED IN OTHER COMPREHENSIVE INCOME (2)
The sale agreement included certain contingencies which were settled during 2012 and resulted in an increase in the loss
from EUR 12 million to EUR 15 million, net of tax.
ACQUISITION OF XL LIFE AMERICA’S BUSINESS (“XLREA”)
On 4 December 2009, SCOR acquired 100% of the capital and voting rights of XL Life America Inc. from XL Capital Ltd and
entered into a retrocession contract to assume reserves related to this business. The business acquired showed strong
compatibility with SCOR’s Life strategy that is rooted in focusing on traditional protection business that is not correlated with
economic risks. The acquisition helped SCOR Global Life strengthen its services in the mortality-protection field and
improve SCOR’s market position in the U.S.
Determination of purchase price
The total consideration for the transaction of EUR 31 million was settled in cash and was entirely self-financed.
Purchase price allocation
As from the acquisition date of 4 December 2009, XL Life America Inc. was fully consolidated by SCOR. This resulted in
recognition of VOBA of EUR 20 million and a gain from bargain purchase of EUR 14 million in 2009.
In accordance with IFRS 3, the accounting of a business combination can be reviewed within twelve months from the
acquisition date. On 4 December 2010, the initial accounting was finalized with no net change in fair value of net assets
acquired. These changes reflect the availability and use of more up to date information on which to base the final acquisition
accounting and were recorded as follows:
221