4.4 Legal risk - Scor

The additions to tangible assets in 2011 were mainly related to the following acquisitions:
On 1 July 2011, SCOR Group finalized the purchase of Kléber SAS, whose primary asset is an office building located in
Paris. The SCOR head office was moved to the Kléber office building at the beginning of 2012. This transaction resulted in
an increase of the Group’s fixed assets of EUR 344 million, and financial debts of EUR 170 million in 2011.
On 6 July 2011, SCOR Holding Switzerland AG, a wholly owned subsidiary of the Group, acquired PPG Lime Street Ltd, a
company whose primary asset is a building located in London. This transaction resulted in an increase of the Group’s fixed
assets of EUR 53 million (GBP 47 million) in 2011.
EUR 26 million were capitalized as asset in progress in relation to a building in Cologne. See below “Property related
commitments received and granted”.
The change in scope of consolidation in 2011, presented in the table above, related to the acquisition of a company whose
main asset is a share in an aircraft of EUR 18 million.
The additions to tangible assets in 2012 are mainly related to the EUR 31 million acquisition in relation to a building in
Cologne (please see note property related commitments and guarantees below).
PROPERTY RELATED COMMITMENTS RECEIVED AND GRANTED
Operating lease contracts
Payments for operating leases concern in particular rents for offices and business premises of the Group. They include
extension options as well as restrictions regarding the agreement of subleases. In the period under review, minimum lease
payments of EUR 29 million (2011: EUR 26 million; 2010: EUR 27 million) were recognised as an expense, net of sublease
payments of EUR (6) million (2011: EUR (4) million; 2010: EUR (4) million). The largest lease contract is for SCOR Zurich
office where during 2011 the lease term has been extended until December 2016. The minimum payments are as follows (1) :
2012 2011
In EUR million Minimum payments Minimum payments
Less than one year 14 22
From one to five years 48 33
More than five years 30 -
TOTAL MINIMUM PAYMENTS 92 55
(1) 2011 minimum lease payments comprised the largest lease contracts from SCOR Zurich and SCOR Paris, whereas 2012 minimum lease payments comprise all
SCOR entities. The increase in 2012 is mainly due to two newly signed lease contracts in Charlotte and Texas.
Property related commitments and guarantees
In December 2003, the Group sold its headquarters in Paris La Défense but remained as tenant of this building until
December 2012, except for one floor which is still rented. The Group has returned it on 28 December 2012, date of its lease
termination, and all the related guarantees have been cancelled.
On 29 June 2012, SCOR SE, German branch became owner of a new 6,500 square meters building at Goebenstrasse 1 in
Cologne which was under construction since 2009. The Cologne HUB head office has moved to Goebenstrasse 1 beginning
of March 2012. This resulted in an additional increase of the Group’s fixed assets of EUR 11 million in 2012. In 2011
EUR 26 million of the total purchase price of EUR 37 million including fixtures and fittings were already capitalized as asset
in progress. In January 2012, the Group partially funded the cost of the purchase with a financial debt of EUR 18 million.
225