4.4 Legal risk - Scor

OTHER
Forward currency contracts
SCOR purchases and sales forward currency contracts to reduce its overall exposure to balances held in currencies other
than the functional currencies of its subsidiaries. The contracts are recorded at their net fair value from valuations provided
by banking counterparties using market inputs. The outstanding contracts at 31 December 2012 and 2011, converted into
EUR at the closing rates, were as follows:
Forward sales
Forward purchases
In EUR million Notional Fair value Notional Fair value
31 December 2012 610 6 647 14
31 December 2011 561 (21) 1,428 5
Included in the forward sales contracts at 31 December 2011 was a forward sale contract which has been designated as a
hedge of a net investment (see Note 13 – Information on share capital, capital management, regulatory framework and
shareholders’ equity).
Contingent capital instrument
See note 13 Information on share capital, capital management, regulatory framework and shareholders’ equity, for the
details on the issuance of warrants to UBS in the context of the contingent capital arrangement program.
Valuation and presentation
Amounts are recorded in the balance sheet representing the instrument asset recognized at fair value through P&L and
other liabilities representing the value interest payments. In the absence of observable market inputs and parameters to
reliably determine a fair value for this derivative instrument, the best measure of fair value is the expected cost of the
instrument, corresponding to the total annual fees payable under the arrangement net of the warrants’ subscription amount
received, amortized over the life of the instrument. These assets are disclosed as level 3 investments within insurance
business investments (see Note 6 – Insurance business investments).
The changes in fair value through income as presented above are recognized in P&L. Following the activation of the
contingent capital in July 2011, the derivative instrument fair value and the total fees payable were reduced, for the same
amount.
20.1.6.9 NOTE 9 - INVESTMENTS IN ASSOCIATES
The Group holds investments in associated companies. The following table provides a summary of the financial information
for these companies.
Total
liabilities
excluding
equity
Net
income at
100%
Net book
value (in
SCOR)
In EUR million Control % Country
Total
assets
Turnover
ASEFA 40% Spain 934 839 97 3 38
MutRé 33% France 1,124 1,008 366 3 40
SCOR CHANNEL 100% Guernsey 11 9 11 - 2
COGEDIM Office
Partner (2) 44% France 69 69 24 - -
SCOR Gestion
financière 100% France 4 - - - 4
Total 2012 (1) 84
ASEFA 40% Spain 1,039 950 122 4 38
MutRé 33% France 1,048 930 305 - 39
SCOR CHANNEL 100% Guernsey 13 11 17 - 2
COGEDIM Office
Partner (2) 44% France 75 75 - - -
SCOR Gestion
financière 100% France 4 - - - 4
Total 2011 (1) 83
ASEFA 40% Spain 1,056 971 107 5 34
MutRé 33% France 1,043 927 295 5 38
SCOR CHANNEL 100% Guernsey 14 12 16 - 2
SCOR Gestion
financière 100% France 4 - - - 4
Total 2010 (1) 78
(1) Based on 2012, 2011 and 2010 provisional financial information, respectively
(2) Investment in COGEDIM Office Partner additionally includes a loan to the entity, presented in loans and receivable for respectively EUR 13 million as at
31 December 2012 and EUR 11 million as at 31 December 2011
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