4.4 Legal risk - Scor

The performance conditions will be deemed satisfied if, in addition to the mandatory condition (5) below, at least three out of
the four other conditions listed below are met:
(1) SCOR financial strength by S&P rating must be maintained (minimum) “A” in 2012 and 2013;
(2) SCOR Global P&C’s combined ratio must be less than or equal to 102% on average in 2012 and 2013;
(3) SCOR Global Life’s technical margin must be higher than or equal to 3% on average in 2012 and 2013;
(4) The SCOR group’s ROE for the financial years ending 31 December 2012 and 31 December 2013 must be higher than
300 points above the risk-free rate on average.
(5) Absolute appliance of Group’s ethical principles as described in the Code of Conduct of SCOR Group. These principles,
as settlements to protect the interests of customers, are the pillars of sustainable development of SCOR and therefore its
performance.
The terms and conditions of the performance share plan of 26 July 2012 (LTIP), provide that after the vesting period of
6 years for beneficiaries tax resident in France (and an obligation to retain shares for a period of 2 years after the end of the
vesting period) and of 8 years for beneficiaries not tax resident in France, the final acquisition of these shares will be subject
to the condition of presence of 6 years for each beneficiary and to the satisfaction of performance conditions.
All the shares made under the LTIP scheme are not only subject to the satisfaction of the same performance conditions as
those set for the 19 March 2012 Plan (for the description of the performance conditions, refer above) and also to a market
condition based on the comparison of the Total Shareholder Return (TSR) of SCOR with the ones of its main competitors
over 2 periods of 3 and 6 years (respectively between 2012 and 2015 and between 2015 and 2018).
The collective plan of 26 July 2012 (except LTIP) is neither subject to performance conditions nor subject to presence
conditions. The final acquisition of these shares is effective, with no condition, within 2 years for beneficiaries tax resident in
France (and an obligation to retain shares for a period of 2 years after the end of the vesting period) and within 4 years for
beneficiaries not tax resident in France.
The fair value of the free shares corresponds to the market value adjusted taking into account the dividends and nontransferability
costs, estimated using a forward acquisition/disposal method. The following table lists the characteristics used
at the end of 2012, 2011 and 2010:
30 October
2012 Plan
26 July
2012
Plan
26 July
2012 Plan
(LTIP)
3 May 2012
Plan
19 March
2012 Plan
12
December
2011 Plan
Fair value at
grant date
(EUR)
Vesting period
French
residents
Non-French
residents
French
residents
Non-French
residents
16.96 16.07 7.49 16.51 17.06 14.56
15.04 - 6.09 - 15.13 12.94
2 years 2 years 6 years 2 years 2 years 2 years
4 years - 8 years - 4 years 4 years
Dividend 5.58% 5.58% 5.58% 5.58% 5.58% 5.44%
Risk-free
interest rate
Fair value at
grant date
(EUR)
Vesting period
French
residents
Non-French
residents
French
residents
Non-French
residents
0.78% 0.804% 1.51% 1.428% 1.613% 2.1%
1 September
2011 Plan -
LTIP
1 September
2011 Plan
7 March
2011 Plan
2 March
2010 Plan
12 October
2010 Plan
17
December
2010 Plan
6.64 13.93 17.63 15.3 15 15.9
5.36 12.39 15.73 13.6 13.4 -
6 years 2 years 2 years 2 years 2 years 2 years
8 years 4 years 4 years 4 years 4 years -
Dividend 5.44% 5.44% 5.28% 5.28% 5.28% 5.28%
Risk-free
interest rate
2.24% 1.74% 2.60% 2% 1.50% 2.10%
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