4.4 Legal risk - Scor

20.1.6.25 NOTE 25 - COMMITMENTS RECEIVED AND GRANTED
The general reinsurance regulatory environment requires that underwriting liabilities be collateralized by pledged assets,
cash deposits or letters of credit.
Reinsurance commitments are recognized as liabilities within underwriting reserves and are offset by assets which are
maintained for the settlement of claims. When the liabilities are not offset by cash deposited with the ceding companies, the
underwriting reserves may be covered by pledged securities or letters of credit granted to ceding companies which are
disclosed within off-balance sheet commitments.
In EUR million 2012 2011
Commitments received
Unused lines of credit (1) 150 150
Letters of credit – retrocessionaires (2) 160 178
Endorsements, sureties - 8
Other commitments received - 8
TOTAL COMMITMENTS RECEIVED 310 344
Commitments given
Letters of credit (3) 1,760 1,279
Pledged securities 4,286 3,965
Endorsements, surety 17 16
Other commitments given 25 53
TOTAL COMMITMENTS GIVEN 6,088 5,313
Collateral received from retrocessionaires
TOTAL COLLATERAL RECEIVED FROM RETROCESSIONAIRES (4) 1,269 1,007
(1) Unused lines of credit represent those facilities available to the Group to enable it to meet its liquidity requirements. These include overdrafts and lines of credit, but
exclude letter of credit facilities. The Group has total letter of credit facilities available to it of USD 1,146 million, composed of several syndicated and bilateral lines
with international banks.
(2) Includes letters of credits received from external retrocessionaires.
(3) Represents the total amount of letter of credits granted by the Group in favor of its cedants, including those issued by banks on behalf of the Group.
(4) This is the total carrying amount of financial assets pledged as collateral for liabilities or contingent liabilities, including Securities pledged, deposits received and
letters of credit from retrocessionaires detailed in Note 16.
Assets including investment securities, real estate and shares in associates for a total amount of EUR 4,286 million (2011:
EUR 3,965 million) have been pledged to financial institutions, in order to guarantee the letters of credit granted to SCOR
cedants.
Minimum payments under operating lease commitments, estimated minimum rental income amounts received by SCOR as
part of its real estate investment activities and commitments to purchase properties are included within Note 5 – Tangible
assets and Note 6 Insurance business investments.
Parental guarantees provided by SCOR SE to a number of operating subsidiaries have been presented within Note 24 –
Related party transactions.
Minimum net worth under stand-by letter of credit facilities
In accordance with the terms of its stand by letter of credit facilities, the Group must meet certain minimum requirements
relating to net worth. The Group currently meets all such requirements.
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