4.4 Legal risk - Scor

(l)
Aging of financial assets
The following table provides an overall analysis of the aging of financial assets as at 31 December 2012:
In EUR million
Current
1-12
months
12-24
months
24-36
months
> 36
months Total
Available-for-sale investments 10,667 - - - - 10,667
Fair value through income 216 - - - - 216
Derivative instruments 112 - - - - 112
Loans and receivables 9,535 - - - 9,535
Reinsurance assets 1,322 - - - - 1,322
Insurance receivables 3,850 335 17 32 47 4,281
Taxes receivable 92 - - - - 92
Other accounts receivable 251 - - - - 251
Cash and cash equivalents 1,466 - - - - 1,466
TOTAL 27,511 335 17 32 47 27,942
The following table provides an overall analysis of the aging of financial assets as at 31 December 2011:
In EUR million
Current
1-12
months
12-24
months
24-36
months
> 36
months
Total
Available-for-sale investments 9,492 - - - - 9,492
Fair value through income 127 - - - - 127
Derivative instruments 158 - - - - 158
Loans and receivables 9,872 - - - - 9,872
Reinsurance assets 1,251 - - - - 1,251
Insurance receivables 3,886 253 62 17 41 4,259
Taxes receivable 47 - - - - 47
Other accounts receivable 391 - - - - 391
Cash and cash equivalents 1,281 - - - - 1,281
TOTAL 26,505 253 62 17 41 26,878
Financial assets have been aged within the above aging analysis according to their original due date. The due date for each
of these instruments may vary dependent on the nature of the asset. Reinsurance assets and insurance receivables
business credit terms are typically based on normal terms of trade, as specified within contracts. Insurance receivables
include estimates, which are presented as current. The available-for-sale investments and fair value through income
categories presented above include fixed income securities and equity securities. For fixed income securities, amounts are
only presented as non-current if the security has not been redeemed on the date of maturity and therefore the amount
receivable is past due. For equity securities, due to the absence of a contractual date of redemption, these instruments are
presented as current. Other assets presented in the above aging analysis, including derivative instruments, loans and
receivables, cash and cash equivalents and other accounts receivable, are presented in a similar manner as those
instruments described above, dependent on the existence of a redemption date.
Impairment information relating to financial assets is included in Note 6 - Investments, Note 7 - Loans and receivables, and
Note 10 - Accounts receivables and debts with cedants and retrocessionaires and Note 20 - Investment income.
LIQUIDITY RISK
SCOR needs liquidity to pay its operating expenses, interest on its debt and dividends on its capital stock, and replace
certain maturing liabilities. Without sufficient liquidity, the Group may be forced to curtail its operations, and business will
suffer. The principal internal sources of the Group’s liquidity are insurance premiums, cash flow from its investment portfolio
and other assets, consisting mainly of cash or assets that are readily convertible into cash.
Liquidity risk is increased in situations of market disruption as SCOR may need to sell a significant portion of its assets
quickly and at unfavorable terms. Additional information on the Group’s liquid assets is included in Note 6 – Insurance
Business Investments.
Some facilities SCOR uses to grant letters of credit to cedants require a 100% collateral in case of non-compliance with
financial covenants or in case of a decrease in the Group’s financial strength rating. Significant changes in the Group’s
solvency or rating could force it to collateralize these facilities at 100%, which would thus result in a deterioration of its
liquidity level. Additional information on SCOR’s letter of credit facilities is included in Note 25 – Commitments Received and
Granted.
Considering the above, SCOR is exposed to risks of short-term or medium-term payouts, and it cannot be guaranteed that it
will not be exposed to such risks in the future, which could have a material adverse impact on its business, present and
future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.
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