4.4 Legal risk - Scor

1.12 FINANCIAL INSTRUMENTS RECEIVED AND GIVEN
The use of and accounting for financial instruments comply with European Directive 2005/68/CE (also known as the
Reinsurance Directive) ; with the French General Statement of Accounting Principles (“Plan Comptable Général”) of 1982 ;
and with French Decree No 2002-970 dated 4 July 2002, relating to the use of forward financial instruments by French
insurance companies.
Such instruments may include foreign currency and interest rate swaps; caps and floors; forward currency contracts; puts
and calls on equity securities and other rate options.
Income and losses in the form of interest or premiums are recorded on a pro rata basis over the life of the contract.
Commitments given and received recorded at the balance sheet date reflect the nominal amount of open transactions. Any
unrealized loss positions on swaps are recorded in the financial statements.
ANALYSIS OF KEY BALANCE SHEET ITEMS
NOTE 2 - INVESTMENTS
2.1 CHANGES IN INVESTMENTS
GROSS BALANCES
Impact of
In EUR million
Opening
balances
foreign
exchange on
opening
balances
Acquisitions
creations Disposals
Closing
balances
Land - - - - -
Buildings - - - - -
Shares in and advances to land and real
estate companies 160 - - 9 151
Equity interests 4,093 - 10 - 4,103
Cash deposited with ceding companies
(related & associated companies) 20 - 14 3 31
Loans (related and associated
companies) 871 (3) 118 245 741
Other investments 153 - 464 436 181
Cash deposited with other ceding
companies - - - - -
TOTAL 5,297 (3) 606 693 5,207
DEPRECIATION AND IMPAIRMENT
Impact of
foreign
exchange on
opening
balances
Increases in
allowances
for the
financial year
Reversals
during the
financial year
In EUR million
Opening
balances
Closing
balances
Land - - - - -
Buildings - - - - -
Shares in and advances to land and real
estate companies 5 - - 4 1
Equity interests 287 - - 25 262
Loans (related and associated companies) - - - - -
Other investments 2 - 4 - 6
TOTAL 294 - 4 29 269
Loans
The loan granted by SCOR SE to SCOR Global Life for the financing of the TRANSAMERICA INTERNATIONAL
REINSURANCE IRELAND acquisition is EUR 587 million at 31 December 2012 compared to EUR 708 million in 2011.
Associated companies
At 31 December 2012, provisions against equity investments can be analysed as follows:
• SCOR US CORPORATION: EUR 260 million compared to EUR 285 million in 2011.
The shares held in SCOR US CORPORATION were valued using the following method and assumptions:
enterprise value was assessed based on revalued net assets increased for the creation of future value determined
using the Discounted Cash Flow (DCF) method. Projected income was used for the DCF method.
• Analysis performed for other equity investments did not result in impairment provisions.
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