4.4 Legal risk - Scor

RETROCESSION
Transaction in which the reinsurer transfers (or cedes) all or part of the risks it has assumed to another reinsurer, in
return for payment of a premium.
RETROCESSIONAIRE
Company that accepts a retroceded risk.
RISK
Property or person insured.
RISK-FREE (INTEREST) RATE
The rate of interest that remunerates assets with no counterparty risk. Usually, the weighted three months daily interest
rates of treasury bills (T-bills) in the Euro area, the U.S., U.K., Canada and Switzerland averaged over the period under
consideration are used as proxies for the risk-free (interest) rate. The weighted average used for this calculation is
based on the percentage of our managed assets denominated in the currency of each such asset.
RISK APPETITE
Defines the target risk profile (assets and liabilities combined) that SCOR actively seeks in order to achieve its expected
return. The target risk profile is represented as the Group’s target profit/loss probability distribution.
RISK APPETITE FRAMEWORK
Consistently defines the three following metrics: SCOR risk appetite, SCOR risk preference and SCOR risk tolerance.
RITC (REINSURANCE TO CLOSE)
Lloyd’s accounting practice based on a 3-year accounting process for Lloyd’s syndicates. The syndicate underwriting
account is closed at the end of the third year by means of reinsurance into the following year, which reinsures all future
liabilities for the closed year and all previous years.
RUN OFF
The cessation of all underwriting of new business on a risk portfolio. As a result, all reserves are “run off” over time until
their complete extinction. Run off may take up to several decades depending on the class of business.
S
SCOR GLOBAL LIFE (SGL) AND SCOR GLOBAL LIFE SE
SCOR Global Life refers to the operating division recording all business underwritten by entities in the life operating
division. SCOR Global Life SE refers to the legal entity.
SCOR GLOBAL P&C (SGP&C) AND SCOR GLOBAL P&C SE.
SCOR Global P&C refers to the operating divisiont and all business transacted by entities in this division . SCOR
Global P&C SE refers to the legal entity.
SCOR SE AND SCOR GROUP
SCOR SE refers to the legal entity SCOR SE, the issuer. SCOR SE and its consolidated subsidiaries are referred to as
SCOR, SCOR Group or the Group.
SPECIAL PURPOSE ENTITY (SPE) OR SPECIAL PURPOSE VEHICLE (SPV):
A legal entity created to fulfill specific or temporary objectives (conduct defined activities or hold assets etc.). SPE's are
typically used by companies to isolate the firm from financial risk.
STAMP CAPACITY
The volume of business measured in gross written premiums net of acquisition costs underwritten by the group through
its managed syndicates.
STRONG MOMENTUM V1.1 (SMV1.1):
In September 2010, the Group presented its new three-year plan “Strong Momentum” covering the period 2010-2013. In
September 2011, SCOR released the updated version “Strong Momentum V1.1” of this plan.
T
TAIL
The period of time that elapses between either the writing of the applicable insurance or reinsurance policy or the loss
event (or the insurer’s or reinsurer’s knowledge of the loss event) and the payment in respect thereof. A “short-tail”
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