4.4 Legal risk - Scor

The acquisition closed on 4 December 2009. The acquisition helped SCOR Global Life SE strengthen its services in the
mortality protection field and reinforce its position in the U.S. Life reinsurance market.
On 18 November 2009, SCOR Global Life launched SCOR Telemed to prove clients with value-added services in the
field of tele-underwriting.
On 1 November 2010 Lloyd’s Market Franchise Board gave its “in principle” approval to the creation of Channel
Syndicate 2015. SCOR is the sole capital provider for Channel Syndicate, which in 2011 had an initial annual stamp
capacity of GPB 75 million. Underwriting by the Channel Syndicate began on 5 January 2011. The portfolio of Channel
Syndicate focuses on shorter tail lines of direct insurance business in markets outside the US, including property,
marine, accident and health, financial institutions and professional liability. On 21 December 2010, the Mexican Ministry
of Finance granted SCOR Global Life SE a licence to set up a representative office in Mexico, under the name of SCOR
Global Life SE Oficina de Representación en Mexico. This office supports the activity of SCOR Global Life SE on the
Mexican, Central American and Caribbean markets. Effective opening of these offices occurred in January 2011.
On 20 January 2011, SCOR successfully placed on the Swiss franc market perpetual subordinated notes with a first call
date in August 2016, for an aggregate total amount of CHF 400 million.
On 11 May 2011, SCOR successfully placed CHF 225 million additional perpetual subordinated notes on the Swiss
franc market. These notes are interchangeable with those of the placement announced on 20 January 2011, and the
conditions are similar to those of this placement.
On 18 May 2011, SCOR Global Life opened a subsidiary in Sydney, Australia for the Australian and New Zealand
markets, after the Australian Prudential Regulation Authority granted SCOR Global Life Australia Pty Limited the
authorisation to conduct reinsurance business in the Australian market.
On 8 July 2011, the newly incorporated subsidiary, SCOR Alternative Investments SA, was registered by the
Commission de Surveillance du Secteur Financier (CSSF) in Luxemburg as a company in charge of the management of
the portfolio of assets specialized in the asset class, known as “Insurance-Linked Securities” (ILS).
On 18 July 2011, SCOR closed the sale of its subsidiary Investors Insurance Corporation (IIC) to Athene Holding Ltd.,
as initially announced on 16 February 2011. This sale of its US fixed annuity business, for USD 57 million, is in line with
the Group’s strategy to develop Life reinsurance activities around biometric risks, as set out in the Group’s strategic plan
for the period 2010-2013, “Strong Momentum”. See “Section 6.1 - Business Overview” for further information about
Strong Momentum and the Group’s other historical strategic plans. SCOR define biometric risks as those risks which
could result from adverse developments in mortality, morbidity, longevity or epidemic/pandemic claims for direct insurers
and reinsurers. With the sale of IIC, SCOR substantially exited the U.S. fixed annuity business, which was a direct
insurance business.
On 25 July 2011, in line with its strategic plan for the period 2012-2013 "Strong Momemtum", SCOR decided to extend
and strengthen its value-added service offering for its insurer clients. To this end, SCOR Global Life, which already held
50% of the capital of SOLAREH SA, acquired the remaining 50% by purchasing shares from Solareh International Inc.
As part of the integration of SOLAREH SA into SCOR, the company was renamed REHALTO SA in September 2011.
On 9 August 2011, SCOR has finalised the acquisition of the mortality portfolio of Transamerica Re, a part of AEGON.
The transaction also includes the acquisition of an Irish legal entity, which underwrites Transamerica Re business. The
total consideration for the acquired business amounts to USD 919 million, including a statutory capital of USD 497
million for the Irish entity at the closing date. Refer to section Section 20.1.6 – Notes to the consolidated financial
statements - Note 3 – Acquisitions and disposals for further information on the price development. This acquisition was
financed without issuance of new shares. Transamerica Re is the world’s 3rd largest Life reinsurer in the U.S. based on
the volume of its business in 2009 and the 7th largest reinsurer based on its net earned premium in 2010. SCOR Global
Life and Transamerica Re business have been merged into a new entity SCOR Global Life in North America: SCOR
Global Life Americas Reinsurance Company (“SCOR Global Life Americas”).
On 31 August 2011, SCOR launched Atropos SICAV-SIF (“Atropos”), ILS fund dedicated to insurance risks, which is
managed by its subsidiary SCOR Alternative Investments SA and domiciled in Luxemburg. This fund enables
institutional investors to benefit from extreme natural catastrophe market risks, such as hurricanes, earthquakes and
storms. This asset class, known as “Insurance-Linked Securities” (ILS), is not correlated to the financial markets, offers
high historical yields and facilitates real investment portfolio diversification. With USD 100 million in seed capital
provided by the Group, Atropos marks the Group’s entry into the business of third-party asset management. From the
end of 2011, the Group opened to external clients an important number of its funds handled by SCOR Global
Investments or SCOR Alternative Investments. In June 2012, SCOR Global P&C created a branch in Argentina
On 10 September 2012, SCOR successfully placed on the Swiss franc market perpetual subordinated notes with a first
call date in June 2018, for an aggregate total amount of CHF 250 million.On 24 September 2012, SCOR successfully
increased its recently placed perpetual subordinated notes by CHF 65 million to a cumulated issuance of CHF 315
million, following the strong market demand.
With effect on 14 January 2013, the Commission de Surveillance du Secteur Financier ("CSSF") approved the fund,
SCORLUX SICAV-SIF, established by SCOR Global Investments and dedicated to investments in SICAV funds.
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