4.4 Legal risk - Scor

Business Solutions is aimed at risk managed enterprises and professional buyers seeking global risk financing
solutions. The risks shared with the ceding and/or captive companies are high-value industrial or technically complex
risks. In property and casualty lines, such as Property Damage & Business Interruption, Construction All Risks, Erection
All Risks, Comprehensive General Liability, Product Liability or Professional Indemnity, the risks involve insured
amounts which typically are beyond the ceding companies’ own means.
Industrial clients are particularly sensitive to the ratings of the reinsurers that cover their risks. See “Paragraph 4.1.9
Financial ratings play an important role in SCOR's business.”
D. Joint Venture and Partnerships
SCOR's Joint Ventures and Partnerships business area has historically included the provision of capital to third party
businesses, including Lloyd’s syndicates. SCOR contributes to 12 Lloyds syndicates, including the new syndicate
Channel 2015, which SCOR is the sole capital provider. SCOR also offers professional indemnity insurance to the
members of MDU (Medical Defence Union), a leading medical defense organization based in the U.K., under a joint
venture agreement. See Paragraph 20.1.6 Note 4 – Intangible assets for further information. In 2012, SCOR has taken a
participation in La Réunion Aerienne aviation insurance pool.
6.1.2.2 Life Reinsurance
SCOR’s Life division is divided into nine lines of business:
• Life;
• Life Financing Reinsurance;
• Disability;
• Long-Term Care;
• Critical Illness;
• Health;
• Annuities; and
• Personal Accident.
• Longevity
Life
Reinsurance for individuals and groups of individuals, commonly known as Life reinsurance, includes life, health and
personal insurance, for events such as accidents, disability and illness.
SCOR's Life reinsurance business covers the mortality risk of individuals and is predominantly underwritten in the form
of proportional treaties (quota share or surplus basis or a combination of both), and less frequently on the basis of
excess of loss per person, or catastrophe excess of loss or stop loss. Longevity reinsurance is reported as part of the
Life line of business.
More than 50% of the SCOR Global Life portfolio of reinsurance risks is a traditional portfolio of mortality reinsurance
business, based on gross written premiums as at 31 December 2012.
In connection with the October 2007 acquisition of Converium, SCOR Global Life inherited certain retrocession liabilities
with regard to Guaranteed Minimum Death Benefit "GMDB" rider options attached to variable annuity policies written in
the U.S. Business of this type is not within the usual scope of the SCOR Global Life underwriting policy. These treaties
are all in run-off and, as at 31 December 2012, cover in total approximately 0.6 million policies written by two cedants.
These treaties were issued mainly in the late 1990’s. Different types of Guaranteed Minimum Death Benefits are
covered, including return of premium, ratchet, roll-up and reset.
The reinsurance portfolio acquired in 2011 from Transamerica Re predominantly covers mortality risk of individuals via
yearly renewable term, coinsurance, modified coinsurance or other typical reinsurance agreements.
The other eight lines of business currently underwritten by SCOR's Life division are:
Life Financing reinsurance
Life Financing Reinsurance combines proportional traditional Life reinsurance with financing components providing
liquidity, balance sheet and income statement improvements to the client. This type of treaty is typically used in
connection with new business, special reserves, solvency or other needs. Life Financing Reinsurance necessarily
involves biometric risks. Pre-financed amounts are amortized from the profitability of the reinsured business.
Disability
The purpose of disability insurance is to mitigate the loss of income when the insured is totally or partially unable, by
reason of sickness or accident, to follow his or her professional occupation or any occupation for which he or she is
suited.
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