4.4 Legal risk - Scor

The portion invested in fixed income investments increased from EUR 8,372 million at 31 December 2011 to
EUR 9,707 million at 31 December 2012. As set forth in SMV1.1, SCOR maintains a “rollover investment strategy” for its
fixed income portfolio in order to have significant financial cash flows to reinvest in the event of a sudden change in the
economic and financial environment, while seizing market opportunities. The outlook for the world economy in 2013 and
beyond continues to be extremely uncertain, with various possible future outcomes (e.g., a double-dip scenario, a return
of inflation or a progressive or sudden rise in interest rates). Its investment strategy is designed to immunize itself as
much as possible from the negative consequences of these shocks.
The duration of SCOR’s fixed income portfolio including short term investment increased slightly from 2.6 years at 31
December 2011 to 2.7 years at 31 December 2012.
In terms of credit quality, despite the downgrade of several sovereign and private issuers, the Group maintained the
quality of its fixed income portfolio including short term investments, to a high level with an average rating of “AA-” as at
31 December 2012 against an average rating of “AA” last year. In this Registration Document, when the Group refers to
the ratings of securities held in its investment portfolio, or the counterparty credit rating of the issuers of such securities,
it uses an average of available ratings of the relevant securities and/or issuer published by the applicable nationally
recognized statistical rating organizations.
SCOR's total exposure to government bonds and assimilated in its investment portfolio was EUR 3,601 million at
31 December 2012 of which EUR 1,449 million was invested in government bonds of countries within the EU, primarily
Germany, France, the Netherlands and the UK. As at 31 December 2012 SCOR had no government bonds exposure to
Greece, Ireland, Portugal, Spain or Italy.
SCOR's total exposure to covered and agency MBS in its investment portfolio was EUR 1,359 million at
31 December 2012. SCOR's total exposure to corporate bonds in its investment portfolio was EUR 3,997 million at
31 December 2012, of which exposures to Greece, Ireland, Italy, Portugal, and Spain was EUR 71 million, primarily in
Italy. SCOR's total exposure to structured and securitized products in its investment portfolio was EUR 750 million at
31 December 2012.
The portion invested in real estate investments increased from EUR 499 million at 31 December 2011 to
EUR 584 million at 31 December 2012, due to acquisitions of new buildings.
The liquidity, defined as cash, cash equivalent and short term investments, has decreased from EUR 3,055 million at
31 December 2011 to EUR 2,735 million at 31 December 2012.
For further detail on the investment portfolio for the years ended 31 December 2012 and 2011 see “Paragraph 20.1.6 -
Notes to the consolidated financial statements, Note 6 - Insurance Business Investments". For a table summarizing the
investment income of SCOR for the years ended 31 December 2012, 2011 and 2010 see “Paragraph 20.1.6 - Notes to
the consolidated financial statements, Note 20 – Investment income.”
Portfolios
The following table details the distribution by category of investment of SCOR’s total investments and cash, by net
carrying value:
Consolidated Investments
As at December 31
2012 2011 2010
In EUR
In EUR
In EUR
million % million % million %
Real estate investments 584 2.6% 499 2.3% 378 1.8%
Available-for-sale equities 1,016 4.5% 1,158 5.4% 1,273 6.1%
Available-for-sale fixed income 9,651 42.7% 8,334 38.9% 10,188 48.8%
Fair value through income equity
investments 160 0.7% 89 0.4% 31 0.1%
Fair value through income fixed
income 56 0.2% 38 0.2% 9 0.1%
Loans and receivables (excluding
short term investments) 8,266 36.7% 8,098 37.9% 7,639 36.6%
Derivative investments 112 0.5% 158 0.7% 94 0.5%
Short term investments 1,269 5.6% 1,774 8.2% 259 1.2%
Cash and cash equivalents 1,466 6.5% 1,281 6.0% 1,007 4.8%
Total 22,580 100% 21,429 100.0% 20,878 100.0%
See Paragraph 20.1.6 - Notes to the financial statements, Note 6 - Insurance Business Investments for a breakdown of
amortized costs and estimated fair values of fixed income investments by major type of security, including fixed income
securities held to maturity and available for sale as at 31 December 2012, 2011 and 2010.
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