PARIS LA DEFENSE, FRANCE -- 01/21/08 --
Press Release
21 January 2008
N degrees 04 - 2008
For further information, please contact:
Beat Werder +33 (0)1 46 98 71 39
Chief Communications Officer
Marco Circelli +33 (0)1 46 98 72 17
Director for Investor Relations
SCOR has no material exposure to the monoliner crisis
The SCOR management team as part of its Enterprise Risk Management (ERM)
process has been conducting a thorough analysis of its exposure to the US
financial guarantee market and the so called "monoliners". The analysis
assessed SCOR's liabilities such as classical insurance risks from credit
business and any type of Directors' and Officers' liabilities (D&O) as it
could pertain to this business sector. The review also included a study of
SCOR's investment portfolio.
The in-depth review resulted in the following conclusions:
- SCOR has no underwriting exposure to the US monoliners in Credit &
Surety, Credit Default Swaps (CDS), Collateralized Loan Obligations (CLO),
Collateralized Debt Obligations (CDO) or any type of securitization or loan
covers such as credit enhancements and financial guarantees;
- SCOR did not provide any guarantees or capacity, directly or indirectly,
to any US monoliners as SCOR is neither an admitted nor a certified
reinsurer in the US for such product lines;
- SCOR did not invest in bonds issued by financial guarantors and credit
enhancers, nor has the company invested in shares of US monoliners;
- On a total investment portfolio of EUR 19 billion, SCOR has EUR 83
million of securities whose rating is enhanced by monoliners, more than
half of it relating to municipal bonds. SCOR believes that even in the
event of a complete default of the financial guarantors, these securities
will maintain their investment grade level. In any case, any potential mark-
to-market impact will be immaterial to the financial strength of the
company;
- Furthermore SCOR has no direct D&O exposure to financial institutions in
the US, including any financial guarantors.
The in-depth study comes to the conclusion that the US monoliner crisis
will have no effect on the financial strength of SCOR.
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Forward looking statements
SCOR does not communicate "profit forecasts" in the sense of Article 2 of
(EC) Regulation n degrees809/2004 of the European Commission. Thus, any
forward looking statements, contained in this communication, should not be
held as corresponding to such profit forecasts. Information in this
communication may include "forward-looking statements", including but not
limited to statements that are predictions of or indicate future events,
trends, plans or objectives, based on certain assumptions and include any
statement which does not directly relate to a historical fact or current
fact. Forward-looking statements are typically identified by words or
phrases such as, without limitation, "anticipate", "assume", "believe",
"continue", "estimate", "expect", "foresee", "intend", "may increase" and
"may fluctuate" and similar expressions or by future or conditional verbs
such as, without limitations, "will", "should", "would" and "could." Undue
reliance should not be placed on such statements, because, by their nature,
they are subject to known and unknown risks, uncertainties and other
factors, which may cause actual results, on the one hand, to differ from
any results expressed or implied by the present communication, on the other
hand.
Please refer to SCOR's document de référence filed with the AMF on April
10, 2007 under number D.07-0294 (as updated by the seconde note
complémentaire registered with the AMF on June 12, 2007 under registration
number 07-183, the "Document de Référence"), for a description of certain
important factors, risks and uncertainties that may affect the business of
the SCOR Group, and to SCOR's prospectus d'admission registered with the
AMF on April 10, 2007 under registration number 07-0115, as updated by the
first note complémentaire registered with the AMF on April 23, 2007 under
registration number 07-0131 and the seconde note complémentaire registered
with the AMF on June 12, 2007 under registration number 07-183, for a
description of certain important risks and uncertainties that relate to the
Offer for and combination with Converium.
This information is provided by HUGIN
