Scor SE

Registration Form • Mar 8, 2012

NOTICE

Certain statements contained in this Registration Document may relate to objectives of SCOR SE ("SCOR SE" or the "Company") or of the SCOR Group (the "Group") or to forward-looking information, specifically statements announcing or corresponding to future events, trends, plans, or objectives, based on certain assumptions. These statements are typically identified by words or phrases indicating an anticipation, assumption, belief, continuation, estimate, expectation, forecast, intention, and possibility of increase or fluctuation and similar expressions or by future or conditional verbs. This information is not historical data and must not be interpreted as a guarantee that the stated facts and data will occur or that the objectives will be met. Undue reliance should not be placed on such statements, because, by nature, they are subject to known and unknown risks, uncertainties, and other factors, which may cause actual results, performance, achievements or prospects of SCOR SE to differ from any future results, performance, achievements or prospects explicitly or implicitly set forth in the Registration Document. In addition, such forward-looking statements bear no relation to "profit forecasts" in the sense of Article 2 of Regulation (EC) 809/2004.

This document is a free English translation of the "Document de Référence" drafted in French and filed with the AMF on 8 March 2012 under number D.12-0140. It is for information purposes only and should not be relied upon.

A European Company with share capital of EUR 1,512,842,643.14 Registered Office: 5 avenue Kléber - 75016 Paris Trade and Company register (RCS) Paris No. 562 033 357.

REGISTRATION DOCUMENT INCLUDING THE ANNUAL FINANCIAL REPORT

This registration document was filed on 8 March 2012 under number D.12-0140 with the French Autorité des Marchés Financiers (AMF) in accordance with Article 212-13 of the AMF general regulation. It can be used as a support document for a financial transaction only if presented together with a securities information note (note d'opération) approved by the AMF.

Pursuant to Article 28 of Regulation (EC) 809/2004 of 29 April 2004 of the European Commission implementing the Directive 2003/71/CE (the "Regulation (EC) 809/2004"), the following information is included by reference in this registration document (the "Registration Document"):

• SCOR SE's corporate and consolidated financial statements for the financial year ended 31 December 2010 and the report of the statutory auditors regarding said financial statements as presented in SCOR SE's registration document filed with the AMF on 8 March 2011 under number D.11-0103.
• SCOR SE's corporate and consolidated financial statements for the financial year ended 31 December 2009 and the report of the statutory auditors regarding said financial statements as presented in SCOR SE's registration document filed with the AMF on 3 March 2010 under number D.10-0085.

Parts of this or these documents which are not expressly included herein are of no concern to the investor.

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1	Person responsible	7
1.1	Name and title of person responsible	9
1.2	Declaration by person responsible	9
2	Statutory Auditors	10
2.1	Auditors	12
2.1.1	Principal Auditors	12
2.1.2	Alternate Auditors	12
2.2	Resignation or non renewal of Auditors	12
3	Selected financial information	13
3.1	Group key figures (under current consolidation scope)	15
4	Risk factors	16
4.1	Risk related to the business environment	20
4.1.1	The Group is exposed to diverse risk factors in the Non-Life and Life reinsurance businesses	20
4.1.2	SCOR is exposed to losses from catastrophic events	23
4.1.3 4.1.4	SCOR could be subject to losses as a result of its exposure to terrorism SCOR could be subject to increased reserves from Business that it does not actively underwrite	24 24
4.1.5	If SCOR's reserves prove to be inadequate, its net income, cash flow and financial position may be
	adversely affected	25
4.1.6	SCOR may be adversely affected by its cedents, retrocessionaires, insurers or members of pools in
	which it participates do not respect their obligations	26
4.1.7	SCOR operates in a highly competitive sector and would be adversely affected by losing
	competitive advantage or if adverse events affect the reinsurance industry	26
4.1.8 4.1.9	Consolidation in the insurance industry could adversely impact SCOR Financial ratings play an important role in SCOR's business	26 27
4.1.10	A significant portion of SCOR's contracts contain provisions relating to financial strength which
	could have an adverse effect on its portfolio of contracts and its financial position	27
4.1.11	Operational risks, including human errors or computer system failure, are inherent in SCOR's
	business	27
4.1.12	SCOR's risk management policies and procedures may leave it exposed to unidentified or
4.1.13	unanticipated risk, which could negatively affect its business SCOR is exposed to risks related to the recent acquisitions	28 29
4.1.14	SCOR is exposed to losses due to counterparty default risks or credit risk	30
4.1.15	SCOR is exposed to the risk of no longer being able to retrocede liabilities on economically viable
	terms and conditions	31
4.1.16	SCOR is exposed to an increase in the rate of general inflation and to increased inflationary
	expectations	32
4.2 4.2.1	Market risk SCOR faces risks related to its fixed income investment portfolio	32 32
4.2.2	SCOR faces risks related to its equity-based portfolio	33
4.2.3	SCOR is exposed to other risks arising from the investments it owns	33
4.2.4	SCOR is exposed to foreign currency rate fluctuations	34
4.2.5	The valuation of SCOR's intangible assets and deferred tax assets may significantly affect its
	shareholders' equity and the price of its securities	34
4.3 4.3.1	Liquidity risk SCOR faces liquidity requirements in the short to medium term in order to cover, for example,	35
	claims payments, operational expenses and debt redemptions. In the case of catastrophe claims, in
	particular, it may need to settle amounts which exceed the amount of available liquidity	35
4.3.2	Adverse capital and credit market conditions may significantly affect SCOR's ability to access
	capital and/or liquidity or increase the cost of capital	35
4.4	Legal risk	36
4.4.1	SCOR is exposed to risks related to legislative and regulatory changes and political, legislative, regulatory or professional initiatives concerning the insurance and reinsurance sector, which could
	have adverse consequences for its business and its sector	36
4.4.2	Inconsistent application of EU directives by regulators in different EU member states may place
	SCOR's business at a competitive disadvantage to other European financial services groups	36
4.4.3	Changes in current accounting practices and future pronouncements may materially impact SCOR's
	reported financial results	37
4.4.4	In 2010, the U.S. congress enacted the Dodd Frank Wall Street reform and consumer protection act ("Dodd Frank Act"), which could have an adverse impact on SCOR's business	37
4.4.5	Capital and liquidity may not be completely fungible between different regulated legal entities, which
	may have negative consequences for the legal entities	37
4.4.6	SCOR is exposed to risks linked with Solvency II implementation	37
4.4.7	SCOR is exposed to certain litigation matters	38
4.4.8	SCOR's positions on tax accounts are subject to audit and approval by tax authorities	38
4.5 4.5.1	Other risk SCOR's ordinary shares price could be volatile and could drop unexpectedly and investors may not	39
	be able to sell their ordinary shares at or above the price they paid	39
4.6	Insurance of specific operational risks (excluding reinsurance activity)	39
4.7	Risk and Litigation: Reserving methods	39

5	Information about the issuer	42
5.1	History and development of the issuer	42
5.1.1	Legal name and commercial name of the issuer	42
5.1.2	Place and registration number of issuer
5.1.3	Date of incorporation and length of life of issuer
		42
5.1.4	Domicile and legal form of issuer, legislation governing its activities, country of incorporation,
	address and telephone number of its registered office	42
5.1.5	Important events in the development of the issuer's business	44
5.2	Investments	47
5.2.1	Principal investments made over the past three financial years	47
5.2.2	Principal investments in progress	49
5.2.3	Principal future investments	49
6	Business overview	50
6.1	Primary activities	54
6.1.1	The reinsurance business	54
6.1.2	Breakdown of the Group's business	55
6.2	Principal markets	69
6.2.1	Breakdown of gross premiums by business segment	69
6.2.2	Distribution by geographic area	70
6.3	Extraordinary events influencing the principal business and markets	71
6.4	Dependency of the issuer with respect to patents or licenses, industrial, commercial or financial
	contracts and new manufacturing processes	72
6.5	Information on SCOR's competitive position	73
6.5.1	Non-Life reinsurance	73
6.5.2	Life reinsurance	74
7	Organisational structure	76
7.1	Brief description of the Group and of the position of the issuer	80
7.1.1	Group operating companies	80
7.2	List of issuer's significant subsidiaries	82
8	Property, plant and equipment	84
8.1	Major existing or planned property, plants and equipment	86
8.2	Environmental issues that may affect the utilization of property, plants and equipment	87
9	Operating and financial review	90
9.1	Financial position	90
9.2	Operating results	91
9.2.1	Consolidated operating results	91
9.2.2	SCOR Global P&C	92
9.2.3	SCOR Global Life	95
9.2.4	Retrocession	96
9.2.5	Strategy or factors of governmental, economic, fiscal, monetary or political character which have
	had or could have a material impact on the operations of the SCOR Group	96
10	Capital resources	97
10.1	Capital	99
10.2	Cash flow	99
10.3	Borrowing conditions and financing structure	99
10.4	Restrictions on the use of capital	100
10.5	Sources of financing relating to the future investments by the Company and to its property, plant
	and equipment	100
11	Research and development, patents and licenses	101
11.1	Research and development activities	103
11.2	Information technologies	104
12	Trend information	105
12.1	Most significant trends in production, sales, inventory, costs, and selling prices since the end of the
	last financial year	107
12.1.1	Non-Life	107
12.1.2	Life	109
12.2	Known trends, uncertainties, demands, commitments and events reasonably likely to have a
	material effect on the issuer's prospects	109
13	Profit forecasts or estimates	111

14	Administrative and management bodies	113
14.1	Information on the members of the Board of Directors and Senior Managers	115
14.1.1	Information concerning the members of the Board of Directors	115
14.1.2	Biographical information on members of the Board of Directors	123
14.1.3	Executive Committee	125
14.1.4	Biographical information on the members of the Executive Committee	128
14.1.5	Negative disclosures about members of the Board of Directors and Senior Management	129
14.2	Administrative, management, and supervisory bodies and Senior Management conflicts of interest	130
15	Remuneration and benefits	131
15.1	Amount of remuneration paid and benefits in-kind	133
15.1.1	Directors' fees	133
15.1.2	Remuneration	134
15.1.3	Remuneration in the form of options and share allocation	140
15.2	Total amounts set aside or accrued to provide pension, retirement, or similar benefits for financial
	year 2011	141
16	Board practices	142
16.1	Date of expiration of the current term of office	144
16.2	Information on service contracts of members of Administrative and Management bodies	144
16.3	Information on the Audit Committee and the compensation and Appointment Committee	144
16.4	Corporate governance regime	145
17	Employees	146
17.1	Number of employees	148
17.2	Information on shareholdings and stock options or Company stock purchases by members of
	Administrative and Management bodies	149
17.2.1	Number of shares held by Directors and Senior managers	149
17.2.2	Stock options held by the members of the Executive Committee and other Company officers as of
	31 December 2011	151
17.2.3	Free allocation of shares to Comex members and other company officers as of 31 December 2011	154
17.3	Plans providing employee participation in Company	157
17.3.1	Stock options plans	157
17.3.2	Share allocation plans	158
17.3.3	Stock options plans currently in force within the Group	164
17.3.4	Employee savings plan	164
17.4	Defined pension schemes	165
17.4.1	Defined contribution pension schemes	165
17.4.2	Define benefits pension schemes	166
18	Principal shareholders	167
18.1	Significant shareholders known to SCOR	169
18.2	Negative statement as to the absence of differences between the voting rights of various
	shareholders	173
18.3	Direct or indirect control by one shareholder	173
18.4	Agreement which could result in a subsequent change in control	173
19	Related party transactions	174
19.1	Related party transactions	176
19.2	Regulated agreements	176
19.3	Special report of the auditors on regulated agreements and commitments	177
20	Financial information concerning the issuer's assets and liabilities, financial position and
	profits and losses	188
20.1	Historical financial information : consolidated financial statements	190
20.1.1	Consolidated balance sheets	191
20.1.2	Consolidated statements of income	193
20.1.3	Consolidated statements of comprehensive income	194
20.1.4	Consolidated statements of cash flows	195
20.1.5	Consolidated statements of changes in shareholders' equity	196
20.1.6	Notes to the consolidated financial statements	198
20.2	Auditing of historical consolidated financial information	285
20.3	Sources of financial information not extracted from the audited Financial Statements of the issuer
	and indication of such absence of audit	288
20.4	Date of most recently audited financial information	288
20.5	Interim and other financial information	288
20.6	Dividend distribution policy	288
20.7 20.8	Litigation and arbitration procedures Material change in financial or commercial situation	288 288

21	Additional information	289
21.1	Share capital	291
21.1.1	Amount of issued capital and additional information	291
21.1.2	Existence of non-equity shares	295
21.1.3	Number and value of directly or indirectly held treasury shares	295
21.1.4	Amount of convertible securities, exchangeable securities or securities with subscription warrants	297
21.1.5	Information about and terms of any acquisition rights and/or obligations over authorized but
	unissued capital or an undertaking to increase the capital	298
21.1.6	Information about any capital of any member of the Group which is under option or agreed
	conditionally or unconditionally to be put under option and characteristics of such options	298
21.1.7	History of the Company's share capital for the period covered by the historic financial information	299
21.2	Charter and Bylaws	300
21.2.1	Corporate purpose of the issuer (article 3 of the Bylaws)	300
21.2.2	Summary of the Bylaws and internal regulations of the Company concerning the members of its
	Administrative, Management and Supervisory bodies	300
21.2.3	Rights, privileges and restrictions attached to existing shares	301
21.2.4	Actions required to modify shareholders' rights	304
21.2.5	Conditions for calling annual shareholders' meetings and extraordinary shareholders' meetings
	(articles 8 and 19 of the Bylaws)	306
21.2.6	Provisions that could delay, defer or prevent a change in control	306
21.2.7	Declaration thresholds	307
21.2.8	Conditions governing modifications to the share capital (other than legal provisions)	307
22	Material contracts	308
23	Third-party information and statements by experts and declarations of any interest	310
23.1	Expert's report	312
23.2	Information from third parties	312
24	Documents on display	313
25	Information on holdings	315
26	Non financial information	317
27	Fees paid by the Group to the Auditors	319
28	Published information	321
28.1	Information published on the Autorité des Marchés Financiers (AMF) website (www.amf-france.org)	323
28.2	Information published in the Bulletin des Annonces Légales Obligatoires (BALO) [Bulletin of
	required legal notices publications] (www.journal-officiel.gouv.fr/balo/index.php)	323
28.3	Information published on SCOR's company website (www.scor.com)	324
28.4	Information published on nyse-euronext's website (www.euronext.com)	326
28.5	Information published on the info-financières website (www.info-financière.fr/search.php.com)	326
A	Unconsolidated corporate financial statements of SCOR SE	327
B	Report of the Chairman of the Board of Directors on the terms and conditions for preparing
	and organizing the work of the Board of Directors and on internal procedures and on risk
	management in accordance with article L.225-37 of the French Commercial Code	362
C	Environmental impact of SCOR's activity	391
D	Glossary	396
E	Management report	406
F	Cross reference table – annual financial report	421

PERSON RESPONSIBLE

1.1	Name and title of person responsible	9
1.2	Declaration by person responsible	9

1 PERSON RESPONSIBLE

1.1 Name and title of person responsible

Mr. Denis Kessler, Chairman of the Board of Directors and Chief Executive Officer of SCOR SE.

1.2 Declaration by person responsible

• I declare that, having taken all reasonable care to ensure that such is the case, the information contained in this Registration Document is, to the best of my knowledge, in accordance with the facts and contains no omission likely to affect its import.
• I confirm that, to the best of my knowledge, the financial statements have been drawn up in accordance with applicable accounting standards and accurately show the position of the assets and liabilities, the financial position and the profit or loss of the company and of all businesses and firms included within the scope of the consolidated group, and that the management report, mentioned in Appendix E, accurately reflects the evolution of the business, the results and the financial position of the company and of all businesses and firms included within the scope of the consolidated group, and describes the main risks and contingencies which they are faced with.
• I have obtained an audit completion letter from the statutory auditors, in which they indicate that they have verified the information concerning the financial situation and the accounts provided in this Registration Document, and have read the entire Registration Document.
• The historical financial information included in the Registration Document was certified by the auditors. Their reports are reproduced in Section 20.2 and Appendix A of this document, and incorporated by reference for financial years 2010 and 2009, in section 20.2 and Appendix A of the 2010 Registration Document and in section 20.2 and Appendix A of the 2009 Registration Document. The audit reports on the 2010 Consolidated Financial Statements and 2009 Consolidated Financial Statements include comments.

Chairman of the Board of Directors

Denis KESSLER

STATUTORY AUDITORS

2.1	Auditors	12
2.2	Resignation or non renewal of Auditors	12

2 STATUTORY AUDITORS

2.1 Auditors

2.1.1 PRINCIPAL AUDITORS

Name	Date of first appointment	End of current appointment
MAZARS Represented by Messrs. Michel Barbet-Massin and Antoine Esquieu Tour Exaltis – 61, rue Henri Regnault 92075 La Défense Cedex CRCC of Versailles	22 June 1990	On the date of the Shareholder's Meeting called to approve the financial statements of the financial year ending 31 December 2013
ERNST & YOUNG Audit Represented by Mr. Guillaume Fontaine Tour First 1, Place des saisons 92400 Courbevoie France	13 May 1996	On the date of the Shareholder's Meeting called to approve the financial statements of the financial year ending 31 December 2013
2.1.2 ALTERNATIVE AUDITORS
Name	Date of first appointment	End of current appointment
Mr. Charles Vincensini 71, avenue Mozart 75016 Paris CRCC of Paris	7 May 2008	On the date of the Shareholder's Meeting called to approve the financial statements of the financial year ending 31 December 2013
Picarle et Associés Tour First 1, Place des saisons	7 May 2008	On the date of the Shareholder's Meeting called to approve the financial statements of the financial

92400 Courbevoie France

year ending 31 December 2013

2.2 Resignation or non renewal of auditors

Not applicable.

SELECTED FINANCIAL INFORMATION

3.1 Group key figures (under current consolidation scope) 15

3 SELECTED FINANCIAL INFORMATION

3.1 Group key figures (under current consolidation scope)

SCOR SE, and its consolidated subsidiaries ("SCOR" or the "Group"), is the world's 5th largest reinsurer (1) serving more than 4,000 clients from its organizational Hubs located in Cologne, London, Americas (U.S.), Paris, Singapore (Asia Pacific) and Zurich.

The 2011 year end results and balance sheet strength demonstrate the effectiveness of SCOR's strategy which is based on high business and geographical diversification and focuses on traditional reinsurance activity.

The current financial strength ratings of the Group are "A" positive outlook from Standard & Poor's ("S&P"), "A2" positive outlook from Moody's, "A" positive outlook from Fitch and "A" from AM Best.

In EUR million	2011	2010	2009
Consolidated SCOR Group
Gross written premiums	7,602	6,694	6,379
Net earned premiums	6,710	6,042	5,763
Operating income (2)	323	490	372
Net income	330	418	370
Investment income (3)	665	708	514
Net return on investment (4)	3.2%	3.4%	2.6%
Return on equity (5)	7.7%	10.2%	10.2%
Basic earnings per share (in EUR) (6)	1.80	2.32	2.06
Book value per share (in EUR)	23.83	23.96	21.80
Share price (in EUR)	18.06	19.00	17.50
Operating cash flow	530	656	851
Average invested assets (7)	12,370	12,802	11,562
Total Assets	31,319	28,722	27,989
Liquidity (8)	3,055	1,266	1,655
Shareholders' equity	4,410	4,352	3,901
Capitalization and Indebtedness(9)	5,402	4,831	4,569
SCOR Global P&C Division
Gross written premiums	3,982	3,659	3,261
Net combined ratio (10)(11)	104.5%	98.7%	96.1%
SCOR Global Life Division
Gross written premiums	3,620	3,035	3,118
SCOR Global Life operating margin (10)(11)	6.5%	7.4%	5.9%

(1) Source: "S&P Global Reinsurance Highlights 2011" (excluding Lloyd's of London)

(2) Operating income is defined as result before financial expenses, share in results of associates, restructuring costs, gain from bargain purchase and taxes. (3) The investment income 2010 and 2009 changed compared to the 2010 publication due to the new expense allocation methodology. Refer to Section 20.1.6 Notes to the consolidated financial statements, Note 2 - Segment Information.

(4) The net return on investment 2010 and 2009 changed compared to the 2010 publication due to the new expense allocation methodology. Refer to Section 20.1.6 Notes to the consolidated financial statements, Note 2 – Segment Information. Published net return on investment was 3.2% for the year ended 31 December 2010 and 2.4% for the year ended 31 December 2009.

(5) Return on equity is based on the Group's share of net income divided by average shareholders' equity (calculated as shareholders' equity at the beginning of the period adjusted for the linear effect of all movements during the period).

(6) Earnings per share is calculated as net income divided by basic number of shares. The basic number of shares includes the average number of closing shares, shares issued during the period and time-weighted treasury shares.

(7) Average invested assets comprise total insurance business investments net of funds withheld and cash and cash equivalents, adjusted for (in EUR millions) net unrealized gains and losses on real estate (2011: 119; 2010: 115; 2009: 101); real estate related debt (2011: (247); 2010: (191); 2009: (144)); accrued interest on fixed income (2011: 91; 2010: 115; 2009: 101); and derivative instruments (2011: 158; 2010: 94; 2009: 104)

(8) Liquidity is defined as cash and cash equivalents and short term investments comprised primarily of government bonds maturing less than 12 months from date of purchase.

(9) Capitalisation and Indebtedness is defined as the sum of IFRS shareholders' equity and subordinated debt.

(10) The net combined ratio is calculated as the sum of the Non-Life net loss ratio and the commission expense ratio. The 2011 and 2010 net combined ratios exclude certain non-recurring costs. Refer to Section 9.2.2 - SCOR Global P&C. Life operating margin is calculated as a percentage of operating result and the net of gross and ceded earned premiums.

(11) The net combined ratio and Life operating margin calculations changed compared to the 2010 publication due to the new expense allocation methodology. Refer to Section 20.1.6 Notes to the consolidated financial statements, Note 2 - Segment Information. The net combined ratio now includes all costs allocated to SCOR Global P&C. Prior year figures in the table above were adjusted for comparative purposes.

Published net combined ratio was 98.9% for the year ended 31 December 2010 and 96.8% for the year ended 31 December 2009.

Published Life operating margin was 7% for the year ended 31 December 2010 and 5.8% for the year ended 31 December 2009.

RISK FACTORS

4.1	Risk related to the business environment	22
4.2	Market risk	39
4.3	Liquidity risk	43
4.4	Legal risk	44
4.5	Other risk	39
4.6	Insurance of specific operational risks (excluding reinsurance activity)	39
4.7	Risk and litigation : Reserving methods	45

4 RISK FACTORS

The risk factors described below must be considered together with the other information contained in the Registration Document, and specifically with:

• Appendix B Report from the Chairman of the Board of Directors on the terms and conditions for preparing and organizing the work of the Board of Directors and on internal control and risk management procedures in accordance with article L.225-37 of the French Commercial Code - Part II, which describes the internal control and risk management procedures set up by the Group to address the risks to which the Group is exposed.
• The consolidated financial statements of the Group that appear in Section 20.1 Historical financial information: consolidated financial statements and in particular Note 26 – Insurance and financial risk.
• Section 6 Business Overview and Section 20 Financial information concerning the issuer's assets and liabilities, financial position and profits and losses.

These sections describe the risk management measures, processes and hedging positions planned or implemented by the Group in order to identify, assess and mitigate the risks.

Introduction

All risks described in Section 4 are managed through a variety of mechanisms in SCOR's ERM Framework.

Difficult conditions in the global capital markets and the economy generally may materially adversely affect SCOR's business and results of operations

The Group's results of operations could be materially affected by conditions in the global capital markets and the economy generally, in France, other countries in continental Europe, the United Kingdom ("the U.K."), the United States of America ("the U.S.") and elsewhere around the world. Many economies around the world are experiencing negative macroeconomic trends, including widespread job losses, higher unemployment and lower consumer spending. Any continued deterioration in macroeconomic trends could have an adverse effect on SCOR's business and results of operations. The stress experienced by global capital markets, in both debt and equity, that began in the second half of 2007 continued and substantially increased during 2008. Despite a modest recovery in 2009, 2010 and 2011, global capital markets have exhibited extreme volatility in securities prices, contractions in the availability of credit, the failure of a number of companies and a growing threat of sovereign default, including the downgrade by Standard & Poor's on 5 August 2011 of the long-term credit rating of U.S. Treasury debt from AAA to AA+ and the current banking and sovereign debt crisis in Europe. While SCOR does not currently own any securities issued by the governments of Greece, Italy, Spain, Ireland or Portugal, it cannot predict whether any of the other government securities that it holds in its investment portfolio will be adversely affected in the future by ratings downgrades, the continuing debt crisis or other developments. For further information on investments, refer to "Section 6 – Business Overview – 6.1.5 Investments" and "Section 20.1.6 – Notes to the financial statements, Note 6 – Insurance Business Investments"

In addition, the fixed-income markets are experiencing a period of extreme volatility that has negatively impacted market liquidity conditions. These volatile conditions have affected a broad range of mortgage and asset-backed and other fixed-income securities, including those rated investment grade, the U.S. and international credit and interbank money markets generally, and a wide range of financial institutions and markets, asset classes and sectors. As a result, the market for fixed-income securities has experienced decreased liquidity, increased price volatility, credit downgrade events, increased probability of default and lower than expected recovery rates. Securities that are less liquid are more difficult to value and may be hard to dispose of.

Domestic and international equity markets have also been experiencing heightened volatility and turmoil. These events and the continuing market upheavals may have an adverse effect on SCOR, in part because it has a large investment portfolio and are also dependent upon customer behavior. The Group's premiums are likely to decline in such circumstances and its profit margins could erode. In addition, in the event of extreme prolonged market events, such as the global credit crisis, SCOR could incur significant losses in its investment portfolio. "Refer to Section 20.1.6 – Notes to the financial statements, Note 6 – Insurance Business Investments" include analyses of unrealized and realized investment losses. See also "Section 4.2.2 –SCOR faces risks related to its equity-based portfolio." Even in the absence of a market downturn, SCOR is exposed to a substantial risk of loss due to market volatility. See "Section 4.2.3 – SCOR is exposed to other risks arising from the investments it owns."

Factors such as consumer spending, business investment, government spending, the volatility and strength of both debt and equity markets, and inflation all affect the business and economic environment and ultimately, the amount and profitability of SCOR's business. In an economic downturn characterized by higher unemployment, lower household income, lower corporate earnings, lower business investment and lower consumer spending, the demand for SCOR's and its clients' products could be adversely affected. In addition, the Group may experience an elevated incidence of claims or surrenders of policies that could affect the current and future profitability of its business. Although premiums written have operated a steady growth with prior years, a prolonged economic crisis could result in lower written premiums in the future. These adverse changes in the economy could affect earnings negatively and could have a material adverse effect on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

See "Appendix B – II. Internal control and risk management procedures, B. Identification and assessment of risks" for further information on risk mitigation actions.

Governmental initiatives intended to alleviate the current financial crisis that have been adopted may not be effective and, in any event, are expected to be accompanied by other initiatives, including new capital requirements or other regulations, that could materially affect SCOR's results of operations, financial condition and liquidity in ways that it cannot predict

In a number of countries in which the Group operates, legislation has been passed in an attempt to stabilize the financial markets, including bank stabilization programs by the Government and Bank of England in the U.K. and similar programs under the Emergency Economic Stabilization Act of 2008 in the U.S., as well as the Financial and Banking Regulation Act of 2010 in France and the Basel III agreements reached by the Basel Committee on Banking Supervision. Additionally, the EU has established the European Financial Stability Facility (EFSF) to assist European governments with their budgetary deficits and to stabilize the sovereign debt markets in the Euro-zone. Such legislation or similar proposals, as well as accompanying actions, such as monetary or fiscal actions, of comparable authorities in the U.S., U.K., Euro-zone and other countries, may fail to stabilize the financial markets. This legislation and other proposals or actions may also have other consequences, including material effects on interest rates and foreign exchange rates, and in particular the future viability of the European currency or the European Monetary Union, which could materially affect SCOR's investments, results of operations and liquidity in ways that it cannot predict. The failure to effectively implement this legislation and related proposals or actions could also result in a material adverse effect, notably increased constraints on the liquidity available in the banking system and financial markets and increased pressure on stock prices, any of which could materially and adversely affect the Group's results of operations, financial condition and liquidity. In the event of future material deterioration in business conditions, it may need to raise additional capital or consider other transactions to manage its capital position or liquidity.

In addition, SCOR is subject to extensive laws and regulations that are administered and enforced by a number of different governmental authorities and non-governmental self-regulatory agencies, including the French prudential control Authority (Autorité de Contrôle Prudentiel, or "ACP") which regulate among other categories of entities the insurance and reinsurance companies, and other regulators. In light of the current financial crisis, some of these authorities are or may in the future consider enhanced or new regulatory requirements intended to prevent future crises or otherwise assure the stability of institutions under their supervision. These authorities may also seek to exercise their supervisory or enforcement authority in new or more assertive ways. All of these possibilities, if they occurred, could affect the way SCOR conducts its business and manages its capital, and may require it to satisfy increased capital requirements, any of which in turn could materially affect its business, present and future revenues, net income, cash flows, financial position, and potentially, the price of its securities.

SCOR is exposed to Uncertainty of the effects of emerging claim and coverage issues

As industry practices and legal, regulatory, judicial, social, political, economic, financial and other environmental conditions change, unexpected issues related to claims and coverage may emerge. These issues may adversely affect SCOR's business due to either an extension of coverage beyond its underwriting intent (e.g. through inapplicability of treaty clauses) or by increasing the frequency and /or severity of claims. This would have an adverse effect on business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of securities.

See "Appendix B – II. Internal control and risk management procedures, B. Identification and assessment of risks" for further information on risk mitigation actions.

4.1 Risk related to the business environment

4.1.1 SCOR IS EXPOSED TO DIVERSE RISK FACTORS IN THE NON-LIFE AND LIFE REINSURANCE BUSINESSES

For further details on terminology used to described the Group activity, refer to "Section 6 – Business Overview."

The principal risk the Group faces under insurance and reinsurance contracts is that the actual amounts of claims and benefit payments, or the timing thereof, differ from expectations. The frequency of claims, severity of claims, actual benefits paid, subsequent development of long-tail claims and external factors beyond the Group's control, including inflation, legal developments and others have an influence on the principal risk faced by the Group. Additionally, the Group is subject to the quality of claims management by ceding companies and other data provided by them. In spite of these uncertainties, the Group seeks to ensure that sufficient reserves are available to cover its liabilities.

Generally, SCOR's ability to increase or maintain its portfolios of reinsurance risks in its Non-Life and Life divisions may be subject to external factors such as economic risks and political risks.

A. Non-Life reinsurance

(a) Property

SCOR's property business underwritten by its property and casualty division, which it refers to in this Registration document as "SCOR Global P&C," "Non-Life" or its "Non-Life division," is exposed to multiple insured losses arising from a single or multiple events, which can be catastrophic, being either caused by nature (e.g. hurricane, windstorm, flood, hail, severe winter storm, earthquake, etc.) or by the intervention of a man-made cause (e.g., explosion, fire at a major industrial facility, act of terrorism, etc.). Any such catastrophic event can generate insured losses in one or several of SCOR's lines of business.

The insured losses may be covered under various different lines of business within the Property business such as fire, engineering, aviation, space, marine, energy and agricultural.

(b) Casualty

For SCOR's casualty business, the frequency and severity of claims and the related indemnification payment amounts can be affected by several factors. The most significant factors are the changing legal and regulatory environment, including changes in civil liability law and jurisprudence. Additionally, due to the length of amicable, arbitral and court procedures, the casualty business is exposed to inflation risks regarding the assessment of claim amounts. Additional exposure could arise from so-called emerging risks, which are risks considered to be new or subject to constant evolution, and thus particularly uncertain in their impact. Examples of such risks are electromagnetic fields or nanotechnology.

(c) Cyclicality of the business

Non-Life insurance and reinsurance businesses are cyclical. Historically, reinsurers have experienced significant fluctuations in operating income due to volatile and unpredictable developments, many of which are beyond the control of the reinsurer including primarily, frequency or severity of catastrophic events, levels of capacity offered by the market and general economic conditions and to varying extents the price competition and capacity available.

The primary consequences of these structural factors are to reduce or increase the volume of Non-Life reinsurance premiums on the market, to make the reinsurance market more competitive, and also to favour the operators who are most attentive to the specific needs of the cedants. This could lead potentially to a loss of competitive advantage for SCOR.

Beyond the general trends, the premium rate cycle affects certain geographic markets and/or certain lines of business in a differentiated fashion and independently of each other.

(d) SCOR Global P&C faces concentration risks related to its broker business

SCOR produces its non-life business both through brokers and through direct relationships with insurance company clients. For the year ended December 31, 2011, approximately 64% of Non-Life gross premiums were produced through brokers. In 2011, SCOR had two brokers that accounted for approximately 34% of its Non-Life gross premiums. Refer to "Section 6 – Business overview, 6.1.3.2 Distribution by Production Source." Because broker business is concentrated with a small number of brokers, SCOR is exposed to concentration risk. A significant reduction in the business generated through these brokers could potentially reduce premium volume and net income.

See "Section 20 – Note 26, Insurance and financial risk – Non-Life Reinsurance risks" for further information on risk mitigation actions.

B. Life reinsurance

The main categories of risks for the life reinsurance underwritten by SCOR's life division, which is referred to in this Registration document as "SCOR Global Life," "Life" or its "Life division," are biometric, behavioral and catastrophe risks as well as credit risk (see "Section 4.1.14 — SCOR is exposed to losses due to default risks or credit risks"), currency risks (see "Section 4.2.4 – SCOR is exposed to foreign currency risk exchange rate fluctuations") and market risks (see "Section 4.2 – Market risk" and "Section 4.2.3 – SCOR is exposed to other risks arising from the instruments it owns").

(a) Biometric risks

The assessment of biometric risks is at the center of underwriting in life reinsurance. These are risks which result from adverse developments in mortality, morbidity, longevity or from epidemic/pandemic claims. These risks are evaluated by the actuaries, research centers and medical underwriters of SCOR Global Life, who analyze and use information from SCOR Global Life's own portfolio experience, from the ceding companies as well as relevant information available in the public domain, such as mortality or disability studies and tables as available from various sources, e.g., actuarial associations or medical research bodies.

Mortality Risk

Mortality risk is the risk of negative deviation from planned results due to higher than anticipated death rates resulting from either the inherent volatility, an adverse long-term trend or a mortality shock event in the reinsured portfolio.

Morbidity Risk

Products such as critical illness, short-term and long-term disability and long term care, which all contain morbidity risk, are subject to the risk of negative trends in health, as well as to the consequences of improved medical diagnoses capabilities which increase the number of claims that otherwise would possibly have remained undetected. Products providing cover for medical expenses are subject to the risk of higher than anticipated incidence rates and inflation of medical costs.

Longevity Risk

Longevity risk refers to the risk of a negative deviation from planned results due to the insured or annuitant living longer than assumed in the pricing of the insurance cover. This risk exists within annuity and long-term care covers and within other longevity protection products.

Pandemic

In life reinsurance, a major risk lies in the occurrence of a severe pandemic. In the past century, three major outbreaks of influenza occurred and claimed millions of lives. The occurrence of a similar event could cause large losses to the Group, due to an increased mortality far beyond the usual volatility. Experts closely monitor current influenza virus strains and those of other infectious diseases. A lethal virus strain not only of influenza but of any other communicable disease could lead to a heavy increase in mortality rates and increased medical costs which could significantly affect SCOR's results.

The potential loss relating to a severe pandemic is estimated using models. However, the limited amount of data available, combined with the generic model risk, increases the uncertainty in the results. The financial outcome of a severe pandemic could, therefore, differ considerably from that expected by the model, thus leading to a significantly higher loss than expected.

(b) Behavioral risks

SCOR Global Life is also exposed to risks related to policyholder behavior. This includes risks such as lapsation, antiselection at policy issue, resale of policies, unexpected number of exercises of policy options by the policyholder, and fraudulent applications.

Lapsation

Lapses refer to either non-payment of premium by the policyholder or to policies which are terminated by the policyholder before the maturity date of the policy. Depending on the product design, higher or lower policyholder lapses than assumed in the pricing may reduce SCOR Global Life's expected future income. Policyholder lapses may differ from expectations due to a changing economic environment or other reasons, such as changes in tax incentives for the insurance policies, tarnished reputation of the cedant or from the introduction of more attractive insurance products in the market.

Anti-selection

Anti-selection refers to the problem of asymmetry of information between the insured and the insurer. An individual applying for life or health insurance cover usually has better knowledge about his or her own state of health than the insurer. The risk to the (re)insurer is of policyholders deliberately deciding to:

• take out a policy in the knowledge that either their chances of claiming is high or higher than average;
• terminate a policy in the knowledge that their chances of claiming are low or lower than average; or
• choose and exercise a policy option which allows to increase the policyholder's expected benefit.

This might lead to a portfolio composition which differs from the one assumed during pricing and might imply lower than expected profits for both the direct insurer and reinsurer.

Resale

In general, for most individual life covers, the policyholder and the insured person are identical. The pricing of these policies is based on this assumption. However, there is a trend, especially in the U.S., where policyholders that can no longer afford or for other reasons do not want to continue to pay the premiums, are selling their polices and the eventual death benefit to third parties who continue to pay the premium. These "stranger owned life insurance," or STOLI, lead to deviations between actual and expected lapse rates which can be a risk to the insurer and reinsurer of the cover.

(c) Catastrophe risks

As previously indicated, natural or man-made catastrophic events can cause very significant material damage affecting the Non-Life activities of the Group. In addition, such events could cause multiple deaths and serious injuries which could potentially seriously impact the Life activities of SCOR, particularly under contracts covering groups of employees working at the same location.

For further details, refer to "Section 4.1.2 – SCOR is exposed to losses from catastrophic events." See also "6.1.3.4 – Catastrophe (cat) Risk and Exposure Controls."

(d) Risks linked to the types of guarantees

Certain life insurance products include guarantees, most frequently with respect to premium rates, insurance benefits, and surrender or maturity values, or guarantees with regard to interest accrued on reserves or policyholder funds. Other guarantees may exist, for example, with regard to automatic adjustments of benefits or options applied in deferred annuity policies.

Such guarantees may be explicitly or implicitly covered by the reinsurer under the reinsurance contract and if so expose the reinsurer to the risk of adverse developments which increase the value of the guarantee and thereby necessitate respective increases in benefit reserves.

(e) Risks linked to collateral requirements

The availability and cost of collateral, including letters of credit, asset trusts and other credit facilities, could adversely affect SCOR's operations and financial condition.

Regulatory reserve requirements in various jurisdictions in which SCOR operates may be significantly higher than the reserves required under IFRS. A regulation in the U.S., commonly referred to as Regulation XXX (or Triple X) and adopted by most states as of 1 January 2000, requires a relatively high level of regulatory, or statutory, reserves that U.S. life insurance and life reinsurance companies must hold on their statutory financial statements for various types of life insurance business, primarily certain level premium term life products. The reserve requirements under Regulation XXX increase over time and are normally in excess of reserves required under IFRS in other jurisdictions. The increase and the ultimate level of XXX reserves will depend upon the mix of business and future production levels in the U.S.

SCOR might overtime retrocede certain XXX-related cash flows and reserves to such affiliated or unaffiliated reinsurers that are authorized in the ceding company domicile or provide collateral in an amount equal to the ceded reserves. Such collateral must be provided in the form of withheld funds, NAIC (National Association of Insurance Commissioners) approved commercial bank letters of credit, the placement of assets in trust for the ceding company's benefit, or by other means pre-approved by the ceding company's regulator.

Based on the assumed rate of growth in SCOR's current U.S. business plan, and the increasing level of XXX reserves associated with this business, it expects the amount of required XXX reserves, retrocession and required collateral to grow significantly. With regard to retrocession to affiliates, SCOR would be required to secure such collateral.

In connection with these reserve requirements, SCOR faces the following risks:

• The availability of collateral and the related cost of such collateral in the future could affect the type and volume of business it reinsures and could increase costs.
• The Group may need to raise additional capital to support higher regulatory reserves, which could increase the overall cost of capital.
• If SCOR, or its retrocessionaires, are unable to obtain or provide sufficient collateral to support their statutory ceded reserves, it may be required to increase regulatory reserves. In turn, this reserve increase could significantly reduce statutory capital levels and adversely affect SCOR's ability to satisfy required regulatory capital levels that apply, unless it is able to raise additional capital to contribute to its operating subsidiaries.
• Because term life insurance is a particularly price-sensitive product, any increase in insurance premiums charged on these products by life insurance companies, in order to compensate them for the increased statutory reserve requirements or higher costs of insurance they face, may result in a significant loss of volume in their life insurance operations, which could, in turn, adversely affect life reinsurance operations.

SCOR cannot assure investors that it will be able to implement actions to mitigate the effect of increasing regulatory reserve requirements.

(f) Recapture risk

Under certain long term reinsurance treaties, ceding companies have the right to totally or partially recapture the book of business ceded under the reinsurance treaty after a pre-defined number of years after the inception of the treaty. The exercise of such recapture options may reduce SCOR Global Life's expected future income.

See "Section 20 – Note 26, Insurance and financial risk – Life Reinsurance" for further information on risk mitigation actions.

C. Interdependence of the Non-Life and Life reinsurance businesses

Non-Life and Life reinsurance activities take place in two different market environments. They are subject to heterogeneous external constraints, which generally have only very limited correlation with each other. However, in some extreme scenarios Non-Life and Life risks and financial market and credit risks could accumulate. This exposes SCOR to accumulation and/or correlation risks which are difficult to quantify.

Unforeseen events, such as natural catastrophes or terrorist attacks, can cause significant damage. These types of risk primarily affect Non-Life business areas. However, in cases where SCOR faces a large number of casualties, the possibility of the losses also affecting its Life lines of business as well cannot be excluded.

In the event of a very large natural catastrophe with many victims, the losses generated in Life and Non-Life could potentially accumulate, with losses on financial assets related to the potential reaction of markets (e.g., interest rates, exchange rates and equity market prices). In the same way, a major pandemic event may cause financial market turmoil or business interruptions.

The Group takes into account the effect of the diversification between its two divisions: Life and Non-Life, in its internal model, by setting parameters for the interdependence of the various lines of business.

SCOR's ability to grow or maintain its portfolios in the Life and Non-Life reinsurance divisions may be subject to correlated external factors, such as economic and political risks.

Economic risks are related to slowdowns in economic growth or recessions in the major markets. This may lead households to take out less insurance, to suspend certain premium payments, or to terminate the insurance policies underlying the existing Life and Non-Life treaties earlier than anticipated.

Political risks, which are characterized by social and political instability in certain countries, are particularly significant in emerging markets. These risks could lead to significantly reduced business growth in the Group's markets.

Despite interdependence, there is no guarantee that SCOR is protected from unexpected changes in Life or Non-Life claims frequency or severity or erroneous assumptions in the underwriting and pricing that could have a material adverse impact on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

See "Section 20 – Note 26, Insurance and financial risk – Interdependence of the Non-Life and Life Reinsurance businesses" for further information on risk mitigation actions.

4.1.2 SCOR IS EXPOSED TO LOSSES FROM CATASTROPHIC EVENTS

Like other reinsurance companies, SCOR may be exposed to multiple insured losses to property or to the person arising from a single occurrence, whether a natural catastrophe such as a hurricane, windstorm, flood, hail, severe winter storm, earthquake, or a man-made catastrophe such as an explosion, fire at a major industrial facility or an act of terrorism. Any such catastrophic event may generate insured losses in one or more of the Group's lines of business.

The frequency and severity of such catastrophic events, particularly natural hazards, are by their nature unpredictable. The inherent unpredictability of these events makes forecasts and risk evaluations uncertain for any given year. As a result, SCOR's claims experience may vary significantly from one year to the next, which can have a significant impact on its profitability, and financial position. In addition, depending on the frequency and nature of losses, the speed with which claims are made and the terms of the policies affected, it may be required to make large claim payments within a short period. SCOR may be forced to fund those obligations by liquidating investments in distressed market conditions, or by raising funds under unfavorable conditions. In particular, its most significant exposure to natural catastrophes in Non-Life relates to earthquakes, storms, typhoons, hurricanes, floods and other weather-related phenomena like hail or tornados. The Group evaluates its natural catastrophe exposure by means of catastrophe modeling software.

The models it uses depend very much on the underlying parameters. Any future deviations in these parameters will produce varying results depending on the sensitivity of the model to each parameter. Furthermore, the models can only be applied to certain areas and must respect certain conditions. Catastrophic events could occur in areas not covered by the models and could therefore generate losses which exceed those predicted. Reality is always more complex than that reflected by the models and this represents a risk for SCOR.

Although the Group attempts to limit its exposure to acceptable levels, it is possible that multiple concurrent catastrophic events could have a material adverse effect on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

See "Section 6.1.3.4 – Catastrophe (Cat) risk and exposure controls" for further information on risk mitigation actions.

4.1.3 SCOR COULD BE SUBJECT TO LOSSES AS A RESULT OF ITS EXPOSURE TO TERRORISM

In the context of its business, SCOR may be exposed to claims arising from the consequences of terrorist acts. These risks, the potential significance of which can be illustrated by 11 September 2001 attack on the World Trade Center ("WTC") in the U.S., can affect both individuals and property.

Certain countries do not permit the exclusion of terrorist risks from insurance policies. Due to these regulatory constraints, the Group has actively supported the creation of insurance and reinsurance pools involving insurance and reinsurance companies as well as public authorities in order to spread the risks of terrorist activity among the members of these pools. It participates in pools created in certain countries, such as France (GAREAT), Germany (Extremus), the Netherlands (NHT) and Belgium (TRIP), which allows the Group to have limited and known commitments. In the U.S., the Terrorism Risk Insurance Act passed in November 2002 for a period of three years, which was extended to 31 December 2007 by the Terrorism Risk Insurance Extension Act, was renewed for seven years, until 31 December 2014 by the Terrorism Risk Insurance Program Reauthorization Act ("TRIPRA"). It established a federal assistance program to help insurance companies cover claims related to terrorist acts. TRIPRA requires that terrorist acts be covered by insurers. Despite TRIPRA, and the federal aid that it provides, the U.S. insurance market is still exposed to some significant risks in this area. Therefore, SCOR monitors very closely its exposure to the U.S. market, primarily because of the insurance obligation created by the law. In addition to the commitments described above, SCOR does reinsure, from time to time, terrorist risks, usually limiting, by event and by year of insurance the coverage that ceding companies receive for damage caused by terrorist acts.

Beyond the potential impact on its non-life book, a terror event could also affect the Group's life portfolio. Although the insured losses from past events have been comparatively small in relation to the non-life losses, a future terrorist act, such as a "dirty bomb", could claim a substantial amount of insured lives.

As a result, future terrorist acts, whether in the U.S. or elsewhere, could cause SCOR significant claims payments, and could have a significant effect on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

See "Appendix B – II. Internal control and risk management procedures, B. Identification and assessment of risks" for further information on risk mitigation actions.

4.1.4 SCOR COULD BE SUBJECT TO INCREASED RESERVES FROM BUSINESS THAT IT DOES NOT ACTIVELY UNDERWRITE

A. SCOR is exposed to environment pollution and asbestos related risks

Like most reinsurance companies, SCOR is exposed to environmental pollution and asbestos related risks, particularly in the U.S. Insurers are required under their contracts to notify the relevant reinsurer of any claims or potential claims that they are aware of. However, the Group often receives notices from insurers of potential claims related to environmental and asbestos risks that are not precise enough, as the primary insurer may not have fully evaluated the loss at the time it notifies it of the claim. Due to the imprecise nature of these claims, the uncertainty surrounding the extent of coverage under insurance policies and whether or not particular claims are subject to any limit, the number of occurrences and new developments regarding the insured and insurer liabilities, it can, like other reinsurers, only give a very approximate estimate of its potential exposure to environmental and asbestos claims that may or may not have been reported.

Taking account of the above, it is difficult to estimate the reserves required for losses arising from asbestos and environmental pollution and to guarantee that the estimated amount will be sufficient.

The reserve amount for these risks in addition to the number and the amount of losses are indicated in "Section 20.1.6 – Notes to the financial statements, Note 16 – Contract Liabilities." Data related to the reserves arising from the risks related to asbestos and environmental pollution are also in "Section 4.1.5 – If SCOR's reserves prove to be inadequate, its net income, cash flow and financial position may be adversely affected."

As a result of this imprecision and uncertainty, SCOR cannot exclude the possibility that it could be exposed to significant environmental and asbestos claims, or have to increase its reserving level, which could have an adverse effect on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

B. SCOR is exposed to Guaranteed Death Benefit (GMDB) products

In connection with its October 2007 acquisition of Converium Holdings AG ("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. Its GMDB business indirectly exposes SCOR Global Life to asset risk on the variable annuity policyholders' funds. SCOR Global Life must pay, in the event of death, the excess of the GMDB over the account balance or the excess of the GMDB over the cash surrender value, depending on the definition of the underlying reinsurance agreements. A fall in the value of the variable annuity policies' funds therefore leads to higher expected claims amounts. The variable annuity policyholders invest their funds in a wide variety of U.S. equity, other equity, fixed interest, money market, balanced and other funds. Hence SCOR Global Life is exposed to losses, through higher death claims, if these funds fall in value. Note that these funds are not held by SCOR Global Life. The assets remain with the originating ceding companies.

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 of 31 December 2011, cover in total approximately 0.6 million policies written by two cedants. These treaties were issued mainly in the late 1990's and incorporate various benefit types.

Different types of GMDBs are covered, including return of premium, ratchet, roll-up and reset. Guarantees that increase over time are, for a majority of the assumed business, only applied up to a certain age. See "Section 20.1.6 – Notes to the financial statements, Note 16 – Contract Liabilities." This implies that SCOR Global Life will be released from the risk when the beneficiary reaches this age limit.

There are some risks which are specific to the GMDB portfolio. Due to the nature of the product, the remaining liability is influenced by developments on the financial markets, particularly changes in the price of equities and fixed income securities, fluctuations in interest rates, and the implied volatility on equity options. The liability is also dependent on policyholder behavior, particularly on the exercise of partial withdrawal options, but also on other aspects, such as lapse behavior and the use of options to choose the underlying funds. As a retrocessionaire, SCOR Global Life is exposed to uncertainties concerning data received from its retrocedants and the original ceding companies and also due to the inherent reporting lag. SCOR Global Life is also exposed to risks inherent to the model used for the assessment of the liability under its portfolio. More information about GMDB appears in "Section 20.1.6 – Notes to the financial statements, Note 16 – Contract Liabilities." See also "Section 4.1.4 – SCOR could be subject to increased reserves from business that it does not actively underwrite – B. SCOR is exposed to Guaranteed Death Benefit (GMDB) products."

There can be no assurance that SCOR's GMDB portfolios will not deteriorate in the future, which could have a material adverse effect on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

See "Section 20 – Note 16, Contract liabilities – A. Guaranteed Minimum Death Benefit (GMDB)" for further information on risk mitigation actions.

C. SCOR is exposed to risks arising from its U.S. Non-Life subsidiaries

SCOR's U.S. operations include both on-going and run-off portfolios. The latter principally consists of risks arising from various classes of insurance and reinsurance business written in the U.S. from the end of the 1990's to 2002 by SCOR Reinsurance Company ("SCOR Re U.S.") and General Security National Insurance Company ("GSNIC"), each a SCOR Group owned insurance company domiciled in the State of New York, and Commercial Risk Partners Ltd. ("CRP"), the former Bermudian entity of SCOR, absorbed by GSNIC in 2009. Today, discontinued business portfolios do not represent a material liability that is any greater than those associated with other entities of the Group. However, there can be no assurance that SCOR's U.S. Non-Life subsidiaries will not face financial difficulties in the future.

4.1.5 IF SCOR'S RESERVES PROVE TO BE INADEQUATE, ITS NET INCOME, CASH FLOW AND FINANCIAL 
POSITION MAY BE ADVERSELY AFFECTED

SCOR is required to maintain reserves to cover its estimated ultimate liability for losses and loss adjustment expenses with respect to reported and unreported claims, incurred as at the end of each accounting period, net of estimated related recoveries. Its reserves are established both on the basis of information it receives from its cedant insurance companies, particularly their own reserving levels, as well as on the basis of its knowledge of the risks, the studies it conducts and the trends it observes on a regular basis. As part of the reserving process SCOR reviews, with the concerned insurers and co-insurers, available historical data and it tries to anticipate the impact of various factors such as change in laws and regulations and judicial decisions that may tend to affect potential losses from claims, changes in social and political attitudes that may increase exposure to losses and trends in mortality and morbidity, or evolution in general economic conditions.

As stated before, the Group's reserves and policy pricing are based on a number of assumptions and on information provided by third parties, which, if incorrect and/or incomplete, could have an adverse effect on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities. Despite the audits it carries out on the companies with which it does business, and its frequent contacts with these companies, the Group is still dependent upon such companies' risk evaluations in establishing its reserves.

As is the case for all other reinsurers, the inherent uncertainties in estimating reserves are compounded by the significant periods of time that often elapse between the occurrence of an insured loss, the reporting of the loss to the primary insurer and ultimately to SCOR. In addition, reserving practices may differ among ceding companies.

Another factor of uncertainty resides in the fact that some of SCOR's businesses are "long-tail" in nature, in particular long term care, whole life products, term assurance, longevity, workers compensation, general liability, medical malpractice or those linked to environmental pollution or asbestos. For some of these businesses, it has, in the past, been necessary for SCOR to revise estimated potential loss exposure and, therefore, the related loss reserves.

Other factors of uncertainty, some of which have been mentioned above, are linked to changes in the law, regulations, case law and legal doctrines, as well as developments in class action litigation, particularly in the U.S.

As a consequence of the difficulties described above regarding the reserving of risks and their annual revision in Life and Non-Life, there can be no assurance that SCOR will not have to increase its reserves in the future, or that the reserves it constituted will be sufficient to meet all its future liabilities, which could materially impact its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

See "Section 6.1.3.4 – Catastrophe (Cat) risk and exposure controls" for further information on risk mitigation actions.

4.1.6 SCOR MAY BE ADVERSELY AFFECTED IF ITS CEDANTS, RETROCESSIONAIRES, INSURERS OR MEMBERS OF POOLS IN WHICH IT PARTICIPATES DO NOT RESPECT THEIR OBLIGATIONS

SCOR is subject to a risk of possible non-payment of premiums due by the cedants and/or to the possible non-respect by one or several of its partners, of their commitments to the Group.

The Group transfers a part of its exposure to certain risks to other reinsurers through retrocession arrangements. Under these arrangements, other reinsurers assume a portion of its losses and expenses associated with losses in exchange for a portion of premiums received. When SCOR obtains retrocession, it remains liable to its cedants for that part of the risk that is subsequently transferred to the retrocessionaire and it must meet its obligation even if the retrocessionaire does not meet its obligations to SCOR.

Similarly, when the Group transfers its own operational risks to insurers, it is subject to the risk of the insurers not respecting their obligations. See "Section 4.6 – Insurance of specific operational risks (excluding reinsurance activity)."

Thus, the non-respect of financial obligations, in particular the payment of premiums, return of funds withheld and payment of claims, of SCOR's cedants, retrocessionaires, insurers, or members of pools in which it participates could negatively affect its business, present and future revenues, net income, cash flows, financial position, and potentially, the price of its securities. The specific risk linked to the default of the retrocessionaires is provided in "Section 4.1.14 –SCOR is exposed to losses due to counterparty default risks or credit risks – B. Receivables from retrocessionaires."

4.1.7 SCOR OPERATES IN A HIGHLY COMPETITIVE SECTOR AND WOULD BE ADVERSELY AFFECTED BY LOSING COMPETITIVE ADVANTAGE OR IF ADVERSE EVENTS AFFECT THE REINSURANCE INDUSTRY

Reinsurance is a highly competitive sector. As is the case for all other reinsurers, SCOR's position in the reinsurance market is based on several factors, such as its financial strength as perceived by the rating agencies, its underwriting expertise, reputation and experience in the lines written, the countries in which it operates, the premiums charged, as well as the quality of the proposed reinsurance structures, the services offered and the speed at which claims are paid. Nonetheless, the Group competes for business in the European, American, Asian and other international markets with numerous international and domestic reinsurance companies, some of which have a larger market share than ours, greater financial resources and, in certain cases, higher ratings from the rating agencies.

Therefore, SCOR remains exposed to the risk of losing its competitive advantage. In particular, when available reinsurance capacity is greater than the demand from ceding companies, its competitors, some of which have higher ratings than it does, may be better positioned to enter new contracts and gain market shares at its expense.

Furthermore, the Group's reputation can be affected by adverse events concerning competitors. For example competitors' bad results could have a significant impact on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

4.1.8 CONSOLIDATION IN THE INSURANCE INDUSTRY COULD ADVERSELY IMPACT SCOR

Insurance industry participants may seek to consolidate through mergers and acquisitions. These consolidated entities may use their enhanced market power and broader capital base to negotiate price reductions for SCOR's products and services, and reduce their use of reinsurance, and as such, the Group may experience rate declines and possibly write less business. The occurrence of any of the foregoing could have a material and adverse effect on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

4.1.9 FINANCIAL RATINGS PLAY AN IMPORTANT ROLE IN SCOR'S BUSINESS

Financial ratings are very important to all reinsurance companies, including SCOR, as ceding companies wish to reinsure their risks with companies having a satisfactory financial position. The Group's Life reinsurance activities and the Business Solutions (large corporate accounts underwritten essentially on a facultative basis and occasionally as direct insurance) business area in Non-Life reinsurance are particularly sensitive to the way its existing and prospective clients perceive its financial strength notably through its ratings. This is also true for the reinsurance treaties business in Non-Life in the U.S. and U.K. markets. Some of reinsurance treaties, including the assumed retrocession treaties that were entered into with AEGON companies in the course of the acquisition of the mortality reinsurance business of Transamerica Re (see "Section 5.1.5 – Important events in the development of the issuer's business" for details on this acquisition), contain termination clauses triggered by ratings. Refer to "Section 4.1.10 – A significant portion of SCOR's contracts contain provisions relating to financial strength which could have an adverse effect on its portfolio of contracts and its financial position".

In addition, if SCOR's rating deteriorates, certain stand-by letter of credit facilities would require a higher level of collateralization and would increase the cost of the letters of credit. The timing of any review of the Group's financial ratings by the rating agencies is also very important to its business since the Non-Life contracts and treaties are renewed at various set times throughout the year.

Regarding the subordinated notes issued by SCOR SE, an equity credit has been assigned to certain notes in line with S&P existing methodology. A change in this methodology could lead to (i) a disqualification for equity credit of the notes and (ii) force SCOR SE to exercise the option that is offered in such case to redeem the notes. More information about subordinated debt appears in "Section 20.1.6 — Notes to the financial statements, Note 14 — Financial Debt."

Some of SCOR's cedants' credit models or reinsurance guidelines depend on SCOR's financial rating. If its rating deteriorates, cedants could be forced to increase their capital charge in respect of their counterparty risk on SCOR. This could lead to a loss of competitive advantage which, in turn, could significantly impact SCOR's revenues, net income, cash flow, financial position, and potentially, the price of its securities.

4.1.10 A SIGNIFICANT PORTION OF SCOR'S CONTRACTS CONTAIN PROVISIONS RELATING TO FINANCIAL STRENGTH WHICH COULD HAVE AN ADVERSE EFFECT ON ITS PORTFOLIO OF CONTRACTS AND ITS FINANCIAL POSITION

Many of SCOR's reinsurance treaties, notably in the U.S. and in Asia, and also increasingly in Europe, contain clauses concerning the financial strength of the Company and/or its guaranteed operating subsidiaries, and provide for the possibility of early termination for its cedants if the rating of such subsidiaries is downgraded, or when its net financial position falls below a certain threshold, or if it carries out a reduction in share capital. Accordingly, such events could allow some of SCOR's cedants to terminate their contract commitments, which could have a material adverse effect on its revenues, net income, cash flow, financial position, and potentially, on the price of its securities.

In the same way, many of the Group's reinsurance treaties contain a requirement for it to put in place letters of credit ("LOC") provisions, if the financial strength rating of the Company and/or its guaranteed subsidiaries deteriorates, the cedant has the right to draw down on a LOC issued by a bank in SCOR's name.

Banks providing such facilities usually ask SCOR to post collateral. Its value retained by the bank, which can be different from the market value since it includes haircuts, is at maximum equal to the amount of the LOC facility. In the case of a LOC being drawn by a cedant, the bank has the right to request a cash payment from this collateral, up to the amount drawn by the cedant. It enforces by offsetting the collateral the Group posted to such bank.

In the case of a large number of LOCs being drawn simultaneously, SCOR could encounter difficulties in providing the total amount of required cash or fungible assets, i.e. exposing it to a liquidity risk.

Moreover, some of SCOR's facilities contain conditions about its financial situation which, if not met, constitute a default and might result in the suspension of the use of current credit facilities and/or a prohibition on obtaining new lines of credit or result in the need to negotiate new LOC facilities under adverse conditions, which could have an adverse effect on its revenues, net income, cash flow and financial position.

For more details about the Group's lines of credit, refer to "Section 10 — Capital resources."

4.1.11 OPERATIONAL RISKS, INCLUDING HUMAN ERRORS OR COMPUTER SYSTEM FAILURE, ARE INHERENT IN SCOR'S BUSINESS

Operational risks are inherent in all businesses including SCOR's. Their causes are multiple and include, but are not limited to, poor management, employee fraud or errors, failure to document a transaction as required, failure to obtain required internal authorizations, non-compliance with regulatory or contractual obligations, information technology ("IT") system flaws, poor commercial performance or external events.

The failure to attract or retain the necessary personnel could have a material adverse effect on SCOR's results and/or financial condition. As a global financial services organization with a multi-centric management structure, the Group relies, to a considerable extent, on the quality of local management in the regions and countries in which it operates. The success of its operations is dependent, among other things, on its ability to attract and retain highly qualified professional people on a global scale. Competition for such key people in most countries in which it operates is intense. SCOR's ability to attract and retain key people, and in particular directors, experienced managers and investment managers, fund managers, underwriters and actuaries, is dependent on a number of factors, including prevailing market conditions and compensation packages offered by companies competing for the same talent. If SCOR is unable to attract or retain key personnel, this could have a material and adverse effect on its financial condition, results of operations and business.

The Group believes its modeling, underwriting, price calculation and information technology and application systems are critical to the operation of its businesses. Moreover, its proprietary technology and applications are an important part of the Group's underwriting and claims management processes and are a contributing factor to its competitiveness. It is, therefore, exposed to a major breakdown in its IT systems, outages, disruptions due to viruses, attacks by hackers and theft of data. SCOR is also exposed to risks relating to the integration of the underlying data of newly acquired companies into its operating and financial accounting IT systems.

A major defect or failure in SCOR's internal controls or IT and application systems could result in a loss of efficiency of its teams, harm to its reputation, increase in the risk of external fraud, or increased expense or financial loss.

The Group also uses certain licensed systems and data from third parties. It cannot be certain that its technology or applications owned or licensed will continue to operate as intended, or that they will continue to be compatible with each other, or that it will have access in the future to these or comparable licensors or service providers.

Some of SCOR's processes are partly or completely outsourced. Outsourcing can increase operational risk which could cause a significant impact on its results and/or reputation.

SCOR, as every company, must comply with laws and regulations. Furthermore, as an international Group, it must take into account international laws and regulations. The level of legal or regulatory requirements depends on the location and the legal structure of the entity. The risk is that it might not respect the level of required compliance appropriate to each location and legal structure. Its reputation could be affected. In particular, it writes some direct insurance business on a business-to-business basis to cover certain non-life large industrial risks for property and casualty.

For direct business, SCOR is subject to the laws, regulations and tax rules governing direct insurance which can create specific compliance risks (i.e. different from those relating to reinsurance business). Any violation of such laws and regulations could expose SCOR to legal risks or class actions.

In the case of medical underwriting (including SCOR Telemed, a subsidiary of SCOR Global Life), some information required from the policyholders may be confidential. SCOR Telemed is a dedicated tele-underwriting company. The company uses IT software to conduct telephone interviews and has a specialized underwriting system to assess individual risks. There is a risk regarding compliance with data privacy laws in force in each country.

An operational risk failure, in particular the failure of internal control procedures, could have an adverse impact on the Group's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

See "Appendix B – II. Internal control and risk management procedures, C. Principal activities and participants of risk control" for further information on risk mitigation actions.

4.1.12 SCOR'S RISK MANAGEMENT POLICIES AND PROCEDURES MAY LEAVE IT EXPOSED TO UNIDENTIFIED OR UNANTICIPATED RISK, WHICH COULD NEGATIVELY AFFECT ITS BUSINESS

Management of risk requires, among other things, policies and procedures to record properly and verify a large number of transactions and events. SCOR's risk management policies and procedures may not be sufficient. Many of its methods for managing risk and exposures are based upon the use of observed historical market behavior or statistics based on historical models. As a result, these methods may not fully predict future exposures, which can be significantly greater than the historical measures indicate, particularly in unusual markets and environments. Other risk management methods depend upon the evaluation of information regarding markets, clients, catastrophe occurrence or other matters that is publicly available or otherwise accessible to SCOR. This information may not always be accurate, complete, upto-date or properly evaluated. Furthermore, the Group cannot exclude the possibility of exceeding SCOR's risk tolerance limits due to an incorrect estimation of its risks and exposures. If its policies and procedures prove to be insufficient, the business, present and future revenues, net income, cash flows, financial position, and potentially, the price of its securities could be materially and adversely affected.

4.1.13 SCOR IS EXPOSED TO RISKS RELATED TO ITS ACQUISITIONS

In recent years, SCOR has completed a number of acquisitions around the world. The Group may make further acquisitions in the future. Growth by acquisition involves risks that could adversely affect its operating results, including the substantial amount of management time that may be diverted from operations to pursue and complete acquisitions. Acquisitions could also result in the incurrence of additional indebtedness, costs, contingent liabilities, and impairment and amortization expenses related to goodwill and other intangible assets, all of which could materially adversely affect SCOR's businesses, financial condition and results of operations. Future acquisitions may have a dilutive effect on the ownership and voting percentages of existing shareholders. The Group may also finance future acquisitions with debt issuances or by entering into credit facilities, each of which could adversely affect its business, present and future revenues, net income, cash flows, financial position, and potentially, the price of its securities.

In addition, acquisitions may expose SCOR to operational challenges and various risks, including:

• the ability to integrate the acquired business operations and data with its systems;
• the availability of funding sufficient to meet increased capital needs;
• the obligation to comply with new regulatory requirements;
• the ability to fund cash flow shortages that may occur if anticipated revenues are not realized or are delayed, whether by general economic or market conditions or unforeseen internal difficulties; and
• the possibility that the value of investments acquired in an acquisition, may be lower than expected or may diminish due to credit defaults or changes in interest rates and that liabilities assumed may be greater than expected (due to, among other factors, less favorable than expected mortality or morbidity experience, or increase reserving of long tail lines of business).

A failure to successfully manage the operational challenges and risks associated with or resulting from acquisitions could adversely affect SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, the price of its securities.

The businesses SCOR has recently acquired are described in "Section 5 – Information about the issuer, 5.1.5 Important events in the development of the issuer's business."

Specific risks relating to the acquired businesses are as follows:

A. The integration of the acquired activities may prove to be difficult

The success of SCOR's business combinations will be assessed with regards to the success of the integration within the Group. Subsequently, integrations may take longer or may be more difficult than expected. The success of integrations will depend, notably, on the ability to maintain the former client base to coordinate development efforts effectively, at the operational and commercial levels among others, and to streamline and/or integrate the information systems and internal procedures and the ability to retain key employees. Difficulties encountered in integrations could entail higher integration costs and/or less significant savings or fewer synergies than expected.

SCOR is also exposed to risks relating to the integration of the underlying data of newly acquired companies into its operating and financial accounting systems.

B. An insolvency of AEGON might impair the value of business acquired (value-of inforce) of SCOR Global Life

Since August 2011, the majority of the mortality reinsurance business in the United States of the former Transamerica Reinsurance Co. ("Transamerica Re") flows into SCOR via retrocession from AEGON companies. As long as underlying reinsurance agreements between cedants and AEGON companies are not novated, an AEGON insolvency might lead to premiums from clients not being passed on to SCOR anymore, and thus potentially impair the value of business acquired ("VOBA") (value of inforce) and have a significantly negative impact on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

C. Certain risks relating to acquired companies may not yet be known

Due notably to the size and complexities of acquisitions and despite pre-acquisition due diligence work carried out (SCOR not having always been granted complete access to exhaustive data at the time of the acquisition) and the integration work performed to date, there is a risk that all financial elements may not have been fully and or correctly evaluated or unknown or unexpected financial risks emerge, which may have significant consequences on the initially estimated impact of the relevant acquisition on the combined Group.

D. SCOR could be exposed, due to acquired companies, to certain litigation matters

SCOR could have to assume the burden of the litigation matters of acquired companies or relating to those acquisitions. The costs of these litigation matters could have an adverse effect on its future operating income and an unfavorable outcome to one or more of these litigation matters could have a material adverse effect on revenues, net income, cash flow and financial position. For further details, refer to "Section 20.1.6 – Notes to the financial statements, Note 27 – Litigation" and "Section 4.4.7 – SCOR is exposed to certain litigation matters."

SCOR remains committed to exploring acquisition opportunities which may present themselves and which would be likely to deliver value for shareholders, and will rely on the consistent application of its strategic plans.

4.1.14 SCOR IS EXPOSED TO LOSSES DUE TO COUNTERPARTY DEFAULT RISKS OR CREDIT RISKS

SCOR is mainly exposed to the following credit risks:

A. Fixed income portfolios

Credit risks on fixed income securities cover two areas of risk.

Firstly, a deterioration in the financial situation of an issuer (sovereign, public or private) may result in an increase in the relative cost of refinancing and a reduction in the liquidity of the securities issued leading to a reduction in the value of such securities. Secondly, the borrower's financial situation can cause it to become insolvent and lead to the partial or total loss of coupons and of the principal the Group invested.

B. Receivables from retrocessionaires

SCOR transfers part of its risks to retrocessionaires via retrocession programs. The retrocessionaires then assume, in exchange for the payment of premiums by SCOR, the losses related to claims covered by the retrocession contracts. So, in the event of default of the retrocessionaire, SCOR would be liable to lose the coverage provided by its retrocessionaires whereas it would retain liability to the cedant for the payment of all claims covered under the reinsurance contract.

Moreover, the Group is exposed to a credit risk in the event of a payment default by the retrocessionaires of the balance of the profit and loss retrocession account due in respect of its cession.

The risk of non-performance of retrocessionaire undertakings is set out in "Section 4.1.6 – SCOR may be adversely affected by its cedants, retrocessionaires, insurers or members of pools in which it participates do not respect their obligations."

The retrocessionaires' part in the reserves split by retrocessionaires' financial rating is included in "Section 20.1.6 – Notes to the financial statements, Note 16 – Contract Liabilities."

In spite of the measures to control and reduce the risk of defaults of its retrocessionaires, the occurrence of one or more of such default could have a material adverse impact on SCOR's business, its present and future premium income, its net income, its cash flows, its financial position, and potentially on the price of its securities.

C. Receivables and deposits with cedants

There are three aspects of credit risk related to contracts with cedants.

Firstly, SCOR may be exposed to credit risk in relation to amounts deposited with ceding companies in respect of reserves which cover its current and future liabilities. Depositing these amounts does not a priori discharge the Group of its liability towards cedants in case it is not able to recover these amounts in the event of default of cedants.

Secondly, SCOR is exposed to a credit risk in the event of a payment default by the cedants of the balance of the profit and loss reinsurance account due under its acceptance of a portion of their risks.

Thirdly, SCOR is exposed to a credit risk in the event of a payment default by the cedants of the premiums due under its acceptance of a portion of their risks. In cases where such an event does not lead to termination of the reinsurance contract, any offset between contractual obligations between the two parties is dependent on court decisions, and it is possible that the Group will remain liable for paying claims without being able to offset the unpaid premiums.

Thus, the inability of its cedants to fulfill their financial obligations could affect SCOR's current and future revenues, net income, cash flow and financial position.

D. Receivables from non-(re)insurance debtors

SCOR is exposed to a credit risk in the event of a payment default by a debtor not linked to the Group by a reinsurance or retrocession treaty. This can be, for instance, advances to providers, social security contribution collection agencies or states, or loans to employees, etc.

E. Cash deposits at banks

SCOR is exposed to the risk of losing all or part of any cash deposited with a retail bank in the event such a bank is no longer able to honor its commitments (e.g., following liquidation).

The current main risk for the Group is the significant concentration of deposits in a small number of banks. This risk is a direct result of the selection of the most stable banks.

The inability of one or several banks to return its deposits to SCOR could have a material adverse impact on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

F. Deposits with custodians

As part of the management of its investment portfolio, SCOR deposits the securities it owns with a number of approved custodians. In the case of default of a custodian, depending on the local regulation applicable to the custodian, all or part of these securities could become blocked.

The risk of losing all or part of securities the Group owns could have a material adverse impact on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

G. Credit & Surety

SCOR is exposed to credit risk through its Credit & Surety portfolio. By reinsuring the liabilities of its clients, which are insurers providing surety bonds and/or credit insurance policies, the Group must indemnify its ceding companies, for the portion that it reinsures, in the event of the default of companies on which its ceding companies are exposed.

This business is situated in many countries, mostly in Europe and across a diverse range of activity sectors.

Multiple defaults of companies (or in the event of the default of a major company) on which the ceding companies are exposed could have a material adverse impact on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

H. Future profits of Life reinsurance treaties

Credit risk on future profits from Life reinsurance policies arises from two risk factors.

First of all, the payment of future profits expected under Life reinsurance contracts necessarily implies that the cedant is solvent: for this reason, SCOR risks a reduction in the value of its portfolio of Life contracts in the event of a deterioration in the financial strength of the cedant. In such a case, it is possible that the VOBA and deferred acquisition costs ("DAC") may as a consequence need to be written down and as a consequence, its shareholders' equity would be reduced accordingly.

Secondly, a reduction in the value of future profits could arise from a massive unexpected lapsation of policies following a deterioration of the cedant's financial rating or an event which has a negative effect on SCOR's image.

The Group, therefore, has exposure to a credit risk linked to the insolvency and to the image of its cedants, which, if this were to occur, could have an adverse impact upon its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities

For further details on the impact of the assessment of intangible assets upon SCOR's results, see "Section 4.2.5 – The valuation of SCOR's intangible assets and deferred tax assets may significantly affect its shareholders' equity and the price of its securities" and "Section 20.1.6 – Notes to the financial statements, Note 4 – Intangible Assets."

I. Default of pool members

SCOR participates, for certain risk categories that are particularly heavy (particularly terrorist risks), in various groups of insurers and reinsurers ("pools") aimed at pooling the relevant risks among the members of each group. In the event of a total or partial default by one of the members of a group, it could be required to assume, in the event of joint liability of the members, all or part of the liabilities of the defaulting member. In such a case, its business, present and future revenues, net income, cash flows, financial position, and potentially, the price of its securities could be adversely impacted.

For further details, refer to "Section 4.1.3 – SCOR could be subject to losses as a result of its exposure to terrorism."

J. Risk of accumulation of the above risks

The aforementioned risks could accumulate in either a single counterparty, in the same sector of activity or the same country.

See "Section 20 – Note 26, Insurance and financial risk – Credit risk" for further information on risk mitigation actions.

4.1.15 SCOR IS EXPOSED TO THE RISK OF NO LONGER BEING ABLE TO RETROCEDE LIABILITIES ON ECONOMICALLY VIABLE TERMS AND CONDITIONS

Some capacities SCOR offers are not achievable solely with its current available capital. These capacities (mainly catastrophic and large risks) rely on retrocession whereby it purchases, mainly on a one-year basis, additional resources (retrocession) that allows the Group to provide capacity to its clients. SCOR tries to reduce its dependence vis-à-vis the traditional reinsurance market by entering into alternative risk transfer solutions (e.g. the multi-year securitization of catastrophic risk in the form of Insurance-Linked Securities ("ILS") and mortality swaps and the issuance of contingent capital securities). For more information on SCOR's securitization of catastrophic risk and issuance of contingent capital securities, see "Section 6 – Business Overview, 6.1.4 Retrocessional reinsurance". Nevertheless, SCOR is exposed to the risk that it may not be able to retrocede liabilities on economically viable terms and conditions.

4.1.16 SCOR IS EXPOSED TO AN INCREASE IN THE RATE OF GENERAL INFLATION AND TO INCREASED INFLATIONARY EXPECTATIONS

The Group's liabilities are exposed to an increase in the rate of general inflation (prices and salaries) which would require an increase in the value of non-life reserves, in particular in respect of long-tail business, e.g., general liability and motor bodily injury claims. In addition, SCOR is exposed to claims inflation over and above general inflation and in particular to the inflation of court awards in respect of general liability and bodily injury claims.

SCOR's assets are exposed to increased inflation or inflationary expectations, which would be accompanied by a rise in the yield curve with a consequent reduction in the market value of the fixed income portfolios. A further impact of increased inflation could be on the solvency of bond issuers; a widening of credit spreads would lead to a loss of value for the issuers' bonds. Finally, depending on the macroeconomic environment, an increase in inflation could also reduce the value of its equities portfolio. Any negative fluctuations in equity values would lead to a similar decrease in the shareholders' equity.

In conclusion, inflation would have a significant negative impact on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

See "Section 20 – Note 26, Insurance and financial risk – Market risk" for further information on risk mitigation actions.

4.2 Market risk

4.2.1 SCOR FACES RISKS RELATED TO ITS FIXED INCOME INVESTMENT PORTFOLIO

A. SCOR is exposed to interest rate risks

Interest rate fluctuations have direct consequences on the market value of SCOR's fixed income investments and therefore on the level of unrealized capital gains or losses of the fixed-income securities held in its portfolio. The return on the securities held also depends on changes in interest rates. Interest rates are very sensitive to a number of external factors, including monetary and budgetary policies, the national and international economic and political environment, and the risk aversion of economic agents.

During periods of declining interest rates, income from investments is likely to fall due to investment of net cash flows at rates lower than those of the existing portfolio (dilutive effect of new investments). During such periods, there is therefore a risk that SCOR's return on equity objectives are not met. In addition, in these periods of declining interest rates, fixedincome securities are more likely to be redeemed early in cases where bond issuers benefit from an early redemption option and can borrow at lower interest rates. Consequently the probability of needing to reinvest the proceeds at lower interest rates is increased.

On the other hand, an increase in interest rates and/or fluctuations in the capital markets could lead to a fall in the market value of fixed income securities that we hold. In the case of a need for cash, SCOR may be obliged to sell fixed income securities, possibly resulting in capital losses to the Group.

The Group analyses the impact of a major change in interest rates on each of its investment portfolios and at the global level. Here, it identifies the unrealized capital loss that would result from a rise in interest rates. The instantaneous unrealized capital loss is measured for a uniform increase of 100 basis points in rates or in the event of a distortion of the structure of the yield curve. Portfolio sensitivity analysis to interest rate changes is an important risk measurement and management tool which may lead to decisions for reallocation or hedging.

However, there can be no assurance that its risk management measures and sensitivity analysis will be sufficient to protect the Group against all the risks related to variations in interest rates.

For information on the maturities of financial assets and liabilities, related interest rates and sensitivities to interest rate fluctuations as well as the allocation of the fixed income securities portfolio by rating of the issuer, see "Section 20.1.6 – Notes to the financial statements, Note 26 – Insurance and Financial Risk."

B. SCOR is exposed to possible widening in credit spreads which could increase the net unrealized loss portion of the investment portfolio and adversely affect its results of operations.

The Group's exposure to credit spreads primarily relates to market price and cash flow variability associated with changes in credit spreads in its investment portfolio. Recent credit spreads on both corporate and structured securities have widened, resulting in continuing depressed valuations. Market volatility can make it difficult to value certain of the securities in its investment portfolio if trading becomes less frequent. Accordingly, valuations of investments may include assumptions or estimates that may have significant period to period changes due to market conditions, which could have a material adverse effect on SCOR's consolidated results of operations or financial condition.

See "Section 4.1.14 – SCOR is exposed to losses due to counterparty default risks or credit risks – A. Fixed income portfolios."

See "Section 20 – Note 26, Insurance and financial risk – Market risk" for further information on risk mitigation actions.

4.2.2 SCOR FACES RISKS RELATED TO ITS EQUITY-BASED PORTFOLIO

SCOR is also exposed to equity price risk. A widespread and sustained decline in the equity markets could result in an impairment of its equity portfolio. Such an impairment could affect its net income.

The Group's exposure to the equity market results both from direct purchases and through certain (re)insurance products including GMDB business. See "Section 4.1.4 – SCOR could be subject to increased reserves from business that it does not actively underwrite."

Equity prices are likely to be affected by risks which affect all of the market (uncertainty on economic conditions in general, such as changes in gross domestic product ("GDP"), inflation, interest rates, sovereign risk, etc.) and/or by risks which influence a single asset or a small number of assets (specific or idiosyncratic risk).

The impact of a uniform drop of 10% in equity markets is included in "Section 20.1.6 – Notes to the financial statements, Note 26 – Insurance and Financial Risk."

SCOR is, therefore, exposed to a risk of capital losses on its equity exposures — if it were to occur — which could adversely impact its business, present and future revenues, net income, cash flows, financial position, and potentially, the price of its securities.

See "Section 20 – Note 26, Insurance and financial risk – Market risk" for further information on risk mitigation actions.

4.2.3 SCOR IS EXPOSED TO OTHER RISKS ARISING FROM THE INVESTMENTS IT OWNS

A. Valuation risk

Some financial instruments do not have a sufficient and recurrent number of transactions to allow valuation with reference to a market price and therefore need to be valued using an appropriate model. There is a risk that the price provided by the model is noticeably different from the price which would be observed in the event of rapid disposal of the financial instrument, which could have an adverse effect on SCOR's financial position. This risk is higher for non-listed assets, structured products (e.g. asset backed securities, collateralized debt obligations, collateralized loan obligations, collateralized mortgage obligations, commercial mortgage backed securities, residential mortgage backed securities, structured notes, etc.) and on the alternative investment portfolio (e.g. hedge funds, infrastructure, commodities, private equity, etc.).

For further details on valuation, refer to "Section 20.1.6 – Notes to the financial statements, Note 6 – Insurance Business Investments." See also "Section 4.2.5 – The valuation of SCOR's intangible assets and deferred tax assets may significantly affect its shareholders' equity and the price of its securities."

B. Market disruption

The financial markets context remains uncertain and exposes SCOR to significant financial risks linked to changes in macroeconomic variables, inflation, interest rates and sovereign debts, credit spreads, equity markets, commodities, exchange rates and real estate securities but also to changes in the models used by the rating agencies. Due to the current economic and financial environment, the Group may also be faced with the deterioration of the financial strength or rating of some issuers.

C. Real estate risks

The rental income of the property portfolio is exposed to the variation of the indices on which the rents are indexed (in France, the Construction Cost Index) as well as risks related to the rental market (changes in supply and demand, changes in vacancy rates, impact on market rental values or rent renewals) and the default of lessees.

The value of property assets, owned directly or through funds, is exposed to changes in the investment market itself (changes in interest rates, liquidity) but potentially also to the risk of regulatory obsolescence of properties (regulatory developments related to the accessibility of buildings for handicapped people, on the reduction of energy consumption and the production of carbon dioxide, etc.) which would lead to losses of value in the event of a sale of the assets or to additional expenditure to restore the value of the property.

D. "Side Pockets" or "gates"

SCOR holds shares of private equity or hedge funds or funds of funds in its alternative assets portfolio. Some of these funds have the possibility to temporarily restrict the liquidity of these shares pursuant to restrictions that are commonly referred to as "side pockets" or "gates." The Group does not hold a material portfolio of such assets.

The occurrence of one or more of the above risks could have a material adverse impact on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

See "Section 20 – Note 26, Insurance and financial risk – Market risk" for further information on risk mitigation actions.

4.2.4 SCOR IS EXPOSED TO FOREIGN CURRENCY EXCHANGE RATE FLUCTUATIONS

Currency risk is the risk that the fair value or future cash flows of a financial instrument or balance sheet amount will fluctuate because of changes in foreign exchange rates. The following types of foreign exchange risk have been identified by SCOR:

A. Transaction risk

Fluctuations in exchange rates can have consequences on SCOR's reported net income because of the conversion results of transactions expressed in foreign currencies, the settlement of balances denominated in foreign currencies and the lack of perfect matching between monetary assets and liabilities in foreign currencies.

B. Translation risk

SCOR publishes its consolidated financial statements in euros, but a significant part of its income and expenses, as well as its assets and liabilities, are denominated in currencies other than the Euro. Consequently, fluctuations in the exchange rates used to convert these currencies into Euros may have a significant impact on its reported net income and net equity from year to year.

SCOR's main non-French legal entities are located in Switzerland, the Americas, the U.K. and Asia Pacific. The shareholders' equity of these entities is denominated mainly in euros, U.S. dollars, Canadian dollars or British pounds.

As a result, changes in the exchange rates used to convert foreign currencies into Euros, particularly the fluctuation of the U.S. dollar against the euro, have had and may have in the future, an adverse effect on the Group's consolidated shareholders' equity. SCOR does not fully hedge its exposure to this risk. The impact of the fluctuation in the exchange rates used to translate foreign currencies into Euros on its consolidated shareholders' equity is described in "Section 20.1.5 – Consolidated Statements of Changes in Shareholders' Equity."

SCOR has issued debt instruments in currencies other than the euro, currently U.S. dollars and Swiss Francs, and to the extent that these are not used as a hedge against foreign currency investments, it is similarly exposed to fluctuations in exchange rates.

Forward sales and purchases of currencies are included in "Section 20.1.6 – Notes to the financial statements, Note 8 – Derivative Instruments."

Some events, such as catastrophes, can have an impact on the matching of assets and liabilities in a currency, which can generate a temporary unmatched position which is not covered by currency contracts or hedges.

For the consolidated net position of assets and liabilities by currency, and for an analysis of sensitivity to exchange rates, refer to "Section 20.1.6 – Notes to the financial statements, Note 26 – Insurance and Financial Risk."

In spite of the measures to control and reduce SCOR's exposure to fluctuations of exchange rates of major currencies, such fluctuation could have a material adverse impact on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

4.2.5 THE VALUATION OF SCOR'S INTANGIBLE ASSETS AND DEFERRED TAX ASSETS MAY SIGNIFICANTLY AFFECT ITS SHAREHOLDERS' EQUITY AND THE PRICE OF ITS SECURITIES

A significant portion of SCOR's assets consists of intangible assets, the value of which depends on its expected future profitability and cash flow. The valuation of intangible assets also assumes that the Group is making subjective and complex judgments concerning items that are uncertain by nature. If a change were to occur in the assumptions underlying the valuation of its intangible assets (including goodwill, VOBA and DAC), SCOR would have to reduce their value, in whole or in part, thereby reducing shareholders' equity and its results.

The recognition of deferred tax assets, i.e., the likelihood of recognizing sufficient profits to offset losses in the future, depends on applicable tax laws and accounting methods as well as the performance of each entity concerned. The occurrence of events, such as changes in tax legislation or accounting methods, operational earnings lower than currently projected or losses continuing over a longer period than originally planned could lead to the derecognition of deferred tax assets.

Acquisition costs, including commissions and underwriting costs, as well as the VOBA for life reinsurance, and the contractual rights with clients are recognized as assets subject to the profitability of the contracts. They are amortized on the basis of the residual term of the contracts in Non-Life, and on the basis of the pattern of recognition of future margins for Life contracts. As a result, the assumptions considered concerning the recoverable nature of the deferred acquisition costs, are affected by factors such as operating results and market conditions. If the assumptions for recoverability of DAC or VOBA are no longer appropriate, it would then be necessary to accelerate amortization.

Details of intangible assets, related impairment testing policy and recent acquisitions is included in "Section 20.1.6 – Notes to the financial statements, Note 1 – Accounting Principles and Methods; Note 3 – Acquisitions; Note 4 – Intangible Assets; and Note 19 – Income Tax."

Considering the above, SCOR is exposed to the risks related to the assessment of impairment of intangible assets and derecognition of deferred tax assets, given that such assessments are notably based on assumptions and subjective opinions. Those assessments, if they were to be revised, could have a material adverse impact on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

4.3 Liquidity risk

4.3.1 SCOR FACES LIQUIDITY REQUIREMENTS IN THE SHORT TO MEDIUM TERM IN ORDER TO COVER, FOR EXAMPLE, CLAIMS PAYMENTS, OPERATIONAL EXPENSES AND DEBT REDEMPTIONS. IN THE CASE OF CATASTROPHE CLAIMS, IN PARTICULAR, IT MAY NEED TO SETTLE AMOUNTS WHICH EXCEED THE AMOUNT OF AVAILABLE LIQUIDITY

SCOR needs liquidity to pay its operating expenses, interest on its debt and dividends on its capital stock, and replace certain maturing liabilities. Without sufficient liquidity, the Group may be forced to curtail its operations, and business will suffer. The principal internal sources of the Group's liquidity are insurance premiums, cash flow from its investment portfolio and assets, consisting mainly of cash or assets that are readily convertible into cash.

Liquidity risk is increased in situations of market disruption as SCOR may need to sell a significant portion of its assets quickly and at unfavorable terms. Additional information on the Group's liquid assets is included in "Section 20.1.6 – Notes to financial statements, Note 6 – Insurance Business Investments."

Some facilities SCOR uses to grant letters of credit to cedants require a 100% collateral in case of non-compliance with financial covenants or in case of a decrease in the Group's financial strength rating. Significant changes in the Group's solvency or rating could force it to collateralize these facilities at 100%, which would thus result in a deterioration of its liquidity level. Additional information on SCOR's letter of credit facilities is included in "Section 20.1.6 — Notes to financial statements, Note 25 – Commitments Received and Granted."

Considering the above, SCOR is exposed to risks of short-term or medium-term payouts, and it cannot be guaranteed that it will not be exposed to such risks in the future, which could have a material adverse impact on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

Additional information on the timing of repayments is included in "Section 20.1.6 – Notes to the consolidated financial statements, Note 26 – Insurance and Financial Risk."

4.3.2 ADVERSE CAPITAL AND CREDIT MARKET CONDITIONS MAY SIGNIFICANTLY AFFECT SCOR'S ABILITY TO ACCESS CAPITAL AND/OR LIQUIDITY OR INCREASE THE COST OF CAPITAL

The capital and credit markets have been experiencing extreme volatility and disruption. In some cases, the markets have exerted downward pressure on availability of liquidity and credit capacity for certain issuers.

External sources of liquidity in normal markets include a variety of short- and long-term instruments, including repurchase agreements, commercial paper, medium- and long-term debt, junior subordinated debt securities, capital securities and stockholders' equity.

In the event current internal and/or external resources do not satisfy its needs, SCOR may have to seek additional financing. The availability of additional financing will depend on a variety of factors such as market conditions, the general availability of credit, the volume of trading activities, the overall availability of credit to the financial services industry, its credit ratings and credit capacity, as well as the possibility that customers or lenders could develop a negative perception of its long- or short-term financial prospects if the Group incurs large investment losses or if the level of its business activity decreased due to a market downturn. Similarly, access to funds may be impaired if regulatory authorities or rating agencies take negative actions against SCOR. Internal sources of liquidity may prove to be insufficient, and in such case, SCOR may not be able to successfully obtain additional financing on favorable terms, or at all.

Disruptions, uncertainty or volatility in the capital and credit markets may also limit the Group's access to capital required to operate its business, most significantly its insurance operations. Such market conditions may limit its ability to replace, in a timely manner, maturing liabilities; satisfy statutory capital requirements; generate fee income and market-related revenue to meet liquidity needs; and access the capital necessary to grow its business. As such, SCOR may be forced to delay raising capital, issue shorter term securities than it prefers, or bear an unattractive cost of capital which could decrease its profitability and significantly reduce its financial flexibility. The group's results of operations, financial condition, cash flows and statutory capital position could be materially adversely affected by disruptions in the financial markets.

4.4 Legal risk

4.4.1 SCOR IS EXPOSED TO RISKS RELATED TO LEGISLATIVE AND REGULATORY CHANGES AND POLITICAL, LEGISLATIVE, REGULATORY OR PROFESSIONAL INITIATIVES CONCERNING THE INSURANCE AND REINSURANCE SECTOR, WHICH COULD HAVE ADVERSE CONSEQUENCES FOR ITS BUSINESS AND ITS SECTOR

The operations of the Group and its subsidiaries are subject to regulatory requirements within the jurisdictions where they operate. Such regulations not only prescribe the approval and monitoring of activities, but also impose certain restrictive provisions (e.g., statutory capital adequacy) to meet unforeseen liabilities as these arise, in order to minimize the risk of default and insolvency.

As of this date, SCOR is subject to comprehensive and detailed regulations and to the supervision of the insurance and reinsurance regulatory authorities in all countries in which it operates. Changes in existing laws and regulations may affect the way in which it conduct its business and the products it may offer or the amount of reserves to be posted, including on claims already declared. Insurance and reinsurance supervisory authorities have broad administrative power over many aspects of the reinsurance industry and SCOR cannot predict the timing or form of any future regulatory initiatives. Furthermore, these authorities are concerned primarily with the protection of policyholders and policy beneficiaries, rather than shareholders or creditors. The diversity of the regulations to which the Group is subject has been substantially reduced by the implementation into French law of Directive n. 2005/68/EC (the "2005 Directive") dated November 16, 2005, by ordinance n. 2008-556 of June 13, 2008 and application decrees n. 2008-711 of July 17, 2008 and n. 2008-1154 of November 7, 2008, as well as a regulation (arrêté) of November 7, 2008. The 2005 Directive prescribes the application of a "single passport" and confers the supervision of EU reinsurance companies upon the supervisory authorities of the headquarters of the company. This should simplify and clarify the supervisory conditions applicable to the Group, in the EU at least. Moreover the 2005 Directive, implemented into national law, establishes regulations relating to reserves and to the Life and Non-Life solvency margins applicable to the Group as of 2008 in France and in all European countries. The 2005 Directive defines minimal conditions common to all member States of the European Union, and gives national legislators the option to set more stringent requirements. The national provisions adopted for the implementation of this Directive and their interpretations, as well as other legislative or regulatory changes, increase the harmonization of regulations governing reinsurers with the regulations governing insurers. These new regulations may increase solvency margin obligations, thereby restricting SCOR's underwriting capacity.

The reinsurance sector has been exposed in the past –and may be in the future – to involvement in legal proceedings, regulatory inquiries and actions by various administrative and regulatory authorities, as well as to regulation concerning certain practices used in the insurance sector. This involvement notably concerned agreements over the payment of "contingency commissions" by insurance companies to their agents or brokers and the consequences of such payments on competition between insurance operators, as well as the accounting of various alternative risk transfer products. Insurers appear to have put a stop to various commercial contingency commissions; a development which has spread to reinsurers in terms of the business they underwrite through brokers.

In addition to this, the public authorities in the U.S. and the rest of the world are closely examining the potential risks presented by the reinsurance sector as a whole, as well as their consequences on commercial and financial systems in general.

Adverse changes in laws or regulations or an adverse outcome of these proceedings could have adverse effects on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

See "Appendix B – II. Internal control and risk management procedures, C. Principal activities and participants of risk control" for further information on risk mitigation actions.

4.4.2 INCONSISTENT APPLICATION OF EU DIRECTIVES BY REGULATORS IN DIFFERENT EU MEMBER STATES MAY PLACE SCOR'S BUSINESS AT A COMPETITIVE DISADVANTAGE TO OTHER EUROPEAN FINANCIAL SERVICES GROUPS

Insurance regulation in France is largely based on the requirements of EU Directives. Inconsistent application of directives by regulators in different EU member states may place SCOR's business at a competitive disadvantage to other European financial services groups. In addition, changes in the local regulatory regimes of designated territories could affect the calculation of its solvency position and have a material adverse impact on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

4.4.3 CHANGES IN CURRENT ACCOUNTING PRACTICES AND FUTURE PRONOUNCEMENTS MAY MATERIALLY IMPACT SCOR'S REPORTED FINANCIAL RESULTS

Unanticipated developments in accounting practices may require SCOR to incur considerable additional expenses to comply with such developments, particularly if it is required to prepare information relating to prior periods for comparative purposes or to apply the new requirements retroactively. The impact of changes in current accounting practices and future pronouncements cannot be predicted but may affect the calculation of net income, net equity and other relevant financial statement line items and the timing of when impairments and other charges are tested or taken. In particular, recent guidance and ongoing projects put in place by standard setters globally have indicated a possible move away from the current insurance accounting models toward more "fair value" based models which could introduce significant volatility in the earnings of insurance industry participants.

See "Appendix B – II. Internal control and risk management procedures, C. Principal activities and participants of risk control" for further information on risk mitigation actions.

4.4.4 IN 2010, THE U.S. CONGRESS ENACTED THE DODD FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT ("DODD-FRANK ACT"), WHICH COULD HAVE AN ADVERSE IMPACT ON SCOR'S BUSINESS

On July 21, 2010, President Obama signed into law the Dodd-Frank Act which effects sweeping changes to financial services regulation in the U.S. The Dodd-Frank Act establishes the Financial Services Oversight Council ("FSOC"), which is authorized to recommend that certain systemically significant non-bank financial companies, including insurance companies, be regulated by the Board of Governors of the Federal Reserve. The Dodd-Frank Act also establishes a Federal Insurance Office ("FIO") and in limited instances authorizes the federal preemption of certain state insurance laws. The FSOC and FIO are authorized to study, monitor and report to Congress on the U.S. insurance industry and the significance of global reinsurance to the U.S. insurance market. The potential impact of the Dodd-Frank Act on the U.S. insurance business is not clear, however, SCOR's business could be materially and adversely affected by changes to the U.S. system of insurance regulation or its designation or the designation of insurers or reinsurers with which it does business as systemically significant non-bank financial companies.

See "Appendix B – II. Internal control and risk management procedures, C. Principal activities and participants of risk control" for further information on risk mitigation actions.

4.4.5 CAPITAL AND LIQUIDITY MAY NOT BE COMPLETELY FUNGIBLE BETWEEN DIFFERENT REGULATED LEGAL ENTITIES, WHICH MAY HAVE NEGATIVE CONSEQUENCES FOR THE LEGAL ENTITIES.

SCOR's regulated legal entities must satisfy local regulatory capital requirements and must have sufficient liquidity to pay claims and expenses. In certain circumstances, and depending on local regulations, it may be difficult to transfer capital or liquidity to a legal entity which could have negative consequences for the legal entity concerned and have a material adverse impact on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

See "Appendix B – II. Internal control and risk management procedures, C. Principal activities and participants of risk control" for further information on risk mitigation actions.

4.4.6 SCOR IS EXPOSED TO RISKS LINKED WITH SOLVENCY II IMPLEMENTATION

The "Solvency II" European Directive, no. 2009/138/CED of November 25, 2009, related to the solvency standards applicable to insurers and reinsurers ("Solvency II Directive"), defines the principles and rules that will apply to the appreciation and control of risk in order that the companies in the sector will be able to attain their strategic, operational, analysis, reporting and compliance objectives.

The European Commission is focused on concluding the development of the Level 2 implementing measures that will establish the technical requirements governing the practical application of Solvency II. The Solvency II Directive will be amended by the Omnibus II Directive, a provisional version of which the European Commission published, that should be amended in early 2012 by the European Parliament. The official effective date was extended to 1 January 2014, but there could be further delays.

The new regime represents a significant change in the basis for regulating insurance business in Europe. SCOR has to review its regulatory capital structures and implement the systems, processes and cultural changes necessary to meet the new requirements.

Under Solvency II regulations, some of the Group's cedants' credit models will depend on its financial rating. If its rating deteriorates, these cedants could be forced to increase their capital charge in respect of their counterparty risk on SCOR.

Although it is of course not possible to quantify the impact of these requirements, nor their scope, it is very likely that risk management and control measures will be reinforced for reinsurers in the near future, which may in turn result in an increase in regulatory capital requirements (or a reduction in the underwriting capacity) and increase its operating costs.

4.4.7 SCOR IS EXPOSED TO CERTAIN LITIGATION MATTERS

SCOR is involved in legal and arbitration proceedings in certain jurisdictions, particularly in Europe and in the U.S. For more information on this issue, refer to "Section 20.1.6 – Notes to the financial statements, Note 27 — Litigation."

An unfavourable outcome in one or more of the court or arbitration proceedings described above could have a material adverse impact on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

See "Appendix B – II. Internal control and risk management procedures, C. Principal activities and participants of risk control" for further information on risk mitigation actions.

4.4.8 SCOR'S POSITIONS ON TAX ACCOUNTS ARE SUBJECT TO AUDIT AND APPROVAL BY TAX AUTHORITIES

SCOR operates in numerous tax jurisdictions around the world. Tax risk is the risk associated with changes in tax law or in the interpretation of tax law. Additionally, tax laws and regulations may change with retroactive impact. Tax risk also includes the risk of changes in tax rates and the risk of failure to comply with procedures required by tax authorities. Failure to manage tax risks could lead to an additional tax charge. It could also lead to a financial penalty for failure to comply with required tax procedures or other aspects of tax law. If, as a result of a particular tax risk materializing, the tax costs associated with particular transactions are greater than anticipated, it could affect the profitability of those transactions.

There are also specific rules governing the taxation of policyholders. SCOR will be unable to accurately predict the impact of future changes in tax law on the taxation of life insurance in the hands of policyholders. Amendments to existing legislation (particularly if there is the withdrawal of any tax relief or an increase in tax rates) or the introduction of new rules may affect the future long term business and the decisions of policyholders. The impact of such changes upon the Group might depend on the mix of business in force at the time of such change and could have a material adverse effect on its business, results of operations and/or financial condition.

The design of life insurance products by SCOR's life insurance companies takes into account a number of factors, including risks, benefits, charges, expenses, investment returns (including bonuses) and taxation. The design of long term insurance products is based on the tax legislation in force at that time. Changes in tax legislation or in the interpretation of tax legislation may therefore, when applied to such products, have a material adverse effect on the financial condition of the relevant long term business fund of the entity in which the business was written and have a material adverse impact on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

4.5 Other risk

4.5.1 SCOR'S ORDINARY SHARES PRICE COULD BE VOLATILE AND COULD DROP UNEXPECTEDLY AND INVESTORS MAY NOT BE ABLE TO SELL THEIR ORDINARY SHARES AT OR ABOVE THE PRICE THEY PAID

The price at which SCOR's Ordinary Shares will trade may be influenced by a large number of factors, some of which will be specific to the Group and its operations and some of which will be related to the insurance industry and equity markets generally. As a result of these factors, investors may not be able to resell their Ordinary Shares at or above the prices which they paid for them. In particular, the following factors, in addition to other risk factors described in this section, may have a significant impact on the market price of Ordinary Shares:

• a downgrade or rumored downgrade of SCOR's credit or financial strength ratings, including placement on credit watch;
• potential litigation involving the Group or the insurance or reinsurance industry generally;
• changes in financial estimates and recommendations by securities research analysts;
• fluctuations in foreign exchange rates and interest rates;
• the performance of other companies in the insurance or reinsurance sector;
• regulatory and legal developments in the principal markets in which SCOR operates;
• international political and economic conditions, including the effects of terrorism attacks, military operations and other developments stemming from such events and the uncertainty related to these developments;
• investor perception of SCOR, including actual or anticipated variations in its revenues or operating results;
• SCOR's announcements of acquisitions, disposals or financings or speculation about such acquisitions, disposals or financings;
• changes in dividend policy, which could result from changes in SCOR's cash flow and capital position;
• sales of blocks of SCOR's shares by shareholders; and
• general economic and market conditions.

4.6 Insurance of specific operational risks (excluding reinsurance activity)

SCOR is exposed to specific operational risks. See "Section 4.1.11 – Operational risks, including human errors or computer system failure, are inherent in SCOR's business." Some operational risks are transferred in whole or in part to direct insurers as follows:

• The properties and other assets of SCOR and its subsidiaries
• Civil liability risks related to the operation of the company caused by employees and real estate, professional liability risks, civil liability risks of directors and officers, and fraud.

Nevertheless, these insurance covers could prove insufficient or the insurance company could possibly contest their liability and towards SCOR. This could have a material adverse impact on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

4.7 Risk and litigation: Provisioning methods

Refer to "Section 20.1.6 – Notes to the financial statements, Note 1 – Accounting principles and methods."

INFORMATION ABOUT THE ISSUER

5.1	History and development of the issuer	42
5.2	Investments	47

5 INFORMATION ABOUT THE ISSUER

5.1 History and development of the issuer

5.1.1 LEGAL NAME AND COMMERCIAL NAME OF ISSUER

Legal name: SCOR SE Commercial name: SCOR

5.1.2 PLACE AND REGISTRATION NUMBER OF ISSUER

R.C.S. number: Paris 562 033 357

A.P.E. Code: 6520Z

5.1.3 DATE OF INCORPORATION AND LENGTH OF LIFE OF ISSUER

Incorporated: 16 August 1855 under the name Compagnie Impériale des Voitures de Paris; name changed to SCOR S.A. on 16 October 1989, to SCOR on 13 May 1996, then to SCOR SE on 25 June 2007.

Expiration: 30 June 2024 unless otherwise extended or previously dissolved.

5.1.4 DOMICILE AND LEGAL FORM OF ISSUER, LEGISLATION GOVERNING ITS ACTIVITIES, COUNTRY OF INCORPORATION, ADDRESS AND TELEPHONE NUMBER OF ITS REGISTERED OFFICE

5.1.4.1 Registered office and contact information of issuer

SCOR SE 5, avenue Kléber 75116 PARIS France Tel. : +33 (0) 1 58 44 70 00 Fax : +33 (0) 1 58 44 85 00 www.scor.com E-mail: scor@scor.com 5.1.4.2 Legal form and applicable legislation

A. Corporate law

SCOR SE is a European Company (Societas Europaea) governed by the provisions of Council Regulation (EC) No. 2157/2001, dated 8 October 2001 on the Statute for a European Company (the "SE Regulation"), and that of the European Council Directive 2001/86/EC of 8 October 2001 supplementing the Statute for a European Company with regard to the involvement of employees, and by the provisions of French law relating to European Companies, as well as for all other matters partially covered or not covered by the SE Regulation, by the French corporate law provisions applicable to a société anonyme, where not contrary to the specific provisions applicable to European Companies.

On 24 May 2007, the annual General Shareholders' Meeting approved the conversion of the Company into a European Company or Societas Europaea, pursuant to Articles 1 §1, 2 §4 and 37 of the SE Regulation, and Article L. 225-245-1 of the Commercial Code, thereby becoming, on 25 June 2007, the first French listed company to adopt the Societas Europaea statute.

Following approval of this conversion, SCOR SE is registered with the Nanterre Trade and Companies Register under the corporate name SCOR SE and has taken the form of a European company as of the date of such registration.

The conversion did not result in either the dissolution of SCOR SE or the creation of a new legal entity.

The conversion had no impact upon the rights of the Company's shareholders or bondholders who automatically became shareholders and bondholders of SCOR SE without any action being required on their part. They remain shareholders and bondholders in proportion to their rights acquired prior to the completion of the conversion. Thus, the financial liability of each shareholder of SCOR SE is limited to the amount of his subscription prior to the conversion. The proportion of the voting rights held by each shareholder in the Company has not been affected by the conversion into a European Company.

The conversion in itself did not have any impact on the value of the SCOR SE shares. The number of shares issued by the Company was not changed as a result of the conversion and the shares of the Company, remain listed on the Eurolist market of Euronext Paris. As of the date of this Registration Document, the SCOR SE shares are also listed on the SIX Swiss Exchange (formerly SWX Swiss Exchange) in Zurich since 8 August 2007 and tradable over-the-counter on the Frankfurt Stock Exchange. The Company's American Depositary Shares which were listed on the New York Stock Exchange since 11 October 1996 were delisted on 14 June 2007 and the Company's securities were deregistered with the Securities and Exchange Commission (SEC) on 4 September 2007.

B. Insurance law

In Europe

Specific provisions apply to the reinsurance activity of SCOR. Under the Reinsurance Directive 2005/68/EC dated 16 November 2005, implemented into French law by ordinance n. 2008-556 of 13 June 2008 and application decrees n. 2008-711 of 17 July 2008, and n. 2008-1154 of 7 November 2008, as well as regulation (arrêté) of 7 November 2008, reinsurance companies and their subsidiaries situated in a country within the European Union, are subject to state control, under the conditions defined by Book III of the French Insurance Code. The Reinsurance Directive also states rules for the offsetting of underwriting reserves by assets and the rules of acceptability of assets.

The main provisions are:

• French companies, whose exclusive business is reinsurance, can only practice after having obtained an administrative license, issued by the Autorité de Contrôle Prudentiel (ACP - prudential control Authority) and published in the Official Journal. The licenses for SCOR SE, SCOR Global Life SE and SCOR Global P&C SE were validated by virtue of the decision of the President of the Comité des Entreprises d'Assurances (Committee for Insurance Companies, now merged into the prudential control Authority), dated 15 July 2008.
• the authorized reinsurers in France can thus operate in the European Union and in the European Economic Area ("EEA") relying on the freedom to provide services and/or on establishment (branches).
• European reinsurance companies are under an obligation to meet the defined regulatory solvency demand, to establish a guarantee fund and to put a permanent internal control policy in place.
• the obligation imposed upon reinsurers, to establish an adequate solvency margin, aims to protect the insurance companies, and hence, the consumers, in order to ensure that in the event of a decline in business or in investment income, the reinsurance companies have additional reserves, protecting those interests and consequently, the policy holders, while providing both executives and oversight and regulatory authorities with sufficient time to resolve the problems that have arisen. In Switzerland, the Group subsidiaries apply the federal law dated 17 December 2004, governing the oversight of insurance companies, which also governs reinsurance companies, which stipulates that an insurance company must have sufficient assets, free of any predictable commitment, for all its activities (solvency margin).
• reinsurers authorized in France and their branches are monitored by the prudential control Authority. The role of this body is to ensure that at any point, these entities are able to conform to the commitments that they have entered into with reinsurance companies and that they fulfill the regulatory solvency margin demands.
• The prudential control Authority is authorized to address prevention measures and to issue warnings to the monitored company or its executives.

In the U.K., SCOR's Non-Life subsidiaries are regulated by the Financial Services Authority while Life subsidiaries in Ireland are regulated by the Central Bank of Ireland. In Sweden, the Group is in the process of transforming its Swedish subsidiary into a branch which, as of 2012, will no longer be regulated by the Swedish FSA.

Switzerland

In Switzerland, SCOR subsidiaries apply the federal law dated 17 December 2004 as amended "Insurance Supervision Act" and the federal law dated 20 June 2007 on Financial Market Supervision (FINMA), as amended, governing the oversight of insurance companies, which also governs reinsurance companies and stipulates that an insurance company must have sufficient assets, free of any predictable commitment, for all its activities (solvency margin).

In the United States

In the United States, the Group's reinsurance and insurance subsidiaries are regulated primarily by the insurance regulators in the state in which they are domiciled, but they are also subject to regulations in each state in which they are authorised or licensed. SCOR Reinsurance Company, the Group's main Non-Life subsidiary in the United States, is domiciled in the State of New York and SCOR Global Life Americas Reinsurance Company, the Group's main Life insurance subsidiary in the United States, is domiciled in North Carolina. The Group's other subsidiaries in the United States are currently domiciled in Arizona, Delaware, Florida and Texas.

Asia

SCOR offers Life and property and casualty coverage within the Asia Pacific region through a network of subsidiaries, branches, and service companies. It operates in Singapore, Hong Kong and Australia through subsidiaries. The Group also operates in China, India, New Zealand, Malaysia, Taiwan, Japan and Korea through branches or service companies. In the region, each entity is subject to local supervision regardless of legal form. The Asia Pacific region is made up of a number of widely differing and independent markets. Each has its own regulatory structures and SCOR complies with

the local regulation in each of the countries in which it operates. Industry regulation across the region typically focuses on financial stability and the basis for calculating solvency, reserves and policyholder liabilities. In many of the markets across the region, regulators have the power to revoke operating licenses, regulate shareholder structures and the participation in and the payment of dividends. Markets within the region are developing quickly with an increasing focus on governance and conduct of business.

5.1.5 IMPORTANT EVENTS IN THE DEVELOPMENT OF THE ISSUER'S BUSINESS

SCOR was founded in 1970, at the initiative of the French government and with the participation of the Paris insurance market place, to create a reinsurance company of international stature under the name of Société Commerciale de Réassurance. SCOR rapidly developed in various world markets, building up a substantial international portfolio.

At the beginning of the 1980s, the French government's stake in its share capital, held through the Caisse Centrale de Réassurance, was progressively reduced in favor of insurance companies that were active on the French market.

In 1989, the Group and UAP Reassurances, a subsidiary of the state-owned Société Centrale de l'Union des Assurances de Paris, combined their property and casualty and life reinsurance businesses as part of a restructuring of SCOR share capital. The Company listed its Ordinary Shares on the Paris stock exchange and changed its name to SCOR S.A. on 16 October, 1989 and to SCOR on May 13, 1996. The withdrawal of Compagnie UAP, which held 41% of the share capital, was completed in October 1996 via an international public offering at the time of SCOR listing on the New York Stock Exchange.

In July 1996, SCOR acquired the reinsurance portfolio of the American insurer Allstate Insurance Company, which doubled its then existing U.S. business.

In 2000, SCOR acquired Partner Re Life, a U.S. life reinsurer,, thus gaining a platform from which to expand its then existing life reinsurance business in the U.S. market.

In 2002, SCOR's subsidiary, Investors Insurance Corporation, or IIC, signed a cooperation agreement in the life reinsurance business with the Legacy Marketing Group of California for the distribution and management of annuity products in the U.S. IIC was sold in July 2011.

In 2003, the Group reorganized its Life reinsurance business. The companies of the Group transferred to SCOR Vie and its subsidiaries all of the Group's Life reinsurance business throughout the world. SCOR Vie, whose corporate name was changed to SCOR Global Life in 2006, and which became a European Company (Societas Europaea) in 2007, along with its subsidiaries, are all directly or indirectly wholly owned by its parent company, SCOR SE.

On 16 May 2006, SCOR transferred all of its non-life reinsurance business in Europe, including Property & Casualty Treaties (including Credit & Surety business). Large Corporate Accounts and Construction reinsurance to Société Putéolienne de Participations, a French subsidiary wholly owned by SCOR,whose corporate name was changed to SCOR Global P&C, effective retroactively to 1 January 2006. In 2007, SCOR Global P&C adopted the European Company (Societas Europaea) statute via a merger by absorption of SCOR Deutschland Rückversicherungs AG and SCOR Italia Riassicurazioni SpA.

On 21 November 2006, SCOR completed the acquisition of Revios Rueckversicherung AG ("Revios"), which secured its position as a top worldwide life reinsurer. Based in Cologne (Germany), Revios was the former Life reinsurance unit of Gerling Global Re Group, which developed successfully autonomously from 2002 onward. Revios had since developed into one of the leading European reinsurers specializing in Life reinsurance, with offices in 17 countries. SCOR combined Revios and SCOR Vie to create SCOR Global Life SE. SCOR Global Life SE is now one of its three primary operational entities (along with SCOR Global P&C SE and SCOR Global Investments SE, described below), with responsibility for the Life reinsurance business.

On 10 January 2007, SCOR increased the level of its investment (which stood at 10.2% since 1994) to 39.7% of the share capital and 40.2% of the voting rights of ReMark Group BV ("ReMark") and on 22 August 2007, SCOR Global Life SE announced that it held 98.67 % of the share capital of ReMark. Since 2009, SCOR Global Life SE holds 100% of the share capital of ReMark. Established in 1984, ReMark is an important player of the direct global marketing of Life insurance products. In August 2007, SCOR acquired,Converium (which became SCOR Holding (Switzerland) AG ("SCOR Holding Switzerland")). SCOR also listed its Ordinary Shares to trading in Swiss Francs on the SWX Swiss Exchange (which later became the SIX Swiss Exchange) in Zurich, thereby enabling Converium shareholders who tendered their Converium shares to SCOR (in exchange for SCOR's Ordinary Shares) in the context of the acquisition to keep their assets in the same currency and on the same stock exchange.

Following the acquisition of Converium's control, SCOR became the world's fifth-ranking global multi-line reinsurer (excluding Lloyd's of London), based on the 2009 pro forma gross written premiums of SCOR's operating entities according to"Standard & Poor's Global Reinsurance Highlights 2010,"

Following its integration of Revios and Converium, SCOR restructured its operations around six regional management platforms, or "Hubs." Each of the Hubs has local, regional and Group responsibilities, with the heads of each Hub reporting to the Group Chief Operating Officer. Each Hub includes the following functions: a Legal and Compliance Officer, a Head of Information Systems, a Head of Finance, a Head of Human Resources and a Risk Manager. The Hubs were progressively implemented:

• on 5 May 2008 for the Cologne Hub;
• on 20 May 2008 for the London Hub;
• on 18 June 2008 for the Americas Hub;
• on 27 June 2008 for the Asia Pacific Hub;
• on 27 January 2009 for the Zurich Hub;
• on 24 February 2009 for the Paris Hub.

For more information on the Hub structure, see "Section 7.1.1.5 - " Structuring in Hubs"

On 7 January 2008, SCOR Holding (Switzerland), the former Converium, delisted its ADSs from the NYSE. SCOR Holding (Switzerland) then requested the deregistration of its securities with the SEC. The deregistration of the securities of SCOR Holding (Switzerland) took place on 4 September 2008. Moreover, at the request of SCOR Holding (Switzerland), the SWX Swiss Exchange, by order dated 14 November 2007, delisted SCOR Holding (Switzerland)'s shares as from 30 May 2008.

On 31 July 2008, SCOR SE entered into an agreement with the Malakoff Médéric Group, the leading group in the French social protection market (providing supplementary retirement, health insurance and contingency plans), in order to acquire 100% of the share capital and voting rights of Prévoyance et Réassurance and its Life and health reinsurance subsidiary Prévoyance Ré. This acquisition was completed on 24 October 2008, and gave rise to the contribution by SCOR SE to the Malakoff Médéric Group of 3,459,075 of its treasury Ordinary Shares. In addition, Malakoff Médéric Group, in accordance with its commitment, acquired on the market, as from November 2008, an additional number of SCOR SE shares enabling it to hold 3% of the share capital and voting rights of SCOR SE. As part of the 31 July 2008 transaction, the Company entered into a five-year commercial agreement with Malakoff Médéric Group. Malakoff Médéric Group was later appointed as a director on the Board of Directors of the Company. Through this acquisition, SCOR increased its leading role in the French Life and Health reinsurance market and the social protection reinsurance market.

On 29 October 2008, SCOR announced its decision to create SCOR Global Investments SE, its asset management company (société de gestion de portefeuille) and third operational entity within the Group along with SCOR Global P&C SE and SCOR Global Life SE. This new company, incorporated on 2 February 2009, carries the asset management of SCOR's investments portfolio and implements the investment strategy as determined by the Group's Investment Committee chaired by the Group Chairman and Chief Executive Officer. SCOR Global Investments SE was approved by the French market regulator (Autorité des marchés financiers or "AMF") as a portfolio management company with effect from 15 May 2009. As a regulated asset management company, SCOR Global Investments SE carries out its activities on an arms-length basis and with the operational independence required under Article L. 214-9 of the French monetary and financial code. In 2011, SCOR Global Investments SE has managed assets solely for SCOR and not for third parties.

On 18 July 2009, SCOR Global Life US Reinsurance Company, a wholly-owned subsidiary of the Group, reached a definitive agreement to acquire XL Re Life America Inc., a subsidiary of XL Capital Ltd, for an amount of EUR 31 million. 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 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 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 10 May 2011.

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 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. 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. With US\$ 100 million in seed capital provided by the Group, Atropos marks the Group's entry into the business of third-party asset management. 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.

5.2 Investments

5.2.1 PRINCIPAL INVESTMENTS MADE OVER THE PAST THREE FINANCIAL YEARS

Refer to Section 20.1.6 – Notes to the consolidated financial statements - Note 26 - Insurance and financial risk for the detailed ranking by maturity of fixed-term investments in the Group's portfolio as at 31 December 2011.

Refer to Section 4.2.1 –The Group faces risks related to its fixed income investment portfolio - and 4.2.2 – The Group faces risks related to our equity based portfolio, for a description of risk management connected with its investments in debt instruments and equity securities.

Refer to Section 8 – Property, plant and equipment for a description of risk management connected with our investments in real estate.

5.2.1.1 Public offer upon the Converium shares

On 19 February 2007, SCOR SE announced that it had irrevocably secured 32.94% of the capital of Converium. The acquisition of the 32.94% stake in Converium was achieved through market purchases (8.3%) and the acquisition of blocks of shares from Patinex AG ("Patinex") and Alecta pensionsförsäkring, ömsesidigt ("Alecta"), representing respectively 19.8% and 4.8% of Converium's share capital. These blocks were acquired by purchase and contributions in kind pursuant to share purchase agreements (the "Share Purchase Agreements") and contribution treaties (the "Contribution Treaties") executed between SCOR SE and Patinex, on the one hand, dated 16 February 2007, and between SCOR SE and Alecta, on the other hand, dated 18 February 2007, with compensation consisting of 80% SCOR SE shares and 20% cash.

Under the terms of the Contribution Treaties, Patinex and Alecta have committed to contribute to the Company 23,216,280 and 5,680,000 Converium shares respectively, i.e. a total of 28,896,280 Converium shares (the "Contributions"). A description of the contributions can be found in the document drawn up by SCOR SE, filed with the AMF on 10 April 2007 under number E. 07-032 and in an additional document filed with the AMF on 23 April 2007 under number E. 07-039 (the "Document E"), for the purpose of the company's General Shareholders' Meeting, held on 26 April 2007, called to approve the contributions and to vote on issuance of new shares as compensation for the contributions (the "Contributed Shares").

On 26 February 2007, the Company published a pre-announcement of a mixed public offer in Switzerland (the "Offer") for all of the publicly-held registered shares comprising Converium's share capital, with a nominal value of 5 Swiss Francs per share, including all shares that may be issued prior to the expiration of the offer period (including all additional delays for accepting the Offer) and excluding those shares held by Converium or acquired in the future by Converium or its subsidiaries, as well as those Converium shares admitted to trading on the New York Stock Exchange (NYSE) through an American Depositary Shares program (the "Converium Shares"). The total number of Converium shares able to be contributed to the Offer was set at 106,369,112. Under the terms of the Offer, the company offered Converium shareholders, in exchange for each share of Converium, (i) 0.5 share of SCOR SE; (ii) 5.50 Swiss francs and (iii) 0.40 euro in cash, equal to 50% of the amount of the per share dividend for financial year 2006 paid out by SCOR SE share and converted into Swiss francs on the basis of the euro/Swiss franc exchange rate in effect on the day the Offer is executed (the "Counterpart of the Offer"). The terms and conditions of the Offer are detailed in the Offer Prospectus which was published and filed with the Swiss takeover board ("TOB") as of 5 April 2007 as amended on 12 June 2007 (the "Offer Prospectus"). The TOB then released a recommendation (the "IV Recommendation") pursuant to which the Offer was compliant with the Swiss laws and regulations upon takeovers.

SCOR SE's Extraordinary General Shareholders' Meeting of 26 April 2007, approved the sixth resolution, regarding the decision to proceed with a capital increase by issuing (without preferential subscription rights) new shares of SCOR SE, attributed to Converium shareholders who have tendered their shares the Offer. The terms and conditions of this issue are described in the issue and eligibility prospectus approved by the AMF on 10 April 2007 under number 07-115, as amended by the first amendment approved by the AMF on 23 April 2007 under number 07-131 and by the second amendment approved by the AMF on 12 June 2007 under number 07-183 (the "Issue and Eligibility Prospectus").

92,969,353 Converium shares were presented for acceptance of the Offer opened from 12 June to 9 July 2007, with a supplementary acceptance period opened from 13 to 26 July 2007. The settlement/delivery of the Offer was executed according to the procedures appearing in the Offer Prospectus and SCOR proceeded to issue 46,484,676 new shares on 8 August 2007, with a unit price of EUR 18.79, including EUR 10.9130277 in issue premium and EUR 7.8769723 of face value; SCOR SE paid the Converium shareholders who contributed their shares to the Offer, a total amount of CHF 511,331,441.50 as payment of CHF 5.50 per Converium share contributed, and a total amount of EUR 37,187,741.20 as payment of EUR 0.40 per Converium share contributed, i.e. CHF 61,400,679.50 after conversion into Swiss francs on the basis of the Euro/Swiss franc exchange in effect on the date the Offer was executed.

The cash portion of the Counterpart of the Offer, including the increase in the counterpart declared on 10 May 2007, was financed out of SCOR SE's own total equity.

5.2.1.2 Cancellation of the shares of SCOR (Holding) Switzerland

On 22 October 2007, SCOR announced that it held more than 98% of the voting rights of SCOR Holding (Switzerland) (formerly Converium) and thus that the Group met the conditions necessary for the filing of a cancellation action with respect to the remaining shares of SCOR Holding (Switzerland) not owned by the Group, in order for the Group to become the sole shareholder of SCOR Holding (Switzerland). Such cancellation procedure is a court procedure initiated in compliance with Swiss laws before a Swiss Court pursuant to which a shareholder holding more than 98% of the voting rights of a company may request the cancellation of the shares held by the minority shareholders in consideration for a counterpart strictly identical to that offered in the context of a previous public offer. Immediately after the cancellation of the shares, the same amount of shares is issued to the benefit of the majority shareholder.

A request for cancellation of the 2,840,816 shares of SCOR Holding (Switzerland) was filed on 25 October 2007 with the Business Court of the canton of Zurich (Handelsgericht des Kantons Zürich), the counterpart in cash and shares offered within the context of this cancellation proceedings being identical to the counterpart made by SCOR SE in the mixed public offer in Switzerland for all of the publicly-held registered shares comprising Converium's share capital.

The order of the Commercial Court of Zurich was issued on 15 May 2008 and became effective on 20 May 2008; on 5 June 2008, the Board of Directors of SCOR SE decided, as a consideration for the 2,840,816 shares of SCOR Holding (Switzerland), to (i) issue 1,420,408 SCOR SE shares and (ii) to pay CHF 15,624,488 and (iii) EUR 1,136,326.40 corresponding to the dividend paid by SCOR SE for 2007 to be paid in Swiss francs at the exchange rate applicable on the day preceding the cancellation of the remaining shares, 5 June 2008 (i.e., EUR 1 = CHF 1.61630) (such amount being financed out of SCOR's own total equity).

Since 6 June 2008, all of the shares comprising the share capital of SCOR Holding (Switzerland) have been held by SCOR.

On 23 December 2008, the Federal Administrative Court ("FAC") (Bundesverwaltungsgericht) decided upon the appeal filed by SCOR against the decision rendered by the Swiss Federal Banking Commission on 13 July 2007. Pursuant to this decision, the Swiss Federal Banking Commission confirmed the position expressed by the Swiss Takeover Board in its Recommendation IV dated 9 June 2007, according to which Mr. Martin Ebner, Patinex and BZ Bank AG had acted in concert with SCOR in connection with the Offer. SCOR refutes this characterization and reaffirms that such physical person and legal entities did not act in concert with SCOR in connection with the Offer. With its decision of 23 December 2008, the FAC decided that it did not have to decide in the merits, as the Offer had been consummated and the period for the application of the best price rule had expired on 26 January 2008. In its report dated 22 April 2008 (with supplement dated 13 May 2008), the independent review body Ernst & Young had confirmed that SCOR had complied with all its obligations in connection with the Offer even if Martin Ebner and the persons directly or indirectly controlled by him had been deemed to be acting in concert with SCOR. Accordingly, the appeal was written off without judgment on the merits due to the interests in the appeal having fallen away during the procedure and the appeal therefore having become abstract. None of the parties filed an appeal against this decision of the Federal Administrative Court.

5.2.1.3 Acquisition of all the shares of Prévoyance Ré

On 31 July 2008, SCOR SE entered into an agreement with the Malakoff Médéric Group, the leading Group in the French social protection market, to acquire 100 % of the share capital and voting rights of Prévoyance et Réassurance, i.e., 1,650,000 shares and voting rights, and its Life and Health reinsurance subsidiary Prévoyance Ré, i.e. 850,000 shares and voting rights.

Such acquisition has been completed on 24 October 2008, by transfer of:

• 2,673,173 SCOR SE treasury shares to Médéric Prévoyance;
• 257,701 SCOR SE treasury shares to the Institution Nationale de Prévoyance des Représentants; and
• 528,201 SCOR SE treasury shares to the URRPIMMEC (Union des Régimes de Retraites et de Prestations en cas d'invalidité et de maladie des Industries Métallurgiques, Mécaniques, Electriques et Connexes).

In addition, Group Malakoff Médéric, in accordance with its commitment, acquired on the market, as from November 2008, an additional number of SCOR SE shares enabling it to hold 3% of the share capital and voting rights of SCOR SE.

5.2.1.4 Kléber

On 30 June 2011, the Group acquired company 5 avenue Kléber SAS, whose primary asset is an office building in Paris as described in Section 20.1.6.5 – Notes to the Consolidated Financial Statements – Note 5: Tangible assets and real estate investments.

5.2.2 PRINCIPAL INVESTMENTS IN PROGRESS

None.

5.2.3 PRINCIPAL FUTURE INVESTMENTS

SCOR's success relies on the consistent implementation of the four principles on which its strategic plans, Dynamic Lift and now, Strong Momentum, are based, i.e. a high diversification, a robust capital shield, a strong franchise and a controlled risk appetite. Success in implementing such a strategy requires that, at regular intervals, the Group assesses whether opportunities which may present themselves relating to the optimization of its business portfolio via acquisitions and cessions and which would be likely to deliver value for its shareholders are in line with this consistent set of principles. Thus, the closing of such operations should only occur within this consistent framework, for the best interest of SCOR SE, its Group and its shareholders.

BUSINESS OVERVIEW

6.1	Primary activities	54
6.2	Principal markets	69
6.3	Extraordinary events influencing the principal business and markets	71
6.4	Dependency of the issuer with respect to patents or licenses, industrial, commercial or financial contracts and new manufacturing processes	72
6.5	Information on SCOR's competitive position	73

6 BUSINESS OVERVIEW

Between 2002 and 2010, SCOR developed and implemented four three-year strategic plans to strengthen its balance sheet and achieve its profitability goals through an underwriting policy focused on profitability, including by optimum allocation of capital throughout the business cycle, and by maintaining its strong customer base and franchise in Europe, Middle East and Africa ("EMEA"), Asia-Pacific, North America and developing countries. The Group's acquisitions of Revios (in 2006) and Converium (in 2007) contributed to its diversification strategy by balancing the proportion of its consolidated premiums written, respectively, in its Non-Life division and in its Life division.

In September 2010, SCOR launched a new three year Strategic Plan, known as "Strong Momentum," which replaced its previous strategic plan for 2007-2010, known as "Dynamic Lift."

On 7 September 2011, SCOR presented to the public an update of its Strong Momentum plan ("SMV1.0"), called Strong Momentum V1.1 ("SMV1.1"). SMV1.1 confirms the four "cornerstones" of the Group's business model, described in greater detail below, and the three main targets set in 2010 by SMV1.0 for the period 2010-2013, also described below. In addition, SMV1.1 takes into account the August 2011 acquisition of the mortality reinsurance business of Transamerica Re, the July 2011 sale of IIC, SCOR's U.S. fixed annuity business, and the latest financial and economic developments.

SMV1.1 confirms the three main targets to be achieved during the 2010-2013 business cycle:

Optimization of the Group's risk profile

The Group's strategy is based on a moderate risk appetite, both on the underwriting side and on the asset side. SCOR continuously seeks to "optimize" its risk profile and has further decided to gradually and moderately increase its risk appetite in the belly (rather than in the tail) of its target profit/loss probability distribution. See "Appendix B — Internal control and risk management procedures."

As compared to the previous strategic plan "Dynamic Lift", SMV1.1 therefore targets slightly higher expected returns coupled with slightly higher earnings volatility. The Group believes an increase in risk appetite is appropriate given its increased size and stronger balance sheet and risk management as compared to the prior three-year plan period.

"AA" level of financial security

SCOR seeks to provide a level of security to its insurance and reinsurance clients that is consistent with an "AA" financial strength rating, based on Standard & Poor's financial strength rating scale. Such level of security is currently estimated with its Group Internal Model GIM-SMV1.1 on the basis of a 0.05% probability of insolvency (which corresponds to the average of Moody's and Standard & Poor's expected default statistics). Although SCOR's objective is to provide an AA level of security, the Group cannot commit on behalf of the rating agencies to be rated AA.

Profitability of 1,000 basis points above the three-month risk-free rate over the cycle

SCOR targets a return on equity of 1,000 basis points above the three-month risk-free rate over the three year plan period. The Group considers the three-month risk-free rate to be the weighted three months daily interest rate of Treasury bills in the Euro area, the U.S., U.K., Canada and Switzerland averaged over the period under consideration. The weighted average used for this calculation is based on the percentage of SCOR's managed assets denominated in the currency of each such asset.

SCOR aims to achieve this goal through higher technical profitability (defined as profitability related to underwriting), increased investment income, generating new fee income streams and higher productivity and efficiency.

The targets of SMV1.1 are supported by the consistent application of the four cornerstones of SCOR's business model, which are:

• a strong franchise, achieved by deepening its presence in the local property and casualty and life markets in which SCOR operates by strengthening client relationships and through best-in-class service and product innovation, and by expanding into new markets through organic growth and through acquisitions, such as the acquisition of the mortality reinsurance business of Transamerica Re;
• high diversification, achieved both by geographical presence and Non-Life business area / Life lines of business diversification, providing better stability of results and robust required capital diversification benefits;
• a controlled risk appetite, on both sides of the balance sheet, respecting a moderate risk appetite; and
• a robust "Capital Shield" policy, with a four layer-framework that is optimized according to severity and frequency levels of risks:
  • traditional retrocession, which includes a combination of proportional / non-proportional, per-event and aggregate covers;
  • alternative risk transfer solutions, which include the securitization of catastrophic risk in the form of ILS and mortality swaps (see "Section 6 — Business overview, 6.1.3 Underwriting, Catastrophe Risk and Claims" and "Section 20.1.6 — Notes to the financial statements, Note 8 — Derivative assets") and provide multiyear protection that is not dependant on short-term market fluctuations;
• buffer capital, defined as the amount of capital having an annual probability of total erosion of 1 in 33 (3%);
• contingent capital securities, which are designed as tools of last resort. See "Section 20.1.6 Financial Statements — Notes to the consolidated financial statements, Note 8 — Derivative assets."

SCOR's risk appetite framework

SCOR's risk appetite framework is an integral part of the Group's strategic planning. It is approved by the Company's Board of Directors in connection with the review of new strategic plans, based on recommendations from the Group's executive management committee and the Risk Committee of the Company's Board of Directors (the "Risk Committee"). The Company's Board of Directors may vary the amount and the composition of risk that the Group is prepared to take.

SCOR's risk appetite framework encompasses three concepts: risk appetite, risk preferences and risk tolerances:

Risk appetite

Risk appetite defines the quantity of risk that SCOR wishes to accept to achieve a desired level of profitability. This determines where the Group wishes to position itself on the assumed risk-expected return spectrum, between extremely risk averse (i.e. low risk-low return) and an extreme risk taker (i.e. high risk-high return). SCOR uses a target retained risk profile (probability distribution of economic profits and losses) and target expected profitability to provide a complete definition of its risk appetite. The Group actual retained risk profile and profitability are regularly reported to the Company's Board of Directors via the Risk Committee.

Risk preferences

Risk preferences are qualitative descriptions of the risks which SCOR is willing to accept. The Group aims to cover a wide range of reinsurance risks and geographical areas. However it has no desire to take operational, legal, regulatory, tax and reputation risks (but this does not mean that the Group are immune to these risks). This choice of risk preferences determines the risks to be included in the Group's underwriting guidelines.

Risk tolerances

Risk tolerances are the limits required by SCOR's stakeholders (e.g., clients, shareholders, regulators etc). The Company's Board of Directors defines and approves risk tolerance limits for the Group by line of business, asset class and extreme scenario in order to ensure that the Group's risk profile remains aligned with its risk appetite framework. SCOR uses various risk measures to verify that its exposures remain within these limits. These measures can take several forms depending on the technical constraints or the level of information available and are based on either internal model outputs or expert opinions.

6.1 Primary activities

6.1.1 THE REINSURANCE BUSINESS

6.1.1.1 Principles

Reinsurance is a contract under which a company, the reinsurer, agrees to indemnify an insurance company, the ceding company, against all or part of the primary insurance risks underwritten by the ceding company under one or more insurance contracts. Reinsurance differs from insurance, primarily because of its higher level of mutualization by geography and by line of business. Reinsurance can provide a ceding company with several benefits, including a reduction in liability on individual risks and catastrophe protection from large single losses or events or series thereof. Reinsurance also provides ceding companies with the necessary financial capacity to increase their underwriting capabilities in terms of both number and size of risks. Reinsurance, however, does not discharge the ceding company from its liability to policyholders. Reinsurers themselves may feel the need to transfer some of the risks underwritten and/or some of the accumulated exposures derived from such risks to other reinsurers (known as retrocessionaires).

6.1.1.2 Functions

Reinsurance provides four essential functions:

• it offers the direct insurer greater security for its equity and solvency, as well as protection against the potentially high volatility of results when abnormally high frequency or severity of losses or events occur, by covering the direct insurer above certain contractually set amounts per event or in the aggregate;
• it allows insurers to increase the maximum amount they can insure for a given loss or series of losses by enabling them to underwrite a greater number of risks, or larger risks, without excessively raising their need to cover their solvency margin and, therefore, to increase their shareholders' equity;
• it makes substantial quantities of liquidity available to insurers in the event of major loss events; and
• it provides insurers with efficient substitute capital solutions.

In addition, reinsurers may also provide advisory services to ceding companies by:

• defining their reinsurance needs and devising the most effective reinsurance program to better plan their capital needs and solvency margin;
• supplying a wide array of support services, particularly in terms of the sharing of know how, best practices and risk assessment, modeling and management tools;
• providing expertise in certain highly specialized areas such as the analysis of complex risks and risk pricing; and
• enabling ceding companies to build up their business with less upfront capital requirement, particularly when launching new products requiring heavy investment or financing.

Reinsurers, including SCOR, are usually compensated for the provision of such advisory services through the cedants' reinsurance premiums, rather than through fee-based compensation.

6.1.1.3 Types of reinsurance

A. Treaty and Facultative

The two basic types of reinsurance arrangements are treaty and facultative reinsurance.

In treaty reinsurance, the ceding company is contractually bound to cede and the reinsurer is bound to assume a specified, contractually defined portion of a type or category of risks insured by the ceding company. Treaty reinsurers, including SCOR, do not separately evaluate each of the individual risks assumed under their treaties and, consequently, after a review of the ceding company's underwriting practices, such reinsurers are dependent on the original risk underwriting decisions made by the ceding company's primary policy writers.

Such dependence exposes reinsurers in general, including SCOR, to the possibility that the ceding companies have not adequately evaluated the risks to be reinsured and, therefore, that the premiums ceded in connection therewith may not adequately compensate the reinsurer for the risk assumed. The reinsurer's evaluation of the ceding company's risk management and underwriting practices and policies, as well as claims settlement practices and procedures, therefore, will usually impact the pricing of the treaty.

In facultative reinsurance, the ceding company cedes and the reinsurer assumes all or part of the risks covered by a particular specified insurance policy or by insurance policies related to a specific ultimate group insured in the same program. Facultative reinsurance is negotiated separately for each insurance contract that is reinsured. Facultative reinsurance is normally purchased by ceding companies for individual risks not covered by their reinsurance treaties, for amounts in excess of the monetary limits of their reinsurance treaties and for unusual risks. Underwriting expenses and, in particular, personnel costs, are higher relative to premiums written on facultative business because each risk is individually underwritten and administered. The ability to separately evaluate each risk reinsured, however, increases the probability that the underwriter can price the contract more accurately to reflect the risks involved.

B. Proportional and non-proportional reinsurance

Both treaty and facultative reinsurance can be written on (i) a proportional (or quota share) basis and/or (ii) a nonproportional (or excess of loss or stop loss) basis.

With respect to proportional (or quota share) reinsurance, the reinsurer, in return for a predetermined portion or share of the insurance premium charged by the ceding company, indemnifies the ceding company against a predetermined portion of the losses of the ceding company under the covered insurance contract or contracts. In the case of reinsurance written on a non-proportional, or excess of loss or stop loss, basis, the reinsurer indemnifies the ceding company against all or a specified portion of the losses sustained, on a claim by claim basis or in the aggregate over the contract period, in excess of a specified amount, known as the ceding company's retention or reinsurer's attachment point, and up to a negotiated reinsurance contract limit.

Although the frequency of losses under a quota share reinsurance contract is usually greater than on an excess of loss contract, it is generally simpler to predict the losses on a quota share basis and the terms and conditions of a quota share contract can be structured to limit the indemnity offered under the contract. A quota share reinsurance contract therefore does not necessarily imply that a reinsurance company assume greater risk exposure than on an excess of loss contract.

Excess of loss reinsurance is often written in layers. One or a group of reinsurers accepts the risk just above the ceding company's retention up to a specified amount, at which point another reinsurer or a group of reinsurers accepts the excess liability up to a higher specified amount or such liability reverts to the ceding company. The reinsurer taking on the risk just above the ceding company's retention layer is said to write primary or working layer or low layer excess of loss reinsurance. A loss that reaches just beyond the ceding company's retention will create a loss for the lower layer reinsurer, but not for the reinsurers on the higher layers. Loss activity in lower layer reinsurance tends to be more predictable than that in higher layers due to a greater historical frequency, and therefore, like quota share reinsurance, better enables underwriters and actuaries to accurately price the underlying risks.

Premiums payable by the ceding company to a reinsurer for excess of loss reinsurance are not directly proportional to the premiums that the ceding company receives because the reinsurer does not assume a directly proportionate risk. In contrast, premiums that the ceding company pays to the reinsurer for quota share reinsurance are proportional to the premiums that the ceding company receives, consistent with the proportional sharing of risk. In addition, in quota share reinsurance, the reinsurer generally pays the ceding company a ceding commission. The ceding commission is usually based on the ceding company's cost of acquiring the business being reinsured, including commissions, premium taxes, assessments and miscellaneous administrative expense, and also may include a profit factor for producing the business.

6.1.2 BREAKDOWN OF THE GROUP'S BUSINESS

The Group is organized into two operating divisions and one corporate cost center Group Functions. The operating divisions are: the SCOR Global P&C division, with responsibility for the property and casualty insurance and reinsurance (also referred to in this Registration Document as "Non-Life" or the "Non-Life division"); and the SCOR Global Life division, with responsibility for the life reinsurance (also referred to in this Registration Document as "Life" or the "Life division"). These two divisions represent SCOR's two "operating segments" for purposes of IFRS 8 and are presented as "operating segments" in its consolidated financial statements, included in Section 20.1.6. However, in accordance with longstanding management convention, the Group uses the term "divisions" in this Registration Document, rather than "operating segments." Each operating division underwrites different types of risks and offers different products and services, which are marketed via separate channels; responsibilities and reporting within the Group are established on the basis of this structure.

The SCOR Global P&C division operates in four business areas being: Property and Casualty Treaties; Specialty Lines (including Credit & Surety, Inherent Defects Insurance, Aviation, Space, Marine, Engineering, Agriculture and Structured Risk Transfer); Business Solutions (large corporate accounts underwritten essentially on a facultative reinsurance basis and occasionally as direct insurance for industrial groups and services companies); and Joint Ventures and Partnerships.

The SCOR Global Life division offers the following lines of business: Life (treaties with mainly mortality risks); Life Financing Reinsurance; Disability; Long Term Care; Critical Illness; Health; Annuities; and Personal Accident. Longevity reinsurance is reported as part of the Life line of business.

SCOR also writes a small amount of direct insurance, primarily on a business-to-business basis to cover certain non-life large industrial risks through the Business Solutions business area of SCOR Global P&C. For a description of products and services, see Section 6.1.2.1 – Non-Life reinsurance. Before the sale of Investors Insurance Corporation SCOR Global Life also offered fixed annuity contracts in the US direct insurance markets.

As of 1 January 2011, the cost allocation estimation methodology of the Group was refined, including with respect to the preparation of division information, resulting in the creation of a new cost center, which is referred to in this Registration Document as "Group Functions". Group Functions is not an operating division and does not generate revenues. The costs in Group Functions are Group related costs that are not directly attributable to either the Non-Life or Life division. Group Functions includes the cost of departments fulfilling duties for the benefit of the whole Group, such as the costs for Group Internal audit, Group Chief Financial Officer functions (Group Tax, Group Accounting, Group Consolidation and Reporting), Group Chief Operating Officer functions (Group Legal, Group Communication, Group Human Resources) and Group Chief Risk Officer expenses. The segment financial information included in this Registration Document and in the consolidated financial statements, included in Section 20.1.6, was revised to reallocate expenses to Group Functions.

The Group organizes its operations around six regional management platforms, or Hubs: Cologne, London, Americas (U.S.), Paris, Singapore (Asia Pacific) and Zurich. Each of the Hubs has local, regional and Group responsibilities, with heads of each Hub reporting to the Group Chief Operating Officer. Each Hub includes the following functions: a Legal and Compliance Officer, a Head of Information Systems, a Head of Finance, a Head of Human Resources and a Risk Manager. Hub shared service costs are allocated to the divisions based on a headcount allocation key. For a description of the Hub structure, see "Section 7.1.1.5 — Structuring in "hubs"

SCOR Global P&C and SCOR Global Life, through their respective legal entities, are leading global reinsurers, executing an underwriting policy focused on profitability, developing value-added services and adhering to a cautious financial policy. Thanks to its two operating divisions, as of 31 December 2011, the Group serves more than 4,000 clients throughout the world. It believe that its strategy of offering both non-life and life products provides SCOR with well-balanced diversification benefits (both in terms of risks and markets), which represent a key cornerstone of its strategy.

SCOR Global P&C carries out its operations through a European Company (Societas Europaea) incorporated in France, SCOR Global P&C SE, which has branches in Spain, Italy, Switzerland, the U.K. and Germany and a network of dedicated subsidiaries, branches and representative offices in the U.K., the Americas and Asia-Pacific, as well as composite subsidiaries and branches (which also operate in the Life division) in Russia, South Africa and China. SCOR Global Life also carries out its operations through a European Company (Societas Europaea) incorporated in France, SCOR Global Life SE, which has branches in Germany, the U.K., Italy, Spain, Switzerland, Austria, The Netherlands, Canada and in Asia as well as through SCOR Global Life Americas in the U.S., SCOR Global Life Reinsurance Ireland and SCOR International Reinsurance Ireland Ltd. in Ireland, and subsidiaries in Europe, Australia and South Africa.

6.1.2.1 Non-Life reinsurance

SCOR's Non-Life division is divided into four business areas:

• Property and Casualty Treaties;
• Specialty Treaties;
• Business Solutions (large corporate accounts underwriting essentially on a facultative business/occasionally direct insurance); and
• Joint Ventures and Partnerships.

A. P&C Treaties

SCOR's Property and Casualty Treaties business area underwrites proportional and non-proportional reinsurance treaties.

Property

SCOR's property treaties typically cover damages to the underlying assets or direct or contingent business interruption losses caused by fire or other perils, including natural catastrophes, in personal lines, including automobile and industrial and commercial lines of business.

Casualty

SCOR's casualty treaties typically cover original risks of general liability, products liability or professional indemnity. Accordingly, they include treaties covering motor liability and general third-party liability. Motor liability reinsurance covers property damage, bodily injuries and other risks arising from the coverage of both drivers and passengers in private vehicles and commercial fleets.

B. Specialty Lines

The Group's main Specialty reinsurance activities include Credit & Surety, Inherent Defects Insurance, Aviation, Space, Marine, Engineering, Agricultural Risks and Structured Risk Transfer. It underwrites these risks through both treaties and facultative reinsurance and can be underwritten on a proportional or non-proportional basis.

Credit & Surety

The reinsurance of credit insurance, surety commitments and occasionally political risk is managed by the SCOR Global P&C teams (primarily based in Europe). Under credit insurance, the insurer covers the risk of losses from the nonpayment of commercial debts. Surety insurance is a contract under which a guarantor makes a commitment to a beneficiary to perform the obligation to ensure payment by or to pay the debt of the secured debtor. Political risk insurance covers the risk of losses due to measures taken by a government or similar entity which endangers the existence of a sales contract or commitment made by a public or private citizen of the country in which the covered operations are performed. SCOR underwrites these risks through proportional and non-proportional treaties as well as facultative reinsurance.

Inherent Defects Insurance

According to French, Italian and Spanish laws as well as laws in other jurisdictions, or by contractual obligation, inherent defects insurance must be purchased to cover major structural defects and collapse for a certain period, typically ten years after completion of construction. SCOR underwrites these risks through proportional and non-proportional treaties as well as through facultative reinsurance.

Aviation

Aviation insurance covers damages caused to aircraft, injuries to persons transported and to third parties caused by aircraft or air navigation, as well as losses resulting from products manufactured by companies in the aerospace sector. SCOR underwrites these risks through proportional and non-proportional treaties as well as through facultative reinsurance.

Space

Insurance for the space sector cover the launch preparation, launch, and the in-orbit life operation of satellites, primarily commercial telecommunication and earth observation satellites. SCOR underwrites these risks through treaties and facultative reinsurance.

Marine

Insurance for shipping risks includes insurance for hull, cargo and liability for the ships and shipped merchandise as well as shipbuilding insurance. It also includes insurance for offshore oil and gas fixed and mobile units in construction and in operation. Within the Marine Specialty Line, SCOR underwrites these risks mainly through treaties and occasionally through facultative reinsurance.

Engineering

Engineering insurance, which is divided into Construction All Risks and Erection All Risks insurance, includes basic Property and Casualty coverage and may be extended to the financial consequences of a delay in start-up (advanced loss of profits) caused by losses indemnifiable under basic Property and Casualty coverage. Within the Engineering Specialty Line, SCOR underwrites these risks mainly through treaties and occasionally through facultative reinsurance.

Agricultural Risks

In order to address the increased risk and the coverage needs associated with agriculture, the Group has been strengthening its agricultural risks underwriting teams since 2006 to provide reinsurance solutions in the field of multiple peril crop insurance, aquaculture insurance, forestry insurance and livestock insurance. SCOR underwrites these risks through treaties and facultative reinsurance.

Structured Risk Transfer

To cope with the broader needs of reinsurance buyers in transferring risk, and to benefit from these changes by broadening its field of activity, SCOR has developed a dedicated competency center that analyzes and studies this kind of risk within any part of SCOR Global P&C worldwide.

C. Business Solutions (large corporate accounts underwritten essentially on a facultative basis and occasionally as direct insurance)

The Group's activity in the Business Solutions business area covers all insurable risks of industrial groups and services companies. These risks are underwritten primarily through facultative reinsurance contracts by SCOR's specialized teams deployed as an international network around two main business departments: "Natural Resources" and "Industrial & Commercial Risks."

Natural Resources

Provides coverage to midstream and downstream business (main business sectors being oil and gas, refining, petrochemicals, liquefaction, gasification, power generation and distribution, new energy sources and mining), and to upstream business (exploration and production, offshore construction) and shipbuilding industrial groups and oil services companies.

Industrial & Commercial Risks

Provides coverage to manufacturing and heavy industries (automotive, pulp and paper, aeronautics / defense, high tech) and finance and services (infrastructures, intellectual services, general contractors, distribution and trading).

The teams are also responsible for alternative solutions for the transfer and financing of risks for the Business Solutions clients.

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 "Section 4 – Risk Factors, 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 is the sole capital provider for the new syndicate, Channel Syndicate 2015. SCOR also offers professional indemnity insurance to the members of MDU (Medical Defense Union), a leading medical defense organization based in the U.K., under a 10 years joint venture agreement.

6.1.2.2 Life Reinsurance

SCOR's Life division is divided into eight lines of business:

• Life;
• Life Financing Reinsurance;
• Disability;
• Long-Term Care;
• Critical Illness;
• Health;
• Annuities; and
• Personal Accident.

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 of 31 December 2011.

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 of 31 December 2011, 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 seven 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.

Long-Term Care

Long-Term Care ("LTC") insurance covers policyholders unable to perform predefined activities of daily living, and as a result, needing the constant assistance of another person. SCOR Global Life has been pioneering LTC reinsurance solutions in the French market for approximately twenty years, and has acquired sound practical experience in dealing with problems related to underwriting and managing LTC risks. The Group believes that one of the main private LTC insurance markets is France with over two million lives and it believes that SCOR Global Life enjoys a leading position in the French market. At the forefront of industry development, SCOR Global Life is now expanding its geographical scope in LTC by introducing its LTC reinsurance coverage to several markets. It already enjoys strong positions in Korea and Israel.

Critical Illness

Critical Illness ("CI") insurance pays a lump sum benefit, to be used at discretion, if the insured person suffers a serious condition and survives a defined period. The use and effectiveness of CI covers varies considerably between countries. SCOR Global Life is a market leader in reinsurance of CI in the U.K. It leverages experience and expertise from the U.K. to cross-sell into selected markets, such as Taiwan, Korea and Sweden.

Health

Health represents a small proportion of SCOR Global Life's portfolio. It is written predominantly in the Middle East with a book inherited from Converium, and small volumes in markets such as France and Canada. The SCOR Global Life approach to underwriting of health risks is selective, with a careful market entry strategy.

Annuities

SCOR Global Life was until the sale of this business on July 18, 2011 present in the fixed annuity market in the U.S., as a reinsurer of IIC, a member of the Group. The products provided either the performance of an index (often the S&P 500) with a zero percent floor, or a fixed interest rate which are credited to the policyholder's account value. With the sale of IIC, SCOR no longer actively writes annuities coverage.

Personal Accident

Personal accident is a cover provided by SCOR Global Life. A main source of business is ReMark, which provides direct global marketing of life insurance products to insurers, financial institutions and affinity partners. ReMark designs and executes direct marketing programs.

6.1.3.1 Underwriting

Consistent with the Group's strategy of selective market and business division development, SCOR seeks to maintain a portfolio of business risks that is strategically diversified both geographically and by line and class of business. The Group's insurance risk exposure is also mitigated by diversification across a large portfolio of reinsurance contracts. The volatility of risks is also reduced by careful business selection, implementation of underwriting guidelines, the use of retrocession and other risk transfer arrangements and proactive claims handling as well as underwriting, claims and administration audits at ceding companies.

SCOR's underwriting covers reinsurance in Non-Life and Life and occasionally insurance in Non-Life. Such underwriting is conducted through duly authorized subsidiaries and branches of the Group, as well as from the Group's Lloyds syndicate (Channel Syndicate 2015).

Underwriting, actuarial, accounting and other support staff are located in the Group's six Hubs as well as in local subsidiaries and branches. However, SCOR's overall exposure to particular risks and in particular geographic zones is centrally monitored thanks to a unique integrated Group IT system.

Non-Life Business

In order to mitigate its property exposure, the Group retrocedes a portion of the risks it underwrites. See "Section 6 — Business overview, 6.1.4 Retrocessional reinsurance" below for a description of the use of retrocession. SCOR's Non-Life retrocession mainly deals with, but is not limited to, natural catastrophes and large corporate risks for which the Group purchases protection beyond certain levels of severity of losses or impact of events. In particular, it has a global retrocession program, which is revised annually, and which provides partial coverage for catastrophic events, on an occurrence basis. The retrocession program includes both traditional retrocession as well as the use of alternative risk transfer solutions (e.g., the multi-year securitization of catastrophic risk in the form of ILS and mortality swaps and the issuance of contingent capital securities). See "Section 6 — Business overview, 6.1.4 Retrocessional reinsurance"

With regard to its casualty business, the Group allocates proportionately less capacity to business of this type than to property. Furthermore, SCOR's underwriting guidelines restrict its shares of casualty reinsurance programs and are more restrictive regarding certain areas that may have higher exposure to catastrophe risk (Florida, California, etc.).

The Group's Property and Casualty Treaties underwriters manage client relationships and offer reinsurance support after a careful review and assessment of the cedants' underwriting policy, portfolio profile, exposures and management procedures. They are responsible for writing treaty business as well as associated support small and medium size facultative risks in their respective territories within the limits of their delegated underwriting authority and the scope of underwriting guidelines.

The Group's underwriting teams are supported by the SCOR Global P&C Underwriting Management function, located in the Group's Paris Hub. This function provides worldwide treaty and facultative underwriting guidelines, policies regarding the delegation of capacity, underwriting support to specific lines of business or individual risks when required, ceding company portfolio analysis and risk surveys and is responsible for monitoring and referral of non-standard business.

The Group's Property and Casualty Treaties and Specialty Lines underwriting teams are also supported by the SCOR Global P&C actuarial pricing function, headed from Zurich. This function is responsible for the pricing methods and tools to be applied by the pricing actuaries, who team up with underwriters and modelers by market or by lines of business, as well as for monitoring and referral of non-standard business.

Most of SCOR's facultative underwriters work in the Business Solutions business area of SCOR Global P&C, which operates worldwide. This business area is dedicated to large corporate businesses and is geared to provide the clients of SCOR Global P&C with solutions for coverage of large conventional risks. The underwriting of facultative in support of Property and Casualty treaties is handled by duly qualified members of the Property and Casualty Treaties underwriting teams.

Underwriting guidelines in place within SCOR Global P&C specify (i) the underwriting rules and principles to be complied with, (ii) underwriting capacities delegated to the underwriters and pricing actuaries in each of the markets and lines of business in which the Group operates, as well as (iii) the relevant maximum acceptable commitments per risk and per event. They are reviewed and updated annually by the Underwriting Management function and approved by the Chief Executive Officer and Chief Risk Officer of SCOR Global P&C. Any request for deviations from the underwriting guidelines is subject to special referral procedures at two key levels. At the first level, the request is submitted by the underwriting units to the Underwriting Management function, and where applicable, to the Legal Department. At the second level, for exposures exceeding certain thresholds or with specified characteristics, the request is submitted by the Underwriting Management function to the Group Risk Management function of SCOR SE.

Pricing guidelines and parameters are set to provide consistency and continuity across the organization but also to take into account differences between markets and lines of business as well as the geographical location of the client and the risks insured. Parameters are revised at least once a year to consider, as the case may be, the changing market conditions and environment. Contracts that meet certain risk thresholds are subject to mandatory peer reviews that have to be performed and documented before the pricing is completed. SCOR Global P&C employs a data system which allows management to monitor and review the results from the pricing tools.

Underwriting cross-reviews are initiated by SCOR Global P&C Risk Management to evaluate the quality of underwriting of particular underwriting units or certain lines of business, to identify risks, to assess the appropriateness and effectiveness of controls and to propose risk-management measures, including mitigating actions.

Life Business

In order to reduce potential behavioral risk, SCOR Global Life carries out a thorough assessment of the client, the client's target clientele, the market and the design of the insurance product.

Anti-selection risks are mitigated through careful product design and a well-defined medical and financial underwriting selection process. SCOR mitigates lapse risk through appropriate reinsurance treaty clauses, as well as product, client and market diversification in which the lapse risk exposure is variable.

Biometric risks, other than pandemic risk, are diversified on a geographic and a product basis. Biometric risks are those risks which result from adverse developments in mortality, morbidity, longevity or from epidemic/pandemic claims.

A significant part of the reinsured premium in respect of Disability, Long Term Care (LTC) and Critical Illness (CI) products includes premium adjustment clauses. In the case of LTC, the premium adjustments are designed to offset potentially improving longevity. In the case of CI, premium adjustments mitigate potential negative impacts on future claims patterns due to a general deterioration in health and improved medical diagnosis.

Peak mortality, disability and critical illness risks are covered either by surplus per life retrocession programs, or, in some cases, by excess of loss per life or per event retrocessional coverage.

The underwriting of life business within the Group is under the worldwide responsibility of SCOR Global Life. The clients are life, pension or accident and health insurance companies worldwide. They are served by SCOR's specialized underwriters and actuaries who are familiar with the specific features of the markets in which they operate, in particular with local lines of business and policy conditions as well as the technical specifics such as mortality tables, morbidity incidence rates and persistency. In the Life underwriting process, consideration is typically given to the quality of the client's medical and financial underwriting standards, the target clientele of the ceding company as well as past experience to the extent credible data is available.

Mandates for underwriting life reinsurance business are assigned to teams on a mutually exclusive basis. Life reinsurance treaties are underwritten by life reinsurance experts familiar with the specific features of their markets. The life business is underwritten in line with the market specific underwriting and pricing guidelines.

Underwriting and pricing guidelines defined by SCOR Global Life specify the underwriting rules and principles to be complied with, underwriting capacities delegated to the underwriters and pricing actuaries in each of the markets in which the Group operates, as well as maximum acceptable commitment per risk and per event. In particular, these guidelines specify the type and the terms and conditions under which business is considered as acceptable. Furthermore, they set out the retention of SCOR Global Life for various risks and types of covers. They are approved by the Chief Executive Officer and Chief Risk Officer of SCOR Global Life. Business opportunities going beyond the stipulations of these guidelines are subject to a special referral procedure at two key levels in order to ensure that the business respects defined risk-adjusted return criteria and risk tolerance limits. These cases are examined at the SCOR Global Life level by the Life Central Actuarial and Underwriting Department and by the Risk Management Department and, where applicable, the Finance Department. These departments are located in Charlotte, in Cologne, Paris and Zurich. Cases which may have a significant impact on the balance sheet of the Group are additionally reviewed by the Group Risk Management function. Thresholds or conditions for a referral to Group Risk Management are defined in specific guidelines.

In order to ensure that SCOR Global Life is continually kept up-to-date with biometric trends and scientific developments, SCOR Global Life uses the expertise of four dedicated technical research centers within the Life Central Actuarial and Underwriting Department to analyze and assess the key factors underlying mortality/longevity, Long-Term Care and disability risks. The SCOR Global Life Research Centers provide recommendations for the implementation of the research results into the pricing, underwriting control and determination of exposure limits.

Immediately after the acquisition of the mortality portfolio and the operations from Transamerica Re in 2011 SCOR Global Life launched a project to integrate teams, processes and systems to create a uniform business platform.

Interdependence of the Group's Non-Life and Life reinsurance businesses

The activities of Non-Life and Life reinsurance take place in two different market environments. They are subject to heterogeneous external constraints, which generally have only very limited correlation with each other. The diversification and the overall balance between these two business areas within the Group represent stabilizing factors. However, in some extreme scenarios Non-Life and Life risks and financial market and credit risks could accumulate. This exposes SCOR to accumulation and/or correlation risks which are difficult to quantify.

SCOR takes into account the effect of the diversification between Life and Non-Life in its internal model by setting parameters for the interdependence of the various lines of business.

6.1.3.2 Distribution by production source

Reinsurance can be written through professional reinsurance brokers or directly from ceding companies. The involvement of a broker in the placement of a reinsurance contract is a decision belonging to the ceding company, which depends on local market practices, the cedant's worldwide reinsurance market knowledge, the complexity of the risks the cedant intends to transfer and the corresponding available reinsurance capacity in the market, the cedant's capability and resources to structuring a market submission data, placing risks and administrating the placements. In most of the cases, reinsurance programmes are syndicated to several reinsurers.

The relative amount of brokered and direct business written by the Group's subsidiaries varies according to local market practices.

For the year ended 31 December 2011, Non-Life wrote approximately 64% of gross written premiums through brokers and 36% through direct business, while Life wrote approximately 12% through brokers and 88% through direct business.

For the year ended 31 December 2011, for Life the largest brokers SCOR wrote gross premiums written with were AON Benfield with approximately 4% of the Life total gross written premiums and Nasco Karaoglan with approximately 1%. For Non-Life, the largest brokers that the Group used were AON Benfield with approximately 22% of its Non-Life total gross premiums written, Guy Carpenter with approximately 12% and Willis Gras Savoye with approximately 9%.

The direct reinsurance market remains an important distribution channel for reinsurance business written by the Group. Direct placement of reinsurance enables SCOR to access clients who prefer to place their reinsurance directly with reinsurers based upon the reinsurer's in-depth understanding of the ceding company's needs.

6.1.3.3 Claims

Non-life

The Group's P&C Claims & Commutations function, located in its six Hubs, is in charge of the implementation and overview of the overall claims handling policy for SCOR Global P&C, implementing worldwide control and reporting procedures and managing commutation of claim portfolios.

The claims handling function is performed by the claims teams, located in Paris, New York, Zurich, London, Singapore and Cologne, which review, process and monitor reported claims. The P&C Claims & Commutations function supports and controls the day to day activity and takes over the direct management of large, litigious, serial and latent claims. Additionally, periodic audits are conducted on specific claims and lines of business, and claims processing and procedures are examined at the ceding companies' offices with the aim of evaluating their claims adjusting process, valuation of case reserves and overall performance. Technical and legal assistance is provided to underwriters before and after accepting certain risks.

When needed, recommendations are given to underwriters and local management.

The main objectives of the Group Large Claims Committee are to review the consolidated impact of large and strategic claims, monitor the management of such claims across lines of business and countries and communicate the lessons learned to management for potential changes in strategy and policies.

Life

The Group's Life claims department, located in Paris, is tasked with implementing the general claims handling policy for SCOR Global Life, as well as worldwide control and reporting procedures and managing commutation of claim portfolios. The claims handling function is performed by local claims teams, located among other cities in Paris, Charlotte, Zurich, London, Singapore and Cologne, which initially process and monitor reported claims. The Life Claims Department supports and controls the day-to-day activity and takes over the direct management of large, litigious, serial and latent claims. Additionally, periodic audits are conducted on specific claims and lines of business. Claims processing and procedures are examined at the ceding companies' offices with the aim of evaluating their claims adjusting process, valuation of reserves and overall performance. Technical and legal assistance is provided to underwriters before and after accepting certain risks. When needed, recommendations are given to underwriters and local management.

6.1.3.4 Catastrophe (cat) Risk and Exposure Controls

SCOR manages its exposure to catastrophes through selective underwriting practices, especially by limiting its exposure to certain events in certain geographic zones, by monitoring risk accumulation on a geographic basis and by retroceding a portion of those risks to other selectively chosen reinsurers.

Non-Life reinsurance

Catastrophe management is split into three sections under SCOR Global P&C: portfolio accumulation, optimization and procedures; research and development; and modeling in support of underwriting. Descriptive guidelines for each of the main business processes are available: 'catastrophe methodologies', 'data quality & modeling', 'accumulation control', , 'Cat pricing' and 'system & processes'. For Cat pricing, a matrix organization described in the guidelines has been implemented in each Hub, distributing the responsibility of Cat pricing to the Cat modelers, the pricing actuaries or the underwriter. In addition, a system of Cat referrals has been introduced in excess of a given threshold.

For all SCOR's property business, it evaluates the accumulations generated by potential natural events and other risks. Pursuant to the rules and procedures, Regional Managers from SCOR's natural catastrophes risks modeling team monitors the structure of the portfolio for each region or country and the data is consolidated under the supervision of the Head of natural catastrophes risks modeling.

The Group tracks natural catastrophe accumulation (earthquakes, wind and flood perils…) for all exposed countries worldwide. Depending on the region of the world and the peril in question, it uses a variety of techniques to evaluate and manage its total exposure. The Group quantifies this exposure in terms of a maximum commitment. It defines this maximum commitment, taking into account policy limits, as the potential maximum loss caused by a catastrophe affecting a geographic area, such as a storm, hurricane or earthquake, and occurring within a given return period. SCOR estimates that its potential maximum losses for catastrophes, before retrocession, come from windstorms in Europe, hurricanes in the U.S., typhoons in Japan or from earthquakes in Japan or the U.S.

The Group makes extensive use of proprietary external models from industry-leading catastrophe model suppliers, including Risk Management Solutions RiskLink® ("RMS") and AIR Worldwide Catrader® ("AIR"), and licenses all the region/peril combinations available from each vendor. In addition, it has access to local cat model expertise for Australia from Risk Frontiers, a commercial provider of tools developed at Macquarie University. Access to multiple external models allows the Group to better appreciate the strengths and limitations of each model and make adjustments where appropriate, and it is well equipped with alumni from AIR and RMS within the Natural Catastrophe Risk Modelling team.

In 2011, SCOR operationally uses the RMS modelling results format as its common framework for assessing accumulations of natural catastrophe risk, including catastrophe risk management controls (Capacity Monitoring) and provision of data to its internal capital models, and retrocession department.

These tools enable the Group to quantify its exposure in terms of a probable maximum loss ("PML") at various levels of probability for each peril and geographic location. The overall aggregate annual PML per peril, allowing for potential multiple events, provides the information required to determine the level of retrocession and other alternative risk transfer solutions (e.g., catastrophe bonds) that are needed to ensure that the net aggregate exposure remains within predefined tolerance limits.

The probabilistic catastrophe modelling approach captures the uncertainty related to the likelihood of a given event occurring (frequency uncertainty) as well as the uncertainty associated with the amount of loss, given that a particular event has occurred (severity uncertainty). A sound understanding of the uncertainties associated with the model's key parameters is essential for the interpretation of the model outcome and thus for decision-making. The outcomes for each model describe a bandwidth of loss estimates and not a unique value. In order to identify and stress-test the key parameters, systematic sensitivity analyses are carried out.

For peril/zones where neither internal nor external models are available, the following approaches are used:

• Pricing is performed based on actuarial techniques using historical losses and other benchmarks.
• Accumulations are performed either on a notional basis (i.e. sum of event limits for underwritten share), or on a "manual PML" basis, applying a mean damage ratio to the peak zone aggregates.

This method is validated by the Research & Development Cat team, who performs comparative studies with other peril/zones of similar hazard and vulnerability characteristics.

See section 9 Operating and Financial review for certain data regarding SCOR's catastrophe loss experience

Life reinsurance

Accumulations of risk particularly exposed to catastrophes or other significant events in the life business are regularly assessed in group-wide extreme scenarios. Every year, limits for the acceptance of specific catastrophe covers by market are reviewed taking into account the capacities obtained by the retrocession coverage purchased by the Group. Specifically designed retrocession programs aim to protect its life reinsurance business. One program protects assumed catastrophe excess of loss acceptances, the other protects the retained lines in respect of all other acceptances.

Maximum underwriting capacities are defined to limit SCOR Global Life's exposure on various types of treaties underwritten, proportional and non-proportional, covering individual or Group policies. These capacities are revised each year, taking into account the capacities obtained by the retrocession coverage purchased by the Group. These limits include: maximum commitment per life accumulated for all SCOR exposures, maximum annual commitments for nonproportional cover per life or per event, maximum commitment per country for non-proportional exposures by event. Aggregate portfolio exposures are continually monitored. Specialized information technology software, developed by SCOR allows an inventory of insured persons across SCOR Global Life's markets and is fed with single risk information as received by the client companies. Through this system, an accumulation control is carried out and risks under which the accumulated exposure exceeds SCOR Global Life's retention are identified and retroceded to a pool of retrocessionaires. The retention limits are revised regularly.

6.1.3.5 Reserves

The Non-Life reserves adequacy is controlled by internal actuaries who make a quarterly review and an annual detailed report, validated by the Group Chief Actuary. External consulting firms also review on an annual basis the Non-Life reserves as well as the Life reserving hypothesis used in the framework of the embedded value calculation. If necessary, internal audits of its portfolios are performed. Centrally defined and tightly controlled reserving process, strong portfolio diversification, prudent reserving policy, sound reserving tools and, state of the art actuarial methods used by highly skilled professionals and high level of transparency, both internally and externally, tends to minimize the risk of inadequate reserves.

However, the Group is subject to all of the factors of uncertainty mentioned above and, in consequence, to the risk that its reserves are inadequate compared to its liabilities. Therefore, if its claims reserves prove to be inadequate, its net income, cash flow and financial position may be adversely affected.

A. Non-Life business

SCOR regularly reviews and updates its methods for determining outstanding claims reserves and IBNR Reserves. However, it is difficult to accurately value the amount of reserves required, especially in view of changes in the legal environment, which could affect the reserve development.

When a claim is reported to the ceding company, its claims department establishes a reserve corresponding to the estimated amount of the ultimate settlement for the claim. The estimate is based on the cedant's own methods of evaluation. The ceding company reports the claim and its suggested reserve amount to the Group entity with which it concluded its contract of reinsurance. The Group records the ceding company's suggested reserve and is free to establish greater or smaller reserves based on the review and analysis by the Group's claims division and internal actuaries. Such greater or smaller potential reserves are based upon the consideration of many factors, including the level of the commitments, seriousness of the claims and the Group's assessment of the ceding company's claims' management.

Conforming to applicable regulatory requirements and in accordance with industry practices, the Group maintains in addition to outstanding claims reserves, IBNR Reserves. These reserves represent:

• the estimated final amount that may be paid by the Group on losses or events that have occurred, but are not yet reported to the ceding company or to the SCOR entity concerned; and
• the estimated cost variation on claims already reported to the Group.

In determining the amount of its reserves, the Group generally uses actuarial techniques that take into account quantitative loss experience data, together with qualitative factors, where appropriate. The reserves are also adjusted to reflect reinsurance treaty terms and conditions, the variety of claims processing that may potentially affect the Group's commitment over time. With the exception of the reserves for worker's compensation in the USA and most of the reserves of Commercial Risk Partners ("CRP"), the former Bermudan entity of the Group now in run-off and merged within GSNIC, which are discounted pursuant to American and Bermudan regulations, the Group does not discount Non-Life reserves.

A table showing historical changes in reserves for Non-Life claims is provided in Section 20.1.6 - Notes to the consolidated financial statements, Note 16 - Contract liabilities.

The Group continues to pursue the active commutations policy of its portfolios initiated in 2003, the main goals being to reduce the volatility of claims reserves, to reduce the administrative costs particularly the oldest, and to allow the reallocation of capital. This policy will be continued by focusing efforts on the U.S. run-off activities, business exposed to Asbestos and Pollution risks, and some treaties written by the former Converium company acquired by SCOR.

B. Life business

For SCOR's Life business, it is required to maintain adequate reserves for future policy benefits that take into account expected investment yields and mortality, morbidity, lapse rates, exercise of options and other assumptions.

Reserves for policy claims are established on the basis of the Group's best estimates' hypothesis of mortality, morbidity as well as investment income. In determining its best estimates, the Group takes into consideration its past experience, current internal data, external market indices and benchmarks and other relevant information. The contracts' liabilities established by the Group with respect to individual risks or classes of business may be greater or less than those established by ceding companies due to the use of different mortality tables or other assumptions. Actual events in a given period may be more costly than projected and, therefore, may adversely affect SCOR's operating results for such period.

A table showing changes in the mathematical reserves in Life reinsurance is provided in Section 20.1.6 - Notes to the consolidated financial statements, Note 16 - Contract liabilities.

As a consequence of the difficulties described above regarding the correct reserving of risks and their annual revision in Life and Non-Life, there can be no assurance that the Group will not have to increase its reserves in the future, or that the reserves constituted by the Group will be sufficient to meet all its future liabilities, which could materially impact its current and future revenues, net income, cash flow, financial position, and potentially, the SCOR share price.

6.1.4 RETROCESSIONAL REINSURANCE

Reinsurers typically purchase reinsurance to cover their own risk exposures. Reinsurance of a reinsurer's business is called a retrocession. SCOR retrocedes a portion of the risks it underwrite in order to limit its exposures and losses, and it pays premiums based upon the risks and exposures of its facultative and treaty portfolios, subject to such retrocession cover. Retrocession cover is subject to collectability in all cases where the original business underwritten suffers from a loss that falls into the retrocession contractual scope. SCOR remains primarily liable to the direct insurer on all risks reinsured although the retrocessionaire is liable to the Group to the extent of the cover limits purchased. SCOR monitors the financial condition, including ratings, of its retrocessionaires regularly on an ongoing basis. The financial condition is monitored upon receipt of any information on retrocessionaires and automatic feeding of retrocessionaires rating on a quarterly basis, paying particular attention to the retrocessionaires' default risk in the treaty renewal period. The Group meets with the security departments of two large reinsurance brokers at least twice a year as part of this monitoring. It also analyzes external studies prepared by the security departments of these two reinsurance brokers. It reviews its retrocession arrangements periodically, to ensure that they fit closely to the development of its business, and revise its global retrocession program annually. Furthermore, to reduce the credit risk arising from its retrocessionaires, SCOR requests that certain of its retrocessionaires provide that all or a portion of the receivables from its retrocession contracts be supported by collateral (cash deposits, letters of credit, pledging of securities etc.) in its favor.

Retrocession procedures are centralized in the retrocession function of the Non-Life division. The level of retrocession is selected each year to ensure that SCOR's retained risk profile respects the specific Group risk tolerance limits, to help achieve its return on capital and solvency objectives. The Group utilizes a variety of retrocession agreements with nonaffiliated retrocessionaires to control its exposures to large property losses. In particular, it has implemented an overall program set in place on an annual basis that provides partial coverage for up to three major catastrophic events, natural or not, within one occurrence year. A major event is likely to be a natural catastrophe such as an earthquake, a windstorm, a hurricane or a typhoon in a region where SCOR has major aggregate exposures stemming from the business written. SCOR's retrocession program includes both traditional retrocession as well as the use of alternative risk transfer solutions (e.g., the multi-year securitization of catastrophic risk in the form of ILS and mortality swaps and the issuance of contingent capital securities). See below for a description of the securitization of catastrophic risk and mortality swaps. The credit risk that SCOR may be exposed to through these alternative risk transfer solutions can be more limited than the credit risk related to traditional retrocession arrangements because alternative retrocession is usually fully collateralized, which is not the case with traditional retrocession.

An analysis of the share of retrocessionaires in contract liabilities by rating of the retrocessionaires and collateral from retrocessionaires in favor of SCOR at 31 December 2011 and 2010 is presented in Section 20 – Financial information concerning the issuer's assets and liabilities, financial position and profits and losses, Note 16 – Contract liabilities.

Atlas Special Purpose Vehicle Catastrophe Bonds

The Group seeks to reduce its dependence on traditional retrocession and diversify its strategy in light of a potentially continued volatile retrocession market by using alternative risk transfer solutions, which includes the securitization of catastrophic risk in the form of ILS. Accordingly, on December 21, 2006, SCOR signed a multi-year catastrophe property retrocession agreement with Atlas III Capital Limited, a special purpose vehicle organized pursuant to the laws of Ireland and financed by the issuance of a catastrophe bond ("cat bond"). The purpose of Atlas III was to provide EUR 120 million in additional retrocession coverage for SCOR SE and its subsidiaries against exposure to storms in Europe and earthquakes in Japan, the losses of which were determined by a model over a period running from 1 January 2007 to 31 December 2009. Continuing this strategy to diversify retrocession sources, the Group issued two similar cat bonds, Atlas IV Reinsurance Limited ("Atlas IV") on 29 November 2007 for a term of three years and one month, providing EUR 160 million in additional retrocession coverage for SCOR SE and its subsidiaries against exposures to storms in Europe and earthquakes in Japan, and, in three series, Atlas V Capital Limited ("Atlas V") on 19 February 2009 for a term of three years providing USD 200 million in additional retrocession coverage for SCOR SE and its subsidiaries against exposure to earthquakes and hurricane in the U.S. and Puerto Rico.

The Group succeeded in the renewal of its retrocession programs in 2010 and 2011. On December 9, 2010, SCOR successfully placed a new cat bond, Atlas VI Capital Limited Series 2010-1, which provides the Group with EUR 75 million of protection against European windstorms and Japanese earthquakes for a risk period extending from December 10, 2010 to March 31, 2014. This transaction succeeds Atlas IV, which matured on 31 December 2010 and provided similar geographical cover of EUR 160 million. On 12 December 2011 the Group successfully placed a new cat bond, Atlas VI Capital Limited ("Atlas VI") Series 2011-1 and 2011-2, which will provide SCOR with USD 270 million of protection against U.S. hurricanes and earthquakes and EUR 50 million of protection against European windstorms, for a risk period extending from December 13, 2011 to 31 December 2014 for the U.S. series and March 31, 2015 for the European series. This transaction will succeed Atlas V, which is due to mature on 24 February 2012 and provides geographical cover that is similar to that covered by Series 2011-1 of Atlas VI. See " Section 9 – Operating and financial review, 9.2.4 Retrocession." Atlas V Capital Limited, Atlas VI Capital Limited Series 2010-1, 2011-1 and 2011-2 have been accounted for as derivatives and are considered as balance sheet protection.

Mortality Swap

In 2008, SCOR Global Life SE signed a four-year mortality swap (the "1st tranche") with an affiliate of J.P. Morgan Chase & Co. ("JP Morgan") pursuant to which it will receive up to a nominal amount of USD 100 million and EUR 36 million in the event of a significant rise in mortality rates due to major pandemics, natural catastrophes or terrorist attacks. In 2009, SCOR Global Life extended the protection offered by the 1st tranche by arranging an additional tranche with a lower attachment point (the "2nd tranche" and together with the 1st tranche, the "Mortality Swaps"). The Mortality Swap reduces SCOR's exposure to major mortality shock events.

Details on swaps are disclosed in Section 20.1.6 Notes to the consolidated financial statements, Note 8 – Derivative instruments.

6.1.5 INVESTMENTS

Fixed income investments are managed by SCOR Global Investments SE or by external managers. In all cases, investment guidelines are provided to managers and strict monitoring is carried out over the global portfolio by the respective Group entities. Whether managed internally or externally, each entity monitors, either directly or via an intermediary, the changes in value of the investment assets. In general, the tactical allocation of the global portfolio is defined by the Group Investment Committee which meets each quarter. It is chaired by the Group's Chief Executive Officer and is composed of the Group Chief Financial Officer, the Group Chief Risk Officer, the Chief Economist, the Chief Executive Officer of SCOR Global P&C and the Chief Executive Officer of SCOR Global Life, the Chief Executive Officer of SCOR Global Investments SE and other representatives of SCOR Global Investments.

The Group has a prudent investment policy and put great importance on several selection criteria including internal assessments, the rating provided by the rating agencies to the issuer and the liquidity of the securities purchased. See Section 20.1.6 – Notes to the consolidated financial statements, Note 26 – Insurance and Financial Risk – Credit Risk Credit Risk for a description of SCOR's exposures to sovereign bonds.

SCOR is exposed to equity price risk on its equities portfolio. The Group's goal in managing its equities portfolio is to develop a diversified portfolio of high-quality equities that will appreciate over the medium term. It also seeks equities which offer high dividends or are equities which it believes are likely to appreciate in value based on increases in inflation. Equities selection is therefore predominantly based on an analysis of the underlying fundamentals.

Because equities are more volatile than fixed income securities, this asset class is closely and regularly monitored. All equity positions (direct positions and mutual funds) are aggregated and valued daily. This approach allows SCOR to monitor changes in the portfolio and to identify investments with higher-than-average volatility as soon as possible, using alert signals. It also facilitates arbitrage or portfolio re-allocation decisions.

The equity risk is controlled and measured:

• On a Group level, exposure is decided and reviewed at least quarterly by the Group Investment Committee.
• The equity risk is also controlled by the definition of maximum exposures per stock or mutual fund and is reviewed regularly (e.g., exposure to large-cap stocks will generally be greater than exposure to mid-cap stocks). The control ratios on mutual funds are also reviewed regularly, based on the mutual fund's holdings.

To measure the risk, an assumed "equity" beta of 1 is generally used. This assumes that the whole portfolio varies homogeneously and with the same magnitude as the equity market. SCOR therefore uses an instantaneous change in the equity market as a measure of the change in the unrealized capital gains or losses of the equity portfolio.

Interest rate risk is managed within the Group primarily at two levels. At the level of each entity, the Group takes into account the regulatory and accounting constraints. At the Group level, SCOR reviews its consolidated investment portfolios in order to identify the overall level of risk and return. It uses analytical tools which guide both its strategic allocation and local distribution of assets. Sensitivity to changes in interest rates is generally analyzed on a weekly basis.

At 31 December 2011, SCOR's total investments and cash were EUR 21,429 million (EUR 20,878 million as at 31 December 2010). The increase in total investments and cash as compared to 2010 was mainly due to the acquisition of Transamerica Re assets and the organic growth of the asset book which more than compensated the sale of SCOR's subsidiary IIC, and its related assets, to Athene Holding Ltd.

The portion invested in equities decreased from EUR 1,304 million at 31 December 2010 to EUR 1,247 million at 31 December 2011 in line with the target set forth in Strong Momentum V1.1 of optimizing the risk profile of the Group. Most of the equity investments were in European companies with large market capitalization.

The portion invested in fixed income investments decreased from EUR 10,197 million at 31 December 2010 to EUR 8,372 million at 31 December 2011. 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 in the short term. The outlook for the world economy in 2012 and beyond continues to be extremely uncertain, with certain possible future outcomes (e.g., a doubledip scenario, a return of inflation or a sudden rise in interest rates) potentially having a significant negative impact on SCOR's total investments and cash. 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 declined slightly from 3.4 years at 31 December 2010 to 3.1 years at 31 December 2011, in line with the Group's rollover investment strategy.

In terms of credit quality, most of the fixed income portfolio continued to be invested in AAA fixed incomes securities (for approximately EUR 3,079 million at 31 December 2011), primarily securities issued or secured by governments or in securities of very high-quality issuers. 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 3,439 million at 31 December 2011 of which EUR 1,688 million was invested in government bonds of countries within the EU (excluding the U.K.), primarily Germany, France, the Netherlands and the UK (EUR 1,479 million in the aggregate). As at 31 December 2011 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 839 million at 31 December 2011. SCOR's total exposure to corporate bonds in its investment portfolio was EUR 3,413 million at 31 December 2011, of which exposures to Greece, Ireland, Italy, Portugal, and Spain was EUR 84 million, primarily in Italy. SCOR's total exposure to structured and securitized products in its investment portfolio was EUR 681 million at 31 December 2011.

The liquidity, defined as cash, cash equivalent and short term investments, has increased from EUR 1,266 million at 31 December 2010 to EUR 3,055 million at 31 December 2011 in order to temporarily protect the investment portfolio and will be quickly reinvested as soon as the current market turmoil recedes.

For further detail on the investment portfolio for the years ended 31 December 2011 and 2010 see "Section 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 2011, 2010 and 2009 see "Section 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
	2011		2010		2009
	In EUR		In EUR		In EUR
	million	%	million	%	million	%
Real estate investments	499	2.3%	378	1.8%	307	1.5%
Available-for-sale equities	1,158	5.4%	1,273	6.1%	1,147	5.7%
Available-for-sale fixed
income	8,334	38.9%	10,188	48.8%	8,850	44.3%
Fair value through income
equity investments	89	0.4%	31	0.1%	41	0.2%
Fair value through income
fixed income	38	0.2%	9	0.1%	124	0.6%
Loans and receivables (excluding short term
investments)	8,098	37.9%	7,639	36.6%	7,742	38.8%
Derivative investments	158	0.7%	94	0.5%	104	0.5%
Liquidity (cash and cash equivalents+ short term
investments)	3,055	14.2%	1,266	6.0%	1,654	8.2%
Total	21,429	100.0%	20,878	100.0%	19,969	100.0%

See Section 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 of 31 December 2011, 2010 and 2009.

Credit Risk

SCOR is exposed to credit risk on the fixed income securities in its investment portfolio. See Section 4 – Risk factors, 4.1.14 SCOR is exposed to losses due to counterparty default risks or credit risk. See also Section 20.1.6 – Notes to the financial statements, Note 26 – Insurance and Financial Risk – Credit Risk. SCOR mitigates these risks by implementing a policy of geographic and sector diversification. Limits by counterparty exposure and by rating are also defined. A retrospective quarterly analysis by division (business sector, geographical area, counterparty, rating) enables critical risks to be identified and evaluated in order to take appropriate actions.

The following table presents SCOR's fixed income securities by counterparty credit quality, including fixed income securities classified as trading, at 31 December 2011 and 2010:

	As at December 2011 Net carrying value		As at 31 December 2010 Net carrying value
	in EUR million	%	in EUR million	%
AAA	3,078	36.8%	6,042	59.3%
AA	2,115	25.3%	847	8.3%
A	1,784	21.3%	1,717	16.8%
BBB	1,022	12.2%	1,093	10.7%
below BBB	272	3.2%	302	3.0%
Unrated	101	1.2%	196	1.9%
Total	8,372	100.0%	10,197	100.0%

See "Section 20.1.6 — Notes to the financial statements, Note 6 — Insurance Business Investments" for a breakdown of fixed incomes securities included in the Group's portfolio by remaining maturity at 31 December 2011.

6.2 Principal markets

SCOR is characterized by its strategic positioning aimed at underwriting risks so as to diversify exposure. To this end, the Group seeks to preserve:

• the diversification of its business by maintaining a broadly balanced business division split between Life and Non-Life reinsurance. The portfolio business volume split for the year ended 31 December 2011, including Transamerica Re acquisition completed on 9 August 2011 was approximately 48% for Life reinsurance and 52% for Non-Life reinsurance based on gross written premiums.
• the geographic diversification of the Group's business by:
  • operating in a large number of countries, both mature and emerging;
  • maintaining its policy of positioning itself in strong-growth markets (for example, by opening Life representative offices in Israel and Mexico, reinforcing SCOR's organizational structure in Latin America as well as establishing a new subsidiary in Australia covering the Australian and New Zealand markets);
  • obtaining a composite reinsurance license in China, enabling SCOR to add Life & Health reinsurance services to the existing Non-Life activities and backing a new Lloyds syndicate (Channel Syndicate), which constitutes a complementary route for the Group to optimize its access to business that is not currently being underwritten).

The acquisition of the mortality reinsurance business, including the operational assets and personnel of Transamerica Re, completed in August 2011, further enhanced the geographical diversification of the Group, and provides SCOR with a number two position in life reinsurance in the U.S. based on assumed recurring new business volume according to the 2010 Munich American SOA Survey.

the diversification of underwritten risks in Life reinsurance by line of business (Life, Life Financing Reinsurance, Disability, Long-Term Care, Critical Illness, Health, Annuities and Personal Accident), and in Non-Life reinsurance by business area (Property and Casualty Treaties, Specialty Treaties, Business Solutions (large corporate accounts underwriting essentially on a facultative business/occasionally direct insurance) and Joint Ventures and Partnerships).

In EUR million		2011		2010		2009
By division
SCOR Global P&C	3,982	52%	3,659	55%	3,261	51%
SCOR Global Life	3,620	48%	3,035	45%	3,118	49%
Total	7,602	100%	6,694	100%	6,379	100%
By sub-division
Non-Life reinsurance
Treaties	2,085	52%	1,864	51%	1,724	53%
Business Solutions (facultative)	538	14%	483	13%	405	12%
Specialty Treaties	925	23%	868	24%	708	22%
Joint Ventures & Partnerships	434	11%	444	12%	424	13%
Total SCOR Global P&C	3,982	100%	3,659	100%	3,261	100%
Life reinsurance
Life	2,140	59%	1,578	52%	1,408	45%
Life Financing Reinsurance	492	14%	535	18%	531	17%
Critical Illness	177	5%	137	4%	119	4%
Disability	239	7%	253	8%	223	7%
Long-Term Care	154	4%	136	4%	132	4%
Annuities	9	0%	47	2%	414	13%
Health	311	8%	292	10%	245	8%
Personal Accident	98	3%	57	2%	46	2%
Total SCOR Global Life	3,620	100%	3,035	100%	3,118	100%

6.2.1 BREAKDOWN OF GROSS PREMIUMS BY DIVISION

6.2.2 DISTRIBUTION BY GEOGRAPHIC AREA

In 2011, SCOR generated approximately 49% of its gross written premiums in Europe (53% for the year ended 31 December 2010), with significant market positions in France, Germany, Spain and Italy, 31% of its gross written premiums in North America, including Bermuda and the Caribbean region (27% for the year ended 31 December 2010) and 20% of its gross written premiums in Asia and in the rest of the world (20% for the year ended 31 December 2010).

The following table shows the breakdown by gross volume of Life and Non-Life premiums written by geographic area based on the country in which the ceding company operates for treaty business and location of the insured for facultative business:

		Total			SCOR Global Life			SCOR Global P&C
In EUR
million	2011	2010	2009	2011	2010	2009	2011	2010	2009
Europe	3,709	3,572	3,551	1,686	1,660	1,656	2,023	1,912	1,895
Americas	2,376	1,823	1,760	1,393	913	1,063	983	910	697
Asia
Pacific/Rest
of World	1,517	1,299	1,069	541	462	399	976	837	669
Total	7,602	6,694	6,379	3,620	3,035	3,118	3,982	3,659	3,261

6.3 Extraordinary events influencing the principal business and markets

On 15 December 2011, Moody's Investors Service affirmed the A2 insurance financial strength ratings (IFSR) of SCOR SE (SCOR) and various guaranteed subsidiaries, and SCOR's Baa1 (hyb) subordinated debt rating. The rating outlook remained positive.

On 28 October 2011, Standard & Poor's Ratings Services reaffirmed its 'A' Financial Strength Rating and Counterparty Credit Rating. The Outlook on all entities remained positive.

On 3 May 2011, Fitch Ratings affirmed SCOR's Long-term Issuer Default Ratings (IDRs) and Insurer Financial Strength (IFS) ratings at 'A', respectively. The Outlook on the IDR and IFS remained positive

On 27 April 2011, Standard & Poor's Ratings Services affirmed its 'A' long-term counterparty credit and insurer financial strength ratings on, as well as on SCOR's guaranteed subsidiaries. The outlook on all entities remained positive.

On 26 April 2011, Moody's Ratings affirmed its A2 insurance financial strength, outlook positive and its rated subsidiaries after the acquisition of the life mortality business of Transamerica Re.

On 26 April 2011, A.M. Best Europe affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit rating (ICR) of "a" of SCOR SE and its subsidiaries. Concurrently, A.M. Best affirmed the subordinated debt ratings. The outlook for all ratings remained stable.

On 7 October 2010, Moody's raised the outlook on the "A2" Insurer Financial Strength Rating (IFSR) of SCOR SE and its main subsidiaries from "stable" to "positive" today. According to the rating agency, this decision reflected "SCOR's good franchise, diverse book of reinsurance business, excellent asset quality, and relatively low financial leverage. Furthermore, the Group's senior management has demonstrated a consistent business strategy."

On 1 October 2010, Standard & Poor's raised the outlook on the "A" rating of SCOR SE and its main subsidiaries from "stable" to "positive". According to the rating agency, "the outlook revision reflected our view of the positive momentum in SCOR's financial profile. This mainly stems from the group's improved earnings, strong capitalization, and a strong enterprise risk management (ERM) programme."

On 10 September 2010, A.M. Best upgraded the Insurer Financial Strength and Long-Term Credit and ratings of SCOR SE and its main subsidiaries from "A-" to "A"(Excellent) and "a-" to "a" respectively. According to the rating agency, this decision reflects "the continuing resilience of SCOR's risk-adjusted capitalization, its consistent operating performance and the quality of its enterprise risk management".

On 24 August 2010, Fitch Ratings upgraded the outlook on the "A" rating of SCOR SE and its subsidiaries from "stable" to "positive" for Insurer Financial Strength (IFS) and Long-term Issuer Default Ratings (IDRs). Fitch notably indicates that this upgrade took account of "the resilience of the group's financial strength, due to its conservative investment policy, reduced debt leverage and continued strong capital adequacy amid volatile financial markets and a less favorable claims environment. The ratings also took SCOR's strong business and risk diversification, solid business position and resilient profitability into account".

On 6 March 2010, STOXX announced SCOR's addition to its "EuroStoxx Select Dividend 30" index. The underlying component data (new numbers of shares and free-float factors) for all indices have been announced on March 12, 2010 after the close of European markets. The listing became effective on 19 March 2010 after the close of the European markets. SCOR SE was chosen as one of five new securities to join the EuroStoxx Select Dividend 30 (which is an index listing the 30 most attractive European companies in terms of dividends).

On 4 September 2009, A.M. Best raised SCOR SE's and its rated subsidiaries rating outlook from "stable" to "positive". According to A.M. Best the change in outlook reflects A.M. Best's expectation that SCOR will continue to demonstrate strong resilience to the impact of the financial crisis and global economic downturn, its sound enterprise risk management, and anticipated improvement in risk adjusted capitalization supported by profitable growth in its main lines of business.

On 4 September 2009, Standard & Poor's raised SCOR's Enterprise Risk Management (ERM) from "adequate" to "strong". According to Standard & Poor's the ERM ratings upgrade reflects the Group's excellent risk management culture, excellent emerging risk management, strong strategic risk management and strong or at least adequate risk controls for the Group's major risks.

On 13 March 2009, Standard & Poor's upgraded SCOR SE's and its core guaranteed subsidiaries long-term credit and insurer financial strength ratings to "A" from "A-" with a stable outlook.

6.4 Dependency of the issuer with respect to patents or licenses, industrial, commercial or financial contracts and new manufacturing processes

Please refer to Section 4.1.6 – SCOR may be adversely affected if its cedants, retrocessionaires, insurers or members of pools in which it participates do not respect their obligations, 4.1.10 – A significant portion of our contracts contains provisions relating to financial strength which could have an adverse effect on its portfolio of contracts and its financial position, 4.1.11 – Operational risks, including human errors or computer system failure, are inherent in SCOR business, 4.2.1 – SCOR faces risks related to its fixed income investment portfolio, 4.2.2 – SCOR faces risks related to its equitybased portfolio, 4.3 – Liquidity risks, 4.5 – Insurance of specific operational risks (excluding reinsurance activity).

6.5 Information on SCOR's competitive position

SCOR competes for business in the European, American, Asian and other international markets with numerous international and domestic reinsurance and insurance companies, some of which have a larger market share than its own, greater financial resources and, in certain cases, higher ratings from the rating agencies. Competition in the types of reinsurance and insurance that the Group underwrites is based on many factors, including financial strength as perceived by the rating agencies, underwriting expertise, reputation and experience in the lines of reinsurance and insurance written, country of operation, premiums charged, the quality of the proposed reinsurance structures, the services offered and the speed at which claims are paid.

SCOR's competitors include independent reinsurance companies, subsidiaries or affiliates of established worldwide insurance companies, and reinsurance departments of certain primary insurance companies. Among the Group's major competitors there are European reinsurers (for example, Swiss Re, Munich Re and Hannover Re) and U.S. and Bermudian reinsurers (for example, PartnerRe, RGA, Ace, Axis Capital, Transatlantic Re, Odyssey Re, General Re and Everest Re). Also Lloyd's of London is recognized as a major competitor.

6.5.1 NON LIFE REINSURANCE

On the 10 February 2011, SCOR announced that the January 2011 Non-Life renewals confirmed SCOR's excellent position in the reinsurance industry, as well as the validity of its hypotheses on the evolution of the reinsurance environment released in September 2010 in Monte Carlo in anticipation of the renewal season.

Thus, the renewals at 1 January 2011 experienced a stable expected technical profitability and return on capital in line with the objectives of the "Strong Momentum" plan, due to dynamic management of the portfolio. In addition, the average weighted rates were stable in an environment of slight rate decreases, with a few upward and downward exceptions such as Energy and US Cat driven by loss experience. In the meanwhile, the terms and conditions remainedunchanged. Finally, the Group benefited from a significant increase in written premiums, demonstrating the Group's momentum on the reinsurance markets as well as the strength of its franchise.

The key characteristics of these SCOR Non-Life renewals at 1 January 2011 were as follows (all figures below are at constant exchange rates):

• stable weighted average underwriting ratio (-0.2 percentage points), hence stability of expected technical profitability;
• 13% rise in gross written premiums to a total of EUR 2,056 million, including two major quota share contracts one motor treaty in the UK and one whole account treaty in China - corresponding to 2 new "Strong Momentum" initiatives and representing growth of 6%;
• prices virtually stable, with a weighted average decrease of around 0.2%;
• continued active portfolio management, with 7% of the premiums up for renewal cancelled and 12% restructured;
• no change in the portfolio profile, remaining underweight in US long-tail Casualty and to a lesser extent in US Cat, which proved to be the areas under most price pressure.

Concerning the Treaty P&C renewals:

The total volume of premiums renewed at 1 January 2011 increased by 15% to EUR 1,533 million, against EUR 1,335 million up for renewal (69% of Treaty P&C annual volume). Besides the two above-mentioned deals, SCOR continues to actively execute its portfolio management strategy by further expanding Non-proportional business and improving geographic diversification towards Asia and the Americas.

Approximately 7% (EUR 92 million) of Treaty P&C premiums up for renewal were cancelled, with a further 12% restructured, demonstrating our active policy of portfolio management.

SCOR Global P&C has compensated for this with new business acquired from existing and new clients (EUR 149 million and EUR 73 million respectively) and with increased shares on renewed business (EUR 27 million).

The stable price impact combined to an underlying volume growth mainly related to emerging markets, has resulted in an increase in premium volume of EUR 70 million.

In terms of business mix, the significant growth in Motor takes advantage of primary insurance re-pricing in some markets (e.g. UK). In overall stable price environment, 6% growth is recorded in Property Proportional by deepening and re-activating existing relationships in emerging markets, such as China and South Africa, but also in Eastern and Southern Europe and in the US.

In a very fragmented Property Cat market, new opportunities in countries benefiting from favorable pricing trends such as Eastern Europe, Germany has resulted in 13% growth of Property Cat premiums.

In Motor Non-proportional, a very contrasted situation between markets has led to a differentiated approach such as reduced premiums in France while increasing in Canada or in USA with regional cedants and 6% growth.

In terms of geographies, 10% growth is recorded in Europe Middle East and Africa through first the new motor quotashare deal in UK and successes in acquiring new selected clients or businesses in Germany and Austria. In Americas, the premium volume has increased by 19%. This meaningful growth is concentrated in the US and leverages the recent rating agency upgrades and the launch of the Strong Momentum New Initiatives. A very strong growth (+66%) is recorded in Asia, mainly driven by the acquisition of a large new quota-share in China.

Concerning the Specialty Treaty:

SCOR's franchise is once again fully affirmed and Specialty Treaty business has kept on growing, with premiums up by 9% to EUR 523 million from EUR 479 million up for renewal (61% of annual volume). SCOR's teams compensate for 6% or EUR 31 million of business cancelled, by writing EUR 15 million of additional business with existing clients and EUR 15 million with new clients. New shares on existing programmes increase premium volume by EUR 37 million.

In term of business mix, the most significant progress was recorded in Marine & Energy (+22%), Credit & Surety (+18%)and Engineering (+14%), through share increases and new opportunities.

In Credit & Surety, the continued growth is driven by share increases and growing ceded business. Despite faster than expected softening conditions, the Credit & Surety portfolio still shows profitability potential. In Agriculture, the preliminary renewal experience indicates a 22% premium volume decrease, with terms and conditions under pressure following a profitable 2010, reductions being expected in US further to the discontinuation of proportional business due to change in reinsurance agreement and in China due to pricing.

In a competitive large corporate segment facing price reductions driven by over-capacity, following a year of very low claims activity, Business Solutions maintains the volume of its business (EUR 179 million for both 2011 and 2010).]The renewals of April (+13%), have confirmed those of January 2011 (+13%) as well as the Group's excellent positioning on all markets.

On 25 July 2011, SCOR announced it delivered an excellent 22% growth on its Non-Life Treaties and Specialties, at constant exchange rates, on the EUR 320 million premium coming up for renewal at mid-year, with a weighted average price increase across all markets and all lines of business of slightly above 2.0%, meeting all internal profitability targets. June-July renewals represent around 10% of the total annual treaty premium and the renewing premium is split between P&C Treaties (59.5%) and Specialty Lines (40.5%) in three geographical areas: Americas (43%), Asia (30%) and EMEA (27%).

The highlights of 2011 July renewals were as follows:

P&C Treaties recorded 14.8% overall growth driven by Asia where the 23% premium increase achieved through the combination of increased shares and improved primary and reinsurance rates while the Nat Cat maximum exposure per market and peril kept stable. In Americas, the 13.6% growth stemmed from the US regional book thanks to the acquisition of new clients and the strengthening of existing relationships. The 10% growth in EMEA was mainly from new business and increased shares on existing portfolios in the Middle East and South Africa.

Specialty Lines showed a strong 35% increase, one third of which was generated from one major step up in the business flow from one particular client. Credit & Surety (+37%), Marine & Offshore Energy (+15%) and Engineering (+6%) benefited from the acquisition of new clients and increased shares on existing business.

The pricing momentum on Property Cat lines became more marked beyond the markets affected by losses and started to expand to Property Non-Cat lines. In this moving business environment, the price increase of US Cat exposed contracts varied between 10% to 15% in June and 5% to 10% in July.

6.5.2 LIFE REINSURANCE

In 2011, SCOR Global Life acquired the mortality portfolio, including the operational assets and personnel, of Transamerica Re, a division of AEGON. SCOR obtained all the necessary approvals from the relevant regulators, notably the Texas Department of Insurance, the Delaware Insurance Department and the Central Bank of Ireland. This acquisition amounted to a total consideration of USD 919 million, including a statutory equity of USD 497 million for the Irish entity per closing date. It was financed by SCOR without the issuance of new shares.

In January 2001, SCOR Global Life SE, a subsidiary of SCOR SE opened a new office in Mexico and reinforced its organisational structure in Latin America, a rapidly growing Life reinsurance region.

In May 2011, SCOR Global Life SE opened a new subsidiary in Australia covering the Australian and New Zealand markets. The new subsidiary offers attractive and profitable opportunities for the Group, as the next phase in its continued growth in the Asia-Pacific region.

On 31 August 2011, SCOR Global Life SE which already held 50% of the capital of SOLAREH SA, acquired the remaining 50% by purchasing shares from Solareh International Inc. It was in line with its strategic plan for the period 2010-2013 "Strong Momentum", It extended and strengthened its value-added service offering for its insurer clients. On 15 September 2011, SCOR announced the creation of Réhalto a joint venture between SCOR and SOLAREH.

On 3 October 2011, SCOR Global Life announced the launch of SOLEM, its new online rating tool for medical, sports, occupational, financial, foreign residence and transport risks. SOLEM enables underwriters to rate all products with death, accidental death, long-term care, disability and critical illness covers. It includes a claims management index and calculators to facilitate day-to-day decision-making. This new, unique and innovative software enables underwriters to save, retrieve and modify ratings.

In 2011, SCOR Global Life increased its new business premium by 11% compared to 2010, with France, the Middle East and Italy as the main contributors. Double digit premium growth was achieved in Central and Eastern Europe, Scandinavia, Asia-Australia, and France. In 2011, a new Longevity team has been created in London following the strategic decision in 2010 for SGL to enter the UK longevity market. Premium from this initiative also fuelled the UK premium growth.

The premium increase of 19% to EUR 3,620 million in 2011 was driven by EUR 677 million from the Transamerica Re acquisition, offsetting the slight reduction due to the US annuity business disposal (EUR 32 million) and a negative FX rate effect of EUR 51 million. The US continue to be SCOR Global Life's main market with a premium share of 34% in 2011 compared to 25% in 2010. This consolidates SCOR Global Life's position among the top-five worldwide Life Reinsurers, becoming the #2 provider in North America by new business volume (Source: 2010 Munich American SOA Survey).

In 2011, Critical Illness, Personal Accident and Long Term Care were the lines of business showing the strongest premium growth within the SCOR Global Life portfolio, with both new treaties and increased business with existing clients as the main drivers. The strong premium increase of 35% in Life business compared to 2010 was driven by the Transamerica Re acquisition. This also largely offset the unfavourable foreign exchange rate development in this line of business.

The evolution of life reserves follows SCOR Global Life's strategic portfolio management. The Long Term Care business in France produced new reserves of EUR 116 million and in Life Financing Reinsurance SCOR built up additional reserves of EUR 138 million from contributions due in long-term engangements.

The solid operating profitability of SCOR Global Life was achieved thanks to a robust technical performance across most regions and lines of business, leading to an overall operating margin of 6.5% in 2011 despite increased expenses following the acquisition of Transamerica Re and a reduced investment income contribution due to a prudent and conservative asset allocation and the Transamerica Re purchased assets remaining largely in cash.

The total number of SCOR Global Life clients amounts to approximately 1,900 after the Transamerica Re acquisition.

ORGANIZATIONAL STRUCTURE

7.1	Brief description of the Group and of the position of the issuer	80
7.2	List of issuer's significant subsidiaries	82

ORGANIZATIONAL STRUCTURE

The main operational entities of the Group are presented in the chart below:

7.1 Brief description of the Group and of the position of the issuer

7.1.1 GROUP OPERATING COMPANIES

The Group company which stock is listed on the Euronext Paris regulated market is SCOR SE, the group parent company.

The Group is a twin engine group driven by SCOR Global Life and SCOR Global P&C SE. Mobilization of skills and expertise, a balance among teams from different entities of the Group, operating efficiency, simplicity of structures, and clarity of reporting lines were the principles that guided the Group's organisational choices.

SCOR's Non-life division reinsurance operations are conducted primarily under the supervision and management of SCOR Global P&C SE. SCOR Global P&C SE carries out its operations through European branches in Spain, Italy, Switzerland, the U.K. and Germany, and a network of dedicated subsidiaries, branches and representative offices in the U.K., the Americas and Asia-Pacific, as well as composite Non-Life/Life subsidiaries and branches in Russia, South Africa and China.

The Life division operations are conducted primarily under the supervision and management of the SCOR Global Life SE. SCOR Global Life SE carries out its operations through branches in Germany, the U.K., Italy, Spain, Switzerland, Austria, Netherlands, Canada and in Asia, as well as through SCOR Global Life Americas in the U.S., SCOR Global Life Reinsurance Ireland and SCOR International Reinsurance Ireland Ltd. in Ireland, and subsidiaries in Europe, Australia and South Africa.

The corporate functions of SCOR Global Life SE, SCOR Global P&C SE and of the Group in Paris, in Zurich and in Cologne (mainly) define the underwriting policies and monitor its standard application, control the changes in natural catastrophe risk accumulation and control claims.

The Group's subsidiaries, branches and offices are connected through a backbone network, applications and data exchange platforms, which allow local access to centralized risk analysis, underwriting or pricing databases and also give access to information on local market conditions, to be shared among the Group's subsidiaries, branches and offices. In addition, through regular exchanges of personnel between the Group's head offices in Paris and its non-French subsidiaries and branch offices, the Group encourages professional development and training across its various geographic markets and business lines.

On 29 October 2008, SCOR announced the creation of SCOR Global Investments SE, which is contemplated to manage, directly or indirectly, the global investment portfolio of all the Group's legal entities. SCOR Global Investments SE has been approved by the AMF as a portfolio management company as from 15 May 2009. 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 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.SCOR SE wholly owns its operating subsidiaries (excluding the shares held by Directors). SCOR SE also makes loans to its subsidiaries and issues them guaranties so that they can underwrite under favorable conditions, especially by letting them benefit from its financial ratings. SCOR SE provides support in actuarial, accounting, legal, administrative, systems, internal audit, investment, and human resources to Group subsidiaries. Finally, SCOR SE acts, as needed, as retrocessionaire for its two operational subsidiaries through quota share treaties renewed annually which form the instrument for internal control within the Group through the annual allocation of capital to the operating subsidiaries based on the profitability expected from their underwriting. The contracts that formalize the relationships between SCOR SE and its subsidiaries are presented in:

• Section 19 Related Party Transactions, and in
• Appendix A 1.5 -- Unconsolidated Corporate Financial Statements of SCOR SE Note 4: Transactions with subsidiaries and affiliates.

7.1.1.1 The Group's restructuring

SCOR launched and completed several major restructuring projects between 2005 and 2010. These reorganizations were undertaken in order to simplify the legal structure of the Group and clearly differentiate between the operations of subsidiaries that are dedicated respectively to Life reinsurance and Non-Life reinsurance, with a view towards optimal annual allocation of capital between the operations.

7.1.1.2 New SCOR

In connection with the implementation of the New SCOR project, which was announced in June 2005, SCOR transferred, by way of spin-off, all of its Non-Life reinsurance business in Europe, including Property & Casualty Treaties (Specialty Treaties, Business Solutions (facultative) and Major Corporate Accounts to Société Putéolienne de Participations (the

corporate name of which was changed to SCOR Global P&C), a French subsidiary wholly owned by SCOR. This contribution was approved on 16 May 2006, by the Combined Shareholders' Meeting of the Company, effective retroactively on 1 January 2006.

In connection with the second phase of the New SCOR project, SCOR announced on 4 July 2006, the conversion of SCOR into a Societas Europaea and the formation of a Societas Europaea at the level of SCOR Global P&C, through the merger by absorption of SCOR Deutschland Rückversicherung AG and SCOR Italia Riassicurazioni SpA by SCOR Global P&C. At the same time, SCOR Vie became SCOR Global Life SE through the merger with SCOR Global Life Rückversicherung AG (formerly Revios Rückversicherung AG) by SCOR VIE. SCOR SE so became the first publicly traded French company to adopt the Societas Europaea form. Since the completion of the merger, SCOR Global P&C SE conducts its operations in Italy, in Spain, in Switzerland and in Germany through its branches, as SCOR Global Life SE does. SCOR Global P&C SE has been the first company in Europe to complete a tripartite merger involving three different jurisdictions in the formation of a Societas Europaea.

The adoption of the European Company statute by SCOR SE, SCOR Global P&C SE and SCOR Global Life SE, occurred respectively on 25 June, 3 August and 25 July 2007, the registration dates for each company as a Societas Europaea with the Nanterre Trade and Company Register. This registration occurred after: (i) the completion of the negotiations on the involvement of the employees in the various European companies, as stipulated by the legislation governing a European company, with the special negotiation group ("SNG") formed for this purpose in July 2006, and representing the employees of the Group; an agreement on the involvement of the employees within SCOR SE and SCOR Global P&C SE was signed with the SNG on 14 May 2007; and (ii) the approval by the Extraordinary Shareholders' Meeting of each of the companies of the adoption of the Societas Europaea statute.

The Societas Europaea statute enables SCOR to strengthen its European and transnational identity, facilitate acquisitions in Europe, improve flexibility in financial matters and capital allocation, simplify regulatory controls by using the possibilities offered by the Reinsurance Directive and reduce its local structures, by giving preference to the use of branches, rather than local subsidiaries. The Group is thereby demonstrating its ambition to be a company with European roots and global reach. This legal flexibility is today demonstrated by the speed of the integration process for the European entities of Converium, which became SCOR Holding (Switzerland), in SCOR's European companies. SCOR Global Investments SE has also been incorporated as a Societas Europaea.

7.1.1.3 Implementation of a real estate structure

On 18 July 2006, the Group announced that it had consolidated its real estate investments within a single real-estate company, SCOR Auber, a wholly owned subsidiary of SCOR SE. This consolidation enables these investments to be more dynamically managed, simplifies the legal structures of the Group's real estate asset management, and reduces the management expenses, related to these investments. As at the date of this Registration Document, SCOR Auber holds 17 investment real estate properties, for offices purposes in their great majority, in Paris and in the Ile-de-France region (suburbs adjacent to Paris) .

7.1.1.4 Reorganization of the North American entities

On 8 September 2006, concurrently with the announcement of the upgrade of the rating of the Group's companies by AM Best, the Group announced a change in its Non-Life reinsurance structures in the United States. This change, which was completed on 31 December 2006, is two-fold: first, SCOR Reinsurance Company acquired 100% of the capital of GSINDA, a company specializing in underwriting "surplus lines", with a primary insurance license in the United States and, secondly, SCOR acquired GSNIC, an entity entirely dedicated to run-off, from SCOR Reinsurance Company (a subsidiary indirectly wholly owned by SCOR). In this restructuring, SCOR contributed USD 80 million to SCOR Reinsurance Company.

Following the acquisition of Revios by SCOR VIE on 21 November 2006, SCOR began restructuring the Life Reinsurance entities of SCOR VIE (whose corporate name was changed to SCOR Global Life) in the United States, at the same time as it merged the Revios and SCOR VIE offices in Asia and Europe. This restructuring was completed in November 2007 for the North American activities of SCOR Global Life, now regrouped in New York (NY) and in Dallas (Texas).

In 2009, the three Group Non-Life run-off companies based in the Americas dedicated to the run-off of the Non-Life portfolios following the termination of the activities in the concerned fields and segments – namely GSNIC, Commercial Risk Partners Ltd and Commercial Risk Re-Insurance Company – have been consolidated. The process required an amalgamation of Commercial Risk Partners Ltd and Commercial Risk Re-Insurance Company with GSNIC. The assets, liabilities and surplus of Commercial Risk Partners Ltd and Commercial Risk Re-Insurance Company have been added to GSNIC in their entirety and the shares of GSNIC held by SCOR SE have been contributed to SCOR US Corporation on 30 September 2010.

On 19 July 2011, SCOR finalised the sale of its subsidary Investors Insurance Corporation (IIC) to Athene Holding Ltd., as initially announced on 16 February 2011. This sale of SCOR's US fixed annuity business, for USD 55 million, is in line with the Group's strategy to develop its Life reinsurance activities around biometric risks, as set out in the Group's strategic plan for the period 2010-2013, "Strong Momentum". The transaction is also freeing up significant regulatory and rating capital.

Further to the acquisition, on 9 August 2011, of the mortality reinsurance business of Transamerica Reinsurance, SCOR Global Life reorganised its activities in the U.S. Thus, on 20 September 2011, the merger of SCOR Global Life Reinsurance Company of America with and into SCOR Global Life U.S. has been approved by the State of Delaware. Moreover, the State of Delaware also approved, effective 27 September 2011, the change of name of "SCOR Global Life U.S. Re Insurance Company" into "SCOR Global Life Americas Reinsurance Company" (SGL Americas).

7.1.1.5 Structuring in "Hubs"

Since 2008, SCOR restructured its operations around six regional management platforms, or Hubs: Paris, Zurich, London, Cologne, Singapore and the Hub Americas.

Each of the Hubs has local, regional¹ and Group responsibilities, with the heads of each Hub reporting to the Group Chief Operating Officer. Each Hub typically includes the following functions: a Legal and Compliance Officer, a Head of Information Systems, a Head of Finance, a Head of Human Resources and a Risk Manager. This organization enables:

• SCOR's operational structures and support functions to be optimized by creating service entities in charge of managing pooled resources, including information systems, human resources, legal and others in the Group's main locations; and
• several Group functions to be carried out in a geographical location other than Paris in order to benefit fully from the competencies within different locations.

The Hubs are not responsible for underwriting or claims management. The local underwriting and claims management teams have direct reporting lines within the respective Non-Life and Life divisions. Hub shared service costs are allocated to the divisions based on a headcount allocation key.

Management reviews the operating results of the Non-Life and Life divisions individually for the purpose of assessing the operational performance of the business and to allocate resources. For more information on SCOR's divisions, see "Section20.1.6. Financial Statements — Notes to the consolidated financial statements, Note 2 — Segment Information.

SCOR's decision to implement the Hub structure stemmed from the desire to realign its organizational structure following the successful consolidation of Revios and Converium. The Hub structure was designed to facilitate access to local markets through a network of local subsidiaries, branches and sales offices, provide better identification of profit centers in each major reinsurance market, obtain a deeper understanding of the specific features of local risks and develop local management and underwriting expertise, in order to provide better customer service and maintain relationships with ceding companies. The Hub structure was implemented in Cologne on 5 May 2008, in London on 20 May 2008, in New York on 18 June 2008, in Singapore on 16 June 2008, in Zurich on 27 January 2009 and in Paris on 24 February 2009. Following the acquisition of the mortality reinsurance business, including the operational assets and personnel, of Transamerica Re, Charlotte, North Carolina, has become a key location for the Life division. As part of the integration of the Transamerica Re business, Charlotte will join New York as a key competence center of the Americas Hub.

7.2 List of issuer's significant subsidiaries

Refer to:

• Section 7 Organizational structure chart;
• Appendix A 1.5 Unconsolidated Corporate Financial Statements of SCOR SE, Note 2.3 Subsidiaries and Affiliates;
• Section 20.1.6 Notes to the Consolidated Financial Statements Note 24: Related party transactions;
• Section 25 Information on Holdings;
• Section 7.1.1 Group operating companies as concerns the role of SCOR towards its subsidiaries;
• Section 20.1.6 Notes to the Consolidated Financial Statements Note 3 Acquisitions and disposals as concerns the financial equation of the acquisitions of entities in 2011;
• Section 20.1.6 Notes to the Consolidated Financial Statements, Note 3 Acquisitions and disposals as concerns the share of the entities acquired in 2011 income included in the Group's consolidated income;
• Section 14 Administrative and management bodies as concerns the duties carried out in the subsidiaries by the Managers of the issuer;
• Section 7.1 Brief description of the Group and of the position of the issuer as concerns the economic organization of the Group;

¹ Paris Hub : South Africa, Russia and the whole Europe except Germany, Switzerland, Sweden and UK ; Zurich Hub : Switzerland and one subsidiary in Guernsey ; Koln Hub : Germany, Austria and Israël ; London Hub: UK, Ireland and Sweden; Singapour Hub: the whole Asia, Australia ; Américas Hub: North America and South America.

• Section 19.3 Special report of the Auditors on related party agreements with regards to the financial flows between the issuer and its subsidiaries and their nature; and
• Section 20.1.6 Notes to the Consolidated Financial Statements, Note 3 Acquisitions and disposals for a description of the operations, of the relevant interim management balances and of the strategic economic assets of the main subsidiaries.

PROPERTY, PLANT AND EQUIPMENT

8.1	Major existing or planned property, plant and equipment	86
8.2	Environmental issues that may affect the utilization of property,
	plants and equipment	87

8 PROPERTY, PLANT AND EQUIPMENT

8.1 Major existing or planned property, plant and equipment

SCOR owns offices in Paris (France), Cologne (Germany), London (U.K.), Singapore and Madrid (Spain), where its local entities and subsidiaries have their corporate offices, and the remainder of the space is leased to third parties as part of its investment management business. The Group leases office space for its other business locations. It leases space separate from its head office for the purpose of safeguarding its data storage facilities in case of emergency. The Group believes that the Group's offices are adequate for its current needs. The material real estate that the Group owns is located in Paris, Cologne and London.

In Paris SCOR is lessee of its previous head office, which was located at 1, avenue Général de Gaulle, 92074 Paris La Défense (district of Puteaux – 92800). The SCOR building, with more than 30,000 m² of office space, has been owned by Compagnie La Lucette since 2006. Neither the sale of the building from KanAm to Compagnie La Lucette in 2006, nor the recent acquisition of Compagnie La Lucette by Icade, a French real estate investment trust, resulted in any change in the terms of the lease that had been signed by SCOR and KanAm when the property was originally sold to KanAm in 2003. This lease was signed for a nine-year term. Under this lease and in addition to customary guarantees, KanAm requested financial guarantees based on the Group's credit rating and the term of the lease, the benefit of which was transferred to Compagnie La Lucette. SCOR leases space separate from its head office for the purpose of safeguarding its data storage facilities in case of emergency. For more detail on these guarantees see Appendix A – Note 15.

In July 2011, SCOR finalized the acquisition of a company whose primary asset is an office building in Paris (5, avenue Kléber, 75016 PARIS). See section 20.1.6.5 Tangible assets for the detail of the transaction. The Paris office moved to this building in the first quarter of 2012. The property is expected to be utilized 80 % by SCOR for its Paris Hub office with the remainder to be leased third parties.

In Cologne in 2009 SCOR committed to acquire a 6,500 square meters building at Goebenstrasse 10 which became the Cologne Hub head office from early 2012. See section 20.1.6.5 Tangible assets for the detail of the transaction.

In London on 6 July 2011 SCOR purchased a company, PPG Lime Street, whose primary asset is a leasehold building at 10 Lime Street. See section 20.1.6.5 Tangible assets for the detail of the transaction. As at 31 December 2011, the building was 53 % occupied by SCOR for its London Hub office. The remaining part was rented to third parties.

SCOR also holds property investments as part of its asset management related to its reinsurance operations.

For more information on the Group's real estate investments, refer to Appendix A – Unconsolidated corporate financial statements of SCOR SE Note 2.1 – Changes in investments and Note 2.2 – Schedule of investments, and Section 20.1.6 – Notes to the Consolidated Financial Statements, Note 5 – Tangible assets and real estate investments.

8.2 Environmental issues that may affect the utilization of property, plant and equipment

Refer to the environmental report in Appendix C – Environmental impact of SCOR's activity.

OPERATING AND FINANCIAL REVIEW

9.1	Financial position	90
9.2	Operating results	91

9 OPERATING AND FINANCIAL REVIEW

The financial data of the SCOR Group is presented in Section 3 – Selected financial data and in Section 20.1 – Historical financial information: consolidated financial statements. The commentary below is based on the financial data presented in the aforementioned sections.

Refer also to Section 20.1.6 – Notes to the consolidated financial statements, Note 1 – Accounting principles and methods and Note 26 – Insurance and financial risks.

9.1 Financial position

The 2011 results and balance sheet strength demonstrate the effectiveness of SCOR's strategy which relies on high business and geographical diversification, focusing on traditional reinsurance activity with very limited exposure to reinsurance liabilities with economic activity risks and no material off balance sheet exposure. For the January 2012 renewals, SCOR was well-positioned to benefit from its improved industry position to combine strong premium growth and positive price changes in an overall declining reinsurance market context, which is increasingly fragmented (Refer to Section 12 – Trend information).

SCOR's shareholders' equity increased by 5.8 % before the impact of dividends and after the EUR 76 million increase in capital corresponding to an increased number of outstanding shares of 4.3 million following the triggering of the Contingent Capital first tranche on 6 July 2011. After dividend 2011 payments, shareholders' equity increased from EUR 4,352 million at 31 December 2010 to EUR 4,410 million at 31 December 2011 (consolidated shareholders' equity was EUR 3,901 million at 31 December 2009).

SCOR maintained its conservative asset management policy whilst executing a prudent inflection program directed to improve the return of its invested assets whilst keeping a strong focus on liquidity management. As indicated in September 2010 in the "Strong Momentum" strategic plan, and confirmed in the version 1.1 presented on 7 September 2011, the Group maintained 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, whilst seizing market opportunities in the short term.

The Group's short term liquidity position, which is well diversified across a limited number of banks and placed primarily in government securities and short-term investments with maturity less than 12 months, stands at EUR 3.1 billion at the end of 2011 up from EUR 1.3 billion at the end of 2010 (EUR 1.7 billion at 31 December 2009).

Positive operating cash flow amounted to EUR 530 million in 2011, compared to EUR 656 million in 2010 (and EUR 851 million in 2009) with strong contributions from both Life and P&C operations. The reduction in 2011 cash flow was mainly due to SCOR Global P&C payments in respect of catastrophe losses and to timing of cash flows for SCOR Global Life.

Total investment and cash, amounted to EUR 21.4 billion at 31 December 2011 as compared to EUR 20.9 billion and EUR 20.0 billion at 31 December 2010 and 2009, respectively.

The Group has a financial debt leverage position of 18.1 % at 31 December 2011, as compared to 9.9 % at 31 December 2010 and 14.6 % at 31 December 2009. This ratio is calculated as the percentage of subordinated debt(1) compared to total shareholders' equity plus subordinated debt. The increase in the debt leverage ratio is primarily due to the fact that SCOR successfully placed, on 20 January 2011, 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. In addition, on 11 May 2011, SCOR reopened its note and issued an additional amount of CHF 250 million.

Book value per share stands at EUR 23.83 at 31 December 2011 as compared to EUR 23.96 and EUR 21.80 at 31 December 2010 and 2009, respectively.

⁽¹⁾ In respect of the CHF 650 million subordinated debt issuance, SCOR entered into cross-currency swaps which exchanges the CHF principal and coupon into EUR, and matures on 2 August 2016. The calculation of the ratio includes the effect of these swaps.

9.2 Operating results

This section includes comments on both the current year operating results as well as comparisons to prior years.

9.2.1 CONSOLIDATED OPERATING RESULTS

Gross written premium

Gross written premium for the year ended 31 December 2011 amounted to EUR 7,602 million, an increase of 13.6% at current exchange rates as compared to EUR 6,694 million for the same period in 2010. The overall increase in gross written premium of EUR 908 million in 2011 is due to an increase for SCOR Global P&C of EUR 323 million. An increase of EUR 585 million for SCOR Global Life was primarily driven by the premium from the acquired mortality business of Transamerica Re. This more than offset the negative FX impact in 2011, and reduction in premium from the US Equity Index Annuity Business (EIA) due to the sale of SCOR's US fixed annuity business on 19 July 2011. SCOR Global Life did not write any EIA business in 2011 compared to EUR 32 million in 2010.

Gross written premium for the year ended 31 December 2010 amounted to EUR 6,694 million, an increase of 4.9% at current exchange rates as compared to EUR 6,379 million for the same period in 2009. The overall increase in gross written premium of EUR 315 million in 2010 is due to an increase for SCOR Global P&C of EUR 398 million and a decrease of EUR 83 million for SCOR Global Life, driven by the deliberate reduction in the US Equity Index Annuity Business (EIA), of which only EUR 32 million was written in 2010, compared to EUR 386 million in 2009.

Net earned premium

Net earned premium for the year ended 31 December 2011 amounted to EUR 6,710 million as compared to EUR 6,042 million and EUR 5,763 million for the years ended 31 December 2010 and 2009, respectively. The overall increase in net earned premium of EUR 668 million from 2010 to 2011 and EUR 279 million from 2010 to 2009 is consistent with the increase in gross written premiums.

Investment income

Investment income for the year ended 31 December 2011 amounted to EUR 665 million as compared to EUR 708 million and EUR 514 million for the years ended 31 December 2010 and 2009, respectively (1) . The net return on investments in 2011 was 3.2% compared to 3.4% in 2010 and 2.6% in 2009 (2) .

Gross benefits and claims paid

Gross benefits and claims paid were EUR 5,654 million, EUR 4,791 million and EUR 4,684 million in 2011, 2010 and 2009, respectively (3) .

Net results of retrocession

The net results of the Group's retrocession program were EUR (7) million, EUR (160) million and EUR (136) million in 2011, 2010 and 2009, respectively.

However, the impact of alternative retrocession coverage, Atlas V, Atlas VI (SCOR Global P&C) and the mortality swaps (SCOR Global Life) (see below in note 6.2.4 Retrocession) are not included in the net cost of retrocession as the products are accounted for as derivatives. The total cost recorded in 2011 in other operating expenses related to Atlas Cat Bonds including the Atlas VI 2011 series placed in December 2011 were EUR 31 million, excluding one-time set up costs for the 2011 series of EUR 3 million included as financing expenses. The total cost recorded in 2010 relating to Atlas V and Atlas VI amounted to EUR 28.0 million, excluding one-time issuance costs totaling EUR 1 million included as financing expenses. The 2011 cost relating to the mortality swaps is included in investment income for EUR 6 million (in 2010: EUR 6 millions). In 2009, this cost amounted to EUR 5.5 million.

(1) The investment income published was EUR 690 million and EUR 503 million for 2010 and 2009 respectively. The difference is due to the creation of a new cost center unit (see Section 20.1.6.2 – Segment information). (2) The published net return on investments was 3.2 % and 2.5 % in 2010 and 2009 respectively.

⁽³⁾ On a published basis, Gross benefits and claims paid were EUR 4,782 and EUR 4,674 in 2010 and 2009 respectively.

Expenses

The Group cost ratio, calculated as the total of all management expenses less certain non-controllable expenses (e.g. bad debts), legal settlements, brokerage commissions and amortizations, divided by gross written premium, was 5.5 % for the year ended 31 December 2011. It is at the same level as 2010 and 2009 ratios, on a comparative basis, i.e. after the creation of a new cost center unit (see Section 20.1.6.2 – Segment information) (4) . The total expense base for the years ended 31 December 2011, 31 December 2010 and 31 December 2009 was EUR 468 million, EUR 421 million and EUR 401 million respectively, on a comparative basis.

Operating income

Operating income for the year ended 31 December 2011 amounted to EUR 323 million as compared to EUR 490 million in 2010 and EUR 372 million in 2009. The 2011 operating income has been affected by the high frequency and severity of natural catastrophes especially in the first and last quarters of 2011, partially offset by the active SCOR Global Investment asset portfolio management, the positive technical developments of SCOR Global Life and by SCOR Global P&C low attritional loss level of 57.6 % in 2011 compared to 61.1 % in 2010.

Net income

SCOR generated net income of EUR 330 million in 2011, compared to EUR 419 million and EUR 371 million for the years ended 31 December 2010 and 2009. Although 2011 was affected by an extraordinary series of natural catastrophes, especially in the first and final quarters of the year, the results benefited from a positive underlying performance of SCOR Global P&C and SCOR Global Life, a prudent asset management policy which safeguarded shareholders' interests whilst delivering solid returns and a gain from bargain purchase related to the acquisition of the mortality business of Transamerica Re of EUR 127 million. In 2010, the Group benefited from the favorable tax law change in France regarding the taxation of the statutory capitalization reserve resulting in a positive impact of EUR 42 million as well as from the reactivation of the last set of deferred tax assets of the Non-Life entities in the USA. In 2009, the successful turnaround of SCOR Global P&C's US operations led to the reactivation of EUR 100 million in deferred tax assets.

Return on equity was 7.7 %, 10.2 % and 10.2 % for the years ended 31 December 2011, 2010 and 2009 respectively. Basic earnings per share were EUR 1.80, EUR 2.32 and EUR 2.06 for the years ended 31 December 2011, 2010 and 2009.

9.2.2 SCOR GLOBAL P&C

SCOR Global P&C is a leading P&C reinsurer with a focus on European markets and a strong position in Latin America, the Asian markets and the Middle East.

The business comprises traditional reinsurance business; Treaty, Business Solutions, and Specialty Lines. SCOR Global P&C capitalizes on a long-standing franchise, experience, and an extensive data base comprising multi-line expertise.

In 2011, SCOR Global P&C continued to actively execute its P&C treaty business portfolio management strategy by further expanding Non-proportional business and improving geographic diversification towards Asia and the Americas.

The increase in SCOR Global P&C premium in 2010 is consistent with expected growth and reflects successful renewals achieved throughout the year and across the targeted portfolio.

SCOR Global P&C achieved successful 2009 renewals, continuing its focus on profitability, portfolio management and growth, in line with objectives which were successfully achieved throughout the year and across all targeted segments.

In 2009, the P&C Division successfully completed the integration of the Ex-Converium operations by transferring the reserves portfolio between entities in order to align the overall management of the activity with the current location of the underwriting.

Gross written premiums

In 2011, gross written premiums have increased by 8.8 % at current exchange rate to EUR 3,982 million versus EUR 3,659 million in 2010. SCOR Global P&C strong January, April and July 2011 renewals confirmed SCOR's excellent position in the reinsurance industry, as well as the validity of its hypotheses on the evolution of the reinsurance environment released in September 2010 in Monte Carlo, in anticipation of the renewal season. The evolution in gross written premiums in 2011 confirms a stable expected technical profitability and return on capital, in line with the objectives of the "Strong Momentum" plan, due to dynamic management of the portfolio.

In 2010, gross written premiums increased by 12.2% at current exchange rate to EUR 3,659 million versus EUR 3,261 million in 2009. Due to its improved standing in the industry and its continued momentum, SCOR Global P&C delivered strong January, April and July renewals confirming the strength and depth of SCOR 's business franchise.

⁽⁴⁾ The published Group cost ratio was 5.6 % at 31 December 2010 and 5.5 % at 31 December 2009. The total expense base previously published was EUR 404 million in 2010 and EUR 389 million in 2009. The difference is due to the creation of a new cost center unit (see Section 20.1.6.2 – Segment information).

Net combined ratio

SCOR Global P&C achieved a net combined ratio of 104.5 % in 2011 and 98.7 % in 2010 (5) . The deterioration of the net combined ratio is attributable to the exceptional impact of natural catastrophes particularly the first half and last quarter of 2011. Natural catastrophes had a 18.5 % impact on the Group net combined ratio for year end 2011 compared to a 9.6 % impact in 2010. The net combined ratio in 2009 was 98.1 %. It would have been 96.1 % excluding 2 points from the one-off WTC arbitration outcome of EUR 39 million after tax. The deterioration of the net combined ratio in 2010 compared to 2009 is fully attributable to the exceptional impact of natural catastrophes particularly during the first quarter 2010. In 2010, these natural catastrophes had a 9.6 % impact on the net combined ratio as of 31 December 2010 versus 5.1 % for 2009.

Impact of natural catastrophes

The following table highlights losses due to catastrophes for the years 2011, 2010, and 2009:

		At 31 December
	2011	2010	2009
Number of catastrophes occurred during the financial year (1)	15 (7)	17 (6)	11(5)
In EUR million
Losses and loss adjustment expenses due to catastrophes, gross	949	346	153
Losses due to catastrophes, net of retrocession (4)	636	317	153
Group net loss ratio (3)	(8) 76.6 %	71.2	(2) 68.1 %
Group net loss ratio excluding catastrophes	(8) 58.1 %	61.6 %	(2) 63.0 %

(1) SCOR defines a catastrophe as a natural event involving several risks and causing pre-tax losses, net of retrocession, totaling EUR 3 million or more.

(2) Excluding exceptional impact of the arbitration results with Allianz relating to the World Trade Center

(3) Loss ratios are calculated on the basis of Non-Life claims, expressed as a percentage of Non-Life premiums earned.

(4) Net of recoveries and reinstatement premiums (assumed and retrocession)

(5) Wind storm Klaus, earthquake in Costa Rica, forest fire in Australia, earthquake in Aquila, Italy, hailstorm Felix, Eastern European floods, earthquake in South Africa, hail storm in Austria and Switzerland, typhoon Morakot in Taiwan, floods in Turkey and earthquake in Japan (6) Earthquakes in Chile, Haïti and New Zealand, floods in Saudi Arabia, Eastern Europe, China, Pakistan, Poland, Germany and Australia, storm Xynthia,

Typhoon Kompasu, Melbourne hailstorm in Australia, East coast USA, Catalonia (Spain) and Scandinavian snow storms, rainfalls in Denmark, storm in Brazil. (7) Earthquakes in Japan and New Zealand, floods in Australia, Denmark, Thailand and Montana (USA), cyclone Yasi (Australia), hurricane Irene (USA),

Tornadoes and storms in the USA, forest and wildfires in Canada and Texas (USA). (8) The 2011 Combined ratio includes a EUR 47 million (pre-tax) positive effect (1.4 pts) related to settlement of the subrogation action undertaken by World Trade Center Property insurers against the Aviation insurers.

In 2011, SCOR was affected by the following catastrophes which resulted in net estimated losses greater than EUR 10 million as at 31 December 2011:

• Floods in Queensland (Australia) (January 2011): estimated loss at EUR 28 million;
• Cyclone Yasi in Australia (February 2011) for which the net loss is estimated at EUR 12 million;
• Melbourne floods (Australia) (February 2011): estimated net impact is EUR 12 million;
• Lyttleton Earthquake in New Zealand (February 2011) with estimated net loss at EUR 110 million*;
• Earthquake in Japan (March 2011) net impact has been estimated at year end at EUR 192 million*;
• Tornadoes in Alabama (USA) (April 2011): estimated net loss is EUR 18 million;
• Tornadoes in Missouri (USA) (May 2011): estimated net loss is EUR 13 million;
• Storm in Arizona (USA) (October 2010**) for which a net EUR 11 million impact has been booked;
• Forest fire in Slave Lake (Canada) (June 2011): net impact estimated at EUR 10 million;
• Earthquake in New Zealand (June 2011): the net loss has been assessed at EUR 13 million;
• Floods in Denmark (July 2011): net impact is EUR 38 million*;
• Floods in Thailand (October 2011): preliminary net assessment of the event is EUR 138 million;
• The impact of other natural catastrophes (less than EUR 10 million) which occurred in 2011 amounted to EUR 41 million.

(*) Resulting from best apportionment recoveries from Annual Aggregate cover based on expected payment patterns and subject to further adjustment depending upon actual payment patterns. (**) Late information received from cedents in 2011.

In 2010, SCOR was affected by the following catastrophes which resulted in net estimated losses greater than EUR 10 million:

• Earthquake in Haïti (January 2010) : estimated loss at EUR 18 million. As at December 31, 2011, the claim impact has slightly decreased to EUR 17 million;
• Earthquake in Chile (February 2010) for which the net loss is estimated at EUR 106 million. As at December 31, 2011, the estimated impact has decreased to EUR 101 million;

(5) The net combined ratio published in 2010 was 98.9 %. The difference is due to the creation of a new cost center unit (see Section 20.1.6.2 – Segment information).

• Wind storm Xynthia (February 2010) in Europe and particularly in France. The cost of the claim, net of recoveries and reinstatement premiums estimated at EUR 17 million. As at December 31, 2011, the cost of the claim has moved to EUR 18 million;
• Scandinavian winter losses (February 2010) estimated at a net EUR 12 million. As at December 31, 2011, the impact of the claim has increased to EUR 14 million;
• The impact of floods in Eastern Europe ( May 2010) : the loss is estimated at EUR 28 million. As at December 31, 2011, the recorded loss has moved to EUR 32 million;
• The estimated net loss impact of floods in Poland and Germany (August 2010) is EUR 10 million. As at December 31, 2011, the booked impact has slightly increased to EUR 12 million;
• Rainfalls in Denmark (August 2010) : estimated loss of EUR 11 million. As at December 31, 2011, decrease in the impact of the claim to EUR 9 million;
• Impact of 2010 earthquake in New Zealand (September 2010) and floods in Australia (December 2010), for which final assessments remained uncertain, had been preliminary estimated to be EUR 65 million at year end 2010. As at December 31, 2011, the revised impact is EUR 70 million.
• The impact of other natural catastrophes (less than EUR 10 million) which occurred in 2010 amounted to EUR 51 million. As at December 31, 2011, the revised impact of these events is EUR 57 million.

In 2009, SCOR was affected by the following catastrophes which resulted in net estimated losses greater than EUR 10 million:

• Wind storm Klaus (January 2009) in Europe and particularly in France ; the original cost of the claim, net of retrocession and reinstatement premium amounted to EUR 62 million at 31 December 2009. As at December 2010, the revised impact was EUR 53 million. As at December 2011, the recorded impact has been revised to EUR 50 million.
• Hail storms (July 2009) in Switzerland and Austria for which the loss wass estimated at EUR 23 million at 31 December 2009. As at December 2010, the revised impact was EUR 28 million. As at December 31, 2011, no change in the estimated impact.
• The impact of other natural catastrophes (less than EUR 10 million) which occurred in 2009 amounted to EUR 67 million at 31 December 2009. As at December 2010, the revised impact was EUR 73 million and has decreased by EUR 2 million as of December 31, 2011.
• Additionally, in 2009, there was only one non natural catastrophe loss in excess of EUR 10 million. This was a business solutions claim which resulted in an impact of EUR 18 million, gross and net of retrocession. As at 31 December 2010 and 31 December 2011, there have been no further material developments in this loss.

9.2.3 SCOR GLOBAL LIFE

SCOR Global Life offers a broad range of reinsurance facilities for individual and Group life insurance, life financing reinsurance, annuities, health, disability, critical illness, long term care and personal accident.

In 2011, SCOR Global Life continued to grow profitably in a competitive life reinsurance market. It succeeded in further strengthening its long-term business relationships with existing clients and gained new business partners.

As per 19 July 2011 SCOR has finalised the sale of its subsidiary Investors Insurance Corporation (IIC) to Athene Holding Ltd. (Athene), as initially announced on 16 February 2011. The sale of SCOR's US fixed annuity business is in line with the Group's strategy to develop its Life reinsurance activities around biometric risks, as set out in the Group's strategic plan for the period 2010-2013, "Strong Momentum".

On 9 August 2011 SCOR acquired the mortality risk reinsurance business of Transamerica Re (see section 5.1.5 Important events in the development of the issuer's business, and section 20.1.6.3 acquisitions and disposals). With this acquisition, SCOR Global Life improved its position in the mortality-protection field.

In Europe, SCOR Global Life has maintained its strong market position. Additionally, SCOR entered into the UK Longevity market by completing its first Longevity reinsurance transaction in the UK, which was one of the four key SCOR Global Life initiatives announced by SCOR as part of the Group's strategic plan "Strong Momentum" for 2010- 2013. To further increase and strengthen the value-added service provided to its insurer clients, SCOR Global life SE acquired remaining shares of SOLAREH SA, a provider of life and health and property and liability insurance services, including post-traumatic support and crisis management and risk prevention, from Solareh International Inc. On 15 September 2011, Solareh SA changed its corporate name to become Réhalto.

Asia remained a market with strong performance during 2011. In May 2011, SCOR Global Life SE opened a new subsidiary in Australia covering the Australian and New Zealand markets, to support business growth expectations for those markets.

Gross written premiums

The gross written premium development is driven by the long-term nature of in-force life reinsurance business and new business acquired in the reporting year.

SCOR Global Life's gross written premiums in 2011 increased by 19.3 % to EUR 3,620 million compared to EUR 3,035 million in 2010 (EUR 3,118 million in 2009).

SCOR Global Life's new business acquisition of the mortality business portfolio of Transamerica Re contributed to EUR 677 million of gross written premiums for the 5 month period after acquisition. This increase was partially offset by the EUR 51 million of negative exchange rate impact on premiums as well as the EUR 32 million of premiums from indexed annuity business in the US included in 2010, but not in 2011.

Substantial increase in premium income was achieved in Central and Eastern Europe, France and Asia with new significant contracts.

Life operating margin

Life operating margin in 2011 was 6.5 % compared to 7.4 % in 2010 and 5.9 % in 2009 on a comparative basis (6) . Excluding the net impact of the disposal of the indexed annuity business in the US, Life operating margin in 2011 was 6.9 %.

In 2011, technical components of the operating margin remained strong and improved from 4.2 % in 2009 and 5.4 % in 2010 to 8.1 % in 2011, or from 7.3 % in 2010 excluding the impact of the indexed annuity business in the US on the Life operating margin to 8.1 % in 2011 (7) . Due to the global development of financial markets with low interest rates and SCOR's decision to keep major parts of the assets to cover reserves acquired in the Transamerica transaction in cash, the investment income deteriorated and the life investment margin reached 4.2 % compared to 6.6 % in 2010 and 5.5 % in 2009, while the expense margin deteriorated to 5.8 % (4.6 % in 2010 and 3.8 % in 2009) (8) .

Life operating margin for SCOR Global Life excluding the Transamerica Re portfolio in 2011 was 6.8 % and 4.6 % for Transamerica Re business.

⁽⁶⁾ The Life operating margin published for 2010 was 7.0 % and 5.8 % for 2009. The difference is due to a new segment presentation (see Section 20.1.6.2 – Segment information).

⁽⁷⁾ The published technical margin was 4.6 % in 2009 and 5.5 % in 2010. The difference is due to a new segment presentation (see Section 20.1.6.2 – Segment information).

⁽⁸⁾ The published investment margin was 5.3 % in 2009 and 6.7 % in 2010 while the published expense margin was 4.1 % in 2009 and 5.2 % in 2010. The difference is due to a new segment presentation (see Section 20.1.6.2 – Segment information).

9.2.4 RETROCESSION

SCOR succeeded in the renewal of its retrocession programmes in 2011. Indeed, within the framework of its capital shield policy, one of its four strategic cornerstones, on 12 December 2011, SCOR successfully placed a new catastrophe bond ("cat bond"), Atlas VI Capital Limited Series 2011-1 and 2011-2, which will provide the Group with USD 270 million of protection against US Hurricanes and Earthquakes and EUR 50 million of protection against European windstorms, for a risk period extending from 13 December 2011 to 31 December 2014 for the US series and 31 March 2015 for the European series. This transaction will succeed Atlas V Capital Limited, which is due to mature on 24 February 2012 and provides similar geographical cover as the one of the Series 2011-1 of USD 200 million.

Atlas VI Capital Limited is a special-purpose company created in 2009 and incorporated under the laws of Ireland. It may issue a series of cat bonds over several years. Aon Benfield Securities Inc. and Natixis managed the transaction and the book on the deal. Standard & Poor's rates series 2011-1 at B, series 2011-1 B at B+ and series 2011-2 A at B.

The loss payments covered by this cat bond are based on market share factors applied to the market insured loss, as reported by PCS for the US and by PERILS for Europe.

SCOR succeeded in the renewal of its retrocession programmes in 2010. On 9 December 2010, SCOR successfully placed a new catastrophe bond ("Cat bond"), Atlas VI Capital Limited Series 2010-1, which will provide the Group with EUR 75 million of protection against European windstorms and Japanese earthquakes for a risk period extending from 10 December 2010 to 31 March 2014. This transaction succeeds Atlas IV Reinsurance Limited, which matured on 31 December 2010 and provided similar geographical cover of EUR 160 million.

In 2009, the Group successfully renewed its retrocession programmes. Furthermore, SCOR reopened the market for catastrophe bonds, setting new innovative standard with its USD 200 million Cat cover closed early February 2009. Overall, the purchase of collateralized solutions (Atlas IV, V, VI and the Mortality Swap), improves the credit exposure of the Group vis à vis its retrocessionnaires.

9.2.5 STRATEGY OR FACTORS OF GOVERNMENTAL, ECONOMIC, FISCAL, MONETARY OR POLITICAL CHARACTER WHICH HAVE HAD OR COULD HAVE A MATERIAL IMPACT ON THE OPERATIONS OF THE SCOR GROUP

Refer to Section 4.4.1 – SCOR is exposed to risks related to legislative and regulatory changes and political, legislative, regulatory or professional initiatives concerning the insurance and reinsurance sector, which could have adverse consequences for its business and its sector.

Also refer to section 5.1.4.2 – Legal and applicable legislation.

CAPITAL RESOURCES

10.1	Capital	99
10.2	Cash flow	99
10.3	Borrowing conditions and financing structure	99
10.4	Restrictions on the use of capital	100
10.5	Sources of financing relating to the future investments by the Company and to its property, plant and equipment	100

10 CAPITAL RESOURCES

10.1 Capital

Refer to Section 20.1.5 – Consolidated statement of changes in shareholders' equity and Section 20.1.6 – Notes to the consolidated financial statements, Note 13 – Information on share capital, shareholders' equity and capital management and Section 20.1.6 – Note to the consolidated financial statements, Note 12 – Cash and cash equivalents and cash flows.

On 17 December 2010, SCOR entered into a Contingent Capital arrangement with UBS, as described in Section 20.1.6 – Notes to the consolidated financial statements, Note 13 – Information on share capital, shareholders' equity and capital management.

Further to the drawdown, announced on 5 July 2011, by SCOR of EUR 75,000,000 on the contingent capital facility placed at its disposal by UBS, UBS exercised the number of warrants required for the issuance and subscription by it of new SCOR shares in an aggregate amount of EUR 75,000,000. Accordingly, SCOR issued 4,250,962 new ordinary shares on 11 July 2011, at an issuance price of EUR 17.643 per share.

On 2 February 2011, SCOR issued CHF 400 million perpetual subordinated notes placement. On 11 May 2011, the placement was increased by CHF 250 million, as described in Section 20.1.6 – Notes to the consolidated financial statements, Note 14 – Financial debt.

10.2 Cash flow

Refer to Section 20.1.4 – Consolidated statements of cash flows and Section 20.1.6. - Notes to the consolidated financial statements, Note 2 – Segment information for an analysis of principal cash flow statement items.

10.3 Borrowing conditions and financing structure

Refer to Section 20.1.6 – Notes to the consolidated financial statements, Note 12 – Cash and cash equivalents for information on the Group's cash positions.

Refer to Section 20.1.6 – Notes to the consolidated financial Statements, Note 14 - Financial debts for a description of the financial debts of the Group.

Refer to Section 19 – Related party transactions

MAJOR CREDIT FACILITIES OF THE GROUP

The Group has been granted a credit facility in order to finance SCOR SE's general corporate purposes, consisting into an overdraft credit facility in a maximum principal amount of EUR 150 million. The Group has also been granted credit facilities from several companies of the banking sector to guarantee the reinsurance activities of various subsidiaries for a global issued amount of USD 3.581 billion as at 31 December 2011. These last credit facilities are stand-by letters of credit that the banking counterparty agree to issue in the form acceptable to the American National Association of Insurance Commissioners (NAIC) or other appropriate regulatory body. A portion of those credit facilities is collateralised.

SUBORDINATED DEBT

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 400,000,000.

On 11 May 2011, SCOR successfully reopened its existing Swiss franc market perpetual subordinated notes placement by issuing an additional amount of CHF 225 million. This debt was left open and ultimately closed at CHF 250 million.Refer to Section 20.1.6 – Notes to the consolidated financial Statements, Note 14 – Financial debts for a description of the subordinated loans and bonds issued by SCOR, including any reimbursements and conversion explanation that occurred during the year.

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As at 31 December 2011, the Group's financial leverage was 18,1% as compared to 9.9% at 31 December 2010. This ratio is calculated as the percentage of subordinated debt(1) compared to total shareholders' equity plus subordinated debt. . The increase in 2011 is due to here below described placements of perpetual subordinated notes.

The total liquidity of the Group of EUR 3.056 billion (comprised of cash and cash equivalents and short term investments) and the low financial leverage ratio reflects the Group's treasury and financing strategy to remain very liquid.

10.4 Restrictions on the use of capital

For information on regulatory restrictions on the use of capital, refer to Section 5.1.4.2 – Legal form and applicable legislation.

On 1 April 2010, the Swiss Financial Market Supervisory Authority ("FINMA") revoked its decree of 26 June 2007, which it issued in conjunction with the take-over of Converium by SCOR, under the condition that all intra-group transactions or any transaction affecting the capital resources of SCOR Switzerland AG (formerly Converium AG) and exceeding a certain threshold be submitted to FINMA for prior approval. This reporting requirement will remain in force until 8 August 2012.

In addition, the Group and its companies are subject to certain financial covenants (minimum net worth requirements and maximum debt levels) under the terms of certain stand-by letter of credit agreements. Non respect of said covenants might lead to an increase in the percentage of required collateralization.

10.5 Sources of financing relating to the future investments by the company and to its property, plant and equipment

On 1 July 2011, SCOR SE purchased a property Company, whose only asset is an office building in Paris, as described in Section 20.1.6.5 – Tangible assets and real estate investments. The purchase has been partly financed through SCOR's own funds and an debt's increase of EUR 170 million.

In London on 6 July 2011 SCOR purchased a company, PPG Lime Street, whose primary asset is a leasehold building at 10 Lime Street, for a total of GBP 47 million. The Group funded the cost of the purchase from its own cash resources.

Within the strict respect of the criteria defined by its strategic plan, SCOR is watchful to dispose of a large access to any available and appropriate sources of financing in order to ensure the permanent display of its activities and strategy.

⁽¹⁾ In respect of the CHF 650 million subordinated debt issuance, SCOR entered into cross-currency swaps which exchanges the CHF principal and coupon into EUR, and matures on 2 August 2016. The calculation of the ratio includes the effect of these swaps.

RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES

11.1	Research and development activities	103
11.2	Information technologies	104

11 RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES

11.1 Research and development activities

Biometric risks such as mortality, longevity, disability and long term care are at the heart of underwriting in life reinsurance. Since these risks are subject to shocks and various trends, SCOR Global Life closely monitors their current developments in four Research & Development Centers which are:

• R&D Centre for Longevity and Mortality Insurance: carrying out mortality studies on life and annuity portfolios and providing support in pricing assumptions for new business, in particular new products.
• R&D Centre for Long-Term Care Insurance: providing support in the development of LTC products (definitions, pricing, guidelines) and the monitoring of LTC portfolios.
• R&D Centre for Disability and Critical Illness: dedicated to the analysis of disability and critical illness risks; two complex risks due to multiple definitions, cover types and socio-economic environments.
• R&D Centre for Medical Underwriting and Claims Management: evaluating the consequences for insurance of the new medical advances for both known pathologies and most recently discovered ones; advising clients in the pricing of substandard risks.

The R&D Centers are part of SCOR Global Life's range of services: analyses and risk projections produced by the Centers are used by SCOR Global Life's teams to advise their clients on the design and the monitoring of their life and health insurance products.

The Centers provide input at the product development stage, giving advice on the definition, the underwriting standards, as well as on pricing and reserving. They contribute to risk monitoring by carrying out experience studies on portfolio data and by undertaking prospective risk modeling.

The R&D Centers report to the Chief Pricing Actuary of SCOR Global Life, its employees are based in Paris, Cologne, New York and Singapore and they are active world-wide on request of the local teams in charge of business development and client relationships.

Theoretical research helps the Group to understand its environment better and to take decisions. Therefore, SCOR notably supports the research through:

• Geneva association, composed of insurers and reinsurers, which aims at supporting research related to risks in insurance and reinsurance environment;
• Education via Master 218 of Paris Dauphine and the new MBA of Ecole nationale d'assurances (ENASS);
• Superior Institute of Reinsurance.

SCOR is also a member of two conventions with the following partners:

• Risk Foundation, in collaboration with the universities of Toulouse and Paris Dauphine, is dedicated to risks market and value creation. For SCOR, it implies costs of EUR 1.5 million allocated over 5 years.
• Finance convention, in cooperation with Jean-Jacques Laffont foundation based in Toulouse, deals with risk management, long term investment, company governance and asset management strategy. For SCOR, the cost is EUR 1.3 million allocated over 5 years

SCOR organizes Actuarial Awards in many European countries: Germany, France, Italy, the United Kingdom and Switzerland. The Group places great importance on the development of actuarial science in Europe and each year rewards the best academic papers in the field of actuarial science with prizes. These prizes are designed to promote actuarial science, to develop and encourage research in this field and to contribute to the improvement of risk knowledge and management. The SCOR Actuarial Awards are recognized as a measure of competence in the insurance and reinsurance industries. The winning papers are selected on the basis of criteria including an excellent command of actuarial concepts, the use of high-quality analysis instruments, and subjects that could have a practical application in the world of risk management.

In 2010, as part of the Group's strategic plan for Strong Momentum, SCOR created the SCOR Global Risk Center which is committed to the knowledge and science of risks in both the actuarial and other fields. The SCOR Global Risk Center is devoted to life insurance risks, non-life insurance risks and economic and financial environment risks and brings together studies and publications produced or supported by SCOR, as well as all of the resources that SCOR wishes to reference for all those interested in risk. The Global Risk Center deals with all disciplines concerned by risk (mathematics, actuarial, physics, chemistry, geophysics, climatology, sociology, law, economics, finance, etc.), although contributions may originate from any science field, without restriction.

11.2 Information technologies

SCOR was one of the first reinsurers to implement a uniform international information system. This policy has historically been reaffirmed during the integration periods following acquisitions, when the Group has aimed to rapidly return to a uniform international information system, and when launching new projects. Local and group accounting, financial reporting and consolidation is now progressively done in its uniform information system.The Group's central back-office system operates on a custom software package known as "Omega." Omega was designed to allow the tracking of clients and policyholders within the Group, grant online underwriting authorization throughout the world, track claims, analyze the technical profitability of contracts, and perform quarterly closings based on the latest estimated results. The Omega database reflects the current organization of SCOR Global P&C and SCOR Global Life worldwide reinsurance risk portfolios. After an extensive study in July 2010, the Group decided to update and improve Omega, thereby capitalizing on its existing strength. The project, which mixes technical modernization and development of functional evolutions, has now been launched and is expect to be completed in 2013.

The focus in 2011 was again on strengthening SCOR's front office applications to improve risk selection, anticipation and reactivity in markets and products, and simulations of results. A number of projects have been commenced in recent years which will continue through 2012. Accounting forecasts are developed from underwriting plans and comparative analysis is produced in standard reports. New reserving and financial modeling tools were implemented in 2010. Non-Life pricing is closely managed using xAct, the new in-house standard pricing tool, which uses standardized models, profitability analysis and full visibility into proportional and non-proportional business. Control of exposure to natural catastrophes was also improved by implementing the first version of Cat Platform developed with RMS to monitor all liabilities and accumulations, including integration of market solutions. In the Life business, the embedded value calculation has been revised and integrated with the internal model. New front-office solutions have been developed for SCOR Global Life for harmonizing and reinforcing substandard risks underwriting and tele-underwriting. Others have been added for Life underwriting with the acquisition of Transamerica Re business. Among them, Velogica provides a real time "instant" underwriting decision using information on the life application and MIB (Medical information Bureau) reports and prescription drug history.

The Group continues to work on extending and automating its Asset and Liability Management tool ("ALM"). After the implementation of the Non-Life module in 2009, the Life risks modeling module was developed during the last two years. This internal model will be central in the Solvency II compliance process, in which the information technology group, SCOR IT, is deeply involved.

During the last two years, SCOR also launched a number of projects related to asset management, including the implementation of the SimCorp Dimension market software package, and the deployment of the Cadis market solution for data control and integrity. All investment portfolios of the Group have been centralized in SimCorp Dimension. This same Dimension solution has largely been deployed for front and middle office investment functions.

The Group is promoting a paperless environment. Internally, global document-sharing procedures have been set up for the Non-Life division, with plans to extend the procedures to Life. With its clients, SCOR is able to automatically process reinsurance accounts and claims received electronically in the standard formats edited by ACORD, an association created for the development of e-processing in insurance and reinsurance, without having to re-input them. The Group is also a founder member of the Rüschlikon Initiative, launched with the major brokers and certain other reinsurers to develop e-administration in the reinsurance industry.

The SCOR technical environment is based on a new international secured network. Corporate technical standards have been implemented, in a number of locations, both on PCs and servers. SCOR has also implemented an ambitious security plan based on stronger physical and electronic access controls, protection against unauthorized access, and recovery in the event of a disaster or a pandemic.

SCOR IT is playing a key role in implementing the Group's "Green SCOR" policy, and drives a number of elements of this multi-year plan, including data center consolidation, server virtualization, new low-energy desktops and laptops, and reduction in printing. Mobility has again been improved in line with the new standard PC deployment. It is still being enhanced through ongoing developments in line with changing business needs requiring a more permanent connection with the company, and compliance with security standards.

Finally, the Group's IT strategy is aligned with its growth objectives. The mandate of SCOR IT under SMV1.1 is to complete the e-transformation of SCOR leading to competitive edge. In line with its goal of global tools, SCOR's ambition is to implement a comprehensive real time system in full alignment with already identified or new business requirements. SCOR intends to capitalize on its existing strengths, and launch new initiatives in the front-end and backend areas to ensure operational excellence and development.

TREND INFORMATION

12.1	Most significant trends in production, sales, inventory, costs, and selling prices since the end of the last financial year
12.2	Known trends, uncertainties, demands, commitments and events reasonably likely to have a material

effect on the issuer's prospects 109

12 TREND INFORMATION

12.1 Most significant trends in production, sales, inventory, costs, and selling prices since the end of the last financial year

12.1.1 NON-LIFE

On the 9 February 2012, SCOR Global P&C announced that it has recorded a very satisfactory increase in its business in 2011. Gross written premiums are up by 8.8% to EUR 3,982 million at current exchange rates. At constant exchange rates, the growth of SCOR Global P&C's gross written premiums in 2011 reaches 11.6%.

The 1 January 2012 renewals confirm the trend observed in 2011 towards the recovery of the insurance and reinsurance markets. In this environment, SCOR has strengthened its positions by demonstrating a strict underwriting policy and prudent pricing. These renewals mean that SCOR can confirm the commitments set out in its strategic plan "Strong Momentum V1.1" for its P&C reinsurance business.

The 1 January 2012 renewals were concluded following a year marked by an exceptional series of natural catastrophes, which included a number of different events with varying levels of severity. Throughout the past year, SCOR has demonstrated the soundness of its business model, based on diversification that is simultaneously high and controlled. Its risk management and capital shield strategy has enabled SCOR to absorb major shocks and approach the renewals under favourable conditions. The success of these renewals is due to SCOR's extensive knowledge of the Group's markets and clients, and to its ability to benefit from confirmed market fragmentation whilst seizing profitable growth opportunities.

The key takeaways of the 1 January 2012 renewals for SCOR are as follows:

• Total premium growth of 13.9%. P&C Treaty business is up by 12%, while Specialty Treaties are up by 18%;
• The weighted average pricing level is up by 2.2%, all else being equal. Price levels for P&C Treaties, weighted by variations in exposures and economic parameters, are up 2.9%, while Specialty Treaty price levels have only increased by 0.6% under the combined impact of fierce competition in certain specialty lines (e.g. Aviation) and a prudent assessment of pricing developments in the business lines most exposed to the hazards of the economic situation (Credit, Construction All Risks/Erection All Risks, Marine). Contracts linked to natural catastrophe risks have been renewed with coverage and price conditions that take account of recent experience, particularly in Asia-Pacific (prices up by 29.9%) and on the American continent (+13.2%);
• Technical profitability is stable (measured by the combined ratio and the remuneration of allocated capital), and rests on prudent projections, particularly for those business lines most exposed to economic uncertainties;
• Terms and conditions remain largely unchanged, except for contracts and regions impacted by the natural catastrophes that occurred in 2011;
• There is a higher level of differentiation between cedants within a given market, and the markets themselves remain fragmented, in accordance with the scenario that SCOR has been putting forward for several years.

These developments are in line with the expectations in terms of pricing evolution voiced at the Rendez-Vous in Monte Carlo in September 2011, and are also in line with the figures set out in the strategic plan "Strong Momentum V1.1", which anticipate 1) organic growth of 9% per year, and 2) a combined ratio of 95-96%.

The renewals also enable the Group to gauge the progress achieved in terms of implementing the various different initiatives set out in the "Strong Momentum" plan, and more specifically:

• The concretisation of significant private transactions notably in motor insurance in China and the UK;
• The expansion of the "Business Solutions" platform, with a 27% increase in premium income and a rise in prices of around 2.8%.

12.1.1.1 Treaty P&C renewals

The total volume of premiums renewed at 1 January 2012 increased by 12% to EUR 1,717 million, against EUR 1,528 million up for renewal (70% of Treaty P&C annual volume). Besides the private transactions, SCOR continues to actively execute its portfolio management strategy with Non-proportional business representing a significant part of the business, and improving geographic diversification towards Asia and the Americas. Private transactions represent 4 percentage points of Treaty P&C premium growth;

Approximately 7% (EUR 107 million) of Treaty P&C premiums up for renewal were cancelled, with a further 1% restructured, demonstrating SCOR Global P&C active policy of portfolio management.

SCOR Global P&C has compensated for this with new business acquired from existing and new clients (EUR 104 million and EUR 64 million respectively) and with increased shares on renewed business (EUR 4 million).

SCOR Global P&C recorded an average price increase of 2.9% on its Treaty P&C portfolio.

The positive price impact combined with an underlying volume growth mainly in Asia, U.S and U.K, has resulted in an increase in premium volume of EUR 138 million. Overall, the geographical diversification of business has increased, with the American continent now representing 21% of premiums and Asia representing 11%.

In terms of business mix proportional motor business (notably in the UK, China and the Netherlands) is experiencing particularly strong growth;

In a fragmented Property Cat market, there was significant premium growth in Cat-affected countries such as the US, Australia, Thailand and Canada. In non-Cat affected countries, rates have stopped declining and the trend is flat to up 5%. Overall, the growth in premium on Property cat lines was 15%.

In Motor Non-proportional, a contrasted situation between markets has led to a differentiated approach such as reduced premiums in France and in Americas while SCOR Global P&C increased premiums in the U.K to reach an overall growth in premiums of 5% on this business line.

In terms of geographies, 43% growth is recorded in the U.S resulting from active portfolio management, supported by new profitable business in the regional book, including a significant private transaction. In the U.K. SCOR Global P&C increased its premium by 43% due to a strong growth driven by continuing Motor primary rates increase pace, in line with Strong Momentum. Finally, Asia recorded 31% premium growth driven by underlying insurance growth in China and increased shares on selected proportional treaties.

12.1.1.2 Specialty Treaty

SCOR's franchise is once again fully affirmed and Specialty Treaty business has kept on growing, with premiums up by 18% to EUR 616 million from EUR 520 million up for renewal (56% of annual volume). SCOR's teams compensate for 3% or EUR 18 million of business cancelled and restructured, by writing EUR 56 million of additional business with existing clients and EUR 13 million with new clients. New shares on existing programmes increase premium volume by EUR 20 million.

In term of business mix, the most significant progress was recorded in Aviation (+120%) driven by SCOR's corporate decision to take a strategic foothold, Marine & Energy (+12%) driven by a share increase in a large quota share (UK) and by new business in China, making up for profitability-driven cancellations.

SCOR Global P&C recorded an average price increase of 0.6% on its Specialty Treaty P&C portfolio as price changes were impacted by prudent pricing in some lines (e.g. Aviation, Credit, Engineering) where the combination of competition pressure and economic crisis created challenges.

12.1.2 LIFE

The life reinsurance market is characterized by long-term contractual relationship which is the case for the majority of SCOR Global Life reinsurance portfolios. Only in selected markets like in Spain and Italy for certain products such as Health and Group Life reinsurance, the life reinsurance industry follows the practice of annual renewals.

The financial crisis that began in 2008, which led to recession for developed economies, affected the Life insurance markets in 2009 and continued to weigh on business in 2011, presenting a number of different challenges and opportunities to Life reinsurance players such as SCOR Global Life.

In a context of serious global economic slowdown, with several major economies still in recession, some types of cover could suffer, for example Unemployment cover and, to a certain extent, Health cover. The rise of unemployment, business failures and falling consumer confidence are in fact all determining factors in the increase of disability claims across the insurance industry.

SCOR Global Life expects business opportunities in multiple markets. By maintaining its policy of positioning itself in strong-growth markets such as (i) opening Life representative offices in Israel and Mexico, reinforcing its organizational structure in Latin America, (ii) establishing a new subsidiary in Australia covering the Australian and New Zealand markets for continued growth in the Asia-Pacific region and (iii) obtaining a composite reinsurance license in China, enabling Life division to offer Life & Health reinsurance services, SCOR Global Life establishes an infrastructure to participate in economic developments in these regions.

The majority of SCOR Global Life's portfolio consists of pure death cover, exposed to mortality risk. Moreover, SCOR Global Life does not currently underwrite variable annuities and exposure to unemployment risk is minimal. Consequently, SCOR's Life portfolio is largely immunized against the effects of economic slowdown. In addition to this, SCOR's prudent investment policy has considerably reduced its exposure to the financial markets turmoil.

The economic recession and the crisis in the real estate industry in most developed economies have weighed negatively on mortgage Life insurance, particularly affecting the British, Spanish and, to a lesser extent, American markets.

Conversely, faced with the moribund economic situation, the demand for income protection has risen.

On its European markets, SCOR Global Life has maintained its positions thanks to its range of services and its strong presence and commercial activity.

In France, savings inflows in 2011 remains strong even if the net inflow became negative during the four last months of the year. Loan repayment insurance continues to hold out well against the crisis during the beginning of the year but the last months of 2011 seem to show a change in trend.

In the U.K, SCOR Global Life announced its entry into the U.K. Longevity market in November 2011, where it reinsured a significant share of the longevity risk assumed by Deutsche Bank, following the completion of a GBP 3 billion longevity swap transaction between Deutsche Bank and the Rolls-Royce Pension Fund. Elsewhere, the savings and mortgage market declined very sharply. However the loss of mortgage related protection sales was countered by increased sales to cover family and business protection needs.

With the acquisition of the mortality reinsurance business, including the operational assets and personnel, of Transamerica Re, completed in August 2011, SCOR Global Life further enhanced the geographical diversification of the Group, becoming the No 2 Life reinsurer in the US markets, based on recurring New Business Volume according to the 2010 Munich American SOA Survey.

The Asian markets, characterized by growing economies, continued to display vigorous development in the principal health and loans segments. Moreover, further positive developments of Critical Illness insurance and Life Financing Reinsurance indicate an encouraging outlook.

Growth in the Middle Eastern markets was carried with Health insurance and reinsurance. Life premium income has been relatively stable in 2011 compared to 2010. However, we see an increasing demand for Family Takaful products, i.e. Islamic life insurance products.

SCOR is watching the opportunities in the current market environment. Due to significant decreases in their investment portfolios, insurers have seen a non-negligible deterioration in their solvency ratios in 2010 and 2011. The expected implementation of Solvency II will keep the efforts to maintain strong capitalization high.

Faced with these financial markets, reinsurance offers an attractive alternative to capital raising, which has led to an increased demand for financial reinsurance solutions.

12.2 Known trends, uncertainties, demands, commitments and events reasonably likely to have a material effect on the issuer's prospects

Not applicable.

PROFIT FORECASTS OR ESTIMATES

PROFIT FORECASTS OR ESTIMATES

Not applicable.

ADMINISTRATIVE AND MANAGEMENT BODIES

14.1	Information on the members of the Board of Directors and Senior Management
14.2	Administrative, management, and supervisory bodies and Senior Management conflicts of interest	130

14 ADMINISTRATIVE AND MANAGEMENT BODIES

14.1 Information on the members of the Board of Directors and Senior Management

14.1.1 INFORMATION CONCERNING THE MEMBERS OF THE BOARD OF DIRECTORS

In accordance with European law governing Societas Europaea and applicable French law, the principal responsibility of the Board of Directors is to determine the guiding principles of the Company's business plan and strategy and to monitor their application. The Chairman and Chief Executive Officer (Président-Directeur Général) has full executive authority to manage the business of the Company, subject to the prior authorization of the Board of Directors or the Company's shareholders for certain decisions as required by law pursuant to the Company's bylaws (statuts).

Board of Directors

Under European and French law, the Company's Board of Directors prepares and presents the year-end accounts of the Company to the shareholders and convenes the shareholders' meetings of the Company (the "Shareholders' Meeting"). In addition, the Board of Directors reviews and monitors SCOR's economic, financial and technical strategies. SCOR's bylaws (statuts) provide that the Board of Directors is composed of no fewer than nine and no more than eighteen members. The actual number of Directors may be modified by the shareholders at the Shareholders' Meetings. The Board of Directors cannot by itself increase the number of its members.

The Board of Directors consists of 13 members, including 12 voting members (including one elected employee representative, known as the "Employee Director") and one non-voting member, known as the "censeur" (the "Non-Voting Member"). Pursuant to article 225-27 of the French Commercial Code and the Company's bylaws, the Employee Director is elected by the employees of the Company and of its subsidiaries in a two round election on a simple majority basis. The elected candidate is then proposed by the Board of Directors to be appointed by the Shareholders' Meeting. Once appointed by the Shareholders' Meeting, the Employee Director has the same rights and obligations as the other members of the Board of Directors (including the right to vote on any decision of the Board of Directors). Pursuant to French law and the Company's bylaws, the Shareholders' Meeting may appoint up to four Non-Voting Members (only one Non-Voting Member has been appointed to date). The Non-Voting Member is entitled to attend meetings of the Board of Directors, is eligible to receive the Director's fee as approved at the Shareholders' Meeting, but not to vote on any decision of the Board of Directors. He has a consultative role.

Under SCOR's bylaws (statuts), each director must own at least one Ordinary Share for the duration of his or her entire term of office. Under French law, a director may be an individual or a legal entity for which an individual is appointed as permanent representative, except for the Chairman, who must be an individual. Pursuant to article L. 225-20 of the French Commercial Code, the permanent representative of a legal entity is subject to the same conditions, obligations and civil and criminal liabilities as if he or she were director in his or her own name, without prejudice to the joint and several liability of the legal entity he or she represents. 12 of the 13 members of the Board of Directors are individuals and one director, Malakoff Médéric Group, is a corporation (represented by Guillaume Sarkozy as permanent representative).

The Directors are elected for either a two-year, four-year or six-year term. The Employee Director is currently elected for a two-year term. The Non-Voting Member is elected for a two-year term. Under SCOR's bylaws (statuts), Directors may hold office until the age of 77. A Director reaching the age of 77 while in office has to retire at the expiration of the term of his or her office, as determined at the Shareholders' Meeting. Non-employee Directors and the Non-Voting Member are elected by the shareholders and serve until the expiration of their respective term, or until their resignation, death or removal, with or without cause, by the shareholders. Vacancies on the Board of Directors may, under certain conditions, be filled by the Board of Directors, pending the next Shareholders' Meeting.

Directors are required to comply with applicable law and SCOR's bylaws (statuts). Under French law, Directors are liable for violations of French legal or regulatory requirements applicable to Societas Europaea, violation of a company's bylaws (statuts) or mismanagement (faute de gestion). Directors may be held liable for such actions both individually and jointly with the other Directors.

The table below lists Directors (including the Employee Director) and Non-Voting Member, their date of birth, positions with SCOR and principal business activities, the dates of their initial appointment as Directors and the expiration dates of their term of office.

Name Date of Birth and offices five years appointed n of term Denis Kessler(1) Principal Position: Offices and positions held in 25 March 4 November 2017 (Chairman and 1952 the Group 2002 Chairman and CEO of Chief Executive Chairman of the Board: Officer) - SCOR Italia Riassicuriazioni SCOR SE (France) S.p.A (Italy) - SCOR Global Life Professional Other positions: Address: Rückversicherung Schweiz Chairman of the Board: SCOR SE AG (Switzerland) 5 avenue Kléber -SCOR Global P&C SE 75016 Paris Member of the Supervisory (France) Board: France - SCOR Deutschland -SCOR Global Life SE (Germany) (France) - SCOR Global Life - SCOR Global Life Rückversicherung AG Americas Reinsurance (Germany) Company (ex-SCOR Global Permanent Representative: Life U.S. Re Insurance - FERGASCOR in S.A. Company) (US) Communication et - SCOR Reinsurance Participation Company (US) - SCOR US Corporation Other Offices and positions Director: (US) - Dexia SA (Belgium) - SCOR Global Life Re Insurance Company of Member of the Supervisory Texas (US) Board: - SCOR Holding - Cogedim SAS (France) Switzerland AG Non-Voting Director: (Switzerland) - Financière Acofi SA (France) - SCOR Services - Gimar Finance & Cie S.C.A. Switzerland AG (France) (Switzerland) - SCOR Switzerland AG (Switzerland) - SCOR Perestrakhovaniye (Russia) Chairman of the SupervisoryBoard: - SCOR Global Investments SE (France) Director: SCOR Canada Reinsurance Company (Canada) Director: - BNP Paribas S.A. (France) - Bolloré SA (France) - Dassault Aviation SA (France) - Invesco Ltd (U.S.) - Fonds Stratégique d'Investissement (France) Member of the Supervisory Board: - Yam Invest N.V. (The Netherlands)		Other principal directorships	Offices held during the last	Initially	Expiratio

Name	Date of Birth	Other principal directorships and offices	Offices held during the last five years	Initially appointed	Expiratio n of term
Claude Tendil(1)(4) (Lead Independent Director) Professional Address: GENERALI FRANCE 7/9, boulevard Haussmann 75009 Paris France	25 July 1945	Principal positions: Chairman and Chief Executive Officer: - Generali France (France) - Generali Vie (France) - Generali IARD (France) Other Positions: France Chairman of the Board of Directors: - Europ Assistance Holding - Generali France Assurances Out of France Chairman of the Board of Directors: - Europ Assistance (Italy) Permanent Representative: - of Europ Assistance Holding at the board of Europ Assistance (Spain) Member of the Supervisory Board: - Generali Investments SpA (Italy)	France Chief Executive Officer: - Generali France Holding - Generali Assurances Vie Chairman of the Board of Directors: - Assurance France Generali - Generali Assurances Iard - La Fédération Continentale - GPA Vie - GPA Iard Director: - SCOR VIE - Unibail Holding Abroad Director: - Assicurazioni Generali SpA (Italy)*	May 15, 2003	2017
Gérard Andreck(1) Professional Address: MACIF 2-4, rue de pied de Fond 79000 Niort France	16 July 1944	Principal Position: Chairman of the MACIF Group (France) Other Positions: France Chairman of the Board of Directors: - SOCRAM BANQUE - MACIF SGAM - MACIF - CEMM SAS Chairman: - GEMA AFA (Since 1st July 2011) Vice-Chairman: - OFI Asset Management - IMA - Etablissements Maurel & Prom Member of the Committee: - SIIL - MACIFIMO - SIEM Permanent Representative of MACIF: - on the Board of Directors of MACIF Participations - on the Board of Directors of Maurel & Prom Nigeria - on the Supervisory Board of MUTAVIE - on the Supervisory Board of GPIM	France Chairman of the Board of Directors: - Macif-Mutualité CEGES (Until 7th December 2011) Chairman of Supervisory Board: - Capa Conseil SAS, as MACIF representative Chairman: - OFI SMIDCAP Vice-Chairman - AFA (Until 1st July 2011) Permanent representative of MACIF: - on the Board of Directors of Domicours Holding - on the Supervisory Board of CapaConseil SAS Permanent representative of MACIF Participations: - on the Board of Directors of CompagnieImmobilière MACIF Non-Voting Director: - Foncière de Lutèce - MACIFILIA - MUTAVIE - SOCRAM - Altima Member of the Supervisory	18 March 2008	2013

		Other principal
		directorships	Offices held during the last	Initially	Expiratio
Name	Date of Birth	and offices	five years	appointed	n of term
		Permanent Representative of OFI Instit: - on the Board of Directors of OFIMALLIANCE Director: - SFEREN (SGAM) - MACIFILIA - Macif-Mutualité - MACIF GESTION - Compagnie Foncière de la MACIF - Foncière de Lutèce - UGM Couleurs Mutuelles - OFI SMIDCAP (SICAV) - Fondation MACIF - CEGES (Since 1st December 2011) Member of the Supervisory Board: - IMA Member of the Executive Committee: - SIEM - SIIL Non-Voting Member: - OFI Trésor (SICAV) - SA ALTIMA ASSURANCES Out of France: Permanent Representative of MACIF at the Board of Directors: - Atlantis Seguros (Spain) - Atlantis Vida (Spain) - Euresa Holding - Eurecos SL (Spain)	Board: - MACIF Zycie (Poland) Director: - SEREN - Caisse Centrale de Réassurance
Peter Eckert(1)(2)	14 Feb. 1945	Principal Position:	Abroad:	15 April 2009	2015
Professional Address: Am Fasnachtsbuck 28 CH-0180 Buelach Switzerland		Chairman of the Board of Directors of Banque Clariden LeuAG (Switzerland) until 14 November 2011 Other positions: Out of France:	Chairman: - Farmers Group (US) - Farmers New World Life (US) - Zurich Compagnie d'Assurances (Germany) - Zurich Deutsche Herold (Germany) - Zurich Kosmos (Austria)
		Director: - Deliciel AG (Switzerland) - SCOR UK Company Ltd (UK) - SCOR Switzerland AG (Switzerland) - SCOR Holding Switzerland AG (Switzerland) Zurich Companhia de Seguros Vida SA (Portugal) Member of the Advisory Board: - Accenture AG (Switzerland)	Vice-Chairman of the Board: - SCOR Global Life Rückversicherung Schweiz AG - Deutsche Bank (Suisse) AG (Switzerland) - FINMA (Switzerland) Chief Operating Officer: - Zurich Financial Services (Switzerland)* Director: - Sal. Oppenheim (Schweiz) AG (Switzerland) - Zurich Vie (Switzerland)

• Zurich American Ins. Co. (US)

Name	Date of Birth	Other principal directorships and offices	Offices held during the last five years	Initially appointed	Expiratio n of term
			- Zurich , Companhia de Seguros SA (Portugal) Member of the Management Board: - Zurich Financial Services (Switzerland)* Member of the Board: - Economie Suisse (Switzerland) - Fondation "Avenir Suisse" (Switzerland) Member: - Commission Fédérale des Banques (Switzerland) Board member of the European Advisory Board: - Booz & Co (US)
Charles Gave(1)(2)(4) Professional Address: GaveKal Research Suite 3903 Central Plaza, 18 Harbour Road Wan Chai Hong Kong	14 Sept. 1943	Principal position: CEO GaveKal Research (Hong Kong) Other functions: France Director: -Institut Turgot Out of France: Member of the Advisory Board: -Marshall-Wace (UK) Managing Director: -Endoma (Cayman Islands) Director: -Grace Financial (Hong Kong)	Out of France: Chairman: - Gavekal Research (Hong Kong) Member of the Advisory Board: - Marshall-Wace (UK) Director: -Engyco (Jersey) Managing Director -Endoma (Cayman Islands)	4 May 2011	2013
Daniel Lebègue(1)(2)(3) Professional Address: Institut Français des Administrateurs 7 rue Balzac 75382 Paris Cedex 08 France	4 May 1943	Principal Position: Chairman of the Institut Français des Administrateurs (IFA, French Society of Directors) (France) Other positions: France: Director: - Technip SA Chairman: - Institut du Développement Durable et des Relations Internationales (IDDRI) (association) - Transparency-International France - Observatoire de la Responsabilité Sociétale de l'Entreprise (ORSE) - Epargne Sans Frontière	France Director: - Alcatel-Lucent - Crédit Agricole S.A. - Gaz de France* - SCOR VIE Co-Chairman: - Eurofi Abroad - SCOR Reinsurance Company (U.S.) - General Security National Insurance Company (U.S.)	15 May 2003	2013

		Other principal
		directorships	Offices held during the last	Initially	Expiratio
Name Monica	Date of Birth 26 Sept. 1960	and offices Principal Position:	five years Abroad	appointed 28 April 2010	n of term 2014
Mondardini(1)			Vice-Chairman:
		Deputy Director and Chief	Editoriale FVG S.p.A. (Italy)
Professional Address:		Executive Officer of Gruppo Editoriale L'Espresso	Director:
Gruppo Editoriale		S.p.A. (Italy)	- Generali España Holding
L'espresso			(Spain)
Via Cristoforo Colombo, 98		Other positions:	- Banco Vitalicio de España
00147 Rome		France:	(Spain) - La Estrella, S.A. de Seguros y
Italy		Director:	Reaseguros (Spain)
		- Crédit Agricole SA
		Out of France:
		Chairman:
		- A. Manzoni & C. S.p.A.
		(Italy)
		- Elemedia S.p.A. (Italy) - Rete A S.p.A. (Italy)
		- All Music S.p.A. (Italy)
		- Rotocolor S.p.A. (Italy)
		Vice-Chairman:
		- Editoriale La Nuova Sardegna S.p.A. (Italy)
		- S.E.T.A. S.p.A. (Italy)
		Deputy Director:
		Finegil Editoriale S.p.A. (Italy)
		Director: - Save the Children Italia
Luc Rougé	19 May 1952	Principal Position:	None	24 May 2007	2012
(Employee director)		Group employee director -
Professional		Assistant Méthodes et
Address:		Procédures, SCOR Global
SCOR SE		P&C SE
5, avenue Kléber 75016 Paris
France
Malakoff Médéric Group (1)(2)	18 June 1951	Principal Position:	France	15 April 2009	2017
		General Manager of Malakoff	Chairman of the Management Board:
(represented by		Médéric Group	- Malakoff Médéric Assurances
Guillaume Sarkozy		(France)	SA
as permanent		Other positions:	-Médéric Epargne SA
representative)		France:	Director:
Professional		Chairman and CEO:	- Banque d'Orsay SA
Address:		- Malakoff Médéric	- Auxia SA
Groupe Malakoff Médéric		Assurances SA
21 rue Laffitte		Chairman: - Holding FGA SAS	Member of the Supervisory Board:
75317 Paris cedex 9		- Holding Fondateurs SAS	- Fédéris Gestion d'Actifs SA
France		- Le Monde Prévoyance SAS	- Société Editrice du Monde
		- Médéric Innovation SAS - Viamédis SA	SA
		- Quatrem SA	Permanent Representative:
		- Sévriena 2	- of Médéric Prévoyance to the
		Manager:	Board of Directors of BPI SA
		- SCI Saint Léger
		Non-Voting Director: - Fédéris Gestion d'actifs SA	Manager: - Investissements et gestion
		Member of the Supervisory	Textile SARL
		Committee:
		- Holding Fondateurs SAS	Out of France:
		- Holding Accueil Mutuelles SAS	-ADESLAS (Spain)
		Permanent Representative:
		- of Malakoff Médéric
		Assurances to the Board of
		Directors:

		Other principal directorships	Offices held during the last	Initially	Expiratio
Name	Date of Birth	and offices - Korian	five years	appointed	n of term
		- OPCI
		Out of France: Director:
		- Vida Caixa Grupo
Guylaine Saucier(1)(2)(3)(4)	10 June 1946	Principal Position:	France Member of the Supervisory	4 May 2011	2015
Professional		Director: Bank of Montreal	Board: -Altran Technologies
Address:		Areva SA
1000, rue de La Gauchetière ouest		Danone SA Wendel SA	Out of France Director:
Montréal (Québec)		Acting Chairman of the	- Petro Canada
H3B 0A2 Canada		Board of Directors of CBC/Radio-Canada;	- CHC Helicopter Corporation
		President of the Quebec Chamber of Commerce;	- AXA Assurances Inc
Jean-Claude Seys(1)(2)(3)	13 Nov. 1938	Principal Position:	France - MMA IARD (SAM)	May 15, 2003	2013
		Vice-Chairman and	- MMA VIE (SAM)
Professional Address:		Executive Director of COVEA	- COVEA (SGAM) - Savour Club SA (Subsidiary
MAAF		(mutual insurance group	of MAAF SA)
ASSURANCES, MMA & COVEA		company) (France)	Chairman of the Board of
7, place des 5 martyrs du Lycée		Other positions: France	Directors:
Buffon		Chairman of the Board of	- Covéa Ré (formerly Océan Ré)
75015 Paris France		Directors: - Fondation MAAF	- DAS (SAM) - MAAF Santé (Mutuelle 45)
		Assurances	- Force et Santé (Union
		Director: - MAAF Assurances (SA)	Mutualiste) - COSEM (Association)
		Deputy Director:	- SC Holding S.A.S.
		- MAAF Assurances (SAM) - MMA Coopérations (SA)	(Santéclair) - MMA IARD (SA)
		- MMA IARD (SA)	- MMA VIE (SA)
		- MMA IARD Assurances Mutuelles (SAM)	- MMA Coopérations (SA)
		- MMA VIE (SA)	Director:
		- MMA Vie Assurances Mutuelles (SAM)	- OFIGEST (subsidiary of OFIVALMO)
		Permanent Representative:	- OFIMALLIANCE S.AS
		- COVEA (SGAM) on the Board of Directors of Azur	(subsidiary of OFIVALMO) - OFI Asset Management
		GMF Mutuelles Assurances	(subsidiary of OFIVALMO)
		associés - GMF Assurances on the	Chairman of the Executive
		Board of Directors of	Committee:
		FIDELIA Assistance Chairman of the	- Fondation MMA
		Supervisory Board: - EFI INVEST I (SCA)	Chairman of the Executive
		- OFIVALMO Partenaires S.A.	Committee: - LMIH
		Member of the Supervisory	Chairman of the SAS:
		Board: - OFI REIM (SAS)	- Covéa Part - Covéa Technologies
		Manager:	- Covéa Groupe
		- OFIDOMUS (SCI) (RP OFIVALMO)	Chairman of the Management
		Non-Voting Director:	Board (association):
		- Gimar Finance (SA) Chairman of the Board of Directors:	- Ile- de-France Regional Development Agency (ARD)
		- Institut Diderot	Abroad
		- THOT	Director:
			- Covéa Lux (Luxembourg)

		Other principal
		directorships	Offices held during the last	Initially	Expiratio
Name	Date of Birth	and offices Out of France: Chairman of the Board of Directors: - Harwanne (Switzerland) Director: - CASER (Spain) - SCOR Switzerland AG - SCOR Holding (Switzerland) AG (Switzerland) Non-Voting Director: - Covea Lux (Luxemburg)	five years - SCOR Global Life Rückversicherung AG (Switzerland) Vice-Chairman of the Board of Directors: - CASER (Spain)	appointed	n of term
Daniel Valot(1)(2)(3)(4)	Aug. 24, 1944	Principal Position:	France	May 15, 2003	2015
Professional Address: 10 rue Gambetta 92100 BOULOGNE France		France Director: - CGG Veritas - Dietswell Other positions: Out of France: - SCOR Reinsurance Asia Pacific Ltd (Singapore)	Chairman and Chief Executive Officer: - of Technip* until 27 April 2007 (retirement) Permanent Representative: - of Technip: Technip France (until 27 April 2007) Director: - Institut Français du Pétrole - SCOR VIE Abroad Chairman: - Technip Italy (Italy) (until 27 April 2007) - Technip Far East (Malaysia) (until 27 April 2007) Vice Chairman: - Technip Americas (U.S.) (until 27 April 2007) Director: - Petrocanada (Canada)
Georges Chodron de Courcel(1)(4) (Non-Voting	20 May 1950	Principal Position: Chief Operating Officer of	France Non-Voting Director: - SAFRAN	15 May 2003(5)	2013
Director)		BNP Paribas (France)	Chairman:
Professional Address: BNP PARIBAS 3, rue d'Antin 75002 Paris France		Other positions: France Director: - Bouygues SA - Alstom SA - Nexans SA - Société Foncière Financière et de Participations (FFP) - Verner Investissements SAS Member of the Supervisory Board: - Lagardère S.C.A. Chairman: - Compagnie d'Investissement de Paris S.A.S. - Financière BNP Paribas S.A.S. both subsidiaries of BNP	- BNP Paribas Emergis S.A.S. Abroad Chairman: - BNP Paribas UK Holdings Limited (UK) Director: - Banca Nazionale del Lavoro (Italy) - BNP Paribas ZAO (Russia)

Paribas

Non-Voting Director: - Exane (Subsidiary of

	Name	Date of Birth	Other principal directorships and offices	Offices held during the last five years	Initially appointed	Expiratio n of term
			Verner)
			Out of France:
			Chairman: - BNP Paribas Suisse S.A.(Switzerland) Vice-Chairman: - Fortis Banque N.V. (Belgium) Director: - CNP (Companie Nationale Portefeuille) (Belgium) - Erbé S.A. (Belgium) - GBL (Groupe Bruxelles Lambert) (Belgium) - SCOR Switzerland AG (Switzerland) - SCOR Holding Switzerland AG (Switzerland)
(1) (2) (3)	Member of the Risk Committee Member of the Audit Committee	_________ Member of the Strategic Committee

• (3) Member of the Audit Committee
• (4) Member of the Compensation and Nomination Committee
• (*) Companies which shares are listed on a regulated or organised market

14.1.2 BIOGRAPHICAL INFORMATION ON MEMBERS OF THE BOARD OF DIRECTORS

The following list provides biographical information on the directors in office at the date of the Registration Document.

Denis Kessler

Denis Kessler, a French citizen, is a graduate of HEC business school (Ecole des Hautes Etudes Commerciales) and holds a PhD in economics and advanced degrees in economics and social sciences. He was Chairman of the Fédération Française des Sociétés d'Assurance (FFSA), CEO and member of the Executive Committee of the AXA Group and Executive Vice-President of MEDEF (Mouvement des Entreprises de France). He joined the Group as Chairman and Chief Executive Officer on 4 November 2002.

Claude Tendil

Claude Tendil, a French citizen, began his career at the Union des Assurances de Paris in 1972. He joined the Drouot Group in 1980 as Chief Operating Officer; he was promoted in 1987 to Chief Executive Officer, and in 1987 was appointed Chairman and Chief Executive Officer of Présence Assurances, a subsidiary of the Axa Group. In 1989, he was appointed Director and Chief Executive Officer of Axa-Midi Insurance, Chief Executive Officer of Axa from 1991 to 2000, then Vice-Chairman of the management board of the Axa Group until November 2001. During this same period, he was also Chairman and Chief Executive Officer of the AXA Group's French insurance and assistance companies. Claude Tendil was appointed Chairman and Chief Executive Officer of the Generali Group in France in April 2002 and Chairman of the Europ Assistance Group in March 2003.

Gérard Andreck

Gérard Andreck, a French citizen, is the Chairman of the MACIF Group since June 2006. Mr. Andreck has a deep interest in the mutual company and insurance sector, and he served as President of CJDES (Centre des Jeunes Dirigeants de l'Economie Sociale) from 1991 to 1993. On 1 July 2008, he was appointed Chairman of the Groupement des Entreprises Mututelles d'Assurances (GEMA) for three years and became President of the Conseil des Entreprises, Employeurs et Groupements de l'Economie Sociale (CEGES) on 12 May 2009. In October 2010, he was appointed to the Conseil Economique et Social et Environnemental (CESE).

Peter Eckert

Peter Eckert, a Swiss citizen, was member of the Management Board (1991-2007) and Chief Operating Officer (2002- 2007) of Zurich Financial Services, member of the Swiss Federal Banking Commission EBK between 1 July 2007 and 31 December 2008, and Deputy Chairman of the Board of the new Swiss Financial Market Supervising Authority (FINMA) from 1 January 2008 to 31 December 2008. From 1 January 2009, until 14 November 2011 he was Chairman of the bank Clariden Leu.

Charles Gave

Charles Gave, a French citizen, has been researching tactical asset allocation for over forty years. In 1974, after three years as a financial analyst with a French investment bank, he created CECOGEST, an independent research firm through which he serviced a wide portfolio of clients across the world for 12 years. In 1986, Charles Gave stepped away from pure research to move into money management: he co-founded Cursitor-Eaton Asset Management where he was in charge of investment policy and managed over 10 billion U.S. dollars of institutional money on a global asset allocation mandate. Cursitor was sold in 1995 to Alliance Capital which Charles finally left in 1998 to create GaveKal where he currently serves as Chairman. Today, he is a member of the board of directors of Marshall-Wace, Endoma, Grace Financial and the Turgot Institute.

Daniel Lebègue

Daniel Lebègue, a French citizen, has been Director of the French Treasury, Chief Executive Officer of BNP and of the Caisse des Dépôts et Consignations. He currently serves as a director of Technip, and is the Chairman of the French Institute of Directors (Institut Français des Administrateurs — IFA) and of several associations and foundations.

Monica Mondardini

Monica Mondardini, an Italian citizen, holds a degree in Economic and Statistical Sciences from the University of Bologna. Her first professional experiences were in publishing, first with the Fabbri group, then with Hachette, where she became Director of the "High-quality illustrated books" division based in Paris. In 1998 she joined the Generali group as CEO of Europ Assistance in Paris. Two years later she returned to Italy to join the headquarters of the Generali group, taking responsibility for the Planning and Control department. In 2001 she left Trieste for Madrid, where she became Director of Generali Espana. Since January 2009, she is the CEO of Gruppo Editoriale L'Espresso S.p.A.

Luc Rougé

Luc Rougé, a French citizen, has 38 years of experience in reinsurance with SCOR. He was successively Works' Council representative to the Board of Directors in the 1980s, then Secretary of the Works' Council and Employee Director. Since 2007, he has been a director, elected by the employees of the Group on a worldwide basis, in accordance with the Regulations governing the election of an employee to the position of director of SCOR SE adopted by the Board of Directors on 3 April 2007.

Malakoff Médéric Group (represented by Guillaume Sarkozy as permanent representative)

Guillaume Sarkozy, a French citizen, is an engineer by training and a graduate of the Ecole Spéciale des Travaux Publics (ESTP). He began his professional career in 1974 at the Office of Public Safety in the Ministry of the Interior, before joining IBM France as a large corporate accounts manager in 1977. He has been a company leader in the textile and services industries since 1979. Until June 2006, Guillaume Sarkozy exercised a number of responsibilities at the head of professional associations, in particular, the French Textile Industries' Union (from September 1993 to May 2006), the Industrial Federations Group (2004 to July 2006), CNPF and MEDEF (1994-2006). In 2004, he became vice President of the MEDEF and of the CNAM (2004-2005). Guillaume Sarkozy joined Malakoff Médéric Group in June 2006 and was appointed Group General Manager on 1 September 2006. Then he was appointed Group General Manager of Malakoff Mederic Group in July 2008.

Guylaine Saucier

Guylaine Saucier, a Canadian citizen, is a graduate of the École des Hautes Études Commerciales, Fellow of the Institute of Chartered Accountants (F.C.A.) and Fellow of the Institute of Corporate Directors. She was Chairman and Chief Executive Officer of the Gérard Saucier Group, a company specializing in forestry products. She sits on the board of directors of many major corporate entities, including the Bank of Montreal, Areva, Danone and Wendel. In the past, she has chaired the Joint Committee on Corporate Governance (CICA, CDNX & TSX), created in 2000 , and acted as Chairman of the Board of Directors of CBC/Radio-Canada. She was also the first woman to serve as President of the Quebec Chamber of Commerce. She became a Member of the Order of Canada in 1989 and a Fellow of the Institute of Corporate Directors in 2004, received the 25th McGill University Management Prize in 2005 and obtained the professional qualification of ICD.D from the Institute of Corporate Directors in 2010.

Jean-Claude Seys

Jean-Claude Seys, a French citizen, has spent his career in the insurance and banking industry. He was Chairman and Chief Executive Officer of MAAF and MMA, where he remains a director. He is currently Vice-Chairman and Executive Director of COVEA (société de groupe d'assurance mutuelle), a leading French mutual insurance company.

Daniel Valot

Daniel Valot, a French citizen, former student of the Ecole Nationale d'Administration and Counsellor to the French Accounting Office (Cour des Comptes), was also in particular Technical Cooperation Counselor to the French Embassy in Tunisia, Managing Director of Total South East Asia, Chairman and CEO of Total Petroleum North America, Chief Executive Officer of Total Exploration Production, then Chairman and Chief Executive Officer of Technip SA from September 1999 until 27 April 2007.

Georges Chodron de Courcel (Non-Voting Member)

Georges Chodron de Courcel, a French citizen, is Chief Operating Officer of BNP Paribas and holds various directorships with French and foreign companies, including subsidiaries of the BNP Paribas Group.

14.1.3 EXECUTIVE COMMITTEE

The Chief Executive Officer (Président-Directeur Général) has full executive authority to manage the business, subject to the prior authorization of the Board of Directors or the shareholders for certain decisions as required by law. The Chief Executive Officer has authority to act on the Group's behalf and to represent SCOR in dealings with third parties, subject only to those powers expressly reserved by law to the Board of Directors or the shareholders. The Chief Executive Officer determines, and is responsible for, the implementation of SCOR's goals, strategies and budgets, which are reviewed and monitored by the Board of Directors.

The Board of Directors has the power to appoint and remove, at any time and with or without cause, the Chief Executive Officer, as well as to appoint separate persons to hold the positions of Chairman of the Board (Président du Conseil d'Administration) and Chief Executive Officer (Président Directeur Général). Upon a proposal made by the Chief Executive Officer, the Board of Directors may also appoint a Deputy Chief Executive Officer (Directeur Général Délégué) to assist the Chief Executive Officer in managing the business.

The Executive Committee is composed of executive officers of the Company and of its subsidiaries. It is responsible for implementing the strategy defined by the Board of Directors, under the Chief Executive Officer 's authority.

The following table sets forth the executive officers who comprise the Executive Committee, their ages, their positions with SCOR and the first dates as of which they served as executive officers.

			Executive
Name	Age	Current Position	Officer Since	Other Offices
Denis Kessler	59	Chairman and Chief Executive Officer of SCOR SE	2002	Refer to Section 14.1.1 - Information on the Members of the Board of Directors.
Julien Carmona	41	Group Chief Operating Officer	2010	Chairman of the Board of Directors: SCOR Reinsurance Asia-Pacific Pte Ltd (Singapore)
				Director General Security National Insurance Company (U.S.) Prévoyance Ré (France) SCOR Global Life Re Insurance Company of Texas (U.S.) SCOR Global Life Americas Reinsurance Company (U.S.) SCOR Global Life SE (France) SCOR Global P&C SE (France) SCOR Reinsurance Company (U.S.) SCOR U.S. Corporation (U.S.) SCOR Services Asia-Pacific (Singapore) SCOR Services Switzerland AG (Switzerland) SCOR Perestrakhovniye (Russia) ASEFA SA Spain)
Paolo De Martin	42	Group Chief Financial Officer	2007(1)	Director SCOR Global Life SE (France) SCOR Global P&C SE (France) SCOR Holding (Switzerland) AG (Switzerland) SCOR Switzerland AG (Switzerland) SCOR Services Switzerland AG (Switzerland) SCOR Alternative Investments (Luxembourg) Member of the Supervisory Board: ReMark Group BV (The Netherlands)
Benjamin Gentsch	51	Deputy Chief Executive Officer of SCOR Global P&C SE Chief Executive Officer of SCOR Switzerland	2007(2)	Chairman of the Board of Directors: SCOR Holding (UK) Ltd (U.K.) SCOR Insurance (UK) Ltd (U.K.) SCOR UK Company Ltd (U.K.) SCOR Lime Street Limited (U.K.) Chief Executive Officer: SCOR Switzerland AG (Switzerland) SCOR Holding (Switzerland) AG (Switzerland) Director SCOR UK Group Ltd (U.K.)
				SCOR Perestrakhovaniye (Russia)

			Executive
Name	Age	Current Position	Officer Since	Other Offices
Frieder Knüpling	42	Deputy Chief Executive Officer of SCOR Global Life SE	2010	Director SCOR Financial Services Limited (Ireland) SCOR Global Life Reinsurance (Barbados) Ltd (Barbados) SCOR Global Life Reinsurance International (Barbados) Ltd. (Barbados) SCOR Global Life Reinsurance Ireland Ltd. (Ireland) SCOR International Reinsurance Ireland Ltd (Ireland)
Gilles Meyer	54	Chief Executive Officer of SCOR Global Life SE	2006	Chairman of the Board of Directors: SOLAREH S.A. (France), becoming REHALTO Prévoyance Ré (France) Sweden Reinsurance Company Ltd Vice Chairman of the Supervisory Board: SCOR Global Investments SE (France) Permanent Representative: - SCOR Global Life SE at MUTRE S.A.'s Board (France) - SCOR Global Life SE at SCOR Properties's Board (France) Statutory Director ReMark International BV (The Netherlands) ReMark Group BV (The Netherlands)
				Director SCOR Holding (Switzerland) AG (Switzerland) SCOR Reinsurance Asia-Pacific PTE Ltd (Singapore) SCOR Global Life Re Insurance Company of Texas (U.S.) SCOR Global Life Americas Reinsurance Company (U.S.) ReMark Japan K. K. (Japan) SCOR Switzerland AG (Switzerland) SCOR Perestrakhovaniye (Russia)
Victor Peignet	54	Chief Executive Officer of SCOR Global P&C SE	2004	Director SCOR UK Company Ltd. (U.K) SCOR UK Group Ltd. (U.K) SCOR Channel Ltd. (Guernsey) Arisis Ltd. (Guernsey) General Security Indemnity Company of Arizona (U.S.) General Security National Insurance Company (U.S.) SCOR Reinsurance Company (U.S.) SCOR Canada Reinsurance Company (Canada) SCOR Reinsurance Asia-Pacific Pte Ltd (Singapore) Finimo Realty Pte Ltd (Singapore) SCOR Reinsurance Company (Asia) Ltd (Hong Kong) SCOR Services International Ltd (Hong Kong) Arope Insurance SAL (Lebanon) SCOR Switzerland AG (Switzerland) SCOR Holding (Switzerland) AG (Switzerland) Blue Star Syndicate Management Limited (U.K.) SCOR Perestrakhovaniye (Russia) SCOR Properties (France)
				Permanent Representative: of SCOR SE at ASEFA S.A.'s Board (Spain). Member of the Supervisory Board:
				SCOR Global Investments SE (France)
Paul Rutledge	60	President and Chief Executive Officer of SCOR Global Life Americas Deputy Chief Executive	2011	President and Chief Executive Officer: SCOR Global Life Re Insurance Company of Texas (U.S.) SCOR Global Life Americas Reinsurance Company (U.S.) SCOR Life Assurance Company (U.S.) SCOR Life Reassurance Company (U.S.)
		Officer of SCOR Global Life SE		Director SCOR International Reinsurance Ireland Ltd (Ireland)

			Executive
Name	Age	Current Position	Officer Since	Other Offices
Philippe Trainar	58	Group Chief Risk Officer	2010	Director SCOR Africa Ltd (South Africa) SCOR Global Life SE (France) SCOR Global P&C SE (France) SCOR Holding (Switzerland) AG (Switzerland) SCOR Switzerland AG SCOR UK Company Limited (U.K.) SCOR Underwriting Limited (U.K.) Mutré SA (France)
François de Varenne	45	Chief Executive Officer of SCOR Global Investments SE	2005	Chairman and Chief Executive Officer: SCOR Auber SA (France) Chairman: DB Caravelle SAS (France) 5 avenue Kléber SAS (France) Mobility SAS (France) SCOR Properties SA (France) SCOR Alternative Investments (Luxembourg) Chairman of the Management Board: SCOR Global Investments SE (France) Director SCOR ILS Fund SA, SICAV-SIF (Luxembourg)

(1) Prior to joining the Company, Paolo de Martin was an executive officer of Converium Holdings AG since 2006. (2) Benjamin Gentsch was an executive officer of Converium Holdings AG since 2002

Denis Kessler

Refer to Section 14.1.2. – Biographical information on the members of the Board of Directors.

Julien Carmona

Julien Carmona, a French citizen, is a former student of the Ecole Normale Supérieure and has an advanced degree in history. He is also a former student of the Ecole Nationale d'Administration and a former French Treasury Auditor. After beginning his career at the French Finance Ministry, he joined BNP Paribas in 2001. From 2004 to 2007, he was Economic Adviser to the President of the French Republic. He was Chief Financial Officer of the Caisse Nationale des Caisses d'Epargne (CNCE) from June 2007 until it merged with the federal bank of Banques Populaires in July 2009. He joined SCOR in October 2009 and was appointed Chief Operating Officer on 1 January 2010.

Paolo De Martin

Paolo De Martin, an Italian citizen, graduated from Ca' Foscari University, Italy, with a degree in Business Economics. He subsequently spent two years in the optical business as founder and managing partner of an eyewear manufacturer. He joined General Electric Company (GE) in 1995 as a finance trainee in London. In 1997, he joined GE's internal auditing & consulting Group, charged with assignments in multiple GE businesses in the Americas, Europe and Asia-Pacific. In 2001, Paolo De Martin was promoted to Executive Manager for GE Capital Europe, before joining GE Insurance Solutions as Financial Planning and Analysis Manager for Global Property and Casualty Reinsurance. In 2003, he was appointed Chief Financial Officer of GE Frankona Group before becoming Chief Financial Officer of Converium Holding AG in July 2006. In September 2007, Paolo De Martin was appointed Group Chief Financial Officer of SCOR SE.

Benjamin Gentsch

Benjamin Gentsch, a Swiss citizen, graduated with a degree in management from the University of Saint-Gall where he specialized in insurance and risk management. From 1986 to 1998, he held several positions at Union Reinsurance Company, where from 1990 to 1998 he directed treaty underwriting in Asia and Australia. In 1998, he joined Zürich Re as head of international underwriting responsible for strengthening the company's position in Asia, Australia, Africa and Latin America. He also supervised the "Global Aviation" reinsurance department and developed its "Global Marine" department. In September 2002, Benjamin Gentsch was appointed Chief Executive Officer of Converium Zürich, then Executive Vice President in charge of Specialty Treaties. In September 2007, he was appointed Chief Executive Officer of SCOR Switzerland and Deputy Chief Executive Officer of SCOR Global P&C SE.

Frieder Knüpling

Frieder Knüpling, a German citizen, holds degrees in Mathematics and Physics from the Universities of Göttingen and Freiburg. He worked as a lecturer and research assistant at Freiburg University and several other colleges, until he received a PhD in Economics based on research on econometric modelling of macroeconomic and financial data. From 1999 to 2002 he worked for Gerling-Konzern Globale Rückversicherungs-AG and its U.K. subsidiary, dealing with pricing and valuation. From 2003 , he headed the Corporate Actuarial & Treasury department of the Revios group. Since 2007 Frieder Knüpling has headed SCOR's Corporate Actuarial Department, reporting to the Chief Risk Officer. He was appointed Deputy Chief Risk Officer of SCOR in December 2008 and member of the executive board (Vorstand) of SCOR Rückversicherung (Deutschland) AG in May 2009. In July 2010, he was appointed Deputy Chief Executive Officer of SCOR Global Life SE. He is a fellow of the German Association of Actuaries (DAV).

Gilles Meyer

Gilles Meyer, a dual French and Swiss citizen, holds a degree from a French business school and an MBA from GSBA in Zürich. Gilles Meyer started his career as an underwriter at Swiss Re before managing the facultative department of La Baloise in Basel. After 23 years of experience in facultative and treaty reinsurance, Gilles Meyer was Chief Executive Officer of Alea Europe from 1999 to 2006, where he was in charge of property-casualty reinsurance and Life reinsurance, and was Manager of group underwriting from 2005 to 2006. He joined the Group in January 2006 and has managed the German-speaking markets of SCOR Global P&C based in Hanover, Basel, and Winterthur. He was named head of Business Unit 1 of SCOR Global Life and a member of the Group Executive Committee in November 2006, then Deputy Chief Executive Officer of SCOR Global Life SE in September 2007. In February 2008, he was appointed Chief Executive Officer of SCOR Global Life SE.

Victor Peignet

Victor Peignet, a French citizen, Marine Engineer and graduate of the Ecole Nationale Supérieure des Techniques Avancées (ENSTA), joined the Facultative Department of SCOR in 1984 from the offshore oil sector. From 1984 to 2001, he held various positions in underwriting Energy and Marine Transport risks at SCOR, first as an underwriter and then as Branch Director. He led the Group's Business Solutions (large corporate accounts underwritten essentially on a facultative basis andoccasionally as direct insurance) business area when it was created in 2000, first as Deputy Chief Executive Officer and then, beginning in April 2004, as Chief Executive Officer. On July 5 2005, Victor Peignet was

appointed manager of all property reinsurance operations at SCOR Global P&C. He is currently Chief Executive Officer of SCOR Global P&C SE.

Paul Rutledge

Paul Rutledge, a U.S. citizen, holds a bachelor of arts degree in mathematics from Duke University and attended Northeastern University for graduate studies in Actuarial Science. He is a Fellow of the Society of Actuaries and a Member of the American Academy of Actuaries. Paul Rutledge has more than 30 years of experience in the insurance industry. He was president of Transamerica Re, a position he has held since joining the organization in 1998 until August 2011. He also served on the boards of directors for Transamerica International Re (Bermuda) Ltd. and Transamerica International Reinsurance Ireland Limited. Before joining Transamerica Re, he served as president and chief executive officer of Life of Virginia, a consumer business of GE Capital Services. Prior to Life of Virginia, he held positions at several Torchmark companies including Liberty National, Torchmark Holdings and United Investors Life.

Philippe Trainar

Philippe Trainar, a French citizen, is a former student of the Ecole Nationale d'Administration and has a BA in Economics. He held various positions in the French civil service from 1981 to 1999, notably as financial attaché to the French embassy in Germany (1985-1987), adviser in the Prime Minister's cabinet (1993-1995) and deputy-director in charge of international economic issues at the French Ministry of the economy and finance. He was also in charge of macroeconomic modelling at the Ministry of the economy and finance. In 2000, he joined the Fédération française des sociétés d'assurances (FFSA) as director of economic, financial and international affairs. In February 2006, he was appointed Chief Economist of SCOR. Philippe Trainar chairs the "Commission d'analyse et de gestion des risques" of the FFSA. He is a member of the governmental consulting and expertise committees: the "Comité Scientifique de l'Autorité de Contrôle Prudentiel", the "Conseil d'analyse économique," reporting to the French Prime Minister, and the "Commission économique de la nation." Philippe Trainar has also carried out many scientific works on the risk, insurance and solvency as well as economy, which have been published in scientific journals such as the Journal of Risk and Insurance, the Geneva Papers, Economie & Statistique and in the magazine "Risques".

François de Varenne

François de Varenne, a French citizen, is a graduate of the Ecole Polytechnique, a civil engineer of the Ponts et Chaussées and holds a doctorate in economic sciences. He graduated as an actuary from the Institut de Science Financière et d'Assurances (ISFA). François de Varenne joined the Fédération Française des Sociétés d'Assurances (FFSA) in 1993 as Manager of Economic and Financial Affairs. In London beginning in 1998, he served successively as Insurance Strategist with Lehman Brothers, Vice-President for asset management solutions and structured transactions, a specialist in insurance and reinsurance companies at Merrill Lynch, and then at Deutsche Bank. In 2003, he became Managing Partner of Gimar Finance & Cie. He joined the Group in 2005 as Director of Corporate Finance and Asset Management. On 3 September 2007, he was named Group Chief Operating Officer. On 29 October 2008, he was appointed Chief Executive Officer of SCOR Global Investments SE.

14.1.5 NEGATIVE DISCLOSURES ABOUT MEMBERS OF THE BOARD OF DIRECTORS AND SENIOR MANAGEMENT

To our knowledge, there are no family relationships between the directors and the members of the Company's senior management.

To our knowledge, during the last five years:

• no Director and no member of senior management has been convicted of fraud;
• no Director and no member of senior management has been associated with a bankruptcy, sequestration, or liquidation;
• no Director and no member of senior management has been the subject of an accusation or official public sanction issued by statutory or regulatory authorities(1) ; and
• no Director and no member of senior management has ever been prohibited by a court from acting as a member of an administrative, management, or supervisory body of an issuer or from participating in the management or business of an issuer.

⁽¹⁾ In 2006, in connection with the Crédit Lyonnais/Executive Life case, Jean-Claude Seys entered into a transaction with the California State Prosecutor under the terms of which he is subject to five years probation, during which he may not go to the United States without special authorisation.

14.2 Administrative, management, and supervisory bodies and senior management conflicts of interest

No loans or guarantees have been granted or established in favor of the Directors by SCOR or by any other Group company.

There is no arrangement or agreement concluded with shareholders, clients, suppliers or others pursuant to which any member of the Board of Directors or any member of the senior management of the Company have been appointed.

To our knowledge, there are no conflicts of interest between the duties of the Directors and members of senior management with regard to SCOR and their private interests.

Also refer to Sections 14.1.5 – Negative disclosures about members of the Board of Directors and senior management, 16.4 – Corporate governance regime and 19 – Related party transactions.

REMUNERATION AND BENEFITS

15.1	Amount of remuneration paid and benefits in-kind	133
15.2	Total amounts set aside or accrued to provide pension, retirement, or similar benefits for financial year
	2011	141

15 REMUNERATION AND BENEFITS

15.1 Amount of remuneration paid and benefits inkind

15.1.1 DIRECTORS' FEES

The approved principles and rules for setting compensation and benefits granted to Board members are provided in Appendix B - Report of the Chairman of the Board of Directors on the terms and conditions for preparing and organising the work of the Board of Directors and on internal control and risk management procedures in compliance with Article L. 225-37 of the French Commercial Code – Part I – Conditions for preparing and organising the work of the Company's Board of Directors – e) Principles and rules for the determination of compensation and in-kinds benefits for corporate officers.

The Shareholders' Meeting of the Company held on 28 April 2010 resolved that the annual maximum aggregate amount of Directors fees shall not exceed EUR 960,000. This amount has not been modified since then. Upon the proposal of the Compensation and Nomination Committee and within the limit of this amount, the Board of Directors sets the terms and conditions of the allocation to encourage the attendance of the Directors. It was decided to allocate the Directors fees, which are payable to each Director and to the Non-Voting Member, partly in one fixed sum of EUR 28,000 on a quarterly basis payable in fourth and partly based on the effective presence of the relevant Directors and of the Non-Voting Member at the meetings of the Board of Directors and at its Committees, in an amount equal to EUR 2,000 per Board or Committee meeting at which they are present, except for the Chairman of the Audit Committee who receives an amount equal to EUR 4,000 as special fees for his function. The payment of the directors fees is made at the end of each quarter. Moreover, the individual independent members of the Board received in 2011, the single sum of EUR 10,000 in Company's shares, that the Director commits to keep until the end of his/her appointment. The paid amounts have been properly used to that effect.

In EUR	2011	2010
Mr. Denis Kessler (1)	42,800	41,250
Mr. Carlo Acutis (2)	15,100	37,000
Mr. Gérard Andreck	47,100	37,000
Mr. Antonio Borgès (3)	N/A	39,550
Mr. Allan Chapin (2)	16,800	42,950
Mr. Georges Chodron de Courcel	56,500	37,850
Mr. Peter Eckert	62,500	48,050
Mr. Charles Gave (4)	51,000	N/A
Mr. Daniel Havis (2)	20,200	46,350
Mr. Daniel Lebègue	79,600	61,650
Mr. André Lévy Lang (2)	28,700	58,250
Malakoff Médéric Group, represented by Guillaume
Sarkozy	38,800	37,850
Mrs. Monica Mondardini (5)	45,400	30,100
Mr. Luc Rougé (6)	37,100	34,450
Mrs. Guylaine Saucier (4)	47,000	N/A
Mr. Herbert Schimetschek (2)	16,800	37,000
Mr. Jean-Claude Seys	68,200	46,350
Mr. Claude Tendil	60,500	42,950
Mr. Daniel Valot	79,300	61,650
TOTAL	813,400	740,250

Fees paid to directors for 2011 and 2010 are broken down as follows:

(1) Pursuant to the decision made by the Board of Directors on 21 March 2006, the Chairman and Chief Executive Officer receives directors' fees along with the other members of the Board of Directors of the Company, based on the same conditions for distribution.

(2) Directors whose appointment ended on 4 May 2011 (3) Director whom appointment ended on 4 November 2010.

(4) Directors appointed by the Annual Ordinary General Meeting of the Shareholders of 4 May 2011.

(5) Director appointed by the Annual Ordinary General Meeting of the Shareholders of 28 April 2010.

(6) Director representing the employees elected by the Annual Shareholders' Meeting of 24 May 2007 as employee representative. His directors' fees are paid to the CFDT union.

Moreover, certain SCOR directors participate, or have participated, on the Boards of Directors of the Group's subsidiaries and received directors' fees in 2011 and/or 2010 as follows:

	2011	2010
SCOR Reinsurance Company
Allan Chapin	N/A	USD 3,000
SCOR Holding (Switzerland)
Georges Chodron de Courcel	CHF 5,000	CHF 5,000
Jean-Claude Seys	CHF 5,000	CHF 5,000
Peter Eckert	CHF 5,000	CHF 5,000
SCOR Global Life Rückversicherung Schweiz AG
Peter Eckert	CHF 7,000	CHF 16,000
Jean-Claude Seys	CHF 7,000	CHF 16,000
Georges Chodron de Courcel	CHF 7,000	CHF 14,000
SCOR Switzerland AG
Peter Eckert	CHF 23,000	CHF 21,000
Jean-Claude Seys	CHF 23,000	CHF 21,000
Georges Chodron de Courcel	CHF 23,000	CHF 19,000
SCOR Reinsurance Asia Pacific PTE Ltd
Daniel Valot	USD 12,000	USD 21,000
SCOR UK Company Ltd
Peter Eckert	GBP 15,885.24	GBP 45,948.96

15.1.2 REMUNERATION

Gross compensation paid in 2011 to the Group Executive Committee members (including the Chairman and Chief Executive Officer) as of 31 December 2011 amounts at EUR 8,787,337 (1) . In addition, they were awarded a total number of 1,034,000 shares (including those of LTIP) and 517,000 stock options in 2011 for a total estimated value of EUR 13,228,080 (2) .

15.1.2.1 Remuneration to the Chairman and Chief Executive Officer

The Board of Directors of SCOR has decided, during the meeting of 12 December 2008, to apply the AFEP (Association of French Private-sector Companies) and MEDEF (French Business Confederation) recommendations of 6 October 2008 on the compensation of Corporate Executive Officers of listed companies to the compensation of the Executive Corporate Officer considering that those are in line with SCOR corporate governance principles.

In application of 3 July 2008 Act implementing the European Union Directive 2006/46/CE of 14 June 2006, SCOR shall thus refer to the AFEP-MEDEF governance code in preparing the report to be issued in accordance with article L. 225- 37 of the French Commercial Code.

In compliance with the AFEP (Association of French Private-sector Companies) and MEDEF (French Business Confederation) recommendation applicable to the Chairman and Chief Executive Officer, there is no employment contract between Mr. Denis Kessler and the Company. Following the recommendation of the Compensation and Nomination Committee, the meeting of the Board of Directors on 22 March 2011 decided that the Chairman and Chief Executive Officer:

• will receive a fixed gross annual sum of EUR 1,200,000, payable in twelve monthly instalments; and
• will receive a variable annual compensation, capped at EUR 1,000,000 determined as follows:
  • 50% on the basis of the achievement of personal objectives, defined annually at the beginning of each year by the Board of Directors on the recommendation of the Compensation and Nomination Committee; and
  • 50% on the basis of the achievement of financial objectives, defined annually at the beginning of each year by the Board of Directors on the recommendation of the Compensation and Nomination Committee.

The variable compensation for any given year will be paid in the following year, as soon as the financial statements of the Company for such given year are approved by the Board of Directors.

Pursuant to the decision of the Board of Directors' meeting of 21 March 2006, the Chairman and Chief Executive Officer shall benefit from a specific life insurance subscribed by the Group aimed at covering the risks inherent to the functions of Chairman and Chief Executive Officer for an amount equivalent to three years of fixed and variable compensation.

(1) In Section 15.1.2 Executive Committee members remuneration, the exchange rates used (official exchange rates of the Reference Document) are : 1 EUR =1.2288 CHF and 1 EUR= 1.3964 USD .

⁽²⁾ The amount corresponds to the IFRS 2 Share-based Payment fair value as described in note 18 of Section 20.

In addition, the Chairman and Chief Executive Officer is entitled to the following benefits in kind:

• a health insurance policy under the terms of a contract dated 16 September 1988;
• an "all causes" death or permanent disability insurance policy for Company Executives, dated 30 June 1993. The Group is currently re-negotiating this contract and it is specified that the Chairman and Chief Executive Officer will benefit from any policy that may replace the existing policy; and death or permanent disability insurance for an accident, underwritten on 1 January 2006; it is specified that the Chairman and Chief Executive Officer will benefit from any policy that may replace the existing one.
• In the event that the Chairman and Chief Executive Officer is dismissed or his departure is imposed due to a change in the structure of the share capital of the Company or in the strategy of the Group, which in each case substantially affects the content of his duties or the continuation of his activities and the normal exercise of his powers within the Company, the Chairman and Chief Executive Officer will benefit from (i) a cash payment equal to the amount of fixed and variable compensations paid to him by the Group for the two financial years prior to his departure (depending on certain performance criteria determined by the Board of Directors upon recommendation of its Compensation and Nomination Committee), (ii) a cash payment compensating him for his inability to exercise stock options granted prior to his departure date and which he would otherwise be unable to exercise due to the vesting period conditions set forth in the applicable stock option plan, in an amount to be determined by an independent expert using the "Black-Scholes" pricing model, and (iii) a cash payment compensating him for his inability to definitively acquire Ordinary Shares granted to him for free prior to his departure and which he would otherwise be unable to acquire due to the terms and conditions of the applicable free share allocation plan, for a price per Ordinary Share equal to the average of the Company's share price on the date of his departure.

For more details, see Appendix B – I. Terms and conditions for preparing and organizing the work of the Board of Directors, (F) Principles and rules stated for the determination of compensation and in-kind benefits for corporate officers. The following table presents a summary of the total compensation including gross compensation, shares and stock options granted to the Executive and Corporate Officer for fiscal years 2011, 2010 and 2009:

Summary table of the gross compensation, shares and stock options granted to the Executive and Corporate Officer:
	Gross		Value of
In EUR	compensation (details below)	Value of the shares granted (3)	stock options granted (3)	Total compensation
2011	2,108,300	3,033,750 (4)	326,250 (4)	5,468,300
2010	2,241,250	1,912,500 (4)	387,500 (4)	4,541,250
2009	2,235,300	1,650,000 (4)	467,500 (4)	4,352,800

Reminder of the specific award conditions applicable to the Corporate Officer in respect of the principles AFEP / MEDEF: The Board of Directors of 3 April 2007 decided that for all the grants posterior to that date, the Corporate Officer is required to retain as registered shares at least 10 % of the shares issued from the exercise of stock-options granted and at least 10 % of the performance and free shares granted until the termination of his duties.

In addition to these conditions specified above, the Board of Directors of 12 December 2008 decided that for all the grants posterior to that date, the Corporate Officer is required to buy on the market a number of shares equal to 5 % of the number of performance and free shares granted as soon as these shares may be sold.

The following table presents a summary of the gross compensation of the Executive and Corporate Officer for fiscal years 2011, 2010 and 2009:

	Summary table of the gross compensation granted to the Executive and Corporate Officer
	Fixed	Variable	Director's	Gross	Advantages
In EUR	compensation	compensation	fees	compensation
2011	1,200,000	865,500	42,800	2,108,300	Company Car
2010	1,200,000	1,000,000	41,250	2,241,250	Company Car
2009	1,200,000	1,000,000	35,300	2,235,300	Company Car

⁽³⁾ It should be noted that the figures stated above do not represent paid compensation but correspond to actuarial estimates in line with AFEP/MEDEF governance code for listed companies. These grants are subject to presence conditions and, for some grants, to performance conditions. Please refer to the sections 17.3 of this Registration Document and the registration documents of SCOR filed with the Autorité des marchés financiers on 8 March 2011 and 3 March 2010 under number n. D.11-0103 and D. 10-0085 for the details of the performance conditions applicable to the shares and stock-options granted to the Executive and Corporate Office.

⁽⁴⁾ Since 2009, 100 % of shares and stock options granted are submitted to performance conditions. The value is calculated according to the same assumption as those used for the Group accounts (IFRS2 standard). Please refer to the Sections 17.2.2 and 17.2.3 for the details of the shares and stock-options granted to the Executive and Corporate Officer.

The following table presents the summary of gross compensation paid to the Executive and Corporate Officer during fiscal years 2011, 2010 and 2009:

Summary table of the gross compensation paid to the Executive and Corporate Officer
	Fixed	Variable	Director's	Gross	Advantages
In EUR	compensation	compensation	fees	compensation
2011	1,200,000	1,000,000	42,800	2,242 800	Company Car
2010	1,200,000	1,000,000	42,850	2,242,850	Company Car
2009	1,400,000*	881,350	33,700	2,315,050	Company Car

Summary table of gross compensation paid to the Executive and Corporate Officer

(*) The gross fixed compensation paid to Denis Kessler in 2009 includes (i) EUR 200,000 corresponding to arrears for fiscal year 2008, the payment of which had been decided in 2008 but which had not been paid at such time and (ii) EUR 1 200 000 for fiscal year 2009. As shown in the above summary table of the gross compensation owed to the Executive and Corporate Officer, the gross fixed compensation of Denis Kessler remained unchanged between 2008 and 2009.

Refer also to Appendix A - Notes to the Corporate Financial Statements, Note 14 - Compensation of the Corporate Officer.

In accordance with the AFEP/MEDEF corporate governance code of listed corporations, the following tables present for the Executive and Corporate Officer the stock options granted and exercised during the fiscal year as well as the grants and performance shares vested during the fiscal year.

Subscription and share purchase options granted to the Executive and Corporate Officer

	Date of the plan	Type of options (purchase or subscription)	Number of options granted during the period	Valuation of options as per method used in the consolidated accounts In EUR	Exercice price	Period of exercice
Denis Kessler	22 March 2011	Subscription	125,000	326,250	19,71	23/03/2015 to 22/03/2021

Subscription and share purchase options exercised by the Executive and Corporate Officer

Options exercised by the Executive and Corporate Officer (nominative list)	Number of options exercised during the period	Date of the plan	Exercise price
Denis Kessler	-	-	-

Performance shares granted to the Executive and Corporate Officer

Performance shares granted during the period to the Executive and Corporate Officer by the issuer or by another company of the Group	Date of the plan	Number of shares granted during the period	Valuation of shares as per method used in the consolidated accounts In EUR	Acquisition date	Date of ownership transfer
Denis Kessler	7 March 2011	125,000	2,203,750	8 March 2013	8 March 2015
	1 September 2011 – LTIP	125,000	830,000	2 September 2017	2 September 2019

Performance shares acquired by the Executive and Corporate Officer

Performance share acquired during the
period by the Executive and Corporate	Number of shares	Date of	Conditions
Officer by the issuer or by another	acquired	the	of
company of the Group (nominative list)	during the period	plan	acquisition
			Requirement of presence at the
			company as of 30 April 2009
Denis Kessler	80,000	24 May 2007	Performance conditions

15.1.2.2 Gross remuneration to Executive Committee members (COMEX) other than the Chairman as of 31 December 2011

The following table presents the gross compensation related to fiscal years 2011, 2010 and 2009 and paid in 2011, 2010 and 2009 to the members of the Executive Committee:

	Members of the Executive Committee - Gross Compensation
	2011		2010		2009
In EUR	Related to	Actual	Related to	Actual	Related to	Actual
					Not	Not
Julien Carmona*	800,170	873,970	874,098	582,045	concerned	concerned
Benjamin Gentsch
(Paid in CHF**)	800,403	850,928	850,928	850,928	850,114	786,763
					Not	Not
Frieder Knüpling***	457,432	419,110	339,110	257,360	concerned	concerned
Paolo De Martin
(Paid in CHF**)	1,231,505	1,192,655	1,203,763	1,191,556	1,191,719	1,059,714
Gilles Meyer*	854,636	878,786	854,312	833,335	874,334	815,552
Victor Peignet	924,200	925,887	904,208	818,853	904,231	1,001,344
Paul Rutledge*	248,029	148,018	N/A	N/A	N/A	N/A
Philippe Trainar****	568,100	535,060	436,960	321,203	N/A	N/A
François de Varenne	747,703	720,123	619,434	612,457	612,457	551,073
Members of the
Executive Committee	6,632,178	6,544,537	6,082,812	5,467,737	4,432,856	4,214,445
Denis Kessler	2,108,300	2,242,800	2,241,250	2,242,850	2,235,300	2,315,050
Executive Committee**	8,740,478	8,787,337	8,324,062	7,710,587	6,668,156	6,529,495

(*) Julien Carmona is member of the COMEX since 1 January 2010 as Group Chief Operating Officer.

(**) The compensation is paid in CHF, the exchange rate used is: 1 EUR = 1.2288 CHF.

(***) Frieder Knüpling is member of the COMEX since 1 July 2010 as Deputy CEO for SCOR Global Life. (****) Philippe Trainar is member of the COMEX since 1 April 2010 as Chief Risk Officer.

(*****) Paul Rutledge is member of the COMEX since 10 August 2011 as CEO of SCOR Global Life America and Deputy CEO for SCOR Global Life. The compensation is paid in SD, the exchange rate used is: 1 EUR = 1.3964 USD. Amounts are calculated and paid since 10 August 2011.

(******) Including the Chairman and Chief Executive Officer for whose remuneration details are available in Section 15.1.2.1. (*******) The compensation is paid in CHF from 1 October 2011. The compensation is paid in CHF, the exchange rate used is: 1 EUR = 1.2288 CHF.

Following its relocation from France to Switzerland as of 1 October 2011, Gilles Meyer was paid EUR 147,112 for his final settlement of all accounts.

The Compensation and Nomination Committee determines the variable compensation attributed to the members of the Executive Committee (other than the Chairman and Chief Executive Officer) on the proposal of the Chairman. The variable portion of the compensation presented in the table below depends, on the one hand, on the achievement of individual objectives and, on the other hand, on the achievement of the Group's earnings objectives, which are based on return on equity (or ROE). The total amount of the variable portion cannot exceed 80 % of the fixed compensation for COMEX members, excluding the Executive and Corporate Officer.

The following table presents the components of the gross compensation for fiscal years 2011, 2010 and 2009 for the members of the Executive Committee (other than the Chairman and Chief Executive Officer).

	Year 2011				Year 2010
	Fixed	Variable	Premiums/All	Gross	Fixed	Variable
In EUR	compensation	compensation	owances	compensation	compensation	compensation
Julien Carmona	500,000	296,200	3,970	800,170	500,000	370,000
Benjamin Gentsch (Paid in CHF*)	469,564	296,952	33,887**	800,403	469,564	347,477
Frieder Knüpling	280,000	177,072	360	457,432	200,000	138,750
Paolo De Martin (Paid in CHF*)	659,977	541,425*	30,103**	1,231,505	659,977	514,782
Gilles Meyer**	539,994	302,836**	11,805**	854,636	500,000	350,000*
Victor Peignet	550,000	369,820**	4,380	924,200	500,000	400,000*
Paul Rutledge
(Paid in USD***)	143,060	100,011	4,958	248,029	N/A	N/A
Philippe Trainar	350,000	214,340	3,760	568,100	252,000	181,300
François de Varenne	450,000	293,580	4,123	747,703	350,000	266,000

(*) The compensation is paid in CHF, the exchange rate used is: 1 EUR = 1.2288 CHF (the exchange rate of reference for the DDR). (**) Those allowances cover business expenses

(***) The compensation is paid in USD since 10 August 2011, the exchange rate used is: 1 EUR = 1.3964 USD (the exchange rate of reference for the DDR).

(****) This amount includes an expatriation premium related to fiscal year 2009.

(*****) This amount includes an expatriation premium related to fiscal year 2010.

(******) The compensation is paid in CHF from 1 October 2011. The compensation is paid in CHF, the exchange rate used is: 1 EUR = 1.2288 CHF.

Following its relocation from France to Switzerland as of 1 October 2011, Gilles Meyer was paid EUR 147,112 for his final settlement of all accounts.

(*******) This amount includes a specific bonus of CHF 120,000 for the Transamerica Re acquisition.

(********) This amount includes an expatriation premium related to fiscal year 2011.

The following table presents the components of the actual gross compensation paid in 2011, 2010, 2009 to the members of the Executive Committee (other than the Chairman and Chief Executive Officer).

	Year 2011				Year 2010
In EUR	Fixed compensation	Variable compensation	Premiums/All owances	Gross compensation	Fixed compensation	Variable compensation
Julien Carmona	500,000	370,000	3,970	873,970	500,000	77,947
Benjamin Gentsch (Paid in CHF*)	469,564	347,477	33,887**	850,928	469,564	347,477
Frieder Knüpling	280,000	138,750	360	419,110	200,000	57,000
Paolo de Martin (Paid in CHF*)	659,977	502,575	30,103**	1,192,655	659,977	502,575
Gilles Meyer*	539,994	319,850	18,942**	878,786	500,000	306,011
Victor Peignet	550,000	360,550	15,337	925,887	500,000	286,152
Paul Rutledge (Paid in USD**)	143,060	N/A	4,958	148,018	N/A	N/A
Philippe Trainar	350,000	181,300	3,760	535,060	252,000	65,544
François de Varenne	450,000	266,000	4,123	720,123	350,000	259,023

(*) The compensation is paid in CHF, the exchange rate used is: 1 EUR = 1.2288 CHF (the exchange rate of reference for the DDR).

(**) Those allowances cover business expenses

(***) This amount includes an expatriation premium related to fiscal year 2010.

(****) This amount includes an expatriation premium related to fiscal year 2009.

(*****) This amount includes an expatriation premium related to fiscal year 2009 and an expatriation premium related to fiscal year 2008.

(******) The compensation is paid in USD since 10 August 2011, the exchange rate used is: 1 EUR = 1.3964 USD (the exchange rate of reference for the DDR). (*******) The compensation is paid in CHF from 1 October 2011. The compensation is paid in CHF, the exchange rate used is: 1 EUR = 1.2288 CHF.

Following its relocation from France to Switzerland as of 1 October 2011, Gilles Meyer was paid EUR 147,112 for his final settlement of all accounts.

Year 2010				Year 2009
Premium/ Allowances	Gross compensation	Fixed compensation	Variable compensation	Premiums/ Allowances	Gross compensation
4,098	874,098	N/A	N/A	N/A	N/A
33,887**	850,928	469,564	347,477	33,073**	850,114
360	339,110	N/A	N/A	N/A	N/A
29,004**	1,203,763	659,977	502,575	29,167**	1,191,719
4,312	854,312	500,000	370,023****	4,312	874,334
4,208	904,208	500,000	400,023****	4,208	904,231
N/A	N/A	N/A	N/A	N/A	N/A
3,660	436,960	N/A	N/A	N/A	N/A
3,434	619,434	350,000	259,023	3,434	612 457

(*) The compensation is paid in CHF, the exchange rate used is: 1 EUR = 1,2288 CHF (the exchange rate of reference for the DDR)

(**) Those allowances cover business expenses.

(***) The compensation is paid in USD since 10 August 2011, the exchange rate used is: 1 EUR = 1.3964 CHF (the exchange rate of reference for the DDR) (****) This amount includes an expatriation premium related to fiscal year 2009.

(*****) This amount includes an expatriation premium related to fiscal year 2010.

(******) The compensation is paid in CHF from 1 October 2011. The compensation is paid in CHF, the exchange rate used is: 1 EUR = 1.2288 CHF. Following its relocation from France to Switzerland as of 1 October 2011, Gilles Meyer was paid EUR 147,112 for his final settlement of all accounts.

	Year 2010			Year 2009
Premium/	Gross	Fixed	Variable	Premiums/	Gross
Allowances	compensation	compensation	compensation	Allowances	compensation
4,098	582,045	N/A	N/A	N/A	N/A
33,887**	850,928	469,564	284,126	33,073**	786,763
360	257,360	N/A	N/A	N/A	N/A
29,004**	1,191,556	659,977	370,570	29,167**	1,059,714
27,325***	833,335	500,000	265,892	49,660****	815,552
32,701***	818,853	500,000	281,892	219,452*	1,001,344
N/A	N/A	N/A	N/A	N/A	N/A
3,660	321,203	N/A	N/A	N/A	N/A
3,434	612,457	350,000	197,638	3,434	551,073

(*) The compensation is paid in CHF, the exchange rate used is: 1 EUR = 1.2288 CHF (the exchange rate of reference for the DDR).

(**) Those allowances cover business expenses.

(***) This amount includes an expatriation premium related to fiscal year 2010. (****) This amount includes an expatriation premium related to fiscal year 2009.

(*****) This amount includes an expatriation premium related to fiscal year 2008 and an expatriation premium related to fiscal year 2009.

(******) The compensation is paid in USD since 10 August 2011, the exchange rate used is: 1 EUR = 1.3964 USD (the exchange rate of reference for the DDR).

(*******) The compensation is paid in CHF from 1 October 2011. The compensation is paid in CHF, the exchange rate used is: 1 EUR = 1.2288 CHF.

Following its relocation from France to Switzerland as of 1 October 2011, Gilles Meyer was paid EUR 147,112 for his final settlement of all accounts.

The members of the Executive Committee do not receive directors' fees in respect of their directorships of companies in which we hold more than 20 % of the capital.

For additional information on stock options held by members of the Executive Committee, refer to Sections 17.2.2 - Stock options held by members of the Executive Committee and other company officers as of 31 December 2011 and 17.2.3 – Free allocation of shares to COMEX members and other company officers as of 31 December 2011.

Each member of the Executive Committee benefits from the use of a vehicle for business purposes; The Chairman and Chief Executive Officer has a company car (with a shared driver).

The benefits in kind and insurance services granted to the Chairman and Chief Executive Officer are presented in Appendix B - Report of the Chairman of the Board of Directors on the terms and conditions for preparing and organising the work of the Board of Directors and on internal control procedures in compliance with Article L. 225-37 of the French Commercial Code.

In the event of a change in the structure of the share capital of the Company, if a member of the Executive Committee is dismissed (except for reason of serious or gross misconduct) or if he decides to resign, he will benefit from (i) a cash payment equal to the amount of fixed and variable compensations paid to him by the Group for the one financial year prior to his departure, (ii) a cash payment compensating him for his inability to exercise stock options granted prior to his departure date and which he would otherwise be unable to exercise due to the vesting period conditions set forth in the applicable stock option plan, in an amount to be determined by an independent expert using the "Black-Scholes" pricing model, and (iii) a cash payment compensating him for his inability to definitively acquire Ordinary Shares granted to him for free prior to his departure and which he would otherwise be unable to acquire due to the terms and conditions of the applicable free share allocation plan. The amount of this cash payment is equal to the product of the number of shares concerned by the average value of the opening prices of the Ordinary Shares of SCOR SE in the Paris Stock exchange during the twenty trading days preceding the date of the change in the structure.

15.1.3 REMUNERATION IN THE FORM OF OPTIONS AND SHARE ALLOCATION

Refer to Section 17.2. – Information on shareholdings and stock options or Company stock purchases by members of administrative and management bodies.

15.2 Total amounts set aside or accrued to provide pension, retirement, or similar benefits for financial year 2011

Like all the Group's senior executives based in France and employed by the Group at 30 June 2008, the Chairman and Chief Executive Officer benefits from pension coverage capped at 50 % of the average last salaries, provided in particular he has been with the Group for a minimum of five years. The rights to this pension are calculated on the basis of the average compensation received over the last five years with the Group. The right to a supplementary pension is only acquired under the condition notably that the beneficiary is a corporate officer or an employee of the Company when he claims his rights for the pension, according to the rules in force at that time.

Like all senior executives employed in France , the members of the Executive Committee who joined SCOR before 30 June 2008 and are employed in France, are entitled to a guaranteed capped pension plan conditioned on a minimum five years length of service with the Group, the payment of which is based on their average compensation over the last five years. This pension plan was closed to employees hired after 30 June 2008.

The amount of the additional pension guaranteed by the Group varies from 20 % to 50 % of the average compensation over the last five years, depending on seniority acquired in the Group at retirement. The additional pension guaranteed by the Group is defined after deductions of the pensions paid out through the compulsory schemes.

The pension benefits offered to the members of the Executive Committee who are not French citizens are comparable to the pension benefits offered to those who are French citizens.

Two executives under a Swiss contract are entitled to a specific scheme with a guaranteed pension of 50 % of the average compensation over the last five years before retirement.

The total commitment of the Group for defined benefits retirement plans for the Executive Committee members (including the Chairman and Chief Executive Officer) amounts at EUR 25 million as of 31 December 2011, i.e., 11.6% of the total commitment of the Group for pension plans of EUR 216 million.

No retirement benefit (or commitment) has been paid to the directors.

Refer also to Section 20.1.6 – Notes to the Consolidated Financial Statements, Note 24 – Related party transactions and Appendix A – Unconsolidated corporate financial statements of SCOR SE, Note 6 – Contingency reserves.

BOARD PRATICES

16.1	Date of expiration of the current term of office	144
16.2	Information on service contracts of members of Administrative and Management bodies	144
16.3	Information on the Audit Committee and the Compensation and Nomination Committee	144
16.4	Corporate governance regime	145

16 BOARD PRATICES

16.1 Date of expiration of the current term of office

				Duties the renewal of which will be proposed to the next
				Ordinary annual
Name	Term in Office	Date of expiration	First appointment date	meeting of the Shareholders
Denis Kessler	Chairman of the	(*) 2017	4 November 2002	N/A
	Board of Directors and Chief Executive Officer
Gérard Andreck	Director	(*) 2013	18 March 2008 (1)	N/A
Peter Eckert	Director	(*) 2015	15 April 2009	N/A
Charles Gave	Director	2013 (*)	4 May 2011	N/A
Daniel Lebègue	Director	(*) 2013	15 May 2003	N/A
Malakoff MédéricGroup	Director	(*) 2017	15 April 2009	N/A
Monica Mondardini	Director	2014 (*)	28 April 2010	N/A
Luc Rougé	Director	(*) 2012	24 May 2007	No
Guylaine Saucier	Director	2015 (*)	4 May 2011	N/A
Jean-Claude Seys	Director	(*) 2013	15 May 2003	N/A
Claude Tendil	Director	(*) 2017	15 May 2003	N/A
Daniel Valot	Director	(*) 2015	15 May 2003	N/A
Georges Chodron de Courcel	Non-Voting Director	(*) 2013	9 May 1994 (Director) 15 May 2003 (Non Voting Director)	N/A

(*) At the end of the Ordinary Annual General Shareholder's Meeting taking place during the indicated year

(1) Cooptation with ratification voted on by the Ordinary General Shareholders' Meeting of 7 May 2008.

16.2 Information on service contracts of members of Administrative and Management bodies

To our knowledge, there are no service agreements involving the members of the administrative or senior management bodies and the Company or one of its subsidiaries providing for benefits upon termination of such agreement.

16.3 Information on the Audit Committee and the Compensation and Nomination Committee

The information on these two committees can be found in the report from the Chairman of the Board of Directors in Appendix B (part I of the Report from the Chairman of the Board of Directors on the conditions for preparation and organization of the work of the Board of Directors).

16.4 Corporate governance regime

Since SCOR SE's shares are listed on the Euronext, the provisions relating to corporate governance applicable to SCOR SE include French legal provisions, as well as rules dictated by its market authorities. SCOR believes that its application of corporate governance principles is appropriate and is in compliance with the best practices of corporate governance in effect in France in consideration with AMF rules.

The Board considered In application of 3 July 2008 Act implementing the European Union Directive 2006/46/CE of 14 June 2006, SCOR SE refers to the AFEP-MEDEF governance code relating to listed companies in preparing the report to be issued in accordance with article L. 225-37 of the French commercial Code.

The AFEP-MEDEF governance code can be referred to on the Company's Internet site (www.scor.com) or on the MEDEF's Internet site (www.medef.com).

Complementary information on the corporate governance regime are disclosed in the report of the Chairman of the Board of Directors in Appendix B.

EMPLOYEES

17.1	Number of employees	148
17.2	Information on shareholdings and stock options or Company stock purchases by members of Administrative and Management bodies	149
17.3	Plans providing employee participation in Company	157
17.4	Defined pension schemes	165

17 EMPLOYEES

17.1 Number of employees

The total number of employees of the Group increased from 1,822 as of 31 December 2010 to 2,184 as of 31 December 2011. The distribution of personnel covers the various geographical areas to meet strategic principles of the Group.

The following table sets forth the distribution of employees at the dates indicated:

Distribution by Hub (1)

	As at 31 December
	2011	2010	2009
Paris (2)	665	631	581
Americas (3)	603	306	306
Zurich (4)	237	253	256
Köln (5)	211	202	206
London (6)	174	149	144
Singapore (7)	150	124	118
Total excluding ReMark	2,040	1,665	1,611
ReMark (8)	144	157	179
Total	2,184	1,822	1,790

Distribution by department (9)

	As at 31 December
	2011	2010	2009
SCOR Global P&C	658	656	905
SCOR Global Life (10)	817	452	510
SCOR Global Investments (11)	45	39	25
Group Functions and Support	520	518	171
Total excluding ReMark	2,040	1,665	1,611
ReMark (8)	144	157	179
Total	2,184	1,822	1,790

(1) Each Hub covers a region and may encompass several countries.

(2) Paris Hub covers France, Spain, Italy, Belgium, the Netherlands, Russia and South Africa.

(3) Americas Hub covers United-States, Mexico, Brazil, Canada, Chili and Colombia. In 2011, the former Transamericas Re employees were mostly absorbed by the hub Americas

(4) Zurich Hub covers Switzerland and Israel

(5) Köln Hub covers Germany and Austria (6) London Hub covers United Kingdom, Ireland and Sweden

(8) SCOR Global Life SE controls 100 % of the capital of ReMark. ReMark acquired ESG in May 2009. Due to its specific activity, its own business model and its own organization, ReMark is managed independently from the Group in terms of human resources.

(9) Since 2010, the headcounts are calculated according to the department (the highest organization's decision level for HR and budget processes to which any employee is linked), in accordance with the management of the group. "Group Functions and Support" includes the Group Finance, Risk and Operations departments as well as the departments directly managed by the Chairman and Chief Executive Officer.

(10) For 2011, SCOR Global Life includes provisonaly all the former Transamerica Re employees.

(11) SCOR Global Investments (100 % subsidiary of SCOR SE) was created in February 2009 with the transfer of the employees dedicated to asset management.

⁽⁷⁾ Singapore Hub covers China, Hong-Kong India, Japan, Korea, Malaysia, Singapore, Taiwan and Australia

17.2 Information on shareholdings and stock options or Company stock purchases by members of administrative and management bodies

17.2.1 NUMBER OF SHARES HELD BY DIRECTORS AND SENIOR MANAGERS

Article 10 ("Administration") of SCOR SE's bylaws requires that Directors own at least one share of the Company during the term of their directorship.

Directors and Officers	Number of shares as at 31/12/2011
Mr. Denis Kessler	446,040
Mr. Gérard Andreck	1,297
M. Peter Eckert	1,103
Mr Charles Gave	677
Mr. Daniel Lebègue	1,547
Mr. Guillaume Sarkozy, representing Médéric Prévoyance (1)	0
Mrs. Monica Mondardini	777
Mr. Luc Rougé	100
Mrs Guylaine Saucier	677
Mr. Jean-Claude Seys	2,727
Mr. Claude Tendil	2,787
Mr. Daniel Valot	5,455
Non-voting Director Mr. Georges Chodron de Courcel	4,166
Total	467,353

(1) Malakoff Médéric Group holds, as at 31 December 2011, 5 875 506 SCOR shares.

The table below presents the acquisitions, sales, subscriptions or exchanges of SCOR SE shares as well as operations upon securities linked to SCOR SE made by Directors and Senior managers in 2011.

Directors and officers	Operations made in 2011 for a greater amount than EUR 5,000
Mr. Denis Kessler	NA
Mr. Carlo Acutis	NA
Mr. Gérard Andreck	Acquisition of shares for a total amount of EUR 10,000
Mr. Allan Chapin	NA
Mr. Peter Eckert	Acquisition of shares for a total amount of EUR 10,000
Mr Charles Gave	Acquisition of shares for a total amount of EUR 10,000
Mr. Daniel Havis	NA
Mr. Daniel Lebègue	Acquisition of shares for a total amount of EUR 10,000
Mr. André Lévy Lang	Sale of shares for a total amount of EUR 420 948,09
Mr. Guillaume Sarkozy, representing Médéric Prévoyance	NA
Mrs. Monica Mondardini	Acquisition of shares for a total amount of EUR 10,000
Mr. Luc Rougé	N/A
Mrs Guylaine Saucier	Acquisition of shares for a total amount of EUR 10,000
Mr. Herbert Schimetschek	NA
Mr. Jean-Claude Seys	Acquisition of shares for a total amount of EUR 10,000
Mr. Claude Tendil	Acquisition of shares for a total amount of EUR 10,000
Mr. Daniel Valot	Acquisition of shares for a total amount of EUR 10,000
Non-voting Director Mr. Georges Chodron de Courcel	Acquisition of shares for a total amount of EUR 10,000

17.2.2 STOCK OPTIONS HELD BY THE MEMBERS OF THE EXECUTIVE COMMITTEE AND OTHER COMPANY OFFICERS AS OF 31 DECEMBER 2011

The table below presents the stock options and stock purchase allocation plans awarded to the members of the Executive Committee on 31 December 2011:

		Number of
		stock options			Potential
	Options	underlying		Price	transaction	Exercise
	exercised	shares	Date of plans	(EUR)	volume (EUR)	period
						02/28/2007 to
Denis Kessler	-	38,135	02/28/2003	27.30	1,041,086	02/27/2013
						06/03/2007 to
	-	16,783	06/03/2003	37.60	631,041	06/02/2013
						08/26/2008 to
	-	39,220	08/25/2004	10.90	427,498	08/25/2014
						09/16/2009 to
	-	46,981	09/16/2005	15.90	746,998	09/15/2015
						09/15/2010 to
	-	57,524	09/14/2006	18.30	1,052,689	09/14/2016
						09/13/2011 to
	-	55,000	09/13/2007	17.58	966,900	09/12/2017
						05/22/2012 to
	-	75,000	05/22/2008	15.63	1,172,250	05/21/2018
						03/23/2013 to
	-	125,000	03/23/2009	14.917	1,864,625	03/22/2019
						03/19/2014 to
	-	125,000	03/18/2010	18.40	2,300,000	03/18/2020
						03/23/2015 to
	-	125,000	03/22/2011	19.71	2,463,750	03/22/2021
Total		703,643			12,666,837
						11/25/2013 to
Julien Carmona	-	48,000	11/25/2009	17.117	821,616	11/24/2019
						03/19/2014 to
	-	48,000	03/18/2010	18.40	883,200	03/18/2020
						03/03/23/2015
	-	48,000	03/22/2011	19.71	946,080	to 03/22/2021
Total		144,000			2,650,896
						12/15/2010 to
Frieder Knüpling	-	5,000	12/14/2006	21.70	108,500	12/14/2016
						09/13/2011 to
	-	5,000	09/13/2007	17.58	87,900	09/12/2017
						09/10/2012 to
	-	15,000	09/10/2008	15.63	234,450	09/09/2018
						03/23/2013 to
	-	15,000	03/23/2009	14.917	223,755	03/22/2019
						03/19/2014 to
	-	32,000	03/18/2010	18.40	588,800	03/18/2020
						03/23/2015 to
	-	40,000	03/22/2011	19.71	788,400	03/22/2021
Total		112,000			2,031,805
Benjamin						09/13/2011 to
Gentsch	-	50,000	09/13/2007	17.58	879,000	09/12/2017
						05/22/2012 to
	-	24,000	05/22/2008	15.63	375,120	05/21/2018
						03/23/2013 to
	-	32,000	03/23/2009	14.917	477,344	03/22/2019
						03/19/2014 to
	-	40,000	03/18/2010	18.40	736,000	03/18/2020
						03/23/2015 to
	-	40,000	03/22/2011	19.71	788,400	03/22/20211
Total		186,000			3,255,864

	Options	Number of stock options underlying		Price	Potential transaction	Exercise
	exercised	shares	Date of plans	(EUR)	volume (EUR)	period
Paolo De Martin	-	50,000	09/13/2007	17.58	879,000	09/13/2011 to 09/12/2017
	-	36,000	05/22/2008	15.63	562,680	05/22/2012 to 05/21/2018
	-	48,000	03/23/2009	14.917	716,016	03/23/2013 to 03/22/2019
	-	48,000	03/18/2010	18.40	883,200	03/19/2014 to 03/18/2020
	-	48,000	03/22/2011	19.71	946,080	03/23/2015 to 03/22/2021
Total		230,000			3,986,976
Gilles Meyer	-	12,550	09/14/2006	18.30	229,665	09/15/2010 to 09/14/2016
	-	30,000	09/13/2007	17.58	527,400	09/13/2011 to 09/12/2017
	-	36,000	05/22/2008	15.63	562,680	05/22/2012 to 05/21/2018
	-	48,000	03/23/2009	14.917	716,016	03/23/2013 to 03/22/2019
	-	48,000	03/18/2010	18.40	883,200	03/19/2014 to 03/18/2020
	-	40,000	03/22/2011	19.71	788,400	03/23/2015 to 03/22/2021
Total		214,550			3,707,361
						09/04/2005 to
Victor Peignet	-	2,075	09/04/2001	185.10	384,083	09/03/2011
	-	52	10/03/2001	131.10	6,817	10/04/2005 to 10/02/2011
						02/28/2007 to
	-	2,745	02/28/2003	27.30	74,939	02/27/2013
	-	2,937	06/03/2003	37.60	110,431	06/03/2007 to 06/02/2013
	-	12,550	08/25/2004	10.90	136,795	08/26/2008 to 08/25/2014
	-	20,880	09/16/2005	15.90	331,992	09/16/2009 to 09/15/2015
	-	26,147	09/14/2006	18.30	478,490	09/15/2010 to 09/14/2016
	-	35,000	09/13/2007	17.58	615,300	09/13/2011 to 09/12/2017
	-	36,000	05/22/2008	15.63	562,680	05/22/2012 to 05/21/2018
						03/23/2013 to
	-	48,000	03/23/2009	14.917	716,016	03/22/2019 03/19/2014 to
	-	48,000	03/18/2010	18.40	883,200	03/18/2020 03/23/2015 to
Total	-	48,000 282,386	03/22/2011	19.71	946,080 5,246,823	03/22/2021
						09/02/2015 to
Paul Rutledge	-	48,000	09/01/2011	15.71	754,080	09/01/2021
Total		48,000			754,080
Philippe Trainar	-	10,459	09/14/2006	18.30	191,400	09/15/2010 to 09/14/2016
	-	10,000	09/13/2007	17.58	175,800	09/13/2011 to 09/12/2017
	-	10,000	05/22/2008	15.63	156,300	10/09/2012 to 09/09/2018
	-	12,000	03/23/2009	14.917	179,004	03/23/2013 to 03/22/2019
						03/19/2014 to
	-	40,000	03/18/2010	18.40	736,000	03/18/2020 03/23/2015 to
Total	-	40,000 122,459	03/22/2011	19.71	788,400 2,226,904	03/22/2021

		Number of stock options			Potential
	Options exercised	underlying shares	Date of plans	Price (EUR)	transaction volume (EUR)	Exercise period
François de Varenne	-	7,308	09/16/2005	15.90	116,197	09/16/2009 to 09/15/2015
	-	15,688	09/14/2006	18.30	287,090	09/15/2010 to 09/14/2016
	-	20,000	09/13/2007	17.58	351,600	09/13/2011 to 09/12/2017
	-	24,000	05/22/2008	15.63	375,120	05/22/2012 to 05/21/2018
	-	32,000	03/23/2009	14.917	477,344	03/23/2013 to 03/22/2019
	-	40,000	03/18/2010	18.40	736,000	03/19/2014 to 03/18/2020
	-	40,000	03/22/2011	19.71	788,400	03/23/2015 to 03/22/2021
Total		178,996			3,131,751
General Total		2,222,034			39,659,297

Reminder of the specific award conditions applicable to the Corporate Officer in respect of the principles AFEP / MEDEF: The Company's Board of Directors of 3 April 2007 decided that for all the grants posterior to that date, the Corporate Officer is required to retain as registered shares at least 10 % of the shares issued from the exercise of stock-options granted and at least 10 % of the performance shares granted until the termination of his duties.

In addition to these conditions specified above, the Company's Board of Directors of 12 December 2008 decided that for all the grants posterior to that date, the Corporate Officer is required to buy on the market a number of shares equal to 5 % of the number of performance shares granted as soon as these shares may be sold.

The Corporate Officer is also required to refrain from hedging his risk.

The options granted during financial year ended 31 December 2003 and after are options to subscribe stocks. The options granted during financial year ended 31 December, 2001 are options to purchase stocks.

No options have been granted by a related company as defined by article L.225-180 of the French Commercial Code.

The allocation of stock options since 2008 is subject if necessary to the satisfaction of performance conditions. Thus, a third of the number of options awarded on 22 May 2008, half of the options awarded on 23 March 2009 and all the options awarded since 18 March 2010 are subject to the satisfaction of performance conditions. However all the options allocated since 23 March 2009 to the Chief Executive Officer are subject to the satisfaction of performance conditions. Please refer to 17.3 of this Registration Document and the registration documents of SCOR filed with the Autorité des marchés financiers on 8 March 2011 and 3 March 2010 under number n. D.11-0103 and D.10-0085 for the details of the performance conditions applicable to the stock-options.

Stock options granted to the top ten non-officer employees and exercised by them	Number of shares underlying stocks options granted	Weighted average price (EUR)	Plans
Number of shares underlying the stock options granted during the financial year by the issuer and by any company included in the scope of allocation of the options to the ten employees of the issuer and of any company included in such scope, whose number of shares thus purchased or granted is the highest (aggregate information)	422,000	18.97	22 March 2011 and 1 September 2011
Number of shares underlying the stock options held on the issuer and on the companies referred to above and exercised during the financial year by the ten employees of the issuer or these companies, whose number of options thus purchased or subscribed is the highest (aggregate information)	41,071	16.45	25 August 2004 and 16 September 2005 and 14 September 2006 and 13 September 2007

For more information on the stock option plans or stock purchase plans, refer to Appendix A – 1.5. Notes to the corporate Financial Statements, Note 12 – Stock Options.

17.2.3 FREE ALLOCATION OF SHARES TO EXECUTIVE COMMITTEE MEMBERS AND OTHER COMPANY OFFICERS AS OF 31 DECEMBER 2011

The table below presents the share allocation plans awarded to the members of the Executive Committee on 31 December 2011:

			Price per
	Plan	Share award rights	share (EUR)	Transaction (EUR)	Transfer date
Denis Kessler	2004 Plan – Tranche A	18,750	14.40	270,000	01/10/2005
	2004 Plan – Tranche B	-		-	11/10/2005
	2004 Plan – Forfeiture – redistribution	26,250	17.97	471,713	09/01/2007
	2005 Plan	45,000	17.97	808,650	09/01/2007
	2006 Plan	55,000	14.88	818,400	07/05/2008
	2007 Plan	80,000	15.17	1,213,600	05/25/2009
	2008 Plan	75,000	17.55	1,316,250	05/08/2010
	2009 Plan	125,000	18.885	2,360,625	03/17/2011
	2010 Plan	125,000	-	-	03/03/2012
	2011 Plan	125,000	-	-	03/08/2013
	2011 – 2019 Long Term Incentive Plan	125,000	-	-	09/02/2017
Total		800,000		7,259,238
Julien Carmona	2009 Plan	48,000	16.40	787,200	11/26/2011
	2010 Plan	48,000	-	-	03/03/2012
	2011 Plan	48,000	-	-	03/08/2013
	2011 – 2019 Long Term Incentive Plan	48,000	-	-	09/02/2017
Total		192,000		787,200
Frieder Knüpling	2006 Plan	5,000	14.88	74,400	11/24/2008
	2007 Plan	5,000	15.17	75,850	05/25/2011
	2008 Plan	15,000	16.55	248,250	08/27/2012
	2009 Plan	15,000	18.885	283,275	03/17/2013
	2010 Plan	32,000	-	-	03/03/2014
	2011 Plan	40,000	-	-	03/08/2015
	2011 – 2019 Long Term Incentive Plan	40,000	-	-	09/02/2019
Total		152,000		681,775
Benjamin Gentsch	2007 Plan	50,000	15.17	758,500	05/25/2009
	2008 Plan	24,000	17.55	421,200	05/08/2012
	2009 Plan	32,000	18.885	604,320	03/17/2013
	2010 Plan	40,000	-	-	03/03/2014
	2011 Plan	40,000	-	-	03/08/2015
	2011 – 2019 Long Term Incentive Plan	40,000	-	-	09/02/2019
Total		226,000		1,784,020
Paolo De Martin	2007 Plan	50,000	15.17	758,500	05/25/2011
	2008 Plan	36,000	17.55	631,800	05/08/2012
	2009 Plan	48,000	18.885	906,480	03/17/2013
	2010 Plan	48,000	-	-	03/03/2014
	2011 Plan	48,000	-	-	03/08/2015
	2011 – 2019 Long Term Incentive Plan	48,000	-	-	09/02/2019
Total		278,000		2,296,780

			Price per
	Plan	Share award rights	share (EUR)	Transaction (EUR)	Transfer date
Gilles Meyer	2006 Plan	12,000	14.88	178,560	07/05/2008
	2007 Plan	30,000	15.17	455,100	05/25/2009
	2008 Plan	36,000	17.55	631,800	05/08/2010
	2009 Plan	48,000	18.885	906,480	03/17/2011
	2010 Plan	48,000	-	-	03/03/2012
	2011 Plan	40,000	-	-	03/08/2013
	2011 - 2019 Long Term Incentive Plan	40,000	-	-	09/02/2017
Total		254,000		2,171,940
Victor Peignet	2004 Plan - Tranche A	7,500	14.40	108,000	01/10/2005
	2004 Plan – Tranche B	-	-	-	11/10/2005
	2004 Plan – Forfeiture - redistribution	10,500	17.97	188,685	09/01/2007
	2005 Plan	20,000	17.97	359,400	09/01/2007
	2006 Plan	25,000	14.88	372,000	07/05/2008
	2007 Plan	35,000	15.17	530,950	05/25/2009
	2008 Plan	36,000	17.55	631,800	05/08/2010
	2009 Plan	48,000	18.885	906,480	03/17/2011
	2010 Plan	48,000	-	-	03/03/2012
	2011 Plan	48,000	-	-	03/08/2013
	2011 - 2019 Long Term Incentive Plan	48,000	-	-	09/02/2017
Total		326,000		3,097,315
Paul Rutledge	2011 Plan	24,000*	-	-	09/02/2015
	2011 - 2019 Long Term Incentive Plan	48,000	-	-	09/02/2019
Total		72,000		-
Philippe Trainar	2006 Plan	10,000	14.88	148,800	07/05/2008
	2007 Plan	10,000	15.17	151,700	05/25/2009
	2008 Plan	10,000	16.55	165,500	08/27/2010
	2009 Plan	12,000	18.885	226,620	03/17/2011
	2010 Plan	40,000	-	-	03/03/2012
	2011 Plan	40,000	-	-	03/08/2013
	2011 - 2019 Long Term Incentive Plan	40,000	-	-	09/02/2017
Total		162,000		692,620
François de
Varenne	2005 Plan	7,000	17.97	125,790	09/01/2007
	2006 Plan	15,000	14.88	223,200	11/08/2008
	2007 Plan	20,000	15.17	303,400	05/25/2009
	2008 Plan	24,000	17.55	421,200	05/08/2010
	2009 Plan	32,000	18.885	604,320	03/17/2011
	2010 Plan	40,000	-	-	03/03/2012
	2011 Plan	40,000	-	-	03/08/2013
	2011 - 2019 Long Term Incentive Plan	40,000	-	-	09/02/2017
Total		218,000		1,677,910
General Total		2,680,000		20,448,798

(*) In addition, in 2011, a limited number of executive members of Transamerica Re received, as a special measure in the course of the completion of the acquisition of Transamerica Re, a specific Integration Deferred Bonus paid in SCOR shares (141,500 free shares and performance shares for 15 Partners including 24,000 performance shares for Paul Rutledge) All these shares, potentially transferable on 11 August 2013, are subject to the satisfaction of performance and presence conditions.

The attribution of shares since 2008 is subject to the satisfaction of performance conditions. Thus, a third of the number of shares awarded on 07 May 2008, an half of the shares awarded on 16 March 2009 and all the shares awarded since 2 March 2010 are subject to the satisfaction of performance conditions. However all the shares allocated since 16 March 2009 to the Chief Executive Officer are subject to the satisfaction of performance conditions. Please refer to 17.3 of this Registration Document and the registration documents of SCOR filed with the Autorité des marchés financiers on 8 March 2011 and 3 March 2010 under number n. D.11-0103 and D.10-0085 for the details of the performance conditions applicable to the stock-options.

Reminder of the specific award conditions applicable to the Corporate Officer in respect of the principles AFEP / MEDEF:

The Company's Board of Directors of April 3, 2007 decided that for all the grants posterior to that date, the Corporate Officer is required to retain as registered shares at least 10 % of the shares issued from the exercise of stock-options granted and at least 10 % of the performance shares granted until the termination of his duties.

In addition to these conditions specified above, the Company's Board of Directors of 12 December 2008 decided that for all the grants posterior to that date, the Corporate Officer is required to buy on the market a number of shares equal to 5 % of the number of performance shares granted as soon as these shares may be sold.

The Corporate Officer is also required to refrain from hedging his risk.

17.3 Plans providing employee participation in Company

Refer to Section 20.1.6 – Notes to the Consolidated Financial Statements, Note 17 - Provisions for employee benefits and Appendix A – Unconsolidated Corporate financial statements of SCOR SE, Note 13 – Employee share-ownership plans.

17.3.1 STOCK OPTION PLANS

On 28 April 2010, the General Shareholder's meeting of the Company's Board of Directors had authorized, in its nineteenth resolution, the Company's Board of Directors, under the provisions of Articles L.225-177 to L.225-185 of the Commercial Code, to grant upon proposal of the Compensation and Nominations Committee, on one or more occasions for the benefit of members of staff and the corporate officers, of the Company and companies or groups linked to it in terms of Article L.225-180 of the Commercial Code, options entitling to the subscription of new ordinary shares of the Company in issue as to increase its capital, as well as options entitling to purchase shares of the Company from acquisitions made by it as provided by law within the limits of a number of options giving right to a maximum of three million (3,000,000) of shares. This authorization was given for a period of 18 months from 28 April 2010 and had canceled and replaced, for the unused portion thereof, the previous authorization as of April 15, 2009

On 4 May 2011, the General Shareholder's meeting of the Company's Board of Directors has authorized, in its twentyeighth resolution, the Company's Board of Directors, under the provisions of Articles L.225-177 to L.225-185 of the Commercial Code, to grant upon proposal of the Compensation and Nominations Committee, on one or more occasions for the benefit of members of staff and the corporate officers, of the Company and companies or groups linked to it in terms of Article L.225-180 of the Commercial Code, options entitling to the subscription of new ordinary shares of the Company in issue as to increase its capital, as well as options entitling to purchase shares of the Company from acquisitions made by it as provided by law within the limits of a number of options giving right to a maximum of three million (3,000,000) of shares. This authorization was given for a period of eighteen months from 4 May 2011 and had canceled and replaced, for the unused portion thereof, the previous authorization as of 28 April 2010.

Allocation of stock options

The Company's Board of Directors of 7 March 2011, on the proposal of the Compensation and Nominations Committee of 7 March 2011, decided on 22 March 2011, to allocate stock options to the Chairman and Chief Executive Officer, to members of the Executive Committee and to the highest levels of Partners (Executive Global Partners and Senior Global Partners).

The Partnership are key executives, managers, experts, and high potentials formally identified across the Group (the "Partners"). Partners are given specific responsibilities in terms of significant achievements, high impact project management and leadership. Therefore, they benefit from a specific and selective program in terms of information sharing, career development and compensation schemes. Partners represent approximately 25 % of the total number of staff.

22 March 2011 Stock option Plan

The Chairman and CEO, acting upon delegation granted by the Board of Directors held on 7 March 2011, decided on 22 March 2011, to allocate 701,500 stock options following authorization at the Shareholders' Meeting on 28 April 2010.

Those options can be exercised at the earliest four years after the grant date, if the presence condition (4 years) is respected. The exercise price is calculated without discount, based on the weighted average of the opening date of the 20 trading days preceding the decision to award the stock options.

The stock options can be exercised on one or more occasions from 23 March 2015 to 22 March 2021 inclusive. From this date, the purchase right shall expire.

The exercise of all of the stock options allocated in 2011 is subject to performance conditions.

The exercise of options is conditioned, in addition to the presence condition, by three out of the four conditions outlined below:

• The Standard & Poor's financial strength rating must be at least "A" in 2011 and 2012;
• The P&C business combined ratio must be less than or equal to 102 % on average in 2011 and 2012;
• The Life business operating margin must be higher than or equal to 3 % on average in 2011 and 2012;
• The SCOR group's ROE for the financial years ending 31 December 2011 and 31 December 2012 must exceed the risk-free rate in 2011 and 2012 by at least 300 points on average.

1 September 2011 Stock option Plan

Following authorization at the Shareholders meeting of 4 May 2011, the Company's Board of Directors of 27 July 2011, decided to grant stock options to a limited number of executive members of the Transamerica Re who joined SCOR after the acquisition of Transamerica Re and to certain Partners hired after 7 March 2011. Following this decision, 308,500 stock options were allocated on 1 September 2011 to 18 Partners (with 283,000 stock options for 15 Partners of Transamerica Re including one member of the Executive Committee). Those options can be exercised at the earliest 4 years after the grant date, if the presence condition is satisfied (four years). The exercise price is calculated without discount, based on the weighted average of the opening date of the 20 trading days preceding the decision to award the stock options.

The exercise of all of the options granted is subject to the same performance conditions as those decided for the 22 March 2011 stock option Plan (for the description of the performance conditions, refer to 17.3.1 – Stock option plan – Specific allocation of stock options).

The table below presents the total number of stock options allocated in 2010 and 2011 by category within the Group:

	Total number of stock options allocated in 2011	Total number of beneficiaries in 2011	Total number of stock options allocated in 2010	Total number of beneficiaries in 2010
Corporate Officer	125,000	1	125,000	1
Members of the Executive Committee	392,000	9	344,000	8
Partners	493,000	63	946,710	327
Total	1,010,000	73	1,415,710	336

A table showing features of the SCOR stock option plans is found in Section 20.1.6 – Notes to the Consolidated Financial Statements, Note 18 - Stock options and share awards.

Refer also to Section 20.1.6 – Notes to the Consolidated Financial Statements, Note 17 – Provisions for employee benefits.

17.3.2 SHARE ALLOCATION PLANS

On 28 April 2010, the Shareholder's Meeting of the Company, in its twentieth resolution, had authorized the Company's Board of Directors to make, on one or more occasions, to the employees and directors and officers defined by law, or to some of them, of the Company and of companies or groups affiliated with it pursuant to Article L. 225-197-2 of the French Commercial Code, free allotments of existing or yet-to-be-issued shares of the Company and resolved that the Company's Board of Directors of the Company would determine the identity of the beneficiaries of the allotment and the conditions and criteria for the allotment of the shares.

The Shareholders' Meeting also decided that (i) the total number of free shares granted under this authorization may not exceed 3,000,000 Shares, (ii) the allocation of shares to their beneficiaries will be definitive only after a vesting period of a minimum set at two years for tax residents of France and a minimum of 4 years for beneficiaries not tax residents of France, (iii) the beneficiaries will be subject, where appropriate, to an obligation to retain shares in a period of two years from the end of the vesting period for tax residents of France and that the retention period for beneficiaries not tax residents of France would be deleted, and (iv) the Company's Board of Directors of the Company will have the authority to increase the lengths of the acquisition period and the holding obligation period.

This authorization was given for a period of eighteen months from 28 April 2010 and had canceled and replaced, for the unused portion thereof, the previous authorization as of April 15, 2009.

On 4 May 2011, the Shareholder's Meeting of the Company, in its twenty-ninth resolution, has authorized the Company's Company's Board of Directors to make, on one or more occasions, to the employees and directors and officers defined by law, or to some of them, of the Company and of companies or groups affiliated with it pursuant to Article L. 225-197-2 of the French Commercial Code, free allotments of existing or yet-to-be-issued shares of the Company and resolved that the Company's Board of Directors of the Company would determine the identity of the beneficiaries of the allotment and the conditions and criteria for the allotment of the shares.

The Shareholders' Meeting also decided that (i) the total number of free shares granted under this authorization may not exceed 3,000,000 Shares, (ii) the allocation of shares to their beneficiaries will be definitive only after a vesting period of a minimum set at two years for tax residents of France and a minimum of 4 years for beneficiaries not tax residents of France, (iii) the beneficiaries will be subject, where appropriate, to an obligation to retain shares in a period of two years from the end of the vesting period for tax residents of France and that the retention period for beneficiaries not tax residents of France would be deleted, and (iv) the Company's Board of Directors of the Company will have the authority to increase the lengths of the acquisition period and the holding obligation period.

This authorization was given for a period of eighteen months from 4 May 2011 and had canceled and replaced, for the unused portion thereof, the previous authorization as of 28 April 2010.

7 March 2011 performance shares

The Company's Board of Directors of 7 March 2011, on the proposal of the Compensation and Nominations Committee of 7 March 2011, decided to grant a total of 1,350,540 performance shares to the Chairman and Chief Executive Officer, to the members of the Executive Committee and to the Chairman and Chief Executive Officer and to Partners.

The Company's Board of Directors of 7 March 2011, on the basis of the authorization of the Shareholders meeting of 28 April 2010, in its twentieth resolution, decided to allocate 125,000 performance shares to the Chairman and Chief Executive Officer, 344,000 performance shares to the other members of the Executive Committee and 881,540 performance shares to the other Partners of the Company.

The conditions of the plan are similar to those previously decided by SCOR (notably as regards to the presence condition), with a vesting period of 2 years for the tax residents of France (and an obligation to retain shares for a period of two years after the end of the vesting period), and of four years for the beneficiaries not tax resident of France.

All the shares awarded to the Chairman and Chief Executive Officer (and all the ones awarded to the Executive Committee members and Senior Global Partners) and half of the allocations awarded to the other (less senior) beneficiaries, are subject to the satisfaction of the performance conditions. Three out of the four conditions outlined below:

• The Standard & Poor's financial strength rating must be at least "A" in 2011 and 2012;
• The P&C business combined ratio must be less than or equal to 102 % on average in 2011 and 2012;
• The Life business operating margin must be higher than or equal to 3 % on average in 2011 and 2012;
• The SCOR group's ROE for the financial years ending 31 December 2011 and 31 December 2012 must exceed the risk-free rate in 2011 and 2012 by at least 300 points on average.

1 September 2011 performance shares

Following authorization at the Shareholders Meeting of 4 May 2011, and as proposed by the Compensation and Nominations Committee, the Chairman and Chief Executive Officer, acting upon delegation by the Company's Board of Directors of 27 July 2011, decided on 1 September 2011 to award performance shares to new appointed Partners who joined SCOR after the acquisition of Transamerica Re and to certain employees hired after 7 March 2011 and before 1 September 2011. All the allocations to the Senior Global Partners and to the top management of Transamerica Re (including one member of the Executive Committee) and half of the allocations to the other beneficiaries, are subject to the satisfaction of the same performance conditions as those set for the 7 March 2011 performance shares Plan (for the description of the performance conditions, refer to paragraph "7 March 2011 performance shares"). Following this decision, 336,650 performance shares were allocated on 1 September 2011 to 89 employees (with 301,000 performance shares to 78 employees of Transamerica Re including one member of the Executive Committee).

The conditions of the plan are similar to those previously decided by SCOR (notably as regards to the presence condition), with a vesting period of 2 years for the tax residents of France (and an obligation to retain shares for a period of two years after the end of the vesting period), and of four years for the beneficiaries not tax resident of France.

1 September 2011 Long Term Incentive Plan

Following authorization at the Shareholders' Meeting on 4 May 2011, the Company's Board of Directors of 27 July 2011, implemented a new compensation scheme, the SCOR Long Term Incentive Plan (the "LTIP"), for selected managers and executives of the Group in order to ensure retention of our key employees while extending of performance measurement to six years.

This new compensation scheme reflects best market practices and aims to involve and associate our key employees in the Group long term development. The LTIP plan is entirely based on SCOR performance shares.

The Company's Board of Directors of 27 July 2011, following authorization at the Shareholders' Meeting on 4 May 2011, allocated 125,000 performance shares to the Chairman and Chief Executive Officer, 392,000 performance shares to the other members of the Executive Committee and 196,000performance shares to a selected numbers of Partners.

All the shares made under the LTIP are subject to the satisfaction of the same performance conditions as those set for the 7 March 2011 performance shares plan (for the description of the performance conditions, refer to paragraph "7 March 2011 performance shares ") and also to a market condition based on the comparison of the Total Shareholder Return (TSR) of SCOR with its main peers over two periods of respectively three and six years (respectively between 2011 and 2014 and between 2014 and 2017).

The performance criterion based on the TSR will be appreciated by considering the average "Volume-Weighted Average Price - VWAP" of the shares of SCOR SE (and the ones of the peer group of comparison) over a period preceding the award and the average VWAP of the shares of SCOR SE (and the ones of the peer group of comparison) before the end of the period under consideration.

The conditions of the LTIP plan are a vesting period of six years for the tax residents in France (and an obligation to retain shares for a period of two years after the end of the vesting period), and of eight years for the beneficiaries not tax resident in France.

Collective free shares grant

The Board of Directors of 9 November 2011, upon the proposal of the Compensation and Nominations Committee, has set forth this collective free shares Plan and has delegated to the Chairman and Chief Executive Officer the powers to implement such Plan on 12 December 2011. Following this decision 141,020 free shares were allocated on 12 December 2011 to each employee non Partner of the Group following authorization at the Shareholders' Meeting on 4 May 2011.

The conditions of the plan are similar to those usually decided by the Group (notably as regards to the presence condition) with a vesting period of two years for the tax residents of France (and an obligation to retain shares for a period of two years from the end of the vesting), and of four years for the beneficiaries not tax residents in France.

12 December 2011 performance shares

Following authorization by the Shareholders' Meeting on 4 May 2011, and as proposed by the Compensation and Nomination Committee, the Chairman and Chief Executive Officer, acting upon delegation by the Board of Directors held on 9 November 2011, decided on 12 December 2011 to award performance shares to certain Partners hired after 1 September 2011. Half of these allocations are subject to the satisfaction of the same performance conditions as those set for the 7 March 2011 performance shares plan (for the description of the performance conditions, refer to paragraph "7 March 2011 performance shares"). Following this decision, 18,800 performance shares were allocated on 12 December 2011 to 6 Partners (non-members of the Executive Committee).

The conditions of this plan are similar to those we usually decide with a vesting period of two years for the tax residents in France (and an obligation to retain shares for a period of two years after the end of the vesting period), and of four years for the beneficiaries not tax residents in France.

The table below presents the total number of shares allocated in 2010 and 2011 by category within the Group :
---------------------------------------------------------------------------------------------------------------	--

	Total number of LTIP shares allocate in 2011 (2)	Total number of beneficiaries of LTIP in 2011(2)	Total number of shares allocated in 2011 (excluding LTIP) (2)	Total number of beneficiari es in 2011 (excluding LTIP) (2)	Total number of shares allocated in 2010	Total number of beneficiarie s in 2010
Corporate Officer (1)	125,000	1	125,000	1	125,000	1
Members of the Executive Committee	392,000	9	368,000 (3)	9	344,000	8
Partners	196,000	41	1,178,200 (3)	451	973,210	353
Non Partners	0	0	175,810	1,380	221,160	1,049
Total	713,000	51	1,847,010	1,841	1,663,370	1,411

(1) Chairman and Chief Executive Officer (2) Including employees of Transamerica Re

(3) In addition, in 2011, a limited number of executive members of Transamerica Re received, as a special measure in the course of the completion of the acquisition of Transamerica Re, a specific Integration Deferred Bonus paid in SCOR shares (141,500 free shares and performance shares for 15 Partners including one member of the Executive Committee). All these shares, potentially transferable on August 11th, 2013, are subject to the satisfaction of performance and presence conditions.

Shareholders meeting and Company's Board of Director	Total number of shares allocated	Start of acquisition period / start of the holding period / duration of the holding period	Total number of beneficiaries	Free shares allocates to the ten first employees non corporate officers	Allocation condition And criteria	Source of shares to be allocated
4 May 2011 9 November 2011	11,000	From 12 December 2011 to 12 December 2013 included 2 years	2	11,000	Requirement of presence at the company as of 12 December 2013 Performance conditions	Treasury shares
4 May 2011 9 November 2011	7,800	From 12 December 2011 to 12 December 2015 included No holding period	4	7,800	Requirement of presence at the company as of 12 December 2013 Performance conditions	Treasury shares
4 May 2011 9 November 2011	100,680	From 12 December 2011 to 12 December 2015 included No holding period	1,004	1,600	Requirement of presence at the company as of 12 December 2013	Treasury shares
4 May 2011 9 November 2011	40,340	From 12 December 2011 to 12 December 2015 included 2 years	376	2,620	Requirement of presence at the company as of 12 December 2013	Treasury shares
4 May 2011 27 July 201	415,500	From 1 September 2011 to 1 September 2017 included 2 years	21	253,000	Requirement of presence at the company as of 1 September 2017 Performance conditions	Treasury shares
4 May 2011 27 July 2011	297,500	From 1 September 2011 to 1 September 2019 No holding period	30	222,500	Requirement of presence at the company as of 1 September 2017 Performance conditions	Treasury shares
4 May 2011 27 July 2011	15,800	From 1 September 2011 to 1 September 2013 included 2 years	4	15,800	Requirement of presence at the company as of 1 September 2013 Performance conditions	Treasury shares
4 May 2011 27 July 2011	320,850	From 1 September 2011 to 1 September 2015 included No holding period	85	122,500	Requirement of presence at the company as of 1 September 2013 Performance conditions	Treasury shares
28 April 2010 7 March 2011	663,480	From 7 March 2011 to 7 March 2013 included 2 years	148	269,500	Requirement of presence at the company as of 7 March 2013 Performance conditions	Treasury shares

The following table shows the free shares plans currently in force within the Group:

Shareholders meeting and Company's Board of Director	Total number of shares allocated	Start of acquisition period / start of the holding period / duration of the holding period	Total number of beneficiaries	Free shares allocates to the ten first employees non corporate officers	Allocation condition And criteria	Source of shares to be allocated
28 April 2010 7 March 2011	687,060	From 7 March 2011 to 7 March 2015 included No holding period	249	216,500	Requirement of presence at the company as of 7 March 2013 Performance conditions	Treasury shares
28 April 2010 28 April 2010	6,120	From 17 December 2010 to 17 December, 2012 included 2 years	25	2,970	Requirement of presence at the company as of 17 December 2012	Treasury shares
28 April 2010 28 April 2010	26,500	From 12 October 2010 to 12 October 2012 included 2 years	11	26,000	Requirement of presence at the company as of 12 October 2012 Performance conditions	Treasury shares
28 April 2010 28 April 2010	18,410	From 12 October 2010 to 12 October 2014 included No holding period	9	18,410	Requirement of presence at the company as of 12 October 2012 Performance conditions	Treasury shares
15 April 2009 2 March 2010	680,700	From 2 March, 2010 to 2 March 2012 included 2 years	123	281,500	Requirement of presence at the company as of 2 March 2012 Performance conditions	Treasury shares
15 April 2009 2 March 2010	716,600	From 2 March, 2010 to 2 March 2014 included No holding period	219	190,000	Requirement of presence at the company as of 2 March 2012 Performance conditions	Treasury shares
15 April 2009 2 March 2010	66,780	From 2 March, 2010 to 2 March, 2012 included 2 years	318	2,100	Requirement of presence at the company as of 2 March 2012	Treasury shares
15 April 2009 2 March 2010	148,260	From 2 March 2010 to 2 March 2014 included No holding period	706	2,100	Requirement of presence at the company as of 2 March 2012	Treasury shares
15 April 2009 15 April 2009	72,000	From 25 November 2009 to 25 November 2011 included 2 years	7	72,000	Requirement of presence at the company as of 25 November 2011 Performance conditions	Treasury shares
15 April 2009 15 April 2009	16,500	From 25 November 2009 to 25 November 2013 included No holding period	10	16,500	Requirement of presence at the company as of 25 November 2011 Performance conditions	Treasury shares

Shareholders meeting and Company's Board of Director	Total number of shares allocated	Start of acquisition period / start of the holding period / duration of the holding period	Total number of beneficiaries	Free shares allocates to the ten first employees non corporate officers	Allocation condition And criteria	Source of shares to be allocated
15 April 2009 15 April 2009	30,500	From April 15th, 2009 to 15 April 2011 included 2 years	18	21,000	Requirement of presence at the company as of 15 April 2011 Performance conditions	Treasury shares
15 April 2009 15 April 2009	85,500	From 15 April 2009 to 15 April 2013 included No holding period	50	25,000	Requirement of presence at the company as of 15 April 2011 Performance conditions	Treasury shares
7 May 2008 16 March 2009	599,800	From 16 March 2009 to 16 March 2011 2 years	110	225,000	Requirement of presence at the company as of 16 March 2011 Performance conditions	Treasury shares
7 May 2008 16 March 2009	694,000	From 16 March 2009 to 16 March 2013 No holding period	189	193,000	Requirement of presence at the company as of 16 March 2011 Performance conditions	Treasury shares
7 May 2008 3 March 2009	65,800	From 3 March 2009 to 3 March 2011 2 years	329	2,000	Requirement of presence at the company as of 15 February 2011	Treasury shares
7 May 2008 3 March 2009	149,600	From 3 March 2009 to 3 March 2013 No holding period	748	2,000	Requirement of presence at the company as of 15 February 2011	Treasury shares
7 May 2008 26 August 2008	427,500	26 August 2008 to 27 August 2010 2 years	132	98,500	Requirement of presence at the company as of 15 August 2010 Performance conditions	Treasury shares
7 May 2008 26 August 2008	771,500	From 26 August 2008 to 26 August 2012, included / No holding period	244	110,000	Requirement of presence at the company as of 15 August 2010 Performance conditions	Treasury shares
7 May 2008 7 May 2008	195,000	7 May 2008 8 May 2010 2 years	5	120,000	Requirement of presence at the company as of 30 April 2010 Performance conditions	Treasury shares
7 May 2008 7 May 2008	84,000	From 7 May, 2008 to 7 May, 2012 included / No holding period	3	84,000	Requirement of presence at the company as of 30 April 2010 Performance conditions	Treasury shares
24 May 2007 24 May 2007	874,000	24 May 2007 24 May 2011 No holding period	242	219,000	Requirement of presence at the company as of 30 April 2009	Treasury shares

Refer also to Section 20.1.6 – Notes to the consolidated financial statements, Note 17 – Provisions for employee benefits.

During the exercise 2011, the rights vested into shares by the ten employees of the Company and of any company included in its consolidation whose number of shares thus obtained is the highest represent 439,500 shares. Those rights concerned, for the tax residents of France, the Free Share Plan of 16 March 2009 and 25 November 2009 whose transfer occurred on 17 March 2011 and 26 November 2011 and, for the not tax resident of France, the Free Share Plan of 24 May 2007 whose transfer occurred on 25 May 2011.

17.3.3 STOCK OPTION PLANS CURRENTLY IN FORCE WITHIN THE GROUP

For the list of the stock options plans currently in force within the Group refer to Appendix A – 1.5. Notes to the Corporate Financial Statements, Note 12 – Stock Options.

For the number of stock options underlying shares held on the issuer and on the companies referred to previously and exercised during the financial year by the ten employees of the issuer or these companies, whose number of options thus purchased or subscribed is the highest, as well as the stock options granted to ten employees not Company officers whose number of options thus purchased is the highest, refer to table in Section 17.2.2 – Stock options held by the members of the Executive Committee and other company officers as of 31 December 2011.

17.3.4 EMPLOYEE SAVINGS PLAN

Group employees (excluding directors and officers) may invest in the Employee Savings Plan. An agreement specifies the principle, financing, and conditions of the Plan. The Employee Savings Plan has four mutual investment funds, two of which are entirely dedicated to SCOR. An employer's contribution is expected on two funds. The funds may receive several types of deposits: sums received from profit-sharing plans, collective incentive plans, or any other voluntary contributions.

On 4 May 2011, the Combined Shareholders' Meeting of the Company in its thirtieth first resolution delegated its authority to the Company's Board of Directors in order to increase the share capital by issuing shares reserved for employees of the company and of French and foreign companies affiliated with it pursuant to Article L. 225-180 of the French Commercial Code, who are participants in savings plans and/or any mutual funds, eliminating the pre-emptive right they have. This new authorization replaces the authorization granted by the General Shareholders' Meeting of 28 April 2010.

As of the date of the Registration Document, the Company's Board of Directors has not exercised this authorization. This authorization was granted for a period of eighteen months as of the date of the Combined Shareholders' Meeting on 4 May 2011.

17.4 Defined pension schemes

Several defined contributions and benefits pensions schemes are settled in the Group and presented below.

	17.4.1 DEFINED CONTRIBUTION PENSION SCHEMES
The following table provides an overview of the primary defined contribution pension schemes in place in the Group.
Country	Name of the plan	Number of plans	Benefits related description
United States	Retirement Savings Plan (401k plan)	1	401(k) Plan - Participants are allowed to make pre-tax contributions up to 50 % of their bi-weekly salary. Employer matches up to 4 % of bi-weekly salary.
			Defined Contribution Retirement Program (Employer funding varies by employee depending on age and service)
United Kingdom	UK Branch Stakeholder Pension Scheme (Friends Life)	5	Individual Funds accumulate from contributions and investment returns. At retirement it is possible to take a part of the fund as a tax free cash lump sum and the balance must be used to provide a pension.
	UK Branch Stakeholder Pension Scheme (AEGON)
	UK Branch Personal Pension Plan (Legal & General)
	UK Branch Personal Pension Plan (Skandia)
	UK Branch Executive Pension Plan (Standard Life)

Executive Committee members benefit from collective pension plans that are in place in their own entity and do not have any specific scheme.

17.4.2 DEFINED BENEFITS PENSION SCHEMES

Country	Scheme Identification	Number of schemes	Benefit related description
France	"Indemnités de Départ à la Retraite", "Congés Fin de Carrière"	3	Pension defined according to conditions of seniority in the company
	Supplemental Defined Benefit Plan (1)		Additional pension guaranteeing 20 % to 50 % of the average last 5 years salaries according to seniority if the beneficiary is at SCOR at retirement
Switzerland	Pension Fund of SCOR Switzerland	1	Annuity or lump sum benefit paid at normal retirement age. The amount is equal to the accrued savings and depends on the retirement date.
Germany	Pension	3	Payment of the pension benefits is based on the duration of affiliation to the Pension Scheme.
	Pension	3	The pension schemes serve the purpose of supplying benefits to the employees in their retirement and in the event of occupational (Professional) disability, as well as of ensuring provisions in case of an employee's death
United States	Pension	6	The amount of annual benefit is paid at Normal Retirement Date in monthly installments for life is 46% of Average Monthly Compensation, multiplied by a fraction, not exceed 1 and based on seniority upon retirement. The SCOR U.S. Group Pension Plan was frozen on 10/01/2006
United Kingdom	Pension	1	The pension is equal to 1/60th of Final Pensionable Salary for each year of membership of the scheme up to Normal Retirement Date

The following table provides an overview of the primary defined benefits pension schemes in place in the Group.

(1) This scheme regroups a limited number of beneficiaries (with an executive status). It was closed to new entrants as of 30 June 2008.

Executive Committee members benefit from the collective pension schemes in place in their entity and do not have any specific plan except for members with Swiss contracts who have been awarded a similar advantage than the one granted to the other Executive Committee members hired before 30 June 2008.

PRINCIPAL SHAREHOLDERS

18.1	Significant shareholders known to SCOR	169
18.2	Negative statement as to the absence of differences between the voting rights of various shareholders	173
18.3	Direct or indirect control by one shareholder	173
18.4	Agreement which could result in a subsequent change in control	173

18 PRINCIPAL SHAREHOLDERS

18.1 Significant shareholders known to SCOR

Share capital structure and voting rights in the Company to the knowledge of SCOR (on the basis of a study of identifiable share bearers ("Titres aux Porteurs Identifiables" – "TPI") conducted by the Company as at 31 December 2011):

As at 31 December 2011	Number of shares	% of capital	% voting rights (1)
Patinex AG (2)	15,000,000	7.81 %	8.12 %
Alecta Kapitalförvaltning AB (2)	10,000,000	5.21 %	5.41 %
Generali Investments France S,A,(2)	5,903,700	3.07 %	3.19 %
Malakoff Médéric (2)	5,875,506	3.06 %	3.18 %
Amundi Asset Management (2)	5,113,300	2.66%	2.77%
OFI Asset Management (2)	3,965,500	2.07%	2.15%
Covéa Finance (2)	3,937,500	2.05%	2.13%
BNP Paribas Asset Management (France) (2)	3,800,400	1.98%	2.06%
BNP Paribas Investment Partners Belgium SA (2)	3,725,500	1.94%	2.02%
Treasury Shares	7,262,600	3.78%	0.00%
Employees	4,657,879	2.43%	2.52%
Others	122,779,418	63.94%	66.44%
TOTAL	192,021,303	100.00%	100.00%
(1) The percentage of voting rights is determined on the basis of the number of shares at closure, excluding the company's own treasury shares.

(2) Source: TPI and Ipreo.

Share capital structure and voting rights in the Company to the knowledge of SCOR on the basis of a study of identifiable share (titres aux porteurs identifiables – TPI) conducted by the Company as at 31 December 2010:

As at 31 December 2010	Number of shares	% of capital	% voting rights (1)
Patinex AG (2)	14,000,000	7.45 %	7.72 %
Alecta Kapitalförvaltning AB (2)	10,630,000	5.66 %	5.86 %
Malakoff Médéric (2)	5,875,500	3.13 %	3.24 %
Generali Investments France S,A,(2)	5,349,600	2.85 %	2.95 %
BlackRock Fund Advisors (formerly Barclays Global) (2)	4,950,900	2.64 %	2.73 %
Covéa Finance (2)	4,290,500	2.28 %	2.37 %
MACIF Gestion SA (2)	3,533,900	1.88 %	1.95 %
BNP Paribas Investment Partners Belgium SA (2)	2,867,700	1.53 %	1.58 %
BNP Paribas Asset Management (France)	2,204,100	1.17 %	1.21 %
MATMUT (2)	313,600	0.17 %	0.17 %
Treasury Shares	6,427,554	3.42 %	0.00 %
Employees	3,261,869	1.74 %	1.80 %
Other	124,090,178	66.08 %	68.42 %
TOTAL	187 795 401	100.00 %	100.00%

(2) Source: TPI and Ipreo.

(1) The percentage of voting rights is determined on the basis of the number of shares at closure, excluding the company's own treasury shares.

Split as at 31 December 2009:

As at 31 December 2009	Number of shares	% of capital	% voting rights (1)
Patinex AG (2)	14,000,000	7.56%	7.84%
Alecta Kapitalförvaltning AB (2)	12,500,000	6.75%	7.00%
BlackRock Fund Advisors (formerly Barclays Global) (2)	8,705,200	4.70%	4.87%
Malakoff Médéric (2)	5,529,100	2.99%	3.10%
Générali Investments France S.A. (2)	4,191,600	2.26%	2.35%
Amundi Asset Management (2)	3,908,300	2.11%	2.19%
LSV Asset Management (2)	3,889,100	2.10%	2.18%
Treasury shares	6,599,717	3.56%	0.00%
Employees	2,661,700	1.44%	1.49%
Others	123,228,314	66.53%	68.98%
TOTAL	185,213,031	100.00%	100.00%

(1) The percentage of voting rights is determined on the basis of the number of shares at closure, excluding shares deprived of voting rights.

(2) Source: TPI and Ipreo. (3) Source: TPI and Ipreo – shareholders via mutual funds and other investment funds.

To SCOR knowledge, there was no other shareholder than those indicated in the table above holding more than 2.5% of the share capital or voting rights of the Company as at 31 December 2011, 31 December 2010 and 31 December 2009. SCOR regularly conducts TPI searches to find out the number and identity of its bearer shareholders. The results of those analyses are presented in the following table:

TPI Date	December	December	December	December
	2008	2009	2010	2011
Number of shareholders	31,000	29,049	26,037	22,624

There is no covenant stipulating preferential terms for the sale or purchase of Ordinary Shares eligible for trading, or for which application is pending, on a regulated stock market and representing 0.5% or more of our share capital or voting rights that has been notified to the AMF. No Ordinary Shares have been pledged.

To SCOR's knowledge, there are no shareholder agreements or other agreements among Company shareholders pursuant to which they act in concert. To the Group's knowledge, there have been no transactions between Directors, officers, or shareholders holding more than 2.5% of the Company's share capital (or of the company controlling them) and the Company on terms other than market terms.To its knowledge, except as disclosed above, the Company is not directly or indirectly owned or controlled by any other corporation, foreign government or any other natural or legal person severally or jointly and it is not aware of any arrangements, the operation of which may at a subsequent date result in a change of control of the Company.

To SCOR's knowledge, the percentage of share capital and voting rights held by its Directors and officers was 3.52% as of 31 December 2011.

Pursuant to Article 8 ("Rights attached to each share") of the bylaws (statuts), each Ordinary Share gives its owner the right to one vote at the Shareholders' Meetings and the bylaws (statuts) do not stipulate shares having the right to a double vote. In addition, there is no statutory limitation on voting rights. Therefore, the shareholders of the Company do not have different voting rights.

On 13 January 2009, Silchester International Investors Limited declared that it had fallen below the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held, on behalf of its clients, 4,558,409 shares representing 4,558,409 voting rights, or 2.48% of the capital and 2.54% of voting rights in SCOR.

On 6 April 2009, BNP Paribas declared that, on April 6, 2009, it had exceeded the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held, on behalf of its clients, 8,154,783 shares representing 8,154,783 voting rights, or 4.43% of the capital and 4.56% of voting rights in SCOR.

On 20 May 2009, Natixis Asset Management declared that, on 11 May 2009, it had exceeded the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held, on behalf of its clients, 5,889,078 shares representing 5,889,078 voting rights, or 3.20% of the capital and 3.28% of voting rights in SCOR and, on 3 July 2009, Natixis Asset Management declared that, on 30 June 2009, it had fallen below the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held 2,054,851 shares representing 2,054,851 voting rights, or 1.12% of the capital and 1.14 % of voting rights in SCOR.

On 27 October 2009, Barclays Global Investors UK Holding Ltd declared that, on 11 September 2009, Barclays Global Investors Limited, Barclays Global Investors N.A., Barclays Global Fund Advisors and Barclays Global Investors (Deutschland AG), portfolio management companies wholly owned by Barclays Global Investors UK Holding Ltd (controlled by Barclays PLC) had exceeded the registered thresholds of 2.5% of the capital and voting rights in SCOR and that they held 5,085,731 shares representing 5,085,731 voting rights, or 2.76% of the capital and 2.83 % of voting rights in SCOR.

On 24 November 2009, Barclays Global Investors UK Holding Ltd declared that, on 19 November 2009, Barclays Global Investors Limited, Barclays Global Investors N.A., Barclays Global Fund Advisors and Barclays Global Investors (Deutschland AG), portfolio management companies wholly owned by Barclays Global Investors UK Holding Ltd (controlled by Barclays PLC) had exceeded the legal thresholds of 5% of the capital and voting rights in SCOR and that they held 9,266,490 shares representing 9,266,490 voting rights, or 5.03% of the capital and 5.16 % of voting rights in SCOR.

On 8 December 2009, BlackRock Inc., on behalf of funds and its clients, declared that, on 1 December 2009, it had exceeded the registered thresholds of 5% of the capital and voting rights in SCOR and that it held, on behalf of such funds and clients, 13,033,371 shares representing 13,033,371 voting rights, or 7.08% of the capital and voting rights in SCOR. Such excess in threshold results from the acquisition, by BlackRock Inc. of Barclays Global Investor from Barclays Plc on 1 December 2009.

On 16 April 2010, the Group BNP Paribas declared that, on 16 April 2010, it had exceed the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held 8,088,101 shares representing 8,088,101 voting rights, or 4.37% of the capital and voting rights in SCOR.

On 21 April 2010, Amundi Asset Management declared that the three portfolio management companies of group Amundi, i.e. Amundi, Société Générale Gestion and Etoile Gestion SNC, (i) further to an acquisition made on 16 April, 2010, had exceeded the registered thresholds of 2.5% of the capital and voting rights in SCOR and that they held in their OPCVM 4,723,216 shares and (ii) further to a sale made on April 20, 2010, had fallen below the registered thresholds of 2.5% of the capital and voting rights in SCOR and that they held in their OPCVM 4,577,623 shares in SCOR.

On 26 April 2010, BNP Paribas Asset Management declared, on behalf of the portfolio management companies of group BNP Paribas carrying their business under its responsibility, that it had exceed the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held, through FCP, SICAV and mandates, 4,990,085 shares in SCOR representing 2.69%of the capital in SCOR.

On 21 May 2010, the Goldman Sachs Group Inc. declared that, on 17 May 2010, it had fallen below the thresholds of 5% of the capital and voting rights in SCOR and that it held 9,602,242 shares representing 5.18% of the capital in SCOR.

On 25 May 2010, Credit Suisse Group AG declared that it had fallen below the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held 4,398,666 shares representing 2.37% of the capital in SCOR.

On 26 May 2010, the Goldman Sachs Group Inc. declared that, on May 20, 2010, it had fallen below the thresholds of 5% of the capital and voting rights in SCOR and that it held 8,956,030 shares representing 4.84% of the capital in SCOR.

On 30 June 2010, the group BNP Paribas declared that, on 30 June 2010, it had fallen below the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held 1,859,774 shares representing 1.21% of the capital in SCOR.

On 1 July 2010, BNP Paribas Asset Management declared, on behalf of CamGestion, Fundquest Franceand of the affiliates of Fortis Investments integrated into BNP Paribas Investment Partners for the FCP, SICAV, Mandates and FCPE, that it had fallen below the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held 4,604,571 shares representing 2.4879% of the capital in SCOR.

On 30 September 2010, BNP Paribas Asset Management declared on behalf of CamGestion, Fundquest France and of the affiliates of Fortis Investments integrated into BNP Paribas Investment Partners for the FCP, SICAV, Mandates and FCPE, that it had exceeded the registered thresholds 2.5% of the capital and voting rights in SCOR and that it held 5,137,571 shares, representing 2.7367% on September 27, 2010, of the capital in SCOR.

On 1 December 2010, BlackRock Inc., on behalf of funds and its clients, declared that, on 25 November 2010, it had fallen below the tresholds of 5% of the capital and voting rights in SCOR and that it held 9,380,260 shares representing 4.997% of the capital in SCOR.

On 15 March 2011, BNP Paribas Asset Management declared that, on behalf of CamGestion, Fundquest France and of the affiliates of Fortis Investments integrated into BNP Paribas Investment Partners for the FCP, SICAV, Mandates and FCPE, that it had fallen below the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held 4,369,809 shares representing 2.3259% of the capital in SCOR.

On 24 March 2011, BlackRock Inc., on behalf of funds and its clients, declared that it had fallen below the thresholds of 5% of the capital and voting rights in SCOR and that it held 9,256,125 shares representing 4.93% of the capital in SCOR. On 14 April 2011, it declared that it had exceeded the thresholds of 5% of the capital and voting rights in SCOR and that it held 9,396,353 shares representing 5.01% of the capital in SCOR.

On 31 March 2011, Generali France declared that it had exceeded the registered thresholds of 2.5% of the capital and voting rights in SCOR.

On 3 May 2011, Natixis Asset Management declared that it had exceeded the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held, 9,107,255 voting rights, or 4.851% of voting rights in SCOR

On 13 May 2011, Amundi Asset Management declared that the three portfolio management companies of group Amundi, i.e. Amundi, Société Générale Gestion and Etoile Gestion SNC, further to an acquisition made on 12 May 2010, had exceeded the registered thresholds of 2.5% of the capital and voting rights in SCOR and that they held in their OPCVM 5,248,186 shares.

On 24 May 2011, BlackRock Inc., on behalf of funds and its clients, declared that it had fallen below the thresholds of 5% of the capital and voting rights in SCOR and that it held 9,323,134 shares representing 4.97% of the capital in SCOR.

On 1 June 2011, Amundi Asset Management declared that the three portfolio management companies of group Amundi, i.e. Amundi, Société Générale Gestion and Etoile Gestion SNC, had fallen below the registered thresholds of 2.5% of the capital and voting rights in SCOR and that they held in their OPCVM 4,689,713 shares.

On 10 June 2011, BNP Paribas Asset Management declared, on behalf of CamGestion, Fundquest France and of the affiliates of Fortis Investments integrated into BNP Paribas Investment Partners for the FCP, SICAV, Mandates and FCPE, that it had exceeded the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held 5,633,484 shares representing 2.5263% of the capital in SCOR. On 14 June 2011, it announced that it had fallen below the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held 5,557,905 shares representing 2.4999% of the capital in SCOR. On 16 June 2011, it announced that it had exceeded the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held 5,581,456 shares representing 2.5026% of the capital in SCOR.

On 3 August 2011, Natixis Asset Management declared that it had fallen below the registered thresholds of 2.5% of the capital and voting rights in SCOR and that it held 95,360 voting rights, or 0.05% of voting rights in SCOR.

As at 31 December 2011:

• SCOR held 7,262,600 treasury shares;
• The total number of voting rights amounted to 192,021,303 (including the voting rights attached to treasury shares).

18.2 Negative statement as to the absence of differences between the voting rights of various shareholders

Until 3 January 2009, pursuant to Article 8 ("Rights attached to each share") of the bylaws, for two years after the Company's reverse stock split, as decided by the Company's Combined Shareholders' Meeting on 16 May 2006 in its seventeenth resolution, each share with a par value of EUR 0.78769723 entitled the holder to one vote and each share with a par value of EUR 7.8769723 entitled the holder to ten votes, so that the number of votes attached to the shares remains proportional to the percentage of share capital they represent.

Since 3 January 2009 and the completion of the Company's reverse stock split, no further shares with a par value of EUR 0.78769723 are in existence and each share with a par value of EUR 7.8769723 entitles the holder to one vote.

The bylaws moreover make no provision for shares giving dual voting rights. In addition, there is no limitation on voting rights in the bylaws. Therefore, there is no difference among the voting rights of SCOR's various shareholders.

18.3 Direct or indirect control by one shareholder

Not applicable.

18.4 Agreement which could result in a subsequent change in control

Not applicable.

RELATED PARTY TRANSACTIONS

19.1	Related party transactions	176
19.2	Regulated agreements	176
19.3	Special report of the auditors on regulated agreements and commitments	177

19 RELATED PARTY TRANSACTIONS

19.1 Related party transactions

Transactions with related parties as required by the regulations adopted under EC regulation No. 1606/2002, entered into by the Group appear in Section 20.1.6 – Notes to the financial consolidated statements, Note 24 – Related party transactions.

19.2 Regulated agreements

Regulated agreements and commitments in accordance with Articles L. 225-38 and following of the French Commercial Code appear in the Auditors special report in Section 19.3.

19.3 Special report of the auditors on regulated agreements and commitments

To the Shareholders,

In our capacity as statutory auditors of your company, we hereby report on certain related party agreements and commitments.

We are required to inform you, on the basis of the information provided to us, of the terms and conditions of those agreements and commitments indicated to us, or we would have identified performing our role. We are not required to comment as to whether they are beneficial or appropriate or to ascertain the existence of any such agreements and commitments. It is your responsibility, in accordance with Article R. 225-31 of the French commercial code (Code de Commerce), to evaluate the benefits resulting from these agreements and commitments prior to their approval.

However, we are required, if any, to inform you in accordance with Article R. 225-31 of the French commercial code (Code de Commerce) and the Article R.322-7 of the French insurance code (Code des assurances) concerning the implementation of the agreements and commitments which were already approved by the shareholders' meeting.

We performed those procedures which we considered necessary to comply with professional guidance issued by the national auditing body (Compagnie Nationale des Commissaires aux Comptes) relating to this type of engagement. These procedures consisted in verifying that the information provided to us is consistent with the documentation from which it has been extracted.

Agreements and commitments subject to the approval of the shareholders' meeting

Agreements and commitments authorized during the year

In accordance with article L. 225-40 of the French commercial code (Code de Commerce), we have been advised of certain related party agreements and commitments which received prior authorisation from your Board.

1. With SCOR Global Life SE, SCOR Global P&C SE, SCOR Switzerland AG

Related persons:

Denis Kessler as Chairman and Chief Executive Officer or SCOR SE and as Chairman of the Board of SCOR Global P&C SE, SCOR Global Life SE, SCOR Switzerland AG.

Jean-Claude Seys as administrator of SCOR SE and of administrator of SCOR Switzerland AG.

Peter Eckert as administrator of SCOR SE and Deputy Chairman of the Board of SCOR Switzerland AG.

Nature and purpose

Special authorization to conclude a stand-by letter of credit facility agreement with Commerzbank.

Terms

At its meeting of 27 July 2011, the Company's Board of Directors authorized, pursuant to Article L.225-38 of the French Commercial Code, the signature of an a agreement ("Facility Agreement"), finalized with Commerzbank, for the issue of stand-by letter of credit ("SBLC"), with regard to the Group's insurance and reinsurance activity for a maximum amount of USD 250,000,000.

Negotiations have been conducted with Commerzbank in order to:

• allow SCOR entities, party to this agreement, to request issue of letters of credit;
• allow the accession of SCOR International Reinsurance Ireland Ltd ("SIRI") (formely know as Transamerica International Reinsurance Ireland Ltd) as client after the closing of its acquisition;
• put in place SCOR SE's joint several liability regarding the commitments under this agreement of the other SCOR entities, party to this agreement, for a maximum amount of USD 250,000,000.

Pursuant to an accession letter dated 19 September 2011 SIRI acceded the Facility Agreement. Thus it can request utilisations up to a maximum amount of USD 250,000,000.

The companies party to this amendment are SCOR SE, SCOR Global P&C SE, SCOR Global Life SE, SCOR

Switzerland AG, SCOR Global Life Reinsurance Ireland Ltd and SIRI.

This Facility Agreement was executed on 27 July 2011 and gave rise to the payment of USD 179,166.67 during the financial year 2011.

2. With SCOR Global Life SE, SCOR Global P&C SE, SCOR Switzerland AG

Related persons:

Denis Kessler as Chairman and Chief Executive Officer or SCOR SE and as Chairman of the Board of SCOR Global P&C SE, SCOR Global Life SE, SCOR Switzerland AG.,

Jean-Claude Seys as administrator of SCOR SE and of administrator of SCOR Switzerland AG.

Peter Eckert as administrator of SCOR SE and Deputy Chairman of the Board of SCOR Switzerland AG.

Nature and purpose

Authorization to issue a First Demand Guarantee within the framework of the Stand-By Letter of Credit Facility Agreement with Deutsche Bank dated 9 September 2011.

Terms

As its meeting of 9 November 2011, the Company' Board of Directors authorized, pursuant to Article L.225-38 of the French Commercial Code, the issuance by SCOR SE, regarding the stand-by letter of credit facility agreement with Deutsche Bank dated 9 September 2011, effective as of 1 January 2012, with a maximum amount of USD 575 million ("Facility Agreement"), of a first demand guarantee.

This guarantee is issued for a maximum amount of USD 287.5 million plus interests, costs and accessories as a guarantee of the commitments of SCOR SE, SCOR Global P&C SE, SCOR Global Life SE, SCOR Switzerland AG and Ireland Ltd). This guarantee is issued for a period of 4 years ending 31 January 2015.

The companies party to this agreement are SCOR SE, SCOR Global P&C SE, SCOR Global Life SE, SCOR

Switzerland AG and SIRI. The other companies within the Group could equally accede this agreement.

The first demand guarantee was signed on 9 November 2011. It gave rise to no payment during the 2011 financial year.

3. With BNP Paribas

Related person:

Denis Kessler as Chairman and Chief Executive Officer or SCOR SE and as administrator of BNP Paribas

a) Nature and purpose

Authorization to execute a Master Trust Agreement with BNP Paribas and/or one of its subsidiaries (trustee), SCOR SE and SCOR Global Life SE (grantors, jointly and severally liable) and Transamerica Corp. (beneficiary).

Terms

At its meeting of 22 March and 27 July 2011, the Company's Board of Directors authorized, pursuant to Article L.225-38 of the French Commercial Code, the signature of a Master Trust Agreement with BNP Paribas and/or one of its subsidiaries on market conditions. On the same Board meeting, SCOR SE accepted to be jointly and severally liable with SCOR Global Life SE within the Master Trust Agreement.

The Master Trust Agreement was signed on 9 August 2011 and gave rise to no payment during the 2011 financial year.

b) Nature and purpose

Authorization to execute a Note Purchase and Paying Agency Agreement between SCOR SE and a bank syndicate including BNP Paribas with regard to a contemplated issuance of subordinated notes.

Terms

At its meeting of 4 May 2011, the Company's Board of Directors authorized, pursuant to Article L. 225-38 of the French Commercial Code, the signature by SCOR SE, with regard to a contemplated issuance and placement of subordinated notes, of a Note Purchase and Paying Agency Agreement with a bank syndicate including BNP Paribas.

This Note Purchase and Paying Agency Agreement was signed on 31 May 2011 and gave rise to the payment of EUR 613,533.

c) Nature and purpose

Stand-By Letter of Credit Facility Agreement with BNP Paribas dated 23 December 2008, as amended.

Terms

As its meeting of 26 August 2008, the Company's Board of Directors authorized, pursuant to Article L. 225-38 of the French Commercial Code, the signature of the Stand-By Letter of Credit Facility Agreement (tne "Facility Agreement"), finalized with BNP Paribas, for the issue of stand-by letters of credit ("SBLC"), with regard to the Group's insurance and reinsurance activity for a maximum amount up to USD 400,000,000.

This Facility Agreement was executed on 23 December 2008.

The companies party to this agreement are SCOR SE, SCOR Global P&C SE and SCOR Global Life SE. The other companies within the Group could equally benefit from this agreement with approval of BNP Paribas.

Under the terms of the Facility Agreement, BNP Paribas made a credit line available to the concerned Group's companies, under the conditions stipulated in the Facility Agreement, in a maximum principal amount of USD 400,000,000 to be made available through the issuance of SBLC or counter-guarantees intended to allow the concerned company to guarantee the execution of its commitments under its insurance and reinsurance operations, for a period of use running from 2 January 2009 to 31 December 2011.

In order to guarantee its obligations under the terms of the Facility Agreement, each Group companies which is a party to the Facility Agreement granted/will grant a senior pledge on a financial instruments account to BNP Paribas under the terms of a pledge agreement entered/to be enter into with BNP Paribas (and the related pledge declaration) and pledged/will pledge (i) on the date of the signature of the pledge agreement, a number of OATs for a minimum amount equal to EUR 5,000; (ii) on 2 January 2009, an additional number of OATs for an amount equivalent to the value in euros of 55% of the SBLCs (corresponding to the letters of credit issued under the old credit agreement and assumed and extended by BNP Paribas); and (iii) to pledge before each new utilization a number of OATs for an amount

equivalent to the value in euros of 55% of the amount of the new utilization.

The bank fees stipulated under the Facility Agreement are in line with market standards for this type of transaction.

On 28 April 2010, the Company's Board of Directors authorized the signature by SCOR SE of the amendment #1 to the Facility Agreement with BNP Paribas dated 23 December 2008, in order to include the letter of credit dated 8 August 2008 regarding the "Initial Letters of Credit" subscribed by SCOR Global Life SE, increase the maximum amount to USD 550 million, update the regulatory references with regard to the pledge of financial instruments.

The guarantees that are to be granted by SCOR SE or the companies of the Group party to this agreement as amended and requesting the issuance of a letter of credit, remain as provided by the agreement dated 23 December 2008.

The companies party to this amendment are SCOR SE, SCOR Global P&C SE, SCOR Global Life SE, SCOR

Switzerland AG et SCOR Rückversicherung (Deutschland) AG (absorbed by SCOR Global Life SE on 19 October 2010). The other companies within the Group could equally benefit from this agreement as amended.

Amendment #1 to the Facility Agreement was signed on 24 June 2010.

At its meeting of 22 March and 27 July 2011, the amendment #2 to the Facility Agreement with BNP Paribas in order to allow the accession of SCOR International Reinsurance Ireland Ltd ("SIRI") (formerly known as Transamerica International Reinsurance Ireland Ltd) as additional borrower after the closing of its acquisition, allow to put in place SCOR Global Life SE's joint and several liability for the benefit of SIRI, exclude SCOR Rückversicherung (Deutschland) AG (absorbed by SCOR Global Life SE on 19 October

2010) from the scope of the Facility Agreement, update the list of existing guarantees and securities.

The companies party to this agreement, as amended, are SCOR SE, SCOR Global P&C SE, SCOR Global Life SE and SCOR Switzerland AG. The other companies within the Group could equally benefit from this agreement as amended.

Amendment #2 to the Facility Agreement was signed on 5 September 2011.

Pursuant to an accession letter dated 19 September 2011 SIRI acceded the Facility Agreement. Thus it can request utilisations up to a maximum amount of USD 250,000,000.

On 9 November 2011, the Company's Board of Directors authorized the signature by SCOR SE of the amendment #3 to the Facility Agreement concluded on 23 December 2008 with BNP Paribas in order to extend the original agreement for a period of three years beginning 1 January 2012 and ending 31 December 2014, reassess the financial conditions under the Facility Agreement.

Within the framework of this amendment SCOR SE has to renew its financial instruments account agreement into which assets a minimum EUR 5,000 assets have to be deposited.

The companies party to this agreement, as amended, are SCOR SE, SCOR Global P&C SE, SCOR Global Life SE, SCOR Switzerland AG and SIRI. The other companies within the Group could equally benefit from this agreement, as amended.

Amendment #3 to the Facility Agreement was signed on 14 November 2011.

The Facility Agreement, as amended, gave rise to no payment during the 2011 financial year.

4. With Denis Kessler, Chief Executive Officer of our company

a) Nature and purpose

Commitments for the benefit of Mr. Denis Kessler.

Terms

At its meeting of 4 May and 27 July 2011, the Company's Board of Directors, in accordance with articles L. 225-38 and L. 225-42-1 of the French Commercial Code, and upon the recommendation of the Compensation and Nomination Committee, renewed commitments for the benefit of the Chairman and Chief Executive Officer, which had been decided by the Board of Directors on 21 March 2006 and amended on 12 December 2008, which are described in Appendix B-Report of the Chairman of the Board of Directors on the terms and conditions for preparing and organizing the work of the Board of Directors and on internal control and risk management in accordance with Article L. 225-37 of the French Commercial Code.

In the event that the Chairman and Chief Executive Officer is dismissed or his departure is imposed due to a change in the structure of the share capital of the Company or in the strategy of the Group which in each case substantially affects the content of his duties or the continuation of his activities and the normal exercise of his powers within the Company, the Chairman and Chief Executive Officer will benefit from:

a cash payment equal to the amount of fixed and variable compensations paid to him by the Group for the two financial years prior to his departure. This payment is subject to the satisfaction of the performance criteria as defined below for at least one out of the three years preceding the date of departure of Chairman and Chief Executive Officer. The performance criteria, determined by the Board of Directors, upon the recommendation of the Compensation and Nomination Committee, will be met for the year n if at least 3 out of 4 conditions below are fulfilled.

(A). SCOR financial strength by S&P rating must be maintained (minimum) "A" on average in year n-1 and n-2;

(B). SCOR Global P&C's net combined ratio must be less than or equal to 102% on average in year n-1 and n-2;

(C). SCOR Global Life's operational margin must be higher than or equal to 3% on average in year n-1 and n-2;

(D). The SCOR group's ROE must be higher than 300 points above the risk-free rate on average in year n-1 and n-2.

The Compensation and Nominations Committee will observe whether or not the performance conditions have been met.

• a cash payment compensating him for his inability to exercise stock options granted prior to his departure date and which he would otherwise be unable to exercise due to the vesting period conditions set forth in the applicable stock option plan, in an amount to be determined by an independent expert using the "Black-Scholes" pricing model;
• a cash payment compensating him for his inability to definitively acquire SCOR SE Shares granted to him for free prior to his departure and which he would otherwise be unable to acquire due to the terms and conditions of the applicable free share allocation plan, for a price per SCOR SE Share equal to the average of the Company's share price on the date of his departure.

b) Nature and purpose

Amendment to the additional pension plan subject to Article 39 of the French Tax Code (Code Général des Impôts)

Terms

As its meeting of 18 March 2008, the Company's Board of Directors authorized pursuant to the Article L.225-38, the execution of an additional pension plan, which was ultimately executed on 15 May 2008.

This additional pension plan purports to determine the terms and conditions of additional pension plan benefits granted by the Company for the benefit of:

• managers of the Group (cadres de direction) within the meaning of the professional agreement of 3 March 1993, who were exercising their activity within the Group on the date on which the additional pension plan took effect; and
• executives of the Group, who had entered into an employment contract but were subject to France's general social security regime and to the additional pension benefits of ARRCO and AGIRC and were discharging their duties on the date on which the additional pension plan took effect.

The compensation used to calculate pension benefits due to an eligible person is based on the average compensation of such person during the last five years of his or her employment (or professional activity, as the case may be), as adjusted on the date of departure by the evolution of the INSEE's annual average index for consumer prices.

The eligible person who retired from Company is entitled to additional benefits under this pension plan if he or she complies with the terms and conditions of the additional pension plan on the date of his or her departure, including a seniority of at least five years at the time of departure and obtaining the implementation of his or her pension benefits under the mandatory pension plans.

On 27 July 2011 the Company's Board of Directors approved an amendment to the additional pension scheme concerning the condition of age and retirement rate (62 years minimum or full retirement, vs 60 previously).

Agreements and commitments already approved by the shareholders' meeting

Agreements and commitments approved in prior years that have been implemented during the year

In accordance with article R. 225-30 of the French commercial code (Code de Commerce), we have been advised that the implementation of the following agreements and commitments which were approved in prior years remained current during the year.

1. With SCOR Global Life Reinsurance Company of America

Nature and purpose

Parent company guarantee from SCOR SE in favour of SCOR Global Life Reinsurance Company of America (formerly known as XL Re Life America Inc) for reinsurance commitments.

Terms

At its meeting of 3 November 2009, the Company's Board of Directors authorized, pursuant to Article L.225-38 of the French Life Reinsurance Company of America L.225-38 of the French Commercial Code, the parent company guarantee's signature for the reinsurance commitments of SCOR Global Life Reinsurance Company of America.

Only SCOR Global Life Reinsurance Company of America's payment obligations, pursuant to the insurance and/or reinsurance contracts, are covered by this parent guarantee.

The granting of this unlimited guarantee is subject of the same remuneration for SCOR SE as that given for the other parental guarantees previously granted by the Company.

The parent guarantee was signed on 22 January 2010. It gave rise to no payment during the 2011 financial year.

2. With SCOR Global Life SE, SCOR Global P&C SE, SCOR Switzerland AG and SCOR Rückversicherung (Deutschland) AG (absorbed by SCOR Global Life SE on 19 October 2010)

Nature and purpose

Authorization to issue a First Demand Guarantee within the framework of the Stand-By Letter of Credit Facility.

Terms

At its meeting of 2 November 2005, the Board of Directors of the Company authorized, pursuant to Article L.225-38 of the French Commercial Code, the issuance by SCOR SE, regarding the « Stand-By Letter of Credit Facility Agreement » with Société Générale with a maximum amount of USD 100 million, of a first demand guarantee.

This guarantee is issued for a maximum amount of USD 100 million plus interests, costs and accessories as a guarantee of the commitments of SCOR Global Life SE, SCOR Global P&C SE, SCOR Switzerland AG and SCOR Rückversicherung (Deutschland) AG (absorbed by SCOR Global Life SE on 19 October 2010).

The companies party to the Stand-By Letter of credit Facility Agreement with Société Générale are SCOR SE, SCOR Global P&C SE, SCOR Global Life SE, SCOR Switzerland AG and SCOR Rückversicherung (Deutschland) AG (absorbed by SCOR Global Life SE on 19 October 2010). The other companies within the Group could equally benefit from this agreement.

The first demand guarantee was signed on 10 June 2010 and was not utilised up to this date. It gave rise to no payment during the 2011 financial year.

3. With SCOR Global Life US Re Insurance Company

Nature and purpose

Agreement of financial cover of U.S. regulations "Triple X" with CALYON.

Terms

At its meeting of 2 November 2005, the Board of Directors of the Company authorized, pursuant to Article L.225-38 of the French Commercial Code, the issuance of a parent company letter of guarantee intended to cover the financial obligations of SCOR Global Life (formerly SCOR VIE) under the terms of an agreement to issue letters of credit that would be signed by SCOR Global Life, SCOR Financial Services Limited ("SFS") ans CALYON ("SFS-CALYON Letter of Credit Facility Agreement") dated 13 December 2005 (for the purposes of this Section, the "Agreement").

This Agreement and this parent company guarantee were part of a transaction intended to provide SCOR Global Life U.S. Re ("SGLR") with additional financial resources so that it could meet the financial coverage requirements stipulated by the American "triple X" prudential regulations.

Under the terms of the Agreement, CALYON made a commitment to issue or cause the issue to SGLR of one or more letters of credit for a period of five years for a total commitment equal to the smaller of the following two amounts: (a) USD 250 million or (b) the sum equal to the difference between (i) the so-called Triple X reserves and (ii) 150% of the amount of the reserves required in the accounting plan (net of DAC).

The transaction was submitted to the Department of Insurance of the State of Texas (U.S.) insofar as it requires a certain number of amendments to the retrocession treaty (Automatic Coinsurance Retrocession Treaty) executed on 31 December 2003, between SGLR and SFS. In a letter dated 30 September 2005, the competent authorities of the State of Texas indicated they had no comments on the amendments which would be made to such agreement. The Irish administrative authorities (ISFRA) were also informed of the transaction and indicated they had no objection.

The transaction was finalized at the end of December 2005.

At its meeting of 7 November 2006, the Board of Directors authorized, pursuant to Article L. 225-38 of the French Commercial Code, the extension (i) of the term of the parent company guarantee dated 19 December 2005, issued by SCOR to ten years; and (ii) the amount of the SCOR guarantee to USD 400 million, in line with the new term of coverage by the letter of credit and the new amount of the CALYON global commitment under the terms of the Agreement.

On 30 June 2010 this Agreement was transferred to SCOR Global Life Reinsurance Ireland Limited.

As a result of this transfer, at its meeting of 4 February 2010, the Board of Directors authorized, pursuant to Article L.225-38 of the French Commercial Code, the reiteration in favour of Crédit Agricole Corporate and Investment Bank (formerly CALYON) of the guarantee issued previously within the framework of SFS-CALYON Letter of Credit Agreement.

It gave rise to no payment during the 2011 financial year.

4. With SCOR Global Life SE

Nature and purpose

Retrocession agreement signed between SCOR SE and SCOR Global Life SE on 4 July 2006, as amended.

Terms

In 2006, despite SCOR contributing of its Non-Life reinsurance operations to SCOR Global P&C SE, SCOR SE remained a reinsurance company, mainly because of the retrocessions established between SCOR Global Life SE and SCOR Global P&C SE as the retroceding companies, and SCOR SE as the retrocessionaire. These retrocessions back the Group's debt carried by SCOR SE for maintaining the aggregate Group's solvency and sustaining its rating.

The retrocessions also meet the requirements of the ratings agencies, primarily because the retrocession rate can be modulated based on capital needs in terms of business cycles. The rating agencies confirmed that they are maintaining their rating with regard to this new organization of the Group.

The signature of the retrocession framework agreement between SCOR SE and SCOR Global Life SE (then named SCOR Vie) was authorized by the Board on 16 May 2006, pursuant to the provisions of Article L.225-38 of the French Commercial Code. The contract was signed on 4 July 2006 with retroactive effect on 1 January 2006.

On 25 July 2007, SCOR Global Life SE adopted the form of Societas Europaea (SE) at the time of the merger absorption of its wholly owned subsidiary SCOR Global Life Rückversicherung AG (formerly named Revios Rückversicherung AG).

Due to the completion of this merger on 25 July 2007, (but retroactive to 1 January 2007, under the terms of the merger agreement), the contracts underwritten by its German branch fall under the scope of the retrocession agreement (which was not the case when the contracts were underwritten by the subsidiary). As a result, there is a significant increase in the volume of retrocessions to SCOR SE.

In order to maintain an appropriate capital structure of the new company SCOR Global Life SE, it has been decided to modify the scope of the internal retrocession agreement with SCOR SE (termination of the agreement in Singapore and in Canada).

SCOR Global Life SE and SCOR SE signed amendment #2 to the retrocession agreement dated 4 July 2006, for the

purpose of excluding from the retroceded business, with retroactive effect at 1 January 2007, the policies underwritten by the German, Canadian and Singapore branches.

At its meeting of 13 November 2007, the Board of Directors of SCOR SE authorized and approved, pursuant to Article L.225-38 of the French Commercial Code, the signature of the amendments to the retrocession contract signed by SCOR SE and its subsidiary SCOR Global Life SE on 4 July 2006.

On 15 April 2009, for these same reasons and taking into account the 2008 U.K. reorganization, i.e. the creation of a branch of SCOR Global Life SE in London and the business transfer from SCOR Global Life Reinsurance UK Ltd to this branch, the Board of Directors approved a new addendum to the retrocession agreement to exclude the business written by the newly created branch in London of the scope of the retrocession agreement.

As its meeting of 28 July 2010, the Company's Board of Directors authorized, pursuant to Article L.225-38 of the French Commercial Code, the signature, of an amendment #3 to the retrocession agreement signed by SCOR SE and SCOR Global Life SE on 4 July 2006.

The annual financial statements regarding the retrocession agreement cannot be issued if the financial statements of the concerned retroceding companies are not available, which could lead to different maturities (including post-closing date) of the concerned financial year, and lengthens and complicates the management and the follow-up of the agreement and considerably increases costs.

Therefore, the amendment aims to:

• amend the terms of the agreement in order to modify the accounting approach and turn as of 2010 to the clean-cut accounting principle instead of the run-off accounting principle, which will lead to a decrease in costs;
• review the commissions' conditions in order to decrease the results' volatility;
• exclude the portofolio of the SCOR Global Life SE's U.K., Netherlands and Labuan branches from the scope of the agreement.

Amendment #3 was executed on 21 December 2010 with retroactive effect from 1 January 2010.

The retrocession agreement, as amended, gave rise to the payment by SCOR SE to SCOR Global Life SE of EUR 9.1 million during the 2011 financial year.

5. With SCOR Global Life SE, SCOR Global P&C SE and SCOR Switzerland AG

Nature and purpose

Authorization to issue a First Demand Guarantee within the framework of an amendment to the Stand-By Letter of Credit with Deutsche Bank dated 23 October 2008

Terms

At its meeting of 4 November 2010, the Company's Board of Directors authorized, pursuant to Article L.225-38 of the French Commercial Code, the issuance by SCOR SE, regarding the Stand-By Letter of Credit Facility Agreement with Deutsche Bank with a maximum amount of USD 325 million dated 23 October 2008, of a first demand guarantee. Pursuant to the terms and conditions of this amendment, executed on 30 November 2010, the amount of the credit facility was increased to USD 575 million.

This first demand guarantee is issued for a maximum amount of USD 287.5 million plus interests, costs and accessories as a guarantee of the commitments of SCOR Global Life SE, SCOR Global P&C SE and SCOR Switzerland AG.

The companies party to this agreement are SCOR SE, SCOR Global P&C SE, SCOR Global Life SE and SCOR Switzerland AG. The other companies within the Group could equally benefit from this agreement.

The first demand guarantee was signed on 30 November 2010 and will end on 31 December 2011. It gave rise to no payment during the 2011 financial year.

6. With SCOR Global P&C SE

Nature and purpose

Retrocession agreement signed between SCOR SE and SCOR Global P&C SE on 4 July 2006, as amended.

Terms

In 2006, despite SCOR SE's contribution of its Non-Life reinsurance operations to SCOR Global P&C SE, SCOR SE

remained a reinsurance company because of the retrocessions established between SCOR Global Life SE and SCOR

Global P&C SE as the retroceding companies, and SCOR SE as the retrocessionaire. These retrocessions back the Group's debt carried by SCOR for maintaining the Group's aggregate solvency and confirming its rating.

The retrocession also meets the requirements of the ratings agencies, primarily because the retrocession rate can be modulated based on capital needs in terms of business cycles.

The signature of the retrocession framework agreement between SCOR SE and SCOR Global P&C SE was authorized by the Board on 16 May 2006, pursuant to the provisions of Article L.225-38 of the French Commercial Code. The contract was signed on 4 July 2006, as part of the reorganization of the Group through the creation, via spin-off, of the subsidiary SCOR Global P&C SE.

Pursuant to this agreement, SCOR Global P&C SE retroceded a portion of its activities and reserves to SCOR SE.

This retrocession allows the requirements of the rating agencies with regard to the Group's rating to be addressed. In effect, the retrocession rate is adjusted based on capital needs with regard to activity cycles. The rating agencies confirmed that they are maintaining their rating with regard to this new organisation of the Group.

On 3 August 2007, SCOR Global P&C SE adopted the form of Societas Europaea at the time of the merger absorption of its wholly owned subsidiaries SCOR Italia Riassicurazioni SpA and SCOR Deutschland.

Due to the completion of this merger on 3 August 2007, (but retroactive to 1 January pursuant to the terms of the merger agreement), the contracts underwritten by its German subsidiary fall under the scope of the retrocession agreement which resulted in a significant increase in the volume of retrocessions from SCOR Global P&C SE to SCOR SE.

As a result, SCOR Global P&C SE and SCOR SE signed amendment #2 to the retrocession agreement they signed on 4 July 2006, in order to exclude from the retroceded business, as of 1 January 2007, the contracts underwritten by the German branch.

The Board of Directors of SCOR SE, at its meeting of 13 November 2007, authorized and approved, pursuant to Article L.225-38 of the French Commercial Code, the signature of the amendments to the retrocession agreement signed by SCOR SE and its subsidiary Global P&C SE on 4 July 2006.

On 15 of April 2009, for these same reasons and taking into account the 2009 U.K. reorganization, i.e.: the creation of a branch of SCOR Global P&C SE in London and the business transfer from SCOR UK Company Ltd to this branch, the Board of Directors approved a new addendum to the retrocession agreement to exclude the business written by the newly created branch in London of the scope of the retrocession agreement.

As its meeting of 3 December 2010, the Company's Board of Directors authorized, pursuant to Article L.225-38 of the French Commercial Code, the signature by SCOR SE, of an amendment #5 to the retrocession agreement signed between SCOR and SCOR Global P&C SE on 4 July 2006.

Therefore, the amendment aims to:

• include into the scope of the agreement with retroactive effect from 1 October 2010 the portfolios corresponding to the underwriting years 2002 to 2005,
• decrease the advance in cash of SCOR Global P&C SE to SCOR SE,
• clean the balance sheet structure of SCOR Global P&C while ameliorating its solvency ratio assessed within the framework of QIS 5 exercise of Solvency II.

The commitments under amendment #5 took effect on 1 October 2010.

The retrocession agreement, as amended, gave rise to the payment of EUR 60.2 million to SCOR SE during the financial year 2011.

7. With BNP Paribas

a) Nature and purpose

Authorization prior to the signature of a cash-pooling contract with BNP Paribas.

Terms

At its meeting of 13 November 2007, the Board of Directors authorized the signature of an agreement with BNP Paribas to establish a notional cash-pooling between SCOR and the European entities of the Group.

This agreement between SCOR and BNP Paribas was signed on 20 October 2008. It gave rise to the payment by SCOR SE to BNP Paribas of non-material amounts during the 2011 financial year.

b) Nature and purpose

Contract between SCOR SE and its subsidiaries participating in the notional cash-pooling agreement.

Terms

The Board of Directors' meeting held on the 18 March 2008 and the 26 August 2008 authorized the signature by its Chief Executive Officer, pursuant to Article L.225-38 of the French Commercial Code, with the power of delegation, of legal documentation relating to the notional cash-pooling agreement and in particular, the Intragroup Cash Management

Agreement contract signed on 20 October 2008, by which participating companies give the power to SCOR SE for the management of cash-pooling.

The following entities of the Group have been authorized to participate in the cash-pooling scheme during a first phase:

• SCOR SE,
• SCOR Global P&C SE,
• SCOR Global Life SE,
• SCOR Auber,
• GIE Informatique,
• SCOR Global Life Deutschland (branch),
• SCOR Global P&C Deutschland (branch),
• SCOR Rückversicherung AG,
• SCOR Global Life Rappresentaza generale per l'Italia (branch)
• SCOR Global P&C Rappresentaza generale per l'Italia (branch)
• SCOR Global Life Iberica Sucursal (branch),
• SCOR Global P&C Iberica Sucursal (branch),
• SCOR Global Life Reinsurance UK Ltd (which became SCOR Global Life SE U.K. Branch) (branch),
• SCOR Global Life Reinsurance Services UK Ltd,
• SCOR Global Life Reinsurance Ireland Ltd,
• SCOR Global P&C Ireland Ltd.

With regard to the notional cash-pooling scheme, each participating entity receives remuneration from BNP Paribas of its account's positive balance, under the terms and conditions negociated for the Group and otherwise, pays interest to BNP Paribas on the negative balance of their account, at an agreed rate for the Group.

This agreement gave rise to the payment by SCOR SE to BNP Paribas of non-material amounts during the 2011 financial year.

c) Nature and purpose

Authorization to execute an engagement letter between SCOR SE and BNP Paribas with regard to a contemplated acquisition

Terms

As its meeting of 2 March 2010, the Company's Board of Directors authorized, pursuant to Article L.225-38 of the French Commercial Code, the signature by SCOR SE, with regard to a contemplated acquisition of of a company, of an engagement letter for a mission of financial advice with BNP Paribas, for a period of 9 months. The remuneration conditions provided for in this letter are in line with market standards for this type of transaction.

This engagement letter was concluded on 26 April 2010. It gave rise to a payment of EUR 425,000 during the financial year ended 31 December 2011.

d) Nature and purpose

Authorization to execute an engagement letter between SCOR SE and BNP Paribas with regard to a contemplated acquisition

Terms

As its meeting of 16 Septembre 2010, the company's Board of Directors authorized, pursuant to Article L.225-38 of the French Commercial Code, the signature by SCOR SE, with regard to a contemplated acquisition, of an engagement letter for a mission of financial advice with BNP Paribas, for a period of 9 months. The remuneration conditions provided for in this letter are in line with market standards for this type of transaction.

This engagement letter was executed on 5 November 2010. It gave rise to a payment of EUR 4,700,000 during the financial year ended 31 December 2011.

e) Nature and purpose

Authorization to execute an engagement letter and a subscription agreement between SCOR SE and a bank syndicate including BNP Paribas and to conclude an agency agreement between SCOR SE and BNP Paribas

Terms

As its meeting of 3 December 2010, the company's Board of Directors authorized, pursuant to Article L.225-38 of the French Commercial Code, the signature by SCOR SE, with regard to a contemplated issuance and placement of subordinated notes, of an engagement letter for a mission of financial advice and a subscription agreement with a bank syndicate including BNP Paribas and an agency agreement with BNP Paribas.

This engagement letter was signed on 28 January 2011 and gave rise to the payment of CHF 1.345 million during the 2011 financial year.

Agreements and commitments approved during the year

We have also been advised of the execution, during the year, of certain related party agreements and commitments already approved by the General Meeting of May 4, 2011, on Special Report of the auditors of March 7, 2011.

With SCOR Global Life SE; SCOR Global P&C SE; SCOR Switzerland AG ; Prévoyance Ré SA ;Irish Reinsurance Partners Ltd (devenue SCOR Global P&C Ireland Ltd); SCOR Channel; SCOR Financial Services Ltd; SCOR U.K. Company Ltd; SCOR Perestrakhovaniye ; SCOR Reinsurance Company Ltd (US); General Security Indemnity Company of Arizona; General Security National Insurance Company; Investors Insurance Corporation; SCOR Global Life U.S. Re Insurance Company; SCOR Canada Reinsurance Company ; SCOR Global Life Reinsurance Company of America ; SCOR Reinsurance Asia-Pacific Pte Ltd; SCOR Reinsurance Company (Asia) Ltd ; SCOR Africa Ltd

Nature and purpose

Remuneration of the parent company guarantees granted by SCOR SE to the benefit of the reinsurance

subsidiaries and of the upstream guarantees granted by SCOR Global P&C SE and SCOR Global Life SE to the benefit of SCOR SE.

Terms

At its meeting of 7 March 2011, the Company's Board of Directors authorized, pursuant L.225-38 of the French Commercial Code, the remuneration (i) of the parent company guarantees issued or to be issued by SCOR SE and of the upstream guarantees issued or to be issued to the benefit of SCOR SE, at a rate of 1 for one thousand, on a basis related to technical reserves. The amounts due under the upstream guarantees will be able to be compensated with amounts due under the parental guarantees granted by SCOR SE. This decision amends the terms of the authorizations rendered during its 18 March 2008 Board meeting.

This transaction gave rise to the invoicing by SCOR SE of EUR 6,625,253 in 2011.

Paris-La Défense, 7 March 2012

French original signed by the Statutory Auditors

MAZARS ERNST & YOUNG Audit

Michel BARBET-MASSIN Antoine ESQUIEU Guillaume FONTAINE

FINANCIAL INFORMATION CONCERNING THE ISSUER'S ASSETS AND LIABILITIES, FINANCIAL POSITION AND PROFITS AND LOSSES

20.1	Historical financial information: consolidated financial statements	190
20.2	Auditing of historical consolidated financial information	285
20.3	Sources of financial information not extracted from the audited Financial Statements of the issuer and indication of such absence of
	audit	288
20.4	Date of most recently audited financial information	288
20.5	Interim and other financial information	288
20.6	Dividend distribution policy	288
20.7	Litigation and arbitration procedures	288
20.8	Material change in financial or commercial situation	288

20 FINANCIAL INFORMATION CONCERNING THE ISSUER'S ASSETS AND LIABILITIES, FINANCIAL POSITION AND PROFITS AND LOSSES

20.1 Historical financial information: consolidated financial statements

In application of article 28 of the EC Commission Regulation No. 809/2004, the following information is incorporated by reference in this Registration Document:

(i) The consolidated financial statements as at 31 December 2010 are included from pages 193 to 273 and the auditors' report on these consolidated financial statements as at 31 December 2010 is included from pages 274 to 276 of the Registration Document filed with the Autorité des Marchés Financiers on 8 March 2011 under Number D.11-0103,

(ii) The consolidated financial statements as at 31 December 2009 are included from pages 178 to 263 and the auditors' report on these consolidated financial statements as at 31 December 2009 is included from pages 264 to 266 of the Registration Document filed with the Autorité des Marchés Financiers on 3 March 2010 under Number D.10-0085,

The consolidated financial statements for the year ended 31 December 2011 are presented below:

20.1.1 CONSOLIDATED BALANCE SHEETS

ASSETS		AS AT 31 DECEMBER
In EUR million		2011	2010
Intangible assets		1,969	1,404
Goodwill	Notes 3, 4	788	788
Value of business acquired	Note 4	1,069	521
Other intangible assets	Note 4	112	95
Tangible assets	Note 5	515	52
Insurance business investments		20,148	19,871
Real estate investments	Note 6	499	378
Available-for-sale investments	Note 6	9,492	11,461
Investments at fair value through income	Note 6	127	40
Loans and receivables	Note 7	9,872	7,898
Derivative instruments	Note 8	158	94
Investments in associates	Note 9	83	78
Share of retrocessionaires in insurance and
investment contract liabilities	Note 16	1,251	1,114
Other assets		6,072	5,196
Deferred tax assets	Note 19	653	475
Assumed insurance and reinsurance accounts receivable	Note 10	4,084	3,514
Receivables from ceded reinsurance transactions	Note 10	175	131
Taxes receivable		47	50
Other assets		391	263
Deferred acquisition costs	Note 11	722	763
Cash and cash equivalents	Note 12	1,281	1,007
TOTAL ASSETS		31,319	28,722

LIABILITIES		AS AT 31 DECEMBER
In EUR million		2011	2010
Shareholders' equity – Group share	Note 13	4,403	4,345
Share capital		1,513	1,479
Additional paid-in capital		835	796
Revaluation reserves		(178)	56
Retained earnings		1,840	1,540
Net income for the year		330	418
Equity based instruments		63	56
Non-controlling interest		7	7
TOTAL SHAREHOLDERS' EQUITY		4,410	4,352
Financial debt	Note 14	1,425	675
Subordinated debt		992	479
Other financial debt		433	196
Contingency reserves	Note 15	119	88
Contract liabilities		23,307	21,957
Insurance contract liabilities	Note 16	23,162	21,806
Investment contract liabilities	Note 16	145	151
Other liabilities		2,058	1,650
Deferred tax liabilities	Note 19	254	192
Derivative instruments	Note 8	52	8
Assumed insurance and reinsurance payables	Note 10	237	230
Accounts payable on ceded reinsurance transactions	Note 10	852	906
Taxes payable		122	92
Other liabilities		541	222
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		31,319	28,722

20.1.2 CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEAR ENDED 31 DECEMBER
In EUR million		2011	2010	2009
Gross written premiums	Note 2	7,602	6,694	6,379
Change in unearned premiums		(187)	(109)	(33)
Gross earned premiums		7,415	6,585	6,346
Other income and expense from reinsurance
operations		(55)	(23)	7
Investment income	Note 20	665	708	514
Total income from ordinary activities		8,025	7,270	6,867
Gross benefits and claims paid		(5,654)	(4,791)	(4,684)
Gross commission on earned premiums		(1,577)	(1,408)	(1,334)
Net results of retrocession	Note 21	(7)	(160)	(136)
Investment management expenses	Note 22	(26)	(24)	(22)
Acquisition and administrative expenses	Note 22	(292)	(263)	(251)
Other current operating expenses	Note 22	(120)	(105)	(100)
Total other current operating income and expense		(7,676)	(6,751)	(6,527)
CURRENT OPERATING RESULTS		349	519	340
Other operating expenses		(30)	(29)	(21)
Other operating income		4	-	53
OPERATING RESULTS (BEFORE IMPACT OF
ACQUISITIONS)		323	490	372
Acquisition related expenses Gain from bargain purchase	Note 3	(33) 127	- -	- 14
OPERATING RESULTS		417	490	386
Financing expenses	Note 14	(94)	(46)	(61)
Share in results of associates		7	11	(1)
CONSOLIDATED INCOME, BEFORE TAX		330	455	324
Corporate income tax	Note 19	-	(36)	47
CONSOLIDATED NET INCOME		330	419	371
Attributable to:
Non-controlling interests		-	1	1
Group share		330	418	370
In EUR
Earnings per share	Note 23	1.80	2.32	2.06
Earnings per share (Diluted)	Note 23	1.77	2.27	2.04

20.1.3 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

		FOR THE YEAR ENDED 31 DECEMBER
In EUR million	2011	2010	2009
Consolidated net income	330	419	371
Other comprehensive income	(136)	149	268
Revaluation - Assets available for sale	(307)	87	480
Shadow accounting	(4)	(67)	(82)
Effect of changes in foreign exchange rates	117	136	(21)
Net loss on cash flow hedges	(21)	-	-
Taxes recorded directly in equity Note 19	83	5	(104)
Actuarial losses not recognized in income	(5)	(14)	(8)
Other changes	1	2	3
COMPREHENSIVE INCOME, NET OF TAX	194	568	639
Attributable to:
Non-controlling interests	-	-	1
Group share	194	568	638

20.1.4 CONSOLIDATED STATEMENTS OF CASH FLOWS

			FOR THE YEAR ENDED 31 DECEMBER
In EUR million		2011	2010	2009
Net cash flow provided by (used in) operations	Note 12	530	656	851
Acquisitions of consolidated entities, net of cash
acquired Disposals of consolidated entities, net of cash		(48)	-	(43)
disposed of		9	-	-
Acquisitions of real estate investments		(150)	(88)	(8)
Disposals of real estate investments		30	23	81
Acquisitions of other insurance business
investments (1)		(15,570)	(11,012)	(14,104)
Disposals of other insurance business investments (1)		15,351	10,382	13,042
Acquisitions of tangible and intangible assets		(202)	(36)	(48)
Disposals of tangible and intangible assets		-	1	30
Cash flows provided by (used in) investing
activities		(580)	(730)	(1,052)
Issuance of equity instruments		76	(3)	15
Treasury share transactions		(41)	(5)	(42)
Dividends paid		(201)	(137)	(143)
Cash generated by issuance of financial debt		770	70	57
Cash used to redeem financial debt		(290)	(206)	(129)
Interest paid on financial debt		(42)	(33)	(27)
Cash flows generated by (used in) financing
activities		272	(314)	(269)
Effect of change in foreign exchange rates on cash
and cash equivalents		52	70	12
TOTAL CASH FLOW		274	(318)	(458)
Cash and cash equivalents at 1 January	Note 12	1,007	1,325	1,783
Net cash flows from operations		530	656	851
Net cash flows from investing activities		(580)	(730)	(1,052)
Net cash flows from financing activities		272	(314)	(269)
Effect of change in foreign exchange rates on cash
and cash equivalents		52	70	12
CASH AND CASH EQUIVALENTS AT 31
DECEMBER		1,281	1,007	1,325

(1) Acquisitions and disposals of other insurance business investments also include movements relating to bonds and other short term investments which have a maturity date of < 3 months, and are classified as cash equivalents.

20.1.5 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

	Share	Additional paid-in	Reva luation	Conso lidated	Treasury	Net income for the	Equity based instru	Non control ling	Total conso
In EUR million	capital	capital	reserves	reserves(1)	shares(1)	year	mens	interests	lidated
Shareholders' equity at 1 January 2009	1,451	952	(251)	1,302	(83)	-	39	6	3,416
Net income for year ended 31 December 2009	-	-	-	-	-	370	-	1	371
Other comprehensive
income net of tax	-	-	288	(20)	-	-	-	-	268
Revaluation – Assets available for sale	-	-	480	-	-	-	-	-	480
Shadow accounting	-	-	(82)	-	-	-	-	-	(82)
Effect of changes in foreign exchange rates	-	-	-	(21)	-	-	-	-	(21)
Taxes recorded directly in equity	-	-	(110)	6	-	-	-	-	(104)
Actuarial gains/losses not recognized in income	-	-	-	(8)	-	-	-	-	(8)
Other changes	-	-	-	3	-	-	-	-	3
Comprehensive income, net of tax	-	-	288	(20)	-	370	-	1	639
Share-based payments	-	-	-	-	(43)	-	14	-	(29)
Other changes	-	-	-	-	19	-	(16)	-	3
Capital transactions	8	9	-	(2)	-	-	-	-	15
Dividends paid	-	(187)	-	44	-	-	-	-	(143)
SHAREHOLDERS' EQUITY 31 DECEMBER
2009	1,459	774	37	1,324	(107)	370	37	7	3,901
Allocation of prior year net income	-	-	-	370	-	(370)	-	-	-
Net income for year
ended 31 December 2010	-	-	-	-	-	418	-	1	419
Other comprehensive
income net of tax	-	-	19	131	-	-	-	(1)	149
Revaluation – Assets available for sale	-	-	87	-	-	-	-	-	87
Shadow accounting	-	-	(67)	-	-	-	-	-	(67)
Effect of change in foreign exchange rates	-	-	-	136	-	-	-	-	136
Taxes recorded directly in equity	-	-	(1)	6	-	-	-	-	5
Actuarial gains/losses not
recognized in income	-	-	-	(14)	-	-	-	-	(14)
Other changes Comprehensive income,	-	-	-	3	-	-	-	(1)	2
net of tax	-	-	19	131	-	418	-	-	568
Share-based payments	-	-	-	-	4	-	19	-	23
Other changes	(1)	1	-	-	-	-	-	-	-
Capital transactions	21	21	-	(3)	-	-	-	-	39
Dividends paid	-	-	-	(179)	-	-	-	-	(179)
SHAREHOLDERS' EQUITY 31 DECEMBER
2010	1,479	796	56	1,643	(103)	418	56	7	4,352

(1) Consolidated reserves and treasury shares are presented on the Balance Sheet within Retained Earnings.

	Share	Addit ional paid-in	Reva luation	Conso lidated	Treasury	Net income for the	Equity based instru	Non control ling	Total conso
In EUR million	capital	capital	reserves	reserves(1)	shares(1)	year	mens	interests	lidated
Shareholders' equity at 31 December 2010	1,479	796	56	1,643	(103)	418	56	7	4,352
Allocation of prior year net income	-	-	-	418	-	(418)	-	-	-
Net income for year ended 31 December 2011	-	-	-	-	-	330	-	-	330
Other comprehensive income net of tax	-	-	(234)	98	-	-	-	-	(136)
Revaluation – Assets available for sale	-	-	(307)	-	-	-	-	-	(307)
Shadow accounting	-	-	(4)	-	-	-	-	-	(4)
Effect of change in foreign exchange rates	-	-	-	117	-	-	-	-	117
Net loss on cash flow hedges	-	-	-	(21)	-	-	-	-	(21)
Taxes recorded directly in equity	-	-	77	6	-	-	-	-	83
Actuarial gains/losses not recognized in income	-	-	-	(5)	-	-	-	-	(5)
Other changes	-	-	-	1	-	-	-	-	1
Comprehensive income, net of tax	-	-	(234)	98	-	330	-	-	194
Share-based payments	-	-	-	-	(18)	-	7	-	(11)
Other changes	-	-	-	-	-	-	-	-	-
Capital transactions	34	42	-	-	-	-	-	-	76
Dividends paid	-	(3)	-	(198)	-	-	-	-	(201)
SHAREHOLDERS' EQUITY 31 DECEMBER 2011	1.513	835	(178)	1,961	(121)	330	63	7	4,410

(1) Consolidated reserves and treasury shares are presented on the Balance Sheet within Retained Earnings.

20.1.6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

20.1.6.1 NOTE 1 - ACCOUNTING PRINCIPLES AND METHODS

(A) GENERAL INFORMATION

SCOR SE ("the Company") is a European Company (Societas Europaea) domiciled in France and governed by the provisions of French law relating to European Companies as well as by the French corporate law provisions applicable to Sociétés Anonymes where this is not contrary to the specific provisions applicable to European Companies. SCOR's shares are publicly traded on the Eurolist by Euronext Paris stock market and on the SIX Swiss Exchange (formerly known as the SWX Swiss Exchange). The principle activities of the Company and its subsidiaries ("the Group" or "SCOR") are Life and Non-Life reinsurance.

The consolidated financial statements were presented by Group Management to the Audit Committee. The Management and the Audit Committee report to the Board of Directors, which authorized the consolidated financial statements on 7 March 2012.

The consolidated financial statements as at and for the year ended 31 December 2011 will be presented for approval at the Annual General Meeting which will take place on 3 May 2012.

(B) BASIS OF PREPARATION

SCOR's consolidated financial statements for the years ended 31 December 2011, 2010 and 2009 have been prepared in compliance with IFRS issued by the International Accounting Standards Board (IASB) as adopted by the European Union ("EU") and effective as at 31 December 2011. In addition to fulfilling their legal obligation to comply with IFRS as adopted by the European Union, the Group and Company have also complied with IFRS as issued by the IASB and applicable as at 31 December 2011 not yet endorsed by the EU. The term "IFRS" refers collectively to International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) and to Interpretations of the Interpretations Committees (Standing Interpretations Committee (SIC) and IFRS Interpretations Committee (IFRIC)) mandatorily applicable as at 31 December 2011. Refer to Note 1 (D) below for a detail overview on the new and amended International Financial Reporting Standards adopted by the Group and interpretations as endorsed by the European Union applicable in 2011 and the standards which have been issued by the IASB during the period but have not been adopted by the European Union.

Reclassifications

Certain reclassifications have been made to prior year financial information to conform to the current year presentation. The changes are related to the new cost allocation methodology of the Group which was refined in the preparation of segment information, resulting in a new corporate cost center being created, Group Functions. For further detail refer to Note 2 – Segment Information.

Use of estimates

The preparation of the consolidated financial statements requires management to make certain judgments, assumptions and estimates. These affect the reported amounts of revenue, expenses, assets and liabilities, and the disclosure of contingent assets and liabilities at the reporting date. Management reviews these estimates and assumptions periodically, based on past experience and other factors. The actual outcome and results could differ substantially from estimates and assumptions made. The most material financial statement captions for which the Group uses estimates and assumptions are reinsurance reserves, receivables and liabilities relating to reinsurance operations, the fair value and impairment of financial instruments, intangible assets, retirement and other defined benefit plans and deferred taxes.

Allocation of expenses by function

In conformity with IAS 1 - Presentation of Financial Statements, the Group has opted to present expenses by function in the statement of income. The costs are allocated to four categories (acquisition and administrative expenses, claims settlement expenses, investment management expenses and other current operating expenses) based on allocation keys which are determined based on management's judgment. Hub shared service costs are allocated to the divisions based on a headcount allocation key.

(C) BASIS OF CONSOLIDATION

All material entities, in which SCOR owns directly or indirectly more than 50% of outstanding voting rights or has otherwise power of control, are fully consolidated. Control is the authority to direct financial and operational policies in order to obtain benefits from their operations.

Special Purpose Entities (SPE) are consolidated where the substance of the relationship is that the SPE is controlled by the Group. The Group sponsors a number of catastrophe bond notes issued by Atlas Special Purpose Vehicles (SPVs). The SPVs allow the retrocession of catastrophe losses financed by the issuance of catastrophe bonds. In accordance with SIC 12 Consolidation — Special Purpose Entities, these vehicles are not consolidated by the Group as SCOR does not control these entities and is not liable for any residual risks or benefits of ownership.

Subsidiaries are consolidated from the time the Group takes control until the date control is transferred outside the Group or control ceases. Certain subsidiaries have been included within the Group financial statements under the equity method and are not fully consolidated on a line by line basis as they are immaterial to the Group consolidated financial statements.

The Group's investments in associated companies are recorded using the equity method. Associated entities are companies in which the Group exercises significant influence but not control. Significant influence generally occurs when the Group owns, directly or indirectly, between 20% and 50% of the outstanding voting rights. Joint ventures, where there is joint control, are accounted for using the equity method.

Mutual funds and real estate entities are fully consolidated or recorded using the equity method in accordance with the afore-mentioned rules.

The financial statements of the material subsidiaries are prepared for the same accounting period as that of the parent company. All material intra-Group balances and transactions including the results of inter-company transactions are eliminated.

The Group's consolidated financial statements are presented in euros (EUR) and all values are rounded to the nearest EUR million except where stated otherwise. The other key currencies in which the Group conducts business and the exchange rates used for the preparation of the 2011 financial statements are as follows:

Currency	Ending rate 2011	Average rate 2011
USD	0.7729	0.7148
GBP	1.1972	1.1475
CAD	0.7567	0.7227

Currency	Ending rate 2010	Average rate 2010
USD	0.7484	0.7585
GBP	1.1618	1.1691
CAD	0.7506	0.7334

Currency	Ending rate 2009	Average rate 2009
USD	0.6877	0.7181
GBP	1.1161	1.1244
CAD	0.6469	0.6329

(D) IFRS STANDARDS ADOPTED EARLY, EFFECTIVE DURING THE PERIOD AND ACCOUNTING STANDARDS AND INTERPRETATIONS PUBLISHED BUT NOT YET EFFECTIVE

The Group has adopted the following new and amended International Financial Reporting Standards and interpretations as adopted by the European Union applicable in 2011 resulting in no material impact on the Group's consolidated financial statements:

• Amendment to IAS 32 Financial instruments: presentation, "Classification of Rights Issue" issued in October 2009, for annual periods beginning on or after 1 February 2011, requires rights issues within the scope of the amendment to be classified as equity. The scope is quite narrow and applies only to pro-rata rights issues to all existing shareholders in a class. The application of this Amendment has not resulted in any material impact on the Group's consolidated financial statements.
• Amendment to IAS 24 Related party transactions issued in November 2009 aims to simplify the definition of a related party, clarifying its intended meaning and eliminating inconsistencies from the definition. In addition, it provides a partial exemption from the disclosure requirement for government-related entities. The application of this Amendment has not resulted in any material impact on the Group's consolidated financial statements.
• Amendments to IFRIC 14 Prepayments of a minimum funding requirement interpretation issued in November 2009 sought to remove an unintended consequence arising from the treatment of prepayments in some circumstances when there is a minimum funding requirement. The application of this Amendment has not resulted in any material impact on the Group's consolidated financial statements.
• Amendment to IFRIC 19 Extinguishing financial liabilities with equity instruments issued in November 2009 clarified the treatment of extinguishments of debt by issuance of an equity instruments to enhance consistency between entities. An entity is now required to initially measure equity instruments issued to a creditor to extinguish all or part of a financial liability at the fair value of the equity instruments issued or the fair value of the liability extinguished, whichever is more reliably determinable. The difference between the carrying amount of the financial liability extinguished and the initial measurement amount of the equity instruments issued is recognised in profit or loss. The application of this Amendment has not resulted in any material impact on the Group's consolidated financial statements.

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The improvements to International Financial Reporting Standards published in May 2010 and applicable in part for annual periods beginning on or after 1 July 2010, comprise non-urgent, minor amendments to International Financial Reporting Standards. They are presented in a single document rather than as a series of isolated changes. They include both amendments that result in accounting changes for presentation, recognition or measurement purposes, and amendments that are terminology or editorial changes that have no or minimal effect on accounting. Following EU endorsement on 18 February 2011, the application of these amendments has not resulted in any material impact on the Group's consolidated financial statements.

The following standards have been issued by International Financial Reporting Standards Board during the period but are not yet effective or have not been adopted by the European Union:

• Amendment to IAS 1 Presentation of Financial Statements was issued in June 2011 and requires entities to separate items presented in Other Comprehensive Income into two groups based on whether or not they are able to be recycled to profit or loss in the future. The application of this amendment is not expected to have a material impact on the Group's consolidated financial statements.
• Amendment to IAS 12 Recovery of Underlying Assets introduces an exception to the measurement principles of deferred tax assets and liabilities arising from assets measured using the fair value model under IAS 40, Investment Property. The application of this amendment is not expected to have a material impact on the Group's consolidated financial statements.
• Amendments to IAS 19 Employee Benefits were issued in June 2011, which make significant changes to the recognition and measurement of defined benefit pension expense and termination benefits, and to disclosures for all employee benefit plans. These amendments are applicable for annual periods beginning on or after 1 January 2013, with earlier adoption permitted. The application of these amendments is not expected to have a material impact on the Group's consolidated financial statements.
• Amendments to IFRS 7 which become effective for any period beginning on or after 1 July 2011, require additional disclosures of financial assets that have been derecognized but the entity has a 'Continuing Involvement' in them. The application of this amendment is not expected to have a material impact on the Group's consolidated financial statements.
• IFRS 9 Financial Instruments: Classification and Measurement reflects the first phase of the IASB's work on the replacement of IAS 39 and applies to classification and measurement of financial assets and financial liabilities. The standard is effective for annual periods beginning on or after 1 January 2015. In subsequent phases, the IASB will address impairment and hedge accounting. The completion of this project is expected in 2012. The adoption of IFRS 9 will have an effect on the classification and measurement of the Group's financial assets. However, the Group determined that the effect will be quantified only in conjunction with the other phases when issued, to present a comprehensive picture.
• IFRS 10 Consolidated Financial Statements replaces the portion of IAS 27 Consolidated and Separate Financial Statements that addresses the accounting for consolidated financial statements. It also includes the issues raised in SIC-12 Consolidation – Special Purpose Entities. The standard establishes a single control model that applies to all entities. It will require management to exercise judgement to determine which entities are controlled, and therefore are required to be consolidated by a parent. It is effective for annual periods beginning on or after 1 January 2013. The adoption of IFRS 10 is not expected to have a material impact on the Group's consolidated financial statements.
• IFRS 11 Joint Arrangements replaces IAS 31 Interests in Joint Ventures and SIC-13 Jointly-controlled Entities – Non-monetary Contributions by Venturers. The standard addresses two forms of joint arrangements, i.e., joint operations and joint ventures. To assess whether there is joint control IFRS 11 uses the principle of control in IFRS 10. The existing option to account for jointly controlled entities under IAS 31 using proportionate consolidation is removed in this standard. The effective date of this standard is 1 January 2013. SCOR has no material joint arrangements. As such the adoption of this standard is expected to have no impact on the financial statement of the Group.
• IFRS 12 Disclosure of Interests in Other Entities includes all the disclosures that were previously in IAS 27, IAS 31 and IAS 28 Investment in Associates. A number of new disclosures are added to the existing requirements such as the judgments made to determine whether control of another entity exists. This standard is effective for the annual periods beginning on or after 1 January 2013. IFRS 12 is a disclosure only standard and therefore will have no effect on profit or loss or the equity of the Group.
• IFRS 13 Fair Value Measurement provides guidance on how to measure the fair value of financial and nonfinancial assets and liabilities when required or permitted by IFRS. The standard is effective for annual periods on or after 1 January 2013. The adoption of IFRS 13 will affect some of the fair value of certain assets and liabilities and thus affecting the profit and equity of the Group.

(E) FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS

Where the functional currency of an entity is not the same as the reporting currency used to present the Group's consolidated financial statements, assets and liabilities of the entity are translated using the exchange rate at the balance sheet date and the statement of income is translated using the average exchange rate for the period. Translation differences are recognized directly in shareholders' equity as "translation adjustments". Transactions denominated in foreign currencies (currencies other than the functional currency) are translated into the functional currency at the rate of exchange at the date of the transaction (for practical purposes, an average rate is used).

At each period end, the entity must translate the items on its balance sheet which are denominated in a foreign currency into the functional currency, using the following procedures:

• monetary items and non-monetary items classified as fair value through income are translated at end of period exchange rates and the resulting gains and losses are recorded in the statement of income;
• non-monetary items are translated:
  • at the exchange rates in effect on the transaction date for items valued at historical cost; or
  • at end of period exchange rates if they are valued at fair value; and
  • to the extent that any gains or losses arise, these are directly recorded in shareholders' equity. In particular this affects foreign exchange differences for available for sale equity securities and exchange differences resulting from the conversion of these items are also directly recorded in shareholders' equity;
• the gains and losses resulting from the translation of net foreign investment hedges are recorded in shareholders' equity. They are recognized in the statement of income upon the disposal of the net investments.

(F) INTANGIBLE ASSETS

Business combinations and goodwill

Business combinations are accounted for using the purchase method of accounting which requires that the assets acquired and liabilities assumed be recorded at the date of acquisition at their respective fair values.

Goodwill is initially measured at cost being the excess of the cost of the business combination over the fair value of the Group's share of the net assets of the acquired company and is included in intangible assets. If the business combination is achieved in stages, the acquirer's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss.

Goodwill arising on companies accounted for under the equity method is included within the carrying value of those investments.

A gain from bargain purchase is generated when the fair value of the net assets acquired by the Group exceeds the acquisition price and is recognized in the statement of income from the date of acquisition.

After initial recognition, goodwill is measured at cost less any accumulated impairment. At least annually, Goodwill is tested for impairment.

Intangible assets

The cost of intangible assets acquired in a business combination is their fair value as at the date of acquisition. Following initial recognition intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses.

The useful lives of intangible assets are assessed to be either finite or indefinite.

Intangible assets with finite lives are amortized over the expected useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for intangible assets with finite useful lives are reviewed annually. Changes in the expected useful life or the expected pattern of future economic benefits are accounted for prospectively by changing the amortization period or method as appropriate and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of income in the expense category consistent with the intangible asset.

Intangible assets with indefinite useful lives are tested for impairment annually. The useful life of an intangible asset with an indefinite life is reviewed annually to determine whether the indefinite life assumption continues to be appropriate. If not, the change in the useful life assessment from indefinite to finite is made on a prospective basis.

Gains or losses arising from the de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of income when the asset is derecognized.

(a) Value of business acquired (VOBA) in life business

VOBA relates to life reinsurance portfolios acquired in a business combination. VOBA is capitalized as the present value of the stream of expected future cash flows. These estimates include the future technical result, and the future investment income less deductions for future administration expenses. The present value calculations are based on assumptions and risk discount factors relevant at the date of acquisition. The VOBA is amortized over the lifetime of the underlying reinsurance portfolio and is subject to impairment testing. The amortization pattern of VOBA is reviewed annually.

VOBA also includes the intangible asset related to the acquisition of the business portfolio of ReMark Group BV ("ReMark") to reflect the substance of the stream of expected future profits.

(b) Other intangible assets

Other intangible assets consist primarily of customer related intangibles arising from non-life business combinations and purchased or development expenditure related to software.

(G) REAL ESTATE INVESTMENTS

Investment properties and own-use properties

Real estate currently held by the Group is classified as investment property when it is held to earn rentals, or for capital appreciation or both. Other properties are classified as tangible assets. Some buildings may be partially occupied by entities of the Group. Other properties are classified as tangible assets. Properties, including properties used by the Group, are recognized at cost, net of accumulated depreciation and impairment losses. Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:

Category	Useful life
Land	Indefinite (not depreciated)
Buildings
Building structure and exterior	30 – 80 years
Insulation	30 years
Technical installations	20 years
Fixtures and fittings	10 to 15 years

Repairs and maintenance costs are charged to the statement of income during the financial period in which they are incurred. All costs directly associated with purchases or constructions of properties are capitalized. All subsequent value enhancing capital expenditures are capitalized when it is probable that future economic benefits related to the item will flow to the Group.

Annually each investment property is subject to an in-depth analysis of its market value or "fair value" by an independent appraiser. The fair value is calculated using a discounted cash flow model based on current market assumptions and considers rental status, completeness of construction and renovation work, as well as recent developments within the local real estate market. If the fair value is below the carrying amount, the related impairment losses are recognized in the statement of income. The impairment recorded is equal to the difference between the fair value and the net book value.

Own-use properties are assessed for impairment whenever there is an indication that the property may be impaired.

Finance leases

Investment properties acquired through financial lease agreements are recorded on the balance sheet as assets based on the present value of future rental payments and any purchase option. Subsequent to the initial recognition they are accounted for as investment properties at cost, net of accumulated depreciation and impairment losses. The corresponding debt is recorded under "financial liabilities" and is amortized based on the effective interest rate method.

Rental income

Rental income from investment properties is recorded on a straight-line basis over the term of the current rental agreements.

(H) FINANCIAL INSTRUMENTS

Financial investments

The Group classifies its financial assets in the following categories: available-for-sale, fair value through income, loans and accounts receivable and cash and cash equivalents. There are currently no assets classified as held-to-maturity. Sales and purchases of assets are recorded on the settlement date. Once it has been initially recorded, an asset is measured according to its asset category, determined according to the methods set forth below. Financial assets are derecognized when the contractual rights to the cash flow of the financial asset expire or are transferred, and when the Group has substantially transferred the risks and rewards inherent to the ownership of the financial asset.

Categories of financial assets

(a) Available-for-sale financial assets

Available-for-sale assets include non-derivative assets that are either classified as available for sale or not allocated to another category.

Available-for-sale financial assets are recorded at their fair value. Unrealized gains and losses and the respective foreign exchange resulting from variations in the fair value of a non-monetary available-for-sale asset are recorded directly in shareholders' equity. Variations due to foreign exchange for monetary available-for-sale assets are recorded through income.

When an asset is sold, the accumulated gains and losses included in equity are transferred to realized gains and losses from the sale of investments in the statement of income, net of any amounts previously recorded through income.

Interest on debt instruments is calculated in accordance with the effective interest method, which includes the amortization of any premiums or discounts and is recorded in the statement of income.

Dividends on equity instruments are recorded in the statement of income when the Group's right to receive payment has accrued.

(b) Financial assets at fair value through income

This category includes financial assets held for trading purposes and those designated at fair value through income upon initial recognition in the financial statements. Gains and losses from changes in the fair value of financial assets classified under this category are recognized in the statement of income in the period in which they occur.

(c) Loans and accounts receivable

This category includes funds held by ceding companies as collateral for underwriting commitments included at the amount deposited.

Non-derivative financial assets, where payment is fixed or determinable and which are not listed on an active market, are also included within this category and these are recognized at amortized cost using the effective interest rate method.

Loans and accounts receivable include short-term deposits or investments with a maturity of more than three months but less than twelve months at the date of purchase or deposit.

Loans and accounts receivable include a provision for recoverability if deemed necessary.

(d) Held-to-maturity

The held-to-maturity financial asset category is currently not used.

(e) Cash and cash equivalents

Cash and cash equivalents comprise cash, net bank balances and short-term deposits or investments with a maturity less than or equal to three months at the date of purchase or deposit. Money market funds are also classified as cash equivalent, though only to the extent that fund invested assets qualify as cash equivalents, or there are strict fund management policies and limits that lead the funds to qualify as cash equivalents.

Financial debt

Financial liabilities, with the exception of liabilities arising from reinsurance transactions, are classified as financial debts, financial instruments and other liabilities.

Interest on financial debt is included within financing expenses.

(a) Subordinated financial debts or debt securities

These items comprise the various subordinated or unsubordinated bonds issued by the Group. These loans are classified as financial debts, in accordance with IAS 32 - Financial Instruments: Presentation.

At initial recognition, all borrowings are recorded at fair value less directly attributable transaction costs. After initial recognition, they are measured at amortized cost using the effective interest rate method.

(b) Other financial debt

This caption includes primarily debt relating to the acquisition of real estate and financial lease agreements. Debt under financial lease contracts is recorded at fair value less directly attributable transaction costs. After initial recognition, they are measured at amortized cost using the effective interest rate method where this method has a significant impact compared to the nominal contractual rate method.

Derivative instruments and hedging instruments

Derivative instruments are recorded and classified at fair value through income (designated at inception) unless they are designated as hedging instruments.

All derivatives are carried as assets when the fair values are positive and as liabilities when the fair values are negative.

The accounting method varies according to whether or not the derivative instrument is designated as a hedging instrument, as described below in "Hedging Instruments."

When the Group has not designated the derivative as a hedging instrument, gains and losses resulting from the change in the fair value of the instrument are recorded in the statement of income in the period in which they occur. The Group uses the following derivative instruments to reduce its exposure to various risks: swaps based on interest rates, mortality indices and real estate indices, foreign currency forward purchase and sale contracts, caps and floors, and puts and calls.

(a) Embedded derivative instruments

An embedded derivative is a component of a hybrid instrument which includes a non-derivative host contract, which causes part of the hybrid instrument's cash flow to vary in the same way as that of a freestanding derivative.

A material embedded derivative is separated from the host contract and is recognized as a derivative:

• when its economic features and risks are not closely linked to the economic features of the host contract;
• where the embedded instrument has the same conditions as a separate derivative instrument; and
• where the hybrid instrument is not assessed at fair value through the statement of income.

Where an embedded derivative has been separated from its host contract, it is recognized in accordance with the guidance relating to the accounting for derivative financial instruments.

Where the embedded derivative represents a significant part of the instrument and cannot be separated from the host contract, the hybrid instrument is treated as an instrument held for trading. Gains and losses resulting from variations in the fair value of the hybrid are recognized in the statement of income in the period during which they occur.

(b) Hedging instruments

A hedging instrument is a designated derivative instrument or, in the case of a single foreign currency hedge, a designated non-derivative asset or liability for which the fair value or cash flows offset variations in the fair value or cash flows of the hedged item.

The hedged item may be an asset, a liability, a firm commitment, a highly probable scheduled transaction or a net investment in a foreign operation exposing the Group to fluctuations in fair value or future cash flows, and which is designated as being hedged.

Hedge effectiveness is monitored periodically by comparing changes in the fair value or cash flows of the hedged item to the changes in the fair value or cash flows of the hedge instrument in order to determine the degree of effectiveness.

A derivative instrument designated as fair value hedge is initially recognized at fair value on the date on which the derivative contract is entered into. The carrying amount of the hedged item is adjusted for gains and losses attributable to the risk being hedged. The derivative is remeasured at fair value and gains and losses are recognized in the income statement.

A derivative instrument designated as cash flow hedge is initially recognized at fair value on the date on which the derivative contract is entered into. The effective portion of the gain or loss on the hedging instrument is recognized in other comprehensive income in the cash flow hedge reserve, while the ineffective portion is recognized in the income statement. Amounts taken to other comprehensive income are transferred to the income statement when the hedged transaction effects the income statement, such as when hedged financial income or financial expense is recognised or when the forecast sale or purchase occurs.

For hedges of net investments in a foreign operation the portion of gains or loss on the hedging instrument considered as the effective portion of the hedge is recorded directly in shareholders' equity. Any ineffective portion of the hedge is recognized in the statement of income.

Valuation of financial assets

The fair value of financial instruments that are actively traded in organized financial markets is determined by reference to quoted market bid prices, at the close of business on the balance sheet date. If quoted market prices are not available, reference can also be made to broker or dealer price quotations.

For units in unit linked-trusts, shares in open-ended investment companies and derivative financial instruments (including real estate, interest rate and mortality swaps, options, etc.), fair value is determined by reference to either published bid-values, or modeled values which incorporate market inputs within the valuation assumptions.

The Group has certain investments which are valued based on models prepared by internal and external third parties using market inputs. These primarily comprise structured products, other than securities issued by government agencies for which the market is considered active, as well as hybrid, tier 1 and tier 2 corporate debt and hedge funds.

As the Group is responsible for determining the fair value of its investments, regular analysis is performed to determine whether prices received from third parties are reasonable estimates of fair value. The Group's analysis includes: (i) a review of price changes made in the investment management systems; (ii) a regular review of pricing deviations between dates exceeding predefined pricing thresholds per investment categories; and (iii) a review and approval of extraordinary valuation changes noted.

The Group may conclude the prices received from third parties are not reflective of current market conditions. In those instances, SCOR may request additional pricing quotes or apply internally developed valuations. Similarly, the Group values certain derivative investments, namely the mortality and real estate swaps, using internal valuation techniques based on observable market data.

For unlisted equity instruments, fair value is determined according to commonly used valuation techniques.

The fair value of floating rate and overnight deposits with credit institutions is their carrying value.

If, as a result of a change in intention or ability or in the circumstance that a reliable measure of fair value is no longer available, it becomes appropriate to carry a financial instrument at cost or amortized cost, then the last reliable fair value available is taken as the new cost or amortized cost, as applicable.

The Group provides disclosures over the measurements of those financial instruments held at fair value, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

• quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
• models prepared by internal and external third parties using market inputs (Level 2); and
• inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

The level in the fair value hierarchy within which the fair value measurement is categorized is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement requires judgment, considering factors specific to the asset or liability.

Impairment of financial assets

At each balance sheet date, the Group assesses whether there is any evidence of impairment. The amount of impairment is recorded by asset category, as set forth below.

For available-for-sale equity securities which are listed on an active market, a line-by-line analysis is performed when there has been a fall in fair value as compared to the initial purchase price of more than 30%, or a consistent unrealized loss over a period of more than twelve months. The different factors considered in this analysis include the existence or not of significant adverse changes in the technological, market, economic or legal environment in which the issuer operates. After consideration of these factors if a security remains unimpaired the Group ultimately considers objective evidence of impairment, as per IAS 39, by reference to three further key criteria being the existence or not of:

• a consistent decline of more than 30% for twelve months; or
• a magnitude of decline of more than 50%; or
• a duration of decline of more than twenty-four months.

For certain investments, in addition to the above impairment guidelines, SCOR takes into consideration other important factors such as:

• the fact that the asset is specifically excluded from any actively traded portfolio;
• SCOR's ability and intent to continue to hold the investment for a significantly longer period than a normal investment;
• SCOR's business relationship with the investee; and
• The estimated long term intrinsic value of the investment.

For unlisted equity instruments, impairment is assessed using a similar approach to listed equities.

For fixed income securities, and loans and accounts receivable, an objective indicator of impairment relates primarily to proven default credit risk. Different factors are considered to identify those fixed income securities potentially at risk of impairment, including significant financial difficulty or default in payments, to enable the Group to conclude whether there is objective evidence that the instrument or group of instruments is impaired.

For financial instruments where the fair value cannot be measured reliably and they are measured at cost a regular analysis is completed to determine if this remains appropriate given the nature of the investment and factors such as amounts realized and the appearance or re-appearance of a market or reliable value. Impairment assessments are completed dependent on the underlying nature of the investment and the expected future cash flow.

If an available-for-sale financial asset is impaired and a decline in the fair value of this asset has been recognized in other comprehensive income, the cumulative loss is reclassified from equity to the statement of income. The cumulative loss is computed as the difference between the cost of the asset (net of any principle repayment and amortization) and its current fair value, less any impairment previously recognized in the statement of income.

Any impairment reversals in respect of equity instruments classified as available-for-sale are not recognized in the statement of income. Reversals of impairment losses on fixed income securities classified as available-for-sale are reversed through the statement of income if the increase in fair value of the instrument can be objectively related to an event occurring after the impairment losses were recognized in the statement of income.

(I) RESTRUCTURING COSTS

Restructuring costs other than those that may be recognized on the balance sheet of an acquired company on the acquisition date are recorded when the Group has a present obligation as evidenced by a binding sale agreement or a detailed formal restructuring plan of which the main features are announced to those affected or to their representatives.

(J) CONTINGENCY RESERVES

Provisions are recognized when the Group has a present legal, contractual or constructive obligation as the result of past events and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made.

Where the Group expects the provision to be reimbursed for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is probable.

Contingent liabilities are disclosed if there is a possible future obligation as a result of a past event, or if there is a present obligation as a result of a past event but either a payment is not probable or the amount cannot be reliably estimated.

(K) SHARE CAPITAL AND SHAREHOLDERS' EQUITY

Share capital

Ordinary shares are classified in shareholders' equity when there is no contractual obligation to transfer cash or other financial assets to the holders.

Share issue costs

Incremental external costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax from the proceeds of the issue.

Treasury shares

Treasury shares and any directly related costs are recorded as a deduction from shareholders' equity. When treasury shares are subsequently sold or reissued any consideration received is included in consolidated shareholders equity net of any directly related costs and tax effects. Accordingly there is no related income, gain or loss recognized in the statement of income.

Dividends

Dividends declared on ordinary shares are recognized as a liability when such dividends have been approved by shareholders at the relevant annual general meeting.

(L) EARNINGS PER SHARE

Basic earnings per share is calculated by dividing net income available to ordinary shareholders by the weighted average number of ordinary shares in issue during the year, excluding the average number of ordinary shares purchased by the Group and held as treasury shares.

For the calculation of diluted earnings per share, the weighted average number of shares in issue is adjusted to assume conversion of all potentially dilutive ordinary shares.

Potential or contingent share issuances are treated as dilutive when their conversion to shares would decrease net earnings per share.

(M) SUBSEQUENT EVENTS

Subsequent events relate to relevant and material events that occur between the balance sheet date and the date when the financial statements are approved for issue:

• Such events lead to an adjustment of the consolidated financial statements if they provide evidence of conditions that existed at the balance sheet date, and if relevant and material.
• Such events result in additional disclosure if indicative of conditions that arose after the balance sheet date, and if relevant and material.

(N) ACCOUNTING PRINCIPLES AND METHODS SPECIFIC TO REINSURANCE ACTIVITIES

Classification and accounting of reinsurance contracts

The treaties and facultative contracts assumed and retroceded by the Group are subject to different IFRS accounting rules depending on whether they fall within the scope of IFRS 4 - Insurance Contracts, or IAS 39 - Financial Instruments: Recognition and Measurement.

Assumed and ceded reinsurance transactions are those contracts that transfer significant reinsurance risk at the inception of the contract. Reinsurance risk is transferred when the Group agrees to compensate a cedant if a specified uncertain future event (other than a change in financial variable) adversely affects the cedant. Any contracts not meeting the definition of a reinsurance contract under IFRS 4 - Insurance Contracts are classified as investment contracts or derivative contracts as appropriate.

Assumed and ceded reinsurance transactions that do not transfer significant risk are recognized in the accounts in accordance with IAS 39 - Financial Instruments: Recognition and Measurement, which means that amounts collected are no longer recognized as premiums, reserves and deferred acquisition expenses recorded as assets or liabilities on the balance sheet and are reclassified as "financial contract liabilities" and "financial contract assets". These deposits are assessed only on the basis of financial flows and no longer on the basis of estimated ultimate results as required by accounting principles applicable to insurance transactions. Income from these transactions is equal to SCOR's net fee or spread and is recorded under "other operating income" on the statement of income.

Reinsurance reserves

The Group maintains reserves to cover its estimated liability for claims related to known events or events incurred but not yet reported (IBNR). The reserves are reviewed by management during the year, using new information as soon as it is available and the reserves are adjusted if necessary. Management considers many factors when establishing reserves, including:

• information from ceding companies;
• historical developments, such as reserve patterns, claims payments, number of claims to be paid and product mix;
• internal methods to analyze the Group's experience;
• most recent legal interpretations concerning coverage and commitments;
• economic conditions;
• biometric developments such as mortality and morbidity; and
• socio-economic factors such as policyholder behavior.

Reinsurance reserves are presented gross excluding shares retroceded to SCOR's reinsurers and measured on the level of individual reinsurance contracts or homogeneous segments of contracts. Retroceded reserves are estimated under the same methods and assumptions and presented as assets.

(a) Non-Life business

In determining the amount of its reserves, the Group generally uses actuarial techniques that take into account quantitative loss experience data, together with qualitative factors, where appropriate. The reserves are also adjusted to reflect the volume of business underwritten, reinsurance treaty terms and conditions, and diversity in claims processing that may potentially affect the Group's commitment over time.

However, it is difficult to accurately value the amount of reserves required, especially in view of changes in the legal environment, including civil liability law, which may impact the development of reserves. While this process is complicated and subjective for the ceding companies, the inherent uncertainties in these estimates are even greater for the reinsurer, primarily because of the longer time period between the date of an occurrence and the request for payment of the claim to the reinsurer, the diversity of contract development schemes, whether treaty or facultative, dependence on the ceding companies for information regarding claims, and differing reserve practices among ceding companies. In addition, trends that have affected development of liabilities in the past may not necessarily occur or affect liability development to the same degree in the future. Thus, actual losses and policy benefits may deviate, perhaps significantly, from estimates of reserves reflected in the Group's consolidated financial statements.

Claim reserves for losses and claims settlement expenses are recognized for payment obligations from reinsurance losses that have occurred but have not yet been settled. They are recognized for reserves for reinsurance losses reported before the reporting date and reserves for reinsurance losses that have already been incurred but not yet reported (IBNR), and are calculated on the basis of their ultimate cost, undiscounted, except for workers' compensation claims which are discounted in the U.S.

Unearned premium reserves are related to written premiums receivable but allocated to future risk periods.

Share of retrocessionaires in insurance and investment contract liabilities are calculated according to the contractual conditions on the basis of the gross reserves. Allowances are established for any specific expected credit risks.

(b) Life business

In Life business, policy linked liabilities include mathematical reserves, unearned premium reserves and claim reserves.

Mathematical reserves are calculated underwriting reserves relating to guaranteed claims and benefits of ceding companies in life reinsurance. Mathematical reserves are estimated using actuarial methods on the basis of the present value of future payments to cedants less the present value of premium still payable by cedants. The calculation includes assumptions relating to mortality, disability, lapses and the expected future interest rates. Actuarial principles used allow an adequate safety margin for the risks of change, error and random fluctuation. They correspond to those used in the premium calculation and are adjusted if the original safety margins are no longer considered sufficient.

Claim reserves for losses and claims settlement expenses are recognized for payment obligations from reinsurance losses that have occurred but have not yet been settled. They are recognized for reserves for reinsurance losses reported before the reporting date and reserves for reinsurance losses that have already been incurred but not yet reported (IBNR).

Unearned premium reserves are related to written premiums receivable but allocated to future risk periods.

Shares of retrocessionaires in the insurance and investment liabilities are calculated according to the contractual conditions on the basis of the gross reserves. Allowances are established for estimated credit risks.

(c) Contracts not meeting risk transfer criteria

Reserves for investment contract liabilities are recognized for reinsurance contracts, either life or non-life, that do not meet the risk transfer criteria described in IFRS 4.

Cedant accounts

The reinsurance entities of the Group record accounts transmitted by ceding companies upon receipt. At year end, estimates are made for those accounts not yet received from ceding companies. Under this method, the amounts recorded in the financial statements reflect as closely as possible the actual reinsurance commitments of the Group. This method relates to the majority of the contracts signed during the year.

Premium estimates

Non-Life gross premiums written and earned are based upon reports received from ceding companies, supplemented by the Group's own estimates of premiums written and earned for which ceding company reports that have not yet been received. Differences between such estimates and actual amounts are recorded in the period in which the estimates are changed or the actual amounts are determined. The difference between ultimate estimated premiums, net of commissions, and premiums reported by ceding companies, is recorded under accounts receivable arising from assumed reinsurance transactions. Premiums are earned on a basis that is consistent with the risks covered under the terms of the reinsurance contracts, which is generally one to two years. For certain U.S. and Japanese catastrophe risks, agriculture risks in Brazil and certain other risks, premiums are earned commensurate with the seasonality of the underlying exposure.

The reserve for unearned premiums represents the portion of premiums written that relate to the unexpired terms of contracts and policies in force. Such reserves are computed by pro-rata methods based on statistical data or reports received from ceding companies. Reinstatement premiums are estimated after the occurrence of a significant loss and are recorded in accordance with the contract terms based upon paid losses and case reserves reported in the period. Reinstatement premiums are earned when written.

For Life reinsurance contracts qualifying as "insurance contracts" the estimation method consists of estimating ceding companies' outstanding accounts for the current year in addition to information actually received and recorded.

Acquisition expenses of reinsurance activities (Deferred acquisition costs or "DAC")

In reinsurance, the costs directly associated with the acquisition of new contracts, mainly comprising commissions, are recorded as assets on the balance sheet, to the extent that contracts are profitable. They are amortized on the basis of the residual term of the contracts in Non-Life, and on the basis of the expected recognition of future margins for Life contracts.

Liability adequacy test

Assets and liabilities relating to reinsurance contracts are subjected each year to a liability adequacy test under IFRS 4.

For the Non-Life segment, the test is performed in the event the ultimate underwriting combined ratio is in excess of 100% to the unearned premium reserve, net of deferred acquisition costs. The liability adequacy test is performed on the level of the actuarial segment and then aggregated at the entity level.

The liability adequacy test for the Life segment compares the carrying value of the reserves less deferred acquisition costs and value of business acquired with the fair value of the liabilities from the reinsurance portfolio recognized. The fair value is calculated as the present value of the projected future cash flow using current actuarial assumptions and parameters. In case of deficiency, SCOR would impair deferred acquisition costs and value of business acquired and increase reserves. The liability adequacy test is performed at the level of portfolios that are managed together and are subject to broadly similar risks.

Reinsurance ceded

Premiums payable in respect of reinsurance ceded are recognized in the period in which the reinsurance contract is entered into and includes estimates where the amounts are not determined at the balance sheet date. Ceded premiums are expensed over the period of the reinsurance contract in the same manner as assumed business.

A reinsurance asset is recognized to reflect the amount estimated to be recoverable under the reinsurance contracts in respect of the outstanding claims reported under reinsurance liabilities assumed. The amount recoverable from reinsurers is initially valued on the same basis as the underlying claims provision except in the case of non-proportional retrocession whether by risk or by event, where it is SCOR policy to only recognize case or IBNR recoveries upon confirmation of the occurrence of a loss booked which triggers the retrocession contract.

The amount of recoverable is reduced in the form of a bad debt provision when there is an event arising that provides objective evidence that the Group may not receive all amounts due under the contract and the event has a reliably measurable impact on the expected amount that will be recovered from the reinsurer.

Shadow accounting

For the measurement of deferred acquisition costs, value of business acquired and reserves recognized for different insurance portfolios, SCOR applies the shadow accounting principles stipulated in IFRS 4. As the amortization of DAC (for Life) and VOBA is calculated using expectations for estimated revenues from investments and the measurement of reserves is based on the discount rate reflecting directly the performance of assets, relevant parts of the recognized unrealized gains and losses from financial investments are considered as shadow DAC, shadow VOBA and shadow reserves and offset directly in equity.

Impairment of shadow DAC and shadow VOBA for the life business is included within the liability adequacy testing conducted by SCOR Global Life.

Participation at Lloyd's

Participations in syndicates operating at Lloyd's of London are accounted for on an annual accounting basis with a delay due to the transmission of information from syndicates that the Group does not control. The Group recognizes its proportionate share of the syndicates insurance and reinsurance premiums as revenue over the policy term, and claims, including an estimate of claims incurred but not reported. On the closure of an underwriting year, typically three years after its inception, syndicates reinsure all remaining unsettled liabilities into the following underwriting year, a mechanism known as Re-Insurance To Close ("RITC"). If the Group participates on both the accepting and ceding years of account and has increased its participation, RITC paid is eliminated, as a result of this offset, leaving an element of the RITC receivable. This reflects the fact that the Group has assumed a greater proportion of the business of the syndicates. If the Group has reduced its participation from one year of account to the next, the RITC receivable is eliminated, leaving an element of RITC payable. This reflects the reduction in the Group's exposure to risks previously written by the syndicates. The Group recognizes Lloyd's RITC in claims and policy benefits to ensure consistency with similar transactions recognized in accordance with IFRS and, present a true and fair view.

Embedded derivatives

IFRS 4 provides for the separation of embedded derivatives in insurance contracts, when these hybrid contracts are not assessed at fair value through income, and when the features of the embedded derivatives are not closely linked with the features and risks of the host contract, and when the embedded derivative meets the definition of a derivative instrument. Embedded derivatives which meet the definition of an insurance contract are not separated.

(O) PROVISIONS FOR EMPLOYEE BENEFITS

Pension liabilities

The Group provides retirement benefits to its employees, in accordance with the laws and practices of each country. The main plans are in France, Switzerland, the U.K., the U.S. and Germany. Group employees in certain countries receive additional pension payments, paid as an annuity or in capital upon retirement. The benefits granted to Group employees are either in the form of defined contribution or defined benefit plans. Plan assets are generally held separately from the Group's assets.

For defined contribution plans the employer pays fixed contributions into a separate entity, with no legal or constructive obligation to pay further contributions. As a result, only contributions paid or due for the financial year are charged to the Group's statement of income as administrative expenses.

Defined benefit plans are those where a sum is paid to the employee upon retirement, which is dependent upon one or several factors such as age, years of service and salary. Defined benefit obligations and contributions are calculated annually by independent qualified actuaries using the projected unit credit method. The obligation recognized on the balance sheet represents the present value of the defined benefit obligation at the balance sheet date, less the market value of any plan assets, where appropriate, both adjusted for actuarial gains and losses and unrecognized past service cost.

In assessing the Group's liability for these plans, the Group uses external actuarial valuations which involve critical judgments and estimates of mortality rates, rates of employment turnover, disability, early retirement, discount rates, expected long-term rates of return on plan assets, future salary increases and future pension increases. These assumptions may differ from actual results due to changing economic conditions, higher or lower withdrawal rates or longer or shorter life spans of participants. These differences may result in variability of pension income or expense recorded in future years. Actuarial gains and losses arising from experience adjustments and the effects of changes in actuarial assumptions are reflected in shareholders' equity.

Past service costs generated at the adoption or modification of a defined benefit plan are recorded as an expense, on a straight-line basis over the average period until the benefits become vested. When benefit rights are acquired upon the adoption of a plan or its modification, past service cost is immediately recognized as an expense.

Other long-term benefits

In some countries, the Group rewards employees for length of service by granting them a lump sum after certain periods of service. The primary country providing this benefit is France. For France, the present value of the obligation is calculated annually by an independent actuary using the projected unit credit method and is recognized on the balance sheet.

(P) PROVISIONS AND CONTINGENCIES

Management assesses provisions, contingent assets and contingent liabilities and the likely outcome of pending or probable events, for example from lawsuits or tax disputes, on an ongoing basis. The outcome depends on future events that are by nature uncertain. In assessing the likely outcome of events, management bases its assessment on external legal assistance and established precedents.

Provisions, contingent assets and contingent liabilities have also been assessed at the acquisition date for the entities acquired. Such positions are subject to revision as at the acquisition date while the initial accounting is not final. Any revision after the initial accounting is final is recognized in the statement of income in accordance with IFRS 3 – Business Combinations.

(Q) SHARE-BASED PAYMENTS

The Group offers stock option plans to certain of its employees. The fair value of the services received in exchange for the granting of options is recognized as an expense. The total amount that is recognized over the vesting period is established by reference to the fair value of options granted, excluding conditions of attribution that are not linked to market conditions (return on equity (ROE), for example). These conditions are taken into account when determining the probable number of options which will be acquired by the beneficiaries. At each balance sheet date, the Group reviews the estimated number of options which will be acquired. Any impact is then recorded in the statement of income with the offsetting entry in shareholders' equity over the remaining vesting period.

The Group also grants shares to certain of its employees. These grants are recorded in expenses over the vesting period with the offset recorded as an increase in shareholder's equity.

The dilutive effect of outstanding options is reflected in the calculation of the diluted earnings per share.

(R) TAXES

The tax expense for the period comprises current and deferred tax. Tax is recognized in the statement of income except to the extent that it relates to items recognized in other comprehensive income or directly in equity.

The current income tax charge is calculated on the basis of tax laws enacted or substantively enacted at the end of the reporting period in countries where the Group's subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns. Assessing the outcome of uncertain tax positions requires judgments to be made regarding the result of negotiations with, and enquiries from, tax authorities in a number of jurisdictions. Provisions for tax contingencies require management to make judgments and estimates in relation to tax issues and exposures. Amounts provided are based on management's interpretation of country specific tax law and the likelihood of settlement. Tax benefits are not recognized unless the tax positions are probable of being sustained. In arriving at this position, management reviews each material tax benefit to assess whether a provision should be taken against full recognition of the benefit on the basis of potential settlement through negotiation and/or litigation.

Deferred taxes are recognized using the balance sheet liability method, for all temporary differences at the balance sheet date between the tax base of assets and liabilities and their carrying value on the balance sheet.

The main temporary differences arise from tax losses carried forward and the revaluation of certain financial assets and liabilities including derivative contracts, certain insurance contract liabilities, provisions for pensions and other postretirement benefits. In addition, temporary differences arise on acquisitions due to the difference between the fair values of the net assets acquired and their tax base. Deferred tax is provided on temporary differences arising from investments in subsidiaries, associates and joint ventures, except where it is probable that the difference will not reverse in the foreseeable future.

Deferred taxes are not provided in respect of temporary differences arising from the initial recognition of goodwill, or from goodwill for which amortization is not deductible for tax purposes, or from the initial recognition of an asset or liability in a transaction which is not a business combination and affects neither accounting profit nor taxable profit or loss at the time of the transaction.

Deferred tax assets are recognized on net operating losses carried forward to the extent that it is probable that future taxable profit will be available to utilize those net operating losses carried forward. Management makes assumptions and estimates related to income projections to determine the availability of sufficient future taxable income. SCOR uses a discounted cash flow model comprised of an earnings model, which considers forecasted earnings, and other financial ratios of legal entity based on board approved business plans, which incorporate key drivers of the underwriting results. Business plans include assessments of gross and net premium expectations, expected loss ratios and expected expense ratios, together with actuarial assumptions. To the extent that net operating losses carried forward cannot be utilized or expire, there may be deferred income tax expenses recorded in the future.

Taxes relating to items recorded directly in shareholders' equity are recorded directly in equity and not in the statement of income.

Deferred tax assets and liabilities are offset, if a legally enforceable right exists to set off current tax assets and liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority.

Deferred tax assets and liabilities are assessed at the tax rate applicable in the fiscal year in which the asset will be realized or the liability settled, based on the tax rates (and tax regulations) that have been enacted or substantially enacted at the balance sheet date.

(S) SEGMENT INFORMATION

For management purposes the Group is organized into two operating segments and one corporate cost center Group Functions. The operating segments are: the SCOR Global P&C segment, with responsibility for our property and casualty insurance and reinsurance (also referred to as "Non-Life"); and the SCOR Global Life segment, with responsibility for our life reinsurance (also referred to as "Life"). Each operating segment underwrites different types of risks and offers different products and services, which are marketed via separate channels; responsibilities and reporting within the Group are established on the basis of this structure.

Management evaluates the performance of these segments and allocates resources to them in accordance with various performance indicators. The amount of inter-segment transactions, primarily in relation to gross written premiums, is not significant.

20.1.6.2 NOTE 2 - SEGMENT INFORMATION

The SCOR Global P&C segment operates in four business areas being: Property and Casualty Treaties; Specialty Lines (including Credit & Surety, Inherent Defects Insurance, Aviation, Space, Marine, Engineering, Agriculture and Structured Risk Transfer); Business Solutions (large corporate accounts underwritten essentially on a facultative basis and occasionally as direct insurance for industrial groups and services companies); and Joint Ventures and Partnerships. The SCOR Global Life segment offers the following lines of business: Life (treaties with mainly mortality risks); Life Financing Reinsurance; Critical Illness; Disability; Long Term Care; Health; Annuities; and Personal Accident.

As at 1 January 2011, the cost allocation methodology of the Group was refined in the preparation of segment information, resulting in a new corporate cost center being created, Group Functions. Group Functions is not an operating segment and does not generate revenues. The costs in Group Functions are Group related costs that are not directly attributable to either the Non-Life or Life segments. Group Functions includes the cost of departments fulfilling duties for the benefit of the whole Group, such as the costs for Group Internal audit, Group Chief Financial Officer functions (Group Tax, Group Accounting, Group Consolidation and Reporting), Group Chief Operating Officer functions (Group Legal, Group Communication, Group Human Resources) and Group Chief Risk Officer expenses.

The Group Functions costs are included in the subsequent table in which prior year amounts have been adjusted for comparative purposes.

Management reviews the operating results of the SCOR Global P&C and SCOR Global Life segments individually for the purpose of assessing the operational performance of the business and to allocate resources. No operating segments have been aggregated to form the SCOR Global P&C and SCOR Global Life reportable operating segments.

The following table sets forth the operating income for each of the Group's operating segments and its corporate cost center for the financial years ended 31 December 2011, 2010, and 2009 as if Group Functions had been separately reported for all financial years under view.

			31 December 2011					31 December 2010					31 December 2009
				Adjust					Adjust					Adjust
				ments and					ments and					ments and
	SCOR	SCOR	Group	elimin		SCOR	SCOR	Group	elimin		SCOR	SCOR	Group	elimin
In EUR million	Global Life	Global P&C	Funct ions	ations (1)	Total	Global Life	Global P&C	Funct ions	ations (1)	Total	Global Life	Global P&C	Funct ions	ations (1)	Total
Gross written
premiums	3,620	3,982	-	-	7,602	3,035	3,659	-	-	6,694	3,118	3,261	-	-	6,379
Change in unearned premiums	(7)	(180)	-	-	(187)	2	(111)	-	-	(109)	(1)	(32)	-	-	(33)
Gross earned
premiums	3,613	3,802	-	-	7,415	3,037	3,548	-	-	6,585	3,117	3,229	-	-	6,346
Gross benefits and claims paid	(2,615)	(3,038)	-	(1)	(5,654)	(2,386)	(2,405)	-	-	(4,791)	(2,458)	(2,226)	-	-	(4,684)
Gross commission
on earned premiums	(804)	(773)	-	-	(1,577)	(694)	(714)	-	-	(1,408)	(669)	(665)	-	-	(1,334)
GROSS
TECHNICAL RESULT (2)	194	(9)	-	(1)	184	(43)	429	-	-	386	(10)	338	-	-	328
Ceded gross written
premiums	(345)	(391)	-	-	(736)	(286)	(265)	-	-	(551)	(333)	(245)	-	-	(578)
Change in ceded unearned premiums	(1)	32	-	-	31	1	7	-	-	8	(5)	-	-	-	(5)
Ceded earned
premiums	(346)	(359)	-	-	(705)	(285)	(258)	-	-	(543)	(338)	(245)	-	-	(583)
Ceded claims	137	402	-	1	540	204	63	-	-	267	219	135	-	-	354
Ceded commissions	126	32	-	-	158	101	15	-	-	116	91	2	-	-	93
Net results of retrocession	(83)	75	-	1	(7)	20	(180)	-	-	(160)	(28)	(108)	-	-	(136)
NET TECHNICAL
RESULT (2) Other income and	111	66	-	-	177	(23)	249	-	-	226	(38)	230	-	-	192
expense from
reinsurance
operations Investment	(34)	(19)	-	(2)	(55)	(3)	(18)	-	(2)	(23)	4	5	-	(2)	7
revenues	106	238	-	-	344	155	229	-	1	385	148	219	-	(3)	364
Interests on deposits	160	30	-	-	190	168	29	-	-	197	145	42	-	-	187
Realized capital
gains/(losses) on
investments Change in fair value	40	148	-	(1)	187	52	157	-	(2)	207	41	136	-	-	177
of investments	(5)	(2)	-	-	(7)	3	(3)	-	-	-	12	7	-	-	19
Change in investment
impairment	(16)	(46)	-	-	(62)	(26)	(40)	-	-	(66)	(39)	(208)	-	-	(247)
Foreign exchange gains/(losses)	3	10	-	-	13	-	(15)	-	-	(15)	2	12	-	-	14
Net investment
income	288	378	-	(1)	665	352	357	-	(1)	708	309	208	-	(3)	514
Investment management
expenses	(7)	(13)	(6)	-	(26)	(6)	(12)	(6)	-	(24)	(6)	(11)	(5)	-	(22)
Acquisition and administrative
expenses	(114)	(166)	(12)	-	(292)	(92)	(160)	(10)	(1)	(263)	(88)	(152)	(10)	(1)	(251)
Other current
operating expenses CURRENT	(33)	(35)	(52)	-	(120)	(25)	(28)	(54)	2	(105)	(24)	(27)	(51)	2	(100)
OPERATING
RESULTS Other operating	211	211	(70)	(3)	349	203	388	(70)	(2)	519	157	253	(67)	(4)	340
expenses	-	(30)	-	-	(30)	-	(29)	-	-	(29)	-	(21)	-	-	(21)
Other operating
income OPERATING	-	4	-	-	4	-	-	-	-	-	7	47	-	-	53
RESULTS	211	185	(70)	(3)	323	203	359	(70)	(2)	490	164	279	(67)	(4)	372

(1) Inter-segment recharges of expenses are eliminated on consolidation.

(2) Technical results are the balance of income and expenses allotted to the insurance business.

The following table sets forth the operating income for each of the Group's operating segments as presented previously before refining the cost allocation methodology for the financial years ended 31 December 2010 and 2009.

		31 December 2010	31 December 2009
	SCOR	SCOR	Adjustments		SCOR	SCOR	Adjustments
	Global	Global	and elimin		Global	Global	and elimin
In EUR million	Life	P&C	ations (1)	Total	Life	P&C	ations (1)	Total
Gross written premiums Change in unearned	3,035	3,659	-	6,694	3,118	3,261	-	6,379
premiums	2	(111)	-	(109)	(1)	(32)	-	(33)
Gross earned premiums	3,037	3,548	-	6,585	3,117	3,229	-	6,346
Gross benefits and claims
paid	(2,376)	(2,406)	-	(4,782)	(2,449)	(2,225)	-	(4,674)
Gross commission expense	(694)	(714)	-	(1,408)	(669)	(665)	-	(1,334)
GROSS TECHNICAL
RESULT (2) Ceded gross written	(33)	428	-	395	(1)	339	-	338
premiums	(286)	(265)	-	(551)	(333)	(245)	-	(578)
Change in ceded
unearned premiums	1	7	-	8	(5)	-	-	(5)
Ceded earned premiums	(285)	(258)	-	(543)	(338)	(245)	-	(583)
Ceded claims	204	63	-	267	219	135	-	354
Ceded commissions	101	15	-	116	91	2	-	93
Net income from
reinsurance operations	20	(180)	-	(160)	(28)	(108)	-	(136)
NET TECHNICAL
RESULT (2)	(13)	248	-	235	(29)	231	-	202
Other operating
revenues	(3)	(18)	(2)	(23)	4	5	(2)	7
of which other income and expenses excluded from
combined ratio calculation	-	(27)		(27)	-	(19)	-	(19)
Investment revenues	153	213	1	367	144	212	(3)	353
Interests on deposits	168	29	-	197	145	42	-	187
Realized capital
gains/(losses) on
investments	52	157	(2)	207	41	136	-	177
Change in fair value of investments	3	(3)	-	-	12	7	-	19
Change in investment
impairment	(26)	(40)	-	(66)	(39)	(208)	-	(247)
Foreign exchange
gains/(losses)	-	(15)	-	(15)	2	12	-	14
Net investment income	350	341	(1)	690	305	201	(3)	503
Investment management
expenses	(8)	(25)	-	(33)	(5)	(29)	(1)	(35)
Acquisition and
administrative expenses Other current operating	(85)	(133)	(1)	(219)	(92)	(132)	3	(221)
expenses	(47)	(86)	2	(131)	(29)	(88)	1	(116)
CURRENT OPERATING
RESULTS	194	327	(2)	519	154	188	(2)	340
Other operating expenses	-	(29)	-	(29)	-	(21)	-	(21)
Other operating income	-	-	-	-	7	46	-	53
OPERATING RESULTS	194	298	(2)	490	161	213	(2)	372

(1) Inter-segment recharges of expenses are eliminated on consolidation. (2) Technical results are the balance of income and expenses allotted to the insurance business. The following tables set forth the Group's gross written premiums by geographic region as well as certain assets and liabilities for the financial years ended 31 December 2011, 2010, and 2009.

GROSS WRITTEN PREMIUMS BY GEOGRAPHIC REGION

The distribution by geographic region, based on subsidiary location, is as follows:

	FOR THE YEAR ENDED 31 DECEMBER
		SCOR Global Life			SCOR Global P&C
In EUR million	2011	2010	2009	2011	2010	2009
Gross written premiums	3,620	3,035	3,118	3,982	3,659	3,261
Europe	2,264	2,241	2,114	2,653	2,518	2,394
Americas	1,271	725	947	721	691	543
Asia Pacific / Rest of world	85	69	57	608	450	324

The distribution by geographic region, based on the location of the ceding company for treaty business and location of the insured for facultative business, is as follows:

	FOR THE YEAR ENDED 31 DECEMBER
		SCOR Global Life		SCOR Global P&C
In EUR million	2011	2010	2009	2011	2010	2009
Gross written premiums	3,620	3,035	3,118	3,982	3,659	3,261
Europe	1,686	1,660	1,656	2,023	1,912	1,895
Americas	1,393	913	1,063	983	910	697
Asia Pacific / Rest of world	541	462	399	976	837	669

ASSETS AND LIABILITIES BY SEGMENT

Key balance sheet (1) captions by segment are split as follows:

	AS AT 31 DECEMBER
In EUR million	SCOR Global Life	2011 SCOR Global P&C	Total	SCOR Global Life	2010 SCOR Global P&C	Total
Goodwill	45	743	788	45	743	788
Value of business acquired	1,069	-	1,069	521	-	521
Insurance business investments	8,615	11,533	20,148	8,950	10,921	19,871
Cash and cash equivalents	576	705	1,281	320	687	1,007
Share of retrocessionaires in insurance and investment contract liabilities	402	849	1,251	653	461	1,114
Total assets	13,265	18,054	31,319	12,602	16,120	28,722
Contract liabilities	(11,044)	(12,263)	(23,307)	(10,796)	(11,161)	(21,957)

(1) Amounts presented above represent specific balance sheet line items reviewed at the segment level, as such some balance sheet items are excluded from this table.

ASSETS AND LIABILITIES BY GEOGRAPHIC REGION

Assets and liabilities by geographic region are based on the location of the subsidiary.

	AS AT 31 DECEMBER
		2011 Asia and North rest of the				2010 Asia and North rest of the
In EUR million	Europe	America	world	Total	Europe	America	world	Total
Insurance business investments	16,056	3,578	514	20,148	15,812	3,451	608	19,871
Share of retrocessionaires in insurance and investment contract liabilities	1,196	49	6	1,251	833	277	4	1,114
Total assets	25,177	4,378	1,764	31,319	23,902	3,778	1,042	28,722
Contract liabilities	(17,552)	(4,250)	(1,505)	(23,307)	(17,164)	(3,981)	(812)	(21,957)

CASH FLOWS BY SEGMENT

The cash flows, by segment, are presented as follows:

	FOR THE YEAR ENDED 31 DECEMBER
		2011			2010			2009
	SCOR	SCOR		SCOR	SCOR		SCOR	SCOR
	Global	Global		Global	Global		Global	Global
In EUR million	P&C	Life	Total	P&C	Life	Total	P&C	Life	Total
Cash and cash
equivalents at 1
January	687	320	1,007	752	573	1,325	1,207	576	1,783
Net cash flows from
operations	402	128	530	457	199	656	384	467	851
Net cash flows from
investing activities	(355)	(225)	(580)	(289)	(441)	(730)	(608)	(444)	(1,052)
Net cash flows from
financing activities	(68)	340	272	(281)	(33)	(314)	(239)	(30)	(269)
Effect of changes in
foreign exchange
rates	39	13	52	48	22	70	8	4	12
Cash and cash equivalents at 31
December	705	576	1,281	687	320	1,007	752	573	1,325

20.1.6.3 NOTE 3 - ACQUISITIONS AND DISPOSALS

The following sections describe acquisitions and disposals which either occurred or for which the accounting was finalized in 2011 and 2010 respectively.

ACQUISITION OF TRANSAMERICA RE ("TARE")

SCOR and AEGON have entered into a definitive agreement pursuant to which SCOR acquires the mortality risk reinsurance business of Transamerica Re, a part of AEGON. Transamerica Re was a division of AEGON, but not a standalone legal entity. The operations acquired relate solely to biometric risks. The acquisition included a series of retrocession agreements from AEGON to SCOR Global Life US entities. As part of the acquisition, SCOR also purchased from AEGON one Irish entity, Transamerica International Reinsurance Ireland Limited subsequently renamed to SCOR International Reinsurance Ireland Limited.

Transamerica Re is the 3rd largest Life reinsurer in the US based on 2009 recurring new business volume, and the 7th largest in the world based on 2010 net earned premiums. It is active in the Life mortality markets.

Transamerica Re's gross written premiums amounted to USD 2.2 billion in 2010, with 87% generated in the US. It is headquartered in Charlotte, North Carolina and operates in 11 countries with 451 employees.

This acquisition will significantly enlarge the global footprint of SCOR's Life reinsurance business. SCOR will benefit from Transamerica Re's leading market position in the US, with its strong biometrics focus and very limited franchise overlap. Following this transaction, it is expected SCOR will rank number two in the US Life reinsurance market, and strengthen its positions in Asia and Latin America.

Acquisition date

After obtaining all required authorization needed from the insurance or reinsurance regulators in the United States and Ireland, SCOR acquired the mortality risk reinsurance business of Transamerica Re on 9 August 2011.

Determination of purchase price

The total provisional consideration for the acquired mortality risk reinsurance business of Transamerica Re amounts to EUR 646 million (USD 919 million).

The transaction is financed by SCOR through the use of own funds and limited debt issuance, without the issuance of any new shares.

Provisional allocation of purchase price

The purchase price has therefore been allocated based on a preliminary estimate of the fair value of assets acquired and liabilities assumed at the date of acquisition determined in accordance to IFRS 3 "Business Combinations". The provisional allocation requires significant assumptions and the use of external expertise and it is possible that the preliminary estimates will change materially as the purchase price allocations are finalized. If such amounts were to be adjusted, this could have an impact on the fair value of the net assets acquired and the resulting gain from bargain purchase. The accounting of the acquisition of Transamerica Re must be finalized within 12 months of the acquisition date.

The assets and liabilities acquired have been recorded at their fair values for purposes of the opening balance sheet and included in the consolidated accounts of SCOR using the Group's accounting principles as determined in accordance with IFRS.

The provisional fair value of the assets acquired and liabilities assumed as of 9 August 2011 were as follows:

TRANSAMERICA RE: FAIR VALUE OF ASSETS AND LIABILITIES ACQUIRED AS AT 9 AUGUST 2011
In EUR million (1)	Provisional allocation
Assets
Value of business acquired	540
Investments	866
Share of retrocessionaires in contract liabilities	(115)
Other assets	435
Cash and cash equivalents	494
TOTAL ASSETS	2,220
Liabilities
Contract liabilities	1,152
Other liabilities	298
TOTAL LIABILITIES	1,450
Fair value of net assets	770
Consideration	(646)
Impact of foreign exchange	3
Gain from bargain purchase (2)	127

(1) Based on the EUR/USD exchange rate at the date of acquisition

(2) Gain from bargain purchase valued at the average EUR/USD exchange rate of 0.7148 for the year ended 31 December 2011

Intangible assets

Historic intangible assets, including goodwill, deferred acquisition costs and value of business acquired (VOBA) have been de-recognized.

Value of business acquired (VOBA)

The VOBA has been estimated at EUR 540 million based on the best estimate of expected future profits using a discount rate including an appropriate risk premium.

This intangible asset will be amortized over the lifetime of the underlying treaties, in line with expected emergence of profits.

Investments

Fair values have been determined for investments based mainly on quoted market prices. If quoted market prices were not available, valuation models were applied.

Share of retrocessionaires in contract liabilities

Mathematical reserves, claims reserves and share of retrocessionaires in Contract Liabilities have been recorded based on best estimate assumptions at the time of acquisition.

Other assets and liabilities

Other assets and liabilities have been recorded at their estimated fair value.

Deferred tax has been recognized on the tax base and timing differences arising from the provisional purchase price allocation. These balances represent payable and recoverable amounts which the SCOR Group expects to realize.

Gain from bargain purchase

The management of SCOR measured the fair value of the separately recognizable identifiable assets acquired and the liabilities assumed as of the acquisition date. The cost of the investment was lower than the provisional fair value of the net assets acquired. This difference, or gain from bargain purchase of EUR 127 million, was recorded in the statement of income of the SCOR Group.

Share of Transamerica Re income included in the SCOR Group's consolidated income

The share of the mortality risk reinsurance business of Transamerica Re income included in the SCOR Group's consolidated income corresponds to the results generated during the period from 9 August 2011, the date of acquisition by the SCOR Group, up to the end of the reporting period, 31 December 2011.

TRANSAMERICA RE: STATEMENT OF INCOME FROM ACQUISITION DATE TO 31 DECEMBER 2011 In EUR million (1)
Gross written premiums	677
Change in unearned premiums	1
Gross earned premiums	678
Other income and expense from reinsurance operations	-
Investment income	5
Total income from ordinary activities	683
Gross benefits and claims paid	(490)
Gross commission on earned premiums	(92)
Net results of retrocession	(55)
Investment management expenses	-
Acquisition and administrative expenses	(20)
Other current operating expenses	-
Other current operating income	(1)
Total other current operating income and expense	(658)
CURRENT OPERATING RESULTS	25
Other operating expenses	-
Other operating income	-
OPERATING RESULTS (BEFORE IMPACT OF ACQUISITIONS)	25
Acquisition related expenses	(18)
Gain from bargain purchase (2)	127
OPERATING RESULTS	134
Financing expenses	(5)
Share in results of associates	-
CONSOLIDATED NET INCOME, BEFORE TAX Corporate income tax	129 2
NET INCOME	131

(1) Based on the EUR/USD average exchange rate

(2) Gain from bargain purchase valued at the average EUR/USD exchange rate of 0.7148 for the year ended 31 December 2011

Pro forma information

The pro forma financial information as of 31 December 2011 is presented to illustrate the effect on the Group's statement of income of the Transamerica Re acquisition as if the acquisition had occurred on 1 January 2011. The Transamerica Re information is based on the estimated revenues and net income of the acquired business for the twelve month period ended 31 December 2011 and includes estimates for the impact of purchase accounting. The pro forma information is not necessarily indicative of what would have occurred had the acquisition and related transactions been made on the dates indicated, or of the future results of the Group.

The pro forma statement of income presented below has been prepared in accordance with SCOR Group's accounting principles and corresponds to the following:

• The 2011 statement of income of the SCOR Group excluding Transamerica Re (first column in the pro forma statement of income presented below);
• The 2011 statement of income of Transamerica Re before pro forma adjustments, presented in accordance with IFRS (second column in the pro forma statement of income presented below);
• The pro forma adjustments to adjust the standalone statement of income of SCOR Group and Transamerica Re as though the acquisition of Transamerica Re would have occurred on 1 January 2011 (third column of the pro forma statement of income presented below).

The main assumptions included in the retrospective calculation relate to the following items:

Investment income

Investment income has been determined based on historical yields of Transamerica Re ("TARe") for 1 January 2011 to 9 August 2011. Actual yields have been applied from acquisition date to year-end. As such, no pro forma adjustment has been made.

Gross commission on earned premiums

For the purpose of presenting pro forma information, Transamerica Re DAC amortization has been excluded and VOBA amortization costs have been added to the pro forma statement of income. They amount to EUR 32 million and EUR (14) million respectively.

Acquisition related expenses

For the purpose of presenting pro forma information, acquisition related costs of the Transamerica Re acquisition totaling EUR 7 million incurred have been excluded during 2011.

Gain from bargain purchase

For the purpose of presenting pro forma information, the acquisition related gain from bargain purchase of EUR 127 million has been recognized as of 1 January 2011.

Financing expenses

For the purpose of presenting pro forma information, acquisition related debt interest expenses that have been incurred by SCOR Group to finance the Transamerica Re acquisition have been assumed to be recorded beginning on 1 January 2011. They amounted to EUR (5) million.

Corporate income tax

For the purpose of presenting pro forma information, deferred taxes that have been incurred by SCOR Group to effect the Transamerica Re acquisition have been assumed to be recorded in the opening balance sheet as of 1 January 2011. The deferred taxes are determined on the tax rate of country in which predominantly the costs have been incurred. The tax rates applied are 35 % for adjustments that occurred in the US and 12.5 % for adjustments that occurred in Ireland. The total corporate income tax effect related to the afore-mentioned pro forma adjustments amounted to EUR (2) million.

PRO FORMA STATEMENT OF INCOME 2011			Pro Forma	Total Pro
In EUR million	SCOR	TARe	Adjustments	Forma
Gross written premiums	6,925	1,661	-	8,586
Change in unearned premiums	(188)	1	-	(187)
Gross earned premiums	6,737	1,662	-	8,399
Other income from reinsurance operations	(55)	1	-	(54)
Investment income	660	33	-	693
Total income from ordinary activities	7,342	1,696	-	9,038
Gross benefits and claims paid (incl. ULAE)	(5,164)	(1,107)	-	(6,271)
Gross commission on earned premiums	(1,485)	(244)	18	(1,711)
Net results of retrocession	47	(229)	-	(182)
Investment management expenses	(26)	-	-	(26)
Acquisition and administrative expenses	(271)	(57)	-	(328)
Other current operating expenses	(119)	-	-	(119)
Total other current operating income and
expense	(7,018)	(1,637)	18	(8,637)
CURRENT OPERATING RESULTS	324	59	18	401
Other operating expenses	(30)	-	-	(30)
Other operating income	4	-	-	4
OPERATING RESULTS (BEFORE IMPACT OF
ACQUISITION)	298	59	18	375
Acquisition related expenses (1)	(15)	(18)	7	(26)
Gain from bargain purchase	-	-	127	127
OPERATING RESULTS	283	41	152	481
Financing expenses	(89)	(13)	(5)	(107)
Share in results of associates	7	-	-	7
CONSOLIDATED NET INCOME, BEFORE TAX	201	28	147	376
Corporate income tax	(2)	(4)	(2)	(8)
CONSOLIDATED NET INCOME	199	24	145	368

(1) Acquisitions costs were allocated between SCOR and TARe based on the 'location' of the expenses.

SALE OF US FIXED ANNUITY BUSINESS

On 18 July 2011, SCOR completed the sale of its US fixed annuity business through the sale of its wholly owned subsidiary Investors Insurance Corporation to Athene Holding Ltd. As a result of the sale, SCOR has recognized a loss of EUR (12) million after tax for consideration of USD 57 million (EUR 41 million) received.

The cash inflow on the disposal is as follows:

In EUR million	2011
Consideration received	41
Cash and cash equivalents disposed of	(32)
CASH INFLOW FROM SALE OF US FIXED ANNUITIY BUSINESS	9

Assets and liabilities sold were as follows as of closing date:

In EUR million	2011
Assets
Investments	939
Share of retrocessionaires in contract liabilities	-
Other assets	265
Cash and cash equivalents	32
TOTAL ASSETS	1,236
Liabilities
Contract liabilities	1,153
Other liabilities	27
TOTAL LIABILITIES	1,180
Consideration received	41
Loss on sale, before tax	15

The cumulative income or expenses recognized in other comprehensive income related to Investors Insurance Corporation were as follows:

In EUR million	2011
Currency retranslations, net of taxes	(1)
Fair value adjustments on available-for-sale financial instruments, net of taxes	(1)
CUMULATIVE INCOME OR EXPENSES RECOGNIZED IN OTHER COMPREHENSIVE INCOME	(2)

ACQUISITION OF XL LIFE AMERICA'S BUSINESS ("XLREA")

On 4 December 2009, SCOR acquired 100% of the capital and voting rights of XL Life America Inc. from XL Capital Ltd and entered into a retrocession contract to assume reserves related to this business. The business acquired showed strong compatibility with SCOR's Life strategy that is rooted in focusing on traditional protection business that is not correlated with economic risks. The acquisition is expected to help SCOR Global Life strengthen its services in the mortality-protection field and improve SCOR's market position in the U.S.

Determination of purchase price

The total consideration for the transaction of EUR 31 million was settled in cash and was entirely self-financed.

Purchase price allocation

As from the acquisition date of 4 December 2009, XL Life America Inc. was fully consolidated by SCOR. This resulted in recognition of VOBA of EUR 20 million and a gain from bargain purchase of EUR 13 million in 2009.

In accordance with IFRS 3, the accounting of a business combination can be reviewed within twelve months from the acquisition date. On 4 December 2010, the initial accounting was finalized with no net change in fair value of net assets acquired. These changes reflect the availability and use of more up to date information on which to base the final acquisition accounting and were recorded as follows:

	2009	2010	2010
In EUR million (1)	Provisional	Adjustment	Final
Assets
VOBA	20	17	37
Investments	35	-	35
Share of retrocessionaires in contract liabilities	7	-	7
Other assets	10	-	10
Cash and cash equivalents	6	-	6
TOTAL ASSETS	78	17	95
Liabilities
Contract liabilities	27	5	32
Other liabilities	6	12	18
TOTAL LIABILITIES	33	17	50
Fair value of net assets	45	-	45
Consideration	(31)	-	(31)
Gain from bargain purchase	14	-	14

(1) Based on EUR/USD exchange rate at the date of acquisition

Value of business acquired

The value of business acquired ("VOBA") for the acquisition of XL Life America Inc. has been estimated as EUR 37 million based on an estimate of expected future income and using a discount rate including an appropriate risk premium. This intangible asset is amortized over the lifetime of the underlying treaties, in line with expected emergence of income.

20.1.6.4 NOTE 4 – INTANGIBLE ASSETS

		Value of
In EUR million	Goodwill	business acquired	Other	Total
Gross value at 31 December 2009	968	844	147	1,959
Foreign exchange rate movements	-	2	4	6
Additions	1	21	18	40
Disposals	-	-	-	-
Change in scope of consolidation	-	-	-	-
Gross value at 31 December 2010	969	867	169	2,005
Foreign exchange rate movements	-	54	1	55
Additions	-	-	24	24
Disposals	-	-	-	-
Change in scope of consolidation	-	540	-	540
Gross value at 31 December 2011	969	1,461	194	2,624
Cumulative amortization and impairment at 31 December 2009	(181)	(293)	(67)	(541)
Amortization for the period	-	(42)	(7)	(49)
Impairment for the period	-	-	-	-
"Shadow accounting"	-	(11)	-	(11)
Cumulative amortization and impairment at 31 December 2010	(181)	(346)	(74)	(601)
Amortization for the period	-	(47)	(8)	(55)
Impairment for the period	-	-	-	-
"Shadow accounting"	-	1	-	1
Cumulative depreciation and impairment at 31 December 2011	(181)	(392)	(82)	(655)
Carrying value as at 31 December 2009	787	551	80	1,418
Carrying value as at 31 December 2010	788	521	95	1,404
Carrying value as at 31 December 2011	788	1,069	112	1,969

The disclosure of intangible assets split between the Group's operational segments SCOR Global P&C and SCOR Global Life has been presented within Note 2 – Segment Information.

GOODWILL

Goodwill, which represents the excess of the cost of each business combination over SCOR's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities acquired, was EUR 788 million as at 31 December 2011 and EUR 788 million as at 31 December 2010.

For the purposes of impairment testing, goodwill acquired in a business combination is allocated by SCOR to the groups of cash generating units (CGUs) that are expected to benefit from the profitability and synergies of the business combination. SCOR groups its CGUs by its operating segments, SCOR Global P&C and SCOR Global Life. This is consistent with the way that SCOR manages and monitors its business and cash flows.

In order to estimate the fair value of SCOR Global P&C for the purpose of impairment testing, SCOR uses a discounted cash flow model comprised of an earnings model, which considers forecasted earnings, and other financial ratios of the reportable segment based on Board approved business plans. Business plans include assessments of gross and net premium expectations, expected loss ratios and expected expense ratios together with actuarial assumptions such as the coefficient of variation on ultimate net reserves together with assumptions as to the mean time to payment of existing reserves and future business. SCOR uses euro risk free interest rates and the estimated SCOR Group cost of capital 8.97% as derived from the Capital Asset Pricing Model (CAPM) for discounting purposes. SCOR also uses conservative growth rate assumptions in its valuation models. A 100 basis point change in SCOR Group cost of capital would not result in an impairment of goodwill.

For SCOR Global Life, goodwill is tested for impairment by analysis using the inputs and methodology that SCOR applies in calculating the embedded value of the segment. Embedded value is a measure of expected future cash flows in life insurance and life reinsurance from the shareholder's point of view, expressed as the value of net assets plus the present value of expected profits on the insurance portfolio less cost of capital and administrative expenses. This approach utilizes discount rates based on risk free swap rates ranging between 0.29 % and 8.15% depending on the currency and the duration.

As part of the impairment testing, SCOR assesses whether the current fair value of operating units is at least equal to the total carrying value of operating units (including goodwill). If it is determined that an impairment exists, the total carrying value is adjusted to current fair value. Any impairment charge is recorded in income in the period in which it is determined.

The annual goodwill impairment tests conducted for both SCOR Global P&C and SCOR Global Life segments show a fair value in excess of the total carrying value. Consequently, the result of the goodwill impairment tests is that no goodwill impairment charges were recognized for the year ended 31 December 2011 (2010: Nil).

VOBA at 31 December 2011 and 2010 relates to the following acquisitions: FOR THE YEAR ENDED 31 DECEMBER In EUR million 2011 2010 Revios acquired in 2006 381 397 Converium acquired in 2007 12 27 ReMark acquired in 2007 36 40 Prévoyance Ré acquired in 2008 16 17 XL Re Life America Inc. acquired in 2009 40 40 Transamerica Re acquired in 2011 584 - TOTAL VOBA 1,069 521

The IFRS 4 liability adequacy testing which includes VOBA recoverability, showed no indicators of impairment for the years ended 31 December 2011 or 2010. Shadow VOBA amounted to EUR (2) million and EUR (3) million at 31 December 2011 and 2010, respectively.

OTHER INTANGIBLE ASSETS

VALUE OF BUSINESS ACQUIRED

Other intangible assets at 31 December 2011 were EUR 112 million compared with EUR 95 million at 31 December 2010.

Other intangible assets with finite useful lives at 31 December 2011 were EUR 82 million compared with EUR 66 million at 31 December 2010. The largest component of this balance are the intangibles with finite lives generated from the joint venture agreement MDU (Medical Defense Union), which totaled EUR 23 million, acquired through the Converium business combination. The Group amortizes its other intangibles with a finite life over a 3 to 10 year period dependent on the specific circumstances of each arrangement.

The additions during the year ended 31 December 2011 of EUR 24 million comprise mainly software development cost capitalized relating to the Group's general ledger, technical accounting system and internal model of the Group.

The Group conducted its annual assessment of the amortization period and amortization method of these finite life intangible assets and has concluded that both the amortization period and existing amortization methodology are appropriate and in line with current contractual agreements.

The amortization charge associated with other intangible assets with finite lives was EUR 8 million, EUR 7 million, and EUR 21 million for the years ended 31 December 2011, 2010, and 2009 respectively.

Other intangible assets also include indefinite life intangible assets associated with Lloyd's syndicate participations acquired through the Converium business combination. The Lloyd's intangibles of EUR 15 million are deemed to have an indefinite life due to the ability to realize cash for these contractual rights through the Lloyd's auction process. Other intangible assets having an indefinite useful life at 31 December 2011 were EUR 15 million compared with EUR 14 million at 31 December 2010.

Intangible assets with an indefinite life are tested for impairment annually. The price of the Lloyd's syndicate participations from the Lloyd's auction process are key inputs to the impairment tests conducted which demonstrated that there are no indicators of impairment. An impairment of EUR 3 million relating to a Lloyd's underwriting syndicate were recognized in 2009 and no impairment charges were recognized for the year ended 31 December 2010 and 31 December 2011.

20.1.6.5 NOTE 5 - TANGIBLE ASSETS AND PROPERTY RELATED COMMITMENTS

TANGIBLE ASSETS

Tangible assets as at 31 December 2011 were EUR 515 million compared to EUR 52 million as at 31 December 2010. These primarily relate to buildings used by SCOR as offices, office furniture and equipment, and building fixtures and fittings.

In EUR million	Fixed assets
Gross value at 31 December 2009	131
Foreign exchange rate movements	3
Additions	21
Disposals	(9)
Change in scope of consolidation	-
Gross value at 31 December 2010	146
Foreign exchange rate movements	4
Additions	450
Reclassification from real estate investments (Note 6 (C))	10
Disposals	(17)
Change in scope of consolidation	18
Other	-
Gross value at 31 December 2011	611
Cumulative depreciation and impairment at 31 December 2009	(91)
Depreciation for the period	(8)
Impairment for the period	(1)
Other	6
Cumulative depreciation and impairment at 31 December 2010	(94)
Depreciation for the period	(13)
Impairment for the period	-
Reclassification from real estate investments (Note 6 (C))	(6)
Disposals	17
Cumulative depreciation and impairment at 31 December 2011	(96)
Carrying value as at 31 December 2009	40
Carrying value as at 31 December 2010	52
Carrying value as at 31 December 2011	515

The additions to tangible assets in 2011 are mainly related to the following acquisitions:

On 1 July 2011, SCOR Group finalized the purchase of Kléber SAS, whose primary asset is an office building located in Paris. The SCOR head office will be moved to the Kléber office building at the beginning of 2012. The remainder will be leased. This transaction resulted in an increase of the Group's fixed assets of EUR 344 million, and financial debts of EUR 170 million in 2011.

On 6 July 2011, SCOR Holding Switzerland AG, a wholly owned subsidiary of the Group, acquired PPG Lime Street Ltd, a company whose primary asset is a building located in London. This transaction resulted in an increase of the Group's fixed assets of EUR 53 million (GBP 47 million) in 2011.

EUR 26 million were capitalized as asset in progress in relation to a building in Cologne. See below "Property related commitments received and granted".

The change in scope of consolidation, presented in the table above, relates to the acquisition of a company whose main asset is a share in an aircraft of EUR 18 million.

PROPERTY RELATED COMMITMENTS RECEIVED AND GRANTED

Operating lease contracts

Various entities in the Group rent their office space. The largest lease contract is for SCOR Zurich office where during 2011 the lease term has been extended until December 2016. The minimum payments are as follows:

	2011	2010
In EUR million	Minimum payments	Minimum payments
Less than one year	22	13
From one to five years	33	13
More than five years	-	-
TOTAL MINIMUM PAYMENTS	55	26

Property related commitments and guarantees

In December 2003, the Group sold its headquarters but remains as tenant of this building until December 2012. The owner of the building has a bank guarantee based on SCOR's rating. SCOR has pledged assets for the same value with the bank that issued this guarantee.

In Cologne in 2009 SCOR committed to acquire a 6,500 square meters building at Goebenstrasse 10 which became the Cologne Hub head office from early 2012. Total costs for building and land are estimated at EUR 37 million. This expenditure has been partially contracted as installments payable from 2010 onwards and is contingent upon both the progress of construction work and backing by bank guarantees. As at 31 December 2011, EUR 26 million (2010: EUR 8 million) of payments had been capitalized, of which the majority comprised installments. The final payment is contingent upon the transfer of this property to SCOR and is anticipated in early 2012. In January 2012, the Group partially funded the cost of the purchase from a financial debt of EUR 18 million.

20.1.6.6 NOTE 6 - INSURANCE BUSINESS INVESTMENTS

The insurance business investments of the Group can be analyzed as follows:

	Net book value as at 31 December
In EUR million		2011	2010
Real estate investments	Note 6 – (C)	499	378
Equities		1,158	1,273
Fixed income	Note 6 – (D)	8,334	10,188
Available-for-sale investments	Note 6 – (B), (D), (E)	9,492	11,461
Equities		89	31
Fixed income	Note 6 – (D)	38	9
Investments at fair value through income	Note 6 – (A), (B), (D)	127	40
Loans and receivables	Note 7 (also Note 6 – (A))	9,872	7,898
Derivative instruments	Note 8 (also Note (A), (B))	158	94
TOTAL INSURANCE BUSINESS INVESTMENTS		20,148	19,871

(A) INSURANCE BUSINESS INVESTMENTS BY VALUATION METHODS

Analysis of insurance business investments and financial liabilities carried at fair value by valuation method:

	Investments and cash as at 31 December 2011 Cost or amortized
In EUR million	Total	Level 1	Level 2	Level 3	cost
Real estate investments	499	-	-	-	499
Equities	1,158	806	288	-	64
Fixed income	8,334	7,512	814	8	-
Available-for-sale investments	9,492	8,318	1,102	8	64
Equities	89	15	74	-	-
Fixed income	38	10	28	-	-
Investments at fair value through income	127	25	102	-	-
Loans and receivables	9,872	1,774	-	-	8,098
Derivative instruments	158	-	25	133	-
TOTAL INSURANCE BUSINESS INVESTMENTS	20,148	10,117	1,229	141	8,661
Cash and cash equivalents	1,281	1,281	-	-	-
Investments and cash as at 31 December 2011	21,429	11,398	1,229	141	8,661

	Investments and cash as at 31 December 2010 Cost or amortized
In EUR million	Total	Level 1	Level 2	Level 3	cost
Real estate investments	378	-	-	-	378
Equities	1,273	1,025	161	-	87
Fixed income	10,188	9,048	1,126	14	-
Available-for-sale investments	11,461	10,073	1,287	14	87
Equities	31	1	30	-	-
Fixed income	9	9	-	-	-
Investments at fair value through income	40	10	30	-	-
Loans and receivables	7,898	259	-	-	7,639
Derivative instruments	94	-	33	61	-
TOTAL INSURANCE BUSINESS INVESTMENTS	19,871	10,342	1,350	75	8,104
Cash and cash equivalents	1,007	1,007	-	-	-
Investments and cash as at 31 December 2010	20,878	11,349	1,350	75	8,104

The level in which an investment is categorized within the fair value method hierarchy is determined on the basis of the lowest level of input that is significant to the fair value measurement of that instrument. The significance of an input is therefore assessed against the fair value measurement in its entirety. Assessing the significance of particular inputs into the fair value measurement requires judgment, considering factors specific to the instrument.

Level 1: Investments at fair value based on prices published in an active market

Included within this category are financial investments that are measured by direct reference to published quotes within an active market. Financial instruments are included within this category if quoted prices or rates represent actual and regularly occurring transactions that are available from an exchange, dealer or broker. These comprise of listed equities, mostly government, covered and agency bonds as well as short term investments.

Level 2: Investments at fair value determined using valuation techniques based on models prepared by internal and external third parties using observable market data

The Group has certain investments which are valued based on models prepared by independent external third parties using market inputs. These are primarily comprised of structured products, other than agencies for which the market is considered active, private placements, inflation linked government assimilated bonds and specific alternative investments. Similarly, the Group values certain derivative investments, namely the mortality and real estate swaps using internal valuation techniques based on market inputs. Further detail on the valuation of these derivative instruments is included within Note 8 – Derivative Instruments.

Level 3: Investments at fair value determined using valuation technique not (or partially) based on market data

Included within this category are those instruments whose fair value is not based on observable market inputs. These instruments are neither supported by prices from observable current market transactions in the same instrument, nor are they based on available market data. As at 31 December 2011, the main asset class within the Level 3 fair value measurement category consists of derivative instruments primarily relating to the Atlas catastrophe agreements. Further detail on the valuation of these derivative instruments is included within Note 8 - Derivative Instruments.

Available-for-sale investments measured at cost

Available for sale investments included approximately EUR 64 million of investments which are measured at cost (2010: EUR 87 million). These investments include primarily unlisted equities.

In 2011, there were no material gains or losses realized on the disposal of available for sale investments which were previously carried at cost.

Transfers and classification of investments

There have been no material transfers between Level 1 and Level 2 in 2011 and 2010 respectively. There were also no changes in the purpose of any financial asset that subsequently resulted in a different classification of that asset.

The movement in Level 3 investments since 31 December 2010 is mainly due to foreign exchange impacts and the amortization of Atlas vehicles.

(B) MOVEMENTS IN LEVEL 3 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE

During the year ended 31 December 2011, there were EUR (4) million net transfers out of Level 3 fair value measurement category.

In EUR million	At 1 January 2011	Total gains / (losses) recognized in statement of income	Change in fair value	Purchases	Sales	Transfer into / out of level 3 fair value measure ment	At 31 December 2011
Equities	-	-	-	-	-	-	-
Fixed income	14	-	-	-	(2)	(4)	8
Available-for-sale investments	14	-	-	-	(2)	(4)	8
Derivative instruments	61	(31)(1)	-	103(2)	-	-	133
Investments	75	(31)	-	103	(2)	(4)	141

(1) Movements in derivatives instruments relates mainly to the amortization and investment in ATLAS V and VI catastrophe bonds. (2) Mainly purchase of ATLAS VI series 2011-1 and 2011-2 catastrophe bonds

						Transfer
		Total gains /				into / out
		(losses)				of level 3
	At 1	recognized				fair value	At 31
	January	in statement	Change in			measure	December
	2010	of income	fair value	Purchases	Sales	ment	2010
Equities	2	-	-	-	-	(2)	-
Fixed income	8	-	-	-	-	6	14
Available-for-sale investments	10	-	-	-	-	4	14
Derivative instruments	60	(25)(1)	-	26(2)	-	-	61
Investments	70	(25)	-	26	-	4	75

(1) Movements in derivatives instruments relates to the amortization and investment in ATLAS V and VI catastrophe bonds. (2) Purchase of the second tranche of ATLAS VI catastrophe bonds

In EUR million	At 1 January 2009	Total gains / (losses) recognized in statement of income	Change in fair value	Purchases	Sales	Transfer into / out of level 3 fair value measure ment	At 31 December 2009
Equities	18	4	-	-	(20)	-	2
Fixed income	8	-	-	-	-	-	8
Available-for-sale investments	26	4	-	-	(20)	-	10
Derivative instruments	-	(21)	-	81	-	-	60
Investments	26	(17)	-	81	(20)	-	70

The EUR (31) million total losses recorded in the statement of income in 2011, include EUR (31) million of change in FV (2010: EUR (25) million; 2009: EUR (21) million) and no realized gains/losses (2010: nil, 2009: EUR 4 million).

(C) REAL ESTATE INVESTMENTS

The properties held by the Group and considered as investment property are owned by SCOR Auber, a 100% subsidiary of SCOR SE. They consist of office buildings, which the Group owns and leases, and one office building capitalized under finance lease contracts. The movements in the real estate investments and finance leases are analyzed as follows:

	Real estate	Finance
In EUR million	investments	Leases	Total
Gross value at 31 December 2009	314	91	405
Foreign exchange rate movements	1	-	1
Additions	84	-	84
Disposals	(13)	-	(13)
Change in scope of consolidation	-	-	-
Gross value at 31 December 2010	386	91	477
Foreign exchange rate movements	(1)	-	(1)
Additions	150	-	150
Disposals	(27)	-	(27)
Reclassification to owner-occupied property (Note 5)	(10)	-	(10)
Change in scope of consolidation	-	-	-
Gross value at 31 December 2011	498	91	589
Cumulative depreciation and impairment at 31 December 2009	(74)	(24)	(98)
Depreciation for the period	3	(4)	(1)
Impairment for the period	-	-	-
Other	-	-	-
Cumulative depreciation and impairment at 31 December 2010	(71)	(28)	(99)
Depreciation for the period	(8)	(3)	(11)
Impairment for the period	-	-	-
Disposals	14	-	14
Reclassification to owner-occupied property (Note 5)	6	-	6
Cumulative depreciation and impairment at 31 December 2011	(59)	(31)	(90)
Carrying value as at 31 December 2009	240	67	307
Carrying value as at 31 December 2010	315	63	378
Fair value as at 31 December 2010	398	95	493
Carrying value as at 31 December 2011	439	60	499
Fair value as at 31 December 2011	523	95	618

On 19 May 2011, SCOR Auber, a wholly owned subsidiary of the Group, acquired a property in Meudon (Green Office), for EUR 92 million and on 30 June 2011 a property in Paris, (Le Barjac), for EUR 50 million, as part of its real estate investment portfolio.

These acquisitions were partly funded by debt as presented within other financial debt within Note 14 – Financial debt.

Financial lease contracts

The Group holds a finance lease which contains an option to purchase an investment property at the end of the lease term. In July 2011, an addendum to this financial lease has been signed to extend the maturity of the contract by two years from 26 June 2011. The amount of the minimum payments and their discounted values are as follows:

	2011		2010
	including Minimum principal		Minimum	including principal
In EUR million	payments	payments	payments	payments
Less than one year	8	7	4	2
From one to five years	4	3	-	-
More than five years	-	-	-	-
Total minimum payments	12	10	4	2
Less interest expenses	(2)	-	(2)	-
Principal in minimum payments	10	10	2	2

Commitments relating to the financing of acquisitions of investment properties through financial leases and other bank loans are presented within Note 14 – Financial debt.

Rental income

As part of its real estate investment activities described above, SCOR leases or subleases its investment buildings. The leases generally conform to the local market conditions and have annual indexation clauses for the rental payments. The estimated minimum rental income is as follows:

	2011	2010
In EUR million	Minimum rental income	Minimum rental income
Less than one year	39	25
From one to five years	69	31
More than five years	16	4
TOTAL MINIMUM RENTAL INCOME	124	60

(D) FIXED INCOME SECURITIES

(a) Credit ratings – fixed income securities classified as available-for-sale and fair value through income

An analysis of the credit ratings of fixed income securities classified as available-for-sale and fair value through income is as follows:

In EUR million	AAA	AA	A	BBB	< BBB	Not rated	Total
As at 31 December 2011
Available-for-sale	3,079	2,086	1,775	1,022	272	100	8,334
Fair value through income	-	28	9	-	-	1	38
Total fixed income securities as at 31
December 2011	3,079	2,114	1,784	1,022	272	101	8,372
As at 31 December 2010
Available-for-sale	6,042	838	1,717	1,093	302	196	10,188
Fair value through income	-	9	-	-	-	-	9
Total fixed income securities as at 31
December 2010	6,042	847	1,717	1,093	302	196	10,197

(b) Maturity – fixed income securities classified as available-for-sale and fair value through income

The table below presents the estimated maturity profiles of financial assets, which are expected to generate cash inflows to meet cash outflows on financial liabilities:

	Less than	One to five	Five to ten	Ten to	More than
	one year	years	years	twenty years	twenty years	Total
As at 31 December 2011
In EUR million	941	4,989	1,313	467	662	8,372
In percentage	11%	59%	16%	6%	8%	100%
As at 31 December 2010
In EUR million	1,821	5,476	2,105	610	185	10,197
In percentage	18%	54%	20%	6%	2%	100%

(c) Net unrealized gains (losses) – fixed income securities

The following table summarizes the fixed income securities and unrealized gains / (losses) by class of fixed income security:

In EUR million	Net book value	As at 31 December 2011 Net unrealized gains / (losses)	Net book value	As at 31 December 2010 Net unrealized gains / (losses)
Government bonds & assimilated
France	219	(13)	733	(3)
Germany	920	11	717	(5)
Netherlands	165	(21)	164	(1)
Other EU (1)	209	(10)	216	(2)
United Kingdom	175	3	498	7
United States	890	7	1,595	20
Canada	344	26	357	13
Other	517	(10)	637	9
Total Government bonds & assimilated	3,439	(7)	4,917	38
Covered bonds & Agency MBS	839	8	1,002	12
Corporate bonds	3,413	(22)	3,330	68
Structured & securitized products	681	(27)	948	(20)
Total fixed income securities (2)	8,372	(48)	10,197	98

(1) As at 31 December 2011, SCOR has no investment exposure related to sovereign risk of Portugal, Ireland, Italy, Greece, Hungary or Spain. (2) The balance includes EUR 38 million fixed income securities which are classified as fair value through income

(E) AVAILABLE FOR SALE INVESTMENTS – UNREALIZED GAINS AND LOSSES

(a) Movements in unrealized gains (losses)

The change in the valuation of the available-for-sale portfolio affecting shareholders' equity is as follows:

In EUR million	2011	2010	2009
Net unrealized gains (losses) net of tax 1 January	56	37	(251)
Transferred to consolidated net income during the period, net of impairment	(18)	46	95
Change in unrealized gains and losses (including investments purchased during the period) (1)	(215)	(56)	189
Impact of foreign exchange	1	36	14
Change in scope and other	(2)	(7)	(10)
Net unrealized gains (losses) net of tax 31 December	(178)	56	37

(1) Change in unrealized gains and losses is presented net of shadow accounting

At 31 December 2011 and 2010, the unrealized gains and losses on available-for-sale investments can be analyzed as follows:

		2011		2010
			Net			Net
			unrealized			unrealized
	Unrealized	Unrealized	gains	Unrealized	Unrealized	gains
In EUR million	gains	losses	(losses)	gains	losses	(losses)
Equities	38	(208)	(170)	51	(53)	(2)
Bonds	149	(197)	(48)	204	(106)	98
Unrealized gains and losses
on available-for-sale
investments (gross of tax) (1)	187	(405)	(218)	255	(159)	96

(1) Unrealized gains and losses on available for sale investments analyzed above exclude gains and losses relating to foreign exchange.

Total impairment losses recognised in 2011 amounted to EUR 51 million (2010: EUR 57 million), of which EUR 56 million (2010: EUR 37 million) relate to the equity portfolio and EUR (5) million (2010: EUR 20 million) to fixed-income securities.

(b) Net unrealized gains (losses) – equity securities classified as available for sale

The Group analyses its unrealized gains / (losses) on equity securities as follows:

	As at 31 December 2011
In EUR million				Duration of decline in months
Magnitude of decline	<12	12-18	>18	Total
31-40%	(21)	-	(7)	(28)
41-50%	(31)	(4)	(9)	(44)
≥ 51%	-	-	-	-
Total unrealized losses on available-for-sale equity
securities analyzed on a line-by-line basis	(52)	(4)	(16)	(72)
Unrealized losses < 30%	-	-	-	(136)
Unrealized gains and other (1)	-	-	-	38
Net unrealized gains / (losses)	-	-	-	(170)

In EUR million			As at 31 December 2010 Duration of decline in months
Magnitude of decline	<12	12-18	>18	Total
31-40%	(4)	-	-	(4)
41-50%	-	-	-	-
≥ 51%	-	-	-	-
Total unrealized losses on available-for-sale equity
securities analyzed on a line-by-line basis	(4)	-	-	(4)
Unrealized losses < 30%	-	-	-	(49)
Unrealized gains and other (1)	-	-	-	51
Net unrealized gains / (losses)	-	-	-	(2)

(1) Other also includes one listed investment with an unrealized loss of EUR 15 million (2010: EUR 9 million) deemed not to be impaired given the strategic nature of the investment.

20.1.6.7 NOTE 7 - LOANS AND RECEIVABLES

In EUR million	2011	2010
Funds held by ceding companies	8,026	7,481
Short term investments	1,774	259
Loans secured against collateral	-	31
Other loans maturing in more than one year	43	79
Deposits	29	48
TOTAL	9,872	7,898

Loans and receivables include primarily receivables from cash deposits made at the request of ceding companies as collateral for commitments (insurance contract liabilities), short term investments and related accrued interest. Short term investments includes government bonds, certificates of deposit (CDs) and treasury bills (T-bills) maturing between 3 and 12 months from the date of purchase. CDs and T-bills maturing in more than 12 months from date of purchase are included in "other loans maturing in more than one year".

In 2011, the increase of EUR 1,974 million during the year results from purchases of short term investments and increased funds held by ceding companies.

Short term investments are carried at fair value. Other loans and receivables are carried at cost which approximates to the fair value at 31 December 2011 and 2010.

20.1.6.8 NOTE 8 - DERIVATIVE INSTRUMENTS

Derivative financial instruments include the following items:

				Fair value through
	Derivative assets		Derivative liabilities		income
In EUR million	2011	2010	2011	2010	2011	2010
Atlas V & VI	130	61	-	-	(31)	(28)
Mortality swaps	-	6	-	-	(6)	(6)
Real estate swaps	-	-	1	3	2	(3)
S&P 500 index options	-	22	-	-	-	11
Interest rate swaps	-	-	24	2	(4)	(2)
Currency swaps	15	-	-	-	-	-
Other	13	5	27	3	-	-
TOTAL	158	94	52	8	(39)	(28)

ATLAS SPECIAL PURPOSE VEHICLE CATASTROPHE BONDS

On 19 February 2009, SCOR reopened the market for catastrophe bonds (an insurance-linked security) with the issue of the three series "Atlas V" catastrophe bonds. The multi-year property catastrophe agreements concluded between SCOR and Atlas V Capital Limited ("Atlas V") provides the Group with additional protection of USD 200 million for exposures to earthquakes and hurricanes in the U.S. and Puerto Rico. Events are covered for the risk period from 20 February 2009 to 19 February 2012.

On 9 December 2009, SCOR completed the EUR 75 million Atlas VI transaction, replacing Atlas Reinsurance III. Atlas VI provides EUR 75 million of protection against European windstorms and Japanese earthquakes risks until 31 March 2013.

On 9 December 2010, SCOR successfully placed a new catastrophe bond ("Cat bond"), Atlas VI Capital Limited Series 2010-1, which will provide the Group with EUR 75 million of protection against European windstorms and Japanese earthquakes for a risk period extending from 10 December 2010 to 31 March 2014. This transaction succeeds Atlas IV Reinsurance Limited, which matured on 31 December 2010 and provides similar geographical cover of EUR 160 million.

On 12 December 2011 SCOR successfully placed a new catastrophe bond ("Cat bond"), Atlas VI Capital Limited Series 2011-1 and 2011-2, which will provide the Group with USD 270 million of protection against US Hurricanes and Earthquakes and EUR 50 million of protection against European windstorms, for a risk period extending from 13 December 2011 to 31 December 2014 for the US series and 31 March 2015 for the European series. This transaction will succeed Atlas V Capital Limited, which is due to mature on 24 February 2012 and provides similar geographical cover as Series 2011-1 for an amount of USD 200 million.

Atlas V & VI are special-purpose vehicles incorporated under the laws of Ireland and their notes are placed with various institutional investors. In accordance with IAS 39 "Financial Instruments recognition and measurement", due to the absence of an ultimate net loss clause, these instruments have been recognized as derivative instruments, which are fully funded by the proceeds of the vehicles. They are considered as balance sheet protection.

Valuation and presentation

Amounts are recorded in the balance sheet representing the derivative asset recognized at fair value through P&L and other liabilities representing the value interest payments. SCOR values the derivative asset using a model that is based on a combination of market inputs to the extent that trades in these instruments are active and catastrophic modelling tools. These assets are disclosed as level 3 investments within insurance business investments (see Note 6 – Insurance business investments).

Amounts recorded in the statement of income include transaction costs that are expensed at inception as financing expense. The changes in fair value through income as presented above are recognized as other operating expenses or other operating income.

Premiums related to the underlying business are accounted for in accordance with IFRS 4 "Insurance Contracts".

MORTALITY SWAPS

During 2008 SCOR Global Life SE concluded a four-year mortality swap with an affiliate of J.P. Morgan Chase & Co. ("JP Morgan"), effective 1 January 2008. On 1 September 2009, the terms of the agreement were amended to add an additional layer of protection.

Under the terms of the original 2008 agreement ("1st tranche") SCOR Global Life SE can receive cash up to a nominal amount of USD 100 million and EUR 36 million in the event of a rise in mortality. Under the terms of the amended agreement in 2009 ("2nd tranche") SCOR Global Life SE will also receive up to a nominal amount of USD 75 million in the event of a rise in mortality. The agreement, which runs for a risk period from 1 January 2008 to 31 December 2011 and 1 January 2009 to 31 December 2011 for the 1st and 2nd tranche respectively and will terminate on 15 January 2012, will compensate SCOR notably for a rise in mortality rates due to major pandemics, natural catastrophes or terrorist attacks.

The swaps are indexed against a weighted combination of U.S. and European population mortality, measured over two consecutive calendar years. According to the structure of the arrangements, a payment by J.P. Morgan will be triggered if, at any time during the period covered, the index exceeds attachment point as presented within the following table. At any index level between the attachment point and the exhaustion point, JP Morgan will pay to SCOR a pro-rata amount of the notional swap amount of the nominal amount, so that for example, at an index level of 107.5% on the 2nd tranche, 50% of the total amount becomes payable and at an index level of 110%, the full amount will be paid out. The mortality swap is fully collateralized by JP Morgan in favour of SCOR and thus SCOR bears no credit risk exposure.

The terms of the agreement have been summarized below:

	2008 agreement (1st tranche)	2009 amendment (2nd tranche)
Nominal amount	USD 100 million & EUR 36 million	USD 75 million
Risk period	1 January 2008 to 31 December 2011	1 January 2009 to 31 December 2011
Attachment point	115%	105%
Exhaustion point	125%	110%
Signing date	22 February 2008	1 September 2009

Additionally, SCOR prepaid USD 850,000 and USD 1,050,000 for the 1st and 2nd tranche respectively as a form of collateral to JP Morgan to secure fees for these arrangements.

Valuation

The mortality swap asset is measured as the difference between the present value of expected cash flows based on the contractual spread (205 bps and 550 bps for the 1st and 2nd tranche respectively) and the current estimated spread obtained from comparable instruments in the market.

REAL ESTATE SWAPS

SCOR has entered into two real estate swap contracts, with ABN AMRO. The contracts were subsequently assigned to RBS. This dual-swap transaction has been concluded for 5 years commencing in 2007 and ending in April 2012. The two separate swaps are calculated and settled annually in April of each year:

• SCOR swaps the French offices total return for 1Y Euribor + 2.20%.
• SCOR swaps 1Y Euribor + 2.20% for the German all properties total return.

The objective of this transaction was to:

• Hedge SCOR's direct economic exposure to the Paris commercial real estate market.
• Diversify SCOR's real estate direct allocation to other real estate sectors, especially residential, with geographical diversification through another country exposures.

The indices used to measure the relevant real estate returns are those issued by an independent third party company (IPD). These indexes are obtained by the analysis of the appraised market values on 31 December of each year and rental incomes of the real estate portfolios of institutional investors using the independent third party provider. The indices are therefore derived from a large and diversified data base. The notional exposure for each of the four components of the transactions is EUR 30 million.

Valuation

SCOR values these swaps using an internal model based on observable banking and real estate inputs.

EQUITY INDEX ANNUITY HEDGING OPTIONS

On 18 July 2011, SCOR completed the sale of its US fixed annuity business through the sale of its wholly owned subsidiary Investors Insurance Corporation to Athene Holding Ltd. See also note 20.1.6.3 – Acquisitions and Disposals. The sale of the US fixed annuity business resulted in the derecognition of the full equity index annuity hedging options.

In connection with its asset-liability matching strategy, and until the sale of IIC, SCOR hedged the equity index annuities portfolio through various call options on one or more of the following indices: S&P 500, NASDAQ, Euro Stoxx 50. For these annuities, policyholder values were credited based on the performance of a specified index, over the counter options were purchased as investments to provide the income needed to fund the index credits. Any basis risk and risk associated with actual versus expected assumptions for mortality and lapse rates were retained by the Group.

These options were valued as at 31 December 2010, based on the Black-Scholes and other stochastic simulation models using financial data, including the appropriate indices, implied volatility and risk-free rates. The notional amount at 31 December 2010 was USD 842 million or EUR 626 million for which the cost of the option was USD 30 million or EUR 22 million. The fair value adjustment recorded at 31 December 2010 amounted to USD (1) million or EUR (1) million) to reduce the options to their fair value of USD 29 million or EUR 22 million. The total decrease in fair value for these contracts in 2010 recorded through income amounted to USD 14 million or EUR 11 million.

The underlying indexed annuity contracts contained caps (limits) on the percentage increase in the underlying index that SCOR contractually credited to the policyholders' accounts. The average cap on the portfolio was about 6%. Our maximum total exposure at 31 December 2010 associated with the USD 841 million notional amount including recognition of the caps if counterparties fail to pay was USD 50 million.

INTEREST RATE SWAPS

SCOR has entered into interest rates swaps to cover its exposure to financial debt with variable interest rates relating to real estate investments. The fair value of these swaps is obtained from the banking counterparty using market inputs. The total notional amount relating to these swaps is EUR 326 million as at 31 December 2011 (2010: EUR 68 million). Net interest paid under these swaps amounted to EUR 4 million in 2011 (2010: EUR 1 million).

Valuation and presentation

Cash-flow hedge accounting is applied when the hedging relationship is determined to be highly effective. Effectiveness testing is performed at the inception of the hedging relationship and at each balance sheet date throughout the term of the hedge relationship. Where hedge effectiveness is not attained, the hedging instrument (interest rate swap) is measured at fair value through profit and loss from the date the hedge relationship ceases to be effective. As at 31 December 2011, the fair value of the interest rate swaps was EUR (24) million (2010: EUR (2) million). The amount recognized in other comprehensive income in 2011 is EUR 21 million (2010: Nil). The amount recognized in the statement of income in 2011 was EUR 2 million (2010: EUR 1 million).

CURRENCY SWAPS

On 21 January 2011, SCOR placed CHF 400 million of perpetual subordinated debt, which was issued on 2 February 2011 (see note 14 - Financial debt). To hedge the FX risk associated with the issued debt, SCOR entered into a crosscurrency swap which exchanges the principal into EUR and exchanges the coupon on the notes to 6.98% and matures on 2 August 2016.

On 3 June 2011, SCOR reopened its existing CHF perpetual subordinated notes placement by issuing an additional amount of CHF 250 million. To hedge the FX risk associated with the issued debt, SCOR entered into a cross-currency swap which exchanges the principal into EUR and exchanges the coupon on the notes to 6.93% and matures on 2 August 2016.

Valuation and presentation

Cash-flow hedge accounting is applied. The fair value of these swaps is obtained from the banking counterparty using market inputs. The total notional amount relating to these swaps is CHF 650 million at 31 December 2011 (2010: Nil). Fair value of the swaps is EUR 14.5 million, the counterpart of which was result for EUR 14.3 million and other comprehensive income for EUR 0.2 million.

OTHER

Forward currency contracts

SCOR enters into forward currency purchase and sales contracts to reduce its overall exposure to balances held in currencies other than the functional currencies of its subsidiaries. The contracts are recorded at their net fair value from valuations provided by banking counterparties using market inputs. The outstanding contracts at 31 December 2011 and 2010, converted into EUR at the closing rates, were as follows:

	Forward sales		Forward purchases
In EUR million	Notional	Fair value	Notional	Fair value
31 December 2011	561	(21)	1,428	5
31 December 2010	746	1	1,119	1

Included in the forward sales contracts at 31 December 2011 was a forward sale contract which has been designated as a hedge of a net investment.

Contingent capital instrument

See note 13 Information on share capital, capital management, regulatory framework and shareholders' equity, for the details on the issuance of warrants to UBS in the context of the contingent capital arrangement program.

Valuation and presentation

Amounts are recorded in the balance sheet representing the instrument asset recognized at fair value through P&L and other liabilities representing the value interest payments. In the absence of observable market inputs and parameters to reliably determine a fair value for this derivative instrument, the best measure of fair value is the expected cost of the instrument, corresponding to the total annual fees payable under the arrangement net of the warrants' subscription amount received, amortized over the life of the instrument. These assets are disclosed as level 3 investments within insurance business investments (see Note 6 – Insurance business investments).

The changes in fair value through income as presented above are recognized in P&L. Following the activation of the contingent capital in July 2011, the derivative instrument fair value reduced which was off-set by a corresponding decrease in the total fees payable.

20.1.6.9 NOTE 9 - INVESTMENTS IN ASSOCIATES

The Group holds investments in associated companies. The following table provides a summary of the financial information for these companies.

				Total
				liabilities		Net	Net book
			Total	excluding		income at	value (in
In EUR million	Control %	Country	assets	equity	Turnover	100%	SCOR)
ASEFA	40 %	Spain	1,039	950	122	4	38
Mutre	33 %	France	1,048	930	305	-	39
SCOR
CHANNEL	100 %	Guernsey	13	11	17	-	2
COGEDIM Office Partner (2)	44 %	France	75	75	-	0	-
SCOR Gestion
financière	100 %	France	4	-	-	-	4
Total 2011 (1)							83
ASEFA	40 %	Spain	1,056	971	107	5	34
Mutre	33 %	France	1,043	927	295	5	38
SCOR
CHANNEL	100 %	Guernsey	14	12	16	-	2
SCOR Gestion
financière	100 %	France	4	-	-	-	4
Total 2010 (1)							78
ASEFA	40 %	Spain	1,121	1,043	112	3	31
Mutre	33 %	France	838	776	307	(3)	32
SCOR
CHANNEL	100 %	Guernsey	14	12	12	-	2
SCOR Gestion
financière	100 %	France	4	-	-	(1)	4
Total 2009 (3)							69

(1) Based on 2011 and 2010 provisional financial information, respectively.

(2) Investment in COGEDIM Office Partner additionally includes a loan to the entity, presented in loans and receivable for EUR 11 million as at 31 December 2011.

(3) Based on 2008 accounts except ASEFA and SGF which are based on 2009 provisional financial information.

20.1.6.10 NOTE 10 - ASSUMED AND CEDED INSURANCE AND REINSURANCE RECEIVABLES AND PAYABLES

	SCOR	2011 SCOR Global		SCOR	2010 SCOR Global
In EUR million	Global Life	P&C	Total	Global Life	P&C	Total
Gross receivables from ceding companies	225	303	528	276	275	551
Provision for bad debts	(3)	(10)	(13)	(5)	(11)	(16)
Estimated premiums receivable from cedants, net of commission	1,974	1,595	3,569	1,583	1,396	2,979
Assumed insurance and reinsurance accounts receivable	2,196	1,888	4,084	1,854	1,660	3,514
Amount due from reinsurers	98	79	177	96	39	135
Provision for bad debts	-	(2)	(2)	-	(4)	(4)
Receivables from ceded reinsurance transactions	98	77	175	96	35	131
Assumed insurance and reinsurance accounts payable	(166)	(71)	(237)	(95)	(135)	(230)
Liabilities for cash deposits from retrocessionaires	(337)	(197)	(534)	(342)	(169)	(511)
Amount due to reinsurers	(57)	(39)	(96)	(177)	(21)	(198)
Estimated premiums payable to retrocessionaires, net of commission	(60)	(162)	(222)	(126)	(71)	(197)
Accounts payable on ceded reinsurance transactions	(454)	(398)	(852)	(645)	(261)	(906)

Accounts receivable from and payable to cedants and retrocessionaires are mostly due in less than one year. A complete aging of financial assets is included in Note 26 – Insurance and financial risk.

20.1.6.11 NOTE 11 - DEFERRED ACQUISITION COSTS

	SCOR Global	2011 SCOR Global		SCOR Global	2010 SCOR Global		SCOR Global	2009 SCOR Global
In EUR million	Life	P&C	Total	Life	P&C	Total	Life	P&C	Total
Net value at 1 January	485	278	763	529	238	767	524	227	751
Capitalisation of new contracts for the period / Change of the period	98	313	411	51	280	331	154	239	393
Change in scope of consolidation and contract portfolio exchanges	(105)	-	(105)	-	-	-	-	-	-
Amortisation for the year	(79)	(268)	(347)	(80)	(255)	(335)	(77)	(227)	(304)
Impairment losses during the year	-	-	-	-	-	-	(7)	-	(7)
Foreign exchange rate movements	(2)	2	-	31	15	46	(4)	(1)	(5)
Other changes (including change in shadow accounting)	-	-	-	(46)	-	(46)	(61)	-	(61)
Net value at 31 December	397	325	722	485	278	763	529	238	767

20.1.6.12 NOTE 12 - CASH AND CASH EQUIVALENTS AND CASH FLOWS

In EUR million	2011	2010
Cash on hand and cash equivalent	698	621
Short-term deposits and investments	583	386
Cash and cash equivalents	1,281	1,007

Cash where applicable earns interest based on daily deposit interest rates. Total cash and cash equivalents include short term deposits and investments, which mature less than three months from the date of the initial investment and earn interest based on the rates for short term deposits. Money market funds meeting certain criteria are also classified as cash equivalent.

Liquidity is defined as cash and cash equivalents (as presented above) and short term investments comprised primarily of government bonds maturing between 3 and 12 months from date of purchase (as presented within Note 7 – Loans and receivables). Total liquidity as at 31 December 2011 is EUR 3,055 million (2010: EUR 1,266 million).

NET CASH FLOW FROM OPERATIONS

The following table reconciles consolidated net income to net cash flow provided by (used in) operations as presented on the statement of cash flows:

	For the year ended 31 December
In EUR million	2011	2010	2009
Consolidated Group net income	330	418	370
Realized gains and losses on investment disposals	(168)	(24)	109
Change in accumulated amortization and other provisions	99	(1)	16
Changes in deferred acquisition costs	(37)	68	(118)
Net increase in contract liabilities	845	432	889
Change in fair value of financial instruments recognized at fair value through income	43	28	(1)
Other non-cash items included in operating results	(601)	(325)	(163)
Net cash flow provided by operations, excluding changes in working capital	511	596	1,102
Change in loans and accounts receivable	4	73	(234)
Cash flows from other assets and liabilities	-	-	-
Net tax (paid)/received	15	(13)	(17)
Net cash flow provided by operations	530	656	851

During the year the Group received and paid out operational cash relating to investment income and taxes. Dividend and interest cash receipts relating to investments held during the year were EUR 50 million (2010: EUR 40 million and 2009: EUR 31 million) and EUR 360 million (2010: EUR 399 million and 2009: EUR 297 million). Tax cash inflows during the year were EUR 15 million (2010: outflow of EUR 13 million and 2009: inflow of EUR 17 million).

Life cash flow does not include AEGON operating settlements of EUR 108 million which were not received until January 2012.

20.1.6.13 NOTE 13 - INFORMATION ON SHARE CAPITAL, CAPITAL MANAGEMENT, REGULATORY FRAMEWORK AND SHAREHOLDERS' EQUITY

SHARE CAPITAL

Authorized share capital

The authorized share capital of the Company at 31 December 2011 was 192,021,303 shares with a nominal value of EUR 7.8769723 each compared with authorized share capital of 187,795,401 shares with a nominal value of EUR 7.8769723 at the end of 2010 and with authorized share capital of 185,213,031 shares with a nominal value of EUR 7.8769723 at the end of 2009.

Issued share capital

The number of ordinary shares which were issued and fully paid in circulation as at 31 December 2011, 2010 and 2009 were as follows:

	2011	2010	2009
As at 1 January	187,795,401	185,213,031	184,246,437
Share capital increase – exercise of stock options – 9 January 2009	-	-	10,410
Share capital increase – exercise of stock options – 6 February 2009	-	-	9,869
Share capital increase – exercise of stock options – 28 February 2009	-	-	10,225
Share capital decrease – 3 March 2009	-	-	(129,539)
Share capital increase – exercise of stock options – 31 December 2009	-	-	131,053
Share capital increase – OCEANE conversion – 22 December 2009	-	-	934,576
Share capital increase – acknowledgement by the Board of Directors – 2 March 2010	-	10,705	-
Share capital decrease – decision of the Board of Directors - 2 March 2010	-	(141,758)	-
Share capital increase – exercise of stock options – 11 March 2010	-	37,428	-
Share capital increase – exercise of stock options – 23 March 2010	-	24,552	-
Share capital increase – exercise of stock options – 31 March 2010	-	1,137	-
Share capital increase – exercise of stock options – 27 April 2010	-	5,526	-
Share capital decrease – decision of the Board of Directors – 28 July
2010	-	(68,643)	-
Share capital increase – exercise of stock options – 31 August 2010 Share capital increase – exercise of stock options – 30 September	-	1,568	-
2010	-	2,612	-
Share capital increase – exercise of stock options - 30 October 2010	-	6,647	-
Share capital increase – exercise of stock options – 30 November 2010	-	20,077	-
Share capital increase – exercise of stock options – 31 December 2010	-	35,002	-
Share capital increase – exercise of stock options - Scrip dividends – 15 June 2010	-	2,647,517	-
Share capital increase – exercise of stock options – 31 January 2011	38,617	-	-
Share capital increase – exercise of stock options – 28 February
2011	42,140	-	-
Share capital decrease – decision of the Board of Directors – 7 March 2011	(146,663)	-	-
Share capital increase – exercise of stock options – 31 March 2011	5,117	-	-
Share capital increase – exercise of stock options – 30 April 2011	1,000	-	-
Share capital increase – exercise of stock options – 31 May 2011	24,595	-	-
Share capital increase – exercise of stock options – 30 June 2011	2,134	-	-
Share capital increase – exercise of warrants – 5 July 2011	4,250,962	-	-
Share capital increase – exercise of stock options – 31 December 2011	8,000	-	-
As at 31 December	192,021,303	187,795,401	185,213,031
Average nominal price per share in EUR	7.8769723	7.8769723	7.8769723
Share capital in EUR	1,512,546,485	1,479,259,172	1,458,917,915

In 2009 the movements were due to the following operations:

• The Board of Directors held on 3 March 2009 decided to reduce the share capital by cancellation of 129,539 treasury shares for a total value of EUR 1 million.
• At the end of 2009, 7,987,792 OCEANE bonds (EUR 2 per bond) were converted into 934,576 SCOR shares for a total amount of EUR 16 million.
• All other movements presented above relate to the issuance of shares on the exercise of stock options for EUR 2 million (EUR 1.3 million in share capital and EUR 0.7 million in additional paid-in capital). This resulted in the creation of 161,557 new shares throughout the year.

In 2010 the movements were due to the following operations:

• On 28 April 2010 the General Meeting of Shareholders proposed the option to pay dividend with issuance of new shares (scrip dividends). At the end of exercise period (2 June 2010), 2,647,517 new shares were issued for a total of EUR 21 million (plus EUR 21 million in additional paid capital).
• During 2010 the Board decided upon two separate share capital reductions by cancellation of a total of 210,401 treasury shares for a total amount of EUR 1.6 million.
• All other movements presented above relate to the issuance of shares on the exercise of stock options for EUR 2 million (EUR 1 million in share capital and EUR 1 million in additional paid-in capital). This resulted in the creation of 145,254 new shares throughout the year.

In 2011, the movements were due to the following operations:

• The Board of Directors held on 7 March 2011 decided to reduce the share capital by cancellation of 146,663 treasury shares for a total value of EUR 1.15 million.
• On 5 July 2011, in the context of the contingent capital equity line, UBS exercised the number of warrants required for the issuance and subscription of 4,250,962 new SCOR shares for a global amount of EUR 75 million.
• All other movements presented above relate to the issuance of shares on the exercise of stock options for EUR 1.9 million (EUR 0.9 million in share capital and EUR 1.0 million in additional paid-in capital). This resulted in the creation of 121,603 new shares throughout the year.

The shares issued in 2011, 2010 and 2009 were issued at a nominal price of EUR 7.8769723 per share.

Treasury shares

The number of shares held as treasury shares by the Company or its subsidiaries at 31 December 2011 amounted to 7,262,600 shares compared to 6,427,554 shares at the end of 2010. These treasury shares are not entitled to dividends.

Contingent Capital Arrangement

In the context of a contingent capital arrangement program, SCOR issued 9,521,424 warrants on 17 December 2010 to UBS, each warrant committing UBS to subscribe for two new SCOR shares (maximum amount of EUR 150 million including issuance premium available per tranche of EUR 75 million each - including issuance premium) when the aggregated amount of the estimated ultimate net losses resulting from eligible natural catastrophes incurred by the Group (in its capacity as an insurer/reinsurer) reaches certain contractual thresholds in any given calendar year between 1 January 2011 and 31 December 2013 or if no drawdown already took place in the context of the agreement and SCOR's share price drops below EUR 10.

On 5 July 2011, SCOR drew EUR 75 million under the contingent capital facility due to the exceptional first quarter natural catastrophe events. UBS exercised the number of warrants required for the issuance and subscription by it of new SCOR shares in an aggregate amount of EUR 75 million and informed SCOR that it had placed the corresponding shares with investors in a private placement.

SCOR issued 4,250,962 new ordinary shares on 11 July 2011 at an issuance price of EUR 17.643 per share (the exercise price of the warrants). These shares have been subscribed in full by UBS.

The tranche not triggered has no impact on the dilutive earning per share, as the related increase in capital may never take place.

CAPITAL MANAGEMENT POLICY, OBJECTIVES AND APPROACH

The Group's capital management policy is to optimize the utilization of its capital and debt structure in order to maximize the short term and long term profitability to shareholders while at the same time providing its customers with an adequate level of security as measured by internal capital allocation models, rating agencies and national regulators.

The Groups' capital management objectives are:

• To match the profile of its assets and liabilities, taking account of the risks inherent in the business;
• To maintain strong credit ratings and healthy capital ratios in order to support its business objectives and maximize shareholder value;
• To retain financial flexibility by maintaining strong liquidity and access to a range of capital markets;
• To allocate capital efficiently and support the development of business by ensuring returns on capital employed meet the requirements of the regulators and stakeholders; and
• To manage exposures to movements in exchange rates.

The Group seeks to optimize the structure and sources of capital to ensure that it consistently maximises returns to the shareholders.

The objective of the Group's overall capital management process is the setting of target risk adjusted rates of return for divisions, which are aligned to performance objectives and to promote the creation of value to shareholders.

In this regard, and in line with the Group's new strategic plan "Strong Momentum" which runs from 2010 to 2013, the Group aims to achieve the following objectives:

• Optimization of the Group's risk profile;
• "AA" level of financial security;
• Profitability of 1000 basis points above the three-month risk-free rate over the cycle.

SCOR believes that its working capital is sufficient for the present requirements of its consolidated companies. The Group reconciles its strategic objectives with the protection of its capital via the Group's "Capital Shield" policy, which articulates the Group's risk appetite. This policy is based on an economic approach and aims to protect the Group against potential shock losses, some of which are not immediately recognized from a pure accounting view. The policy builds on the following two concepts:

(a) Active hedging of peak exposures through retrocession

The Group selects the level of its retrocession to third parties once a year to ensure that the Group's retained risk profile is in line with specific Group risk tolerance limits, to help the Group achieve its return on capital and solvency objectives.

(b) Buffer capital

The Group also holds Buffer Capital in addition to the solvency capital required to support the retained (after retrocession) risk profile. The aim of this extra economic capital is to absorb a significant amount of inherent volatility, thereby limiting the frequency of turning to the market to maintain the Group's available capital above the required solvency capital.

The primary source of capital used by the Group is equity shareholders' funds and borrowings.

The Group also considers alternative sources of capital including reinsurance and securitization, as appropriate when assessing its deployment and usage of capital.

The objective of the capital management policy is sustained and ensured through regular updates of forecasts and an annual strategic and financial planning process. The Group's Board and Executive Management team regularly review the Group's risk profile to ensure that the Group's risk appetite remains aligned with the Group's strategy. The capital management process is ultimately subject to approval by the board after a formal presentation to its risk committee.

Capitalization and indebtedness was comprised of the following:

		At 31 December 2011		At 31 December 2010
In EUR million	Book value	Fair value	Book value	Fair value
Subordinated debts	992	872	479	453
Debt instruments issued	-	-	-	-
Shareholders' equity at book value	4,410	4,410	4,352	4,352
Total Capitalisation and indebtedness	5,402	5,282	4,831	4,805

It should be noted that regulatory filings in the majority of countries in which the Group operates are not prepared on an IFRS basis. The statutory basis of accounting in various countries is very often different from IFRS giving rise to potential differences between IFRS capital and statutory capital.

REGULATORY FRAMEWORK

Regulators are primarily interested in protecting the interests of policyholders. At the same time regulators are also interested in ensuring that the Group maintains an appropriate solvency position to meet unforeseen liabilities arising from economic shocks or natural disasters.

The operations of the Group are subject to regulatory requirements within the countries where entities of the Group underwrite. Such regulations not only prescribe approval and monitoring of activities, but also impose certain obligations related to level of capital (e.g. capital adequacy) to cover the risk of default and insolvency on the part of the reinsurance companies and insurance companies to meet unforeseen liabilities.

The Group actively monitors the regulatory capital requirements of each of its operating subsidiaries within this capital management framework. The Group is subject to applicable government regulation in each of the jurisdictions in which it conducts business, particularly in France, Switzerland, the U.S., the U.K., Singapore, Hong Kong, Ireland, Germany and Sweden. Regulatory agencies have broad supervisory and administrative powers over many aspects of the insurance and reinsurance industries.

Failure of an operating company to meet the local regulatory capital requirements of the jurisdiction in which it operates could lead to regulatory supervision or administration of the affairs of the operating company.

The Group aims to achieve full compliance in respect of all regulatory and solvency requirements in the countries in which it operates.

Group solvency

Under the European Directive relating to reinsurance, as adopted in France in late 2008, the Group is subject to the control of insurance regulators in the various European countries in which it operates. The Group calculated its solvency based on consolidated IFRS financial statements adjusted to be consistent with French Generally Accepted Accounting Procedure (GAAP) requirements. This was first performed by the Group in 2008 and subsequently an update was performed at the end of 2009, 2010 and 2011. The results of these assessments confirm that the Group meets the requirements of the "Solvency I" directive.

INFORMATION ON RESERVES INCLUDED IN THE STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

Revaluation reserves

The asset revaluation reserves are used to account for the changes in fair value of the available-for-sale financial assets adjusted to reflect the effects of "shadow accounting", if any.

Translation adjustment

The translation adjustment caption records the differences in exchange rates resulting from the conversion of the financial statements of foreign subsidiaries and branches.

The movement in the translation adjustment is primarily due to the translation of accounts of the subsidiaries and branches using the U.S. dollar as the functional currency. In 2011, the Group hedged itself against certain movements in the net asset value of its U.S. dollar denominated subsidiaries. These hedges were effective and resulted in a total negative foreign exchange impact of EUR 13 million within equity in 2011 (2010: EUR 22 million, 2009: EUR 1 million). As at 31 December 2011, the Group does have one hedge of net investment remaining in place. See Note 8 – Derivative instruments.

The Group reviews the functional currency of its entities on an ongoing basis to ensure they appropriately reflect the currency of the primary economic environment in which they operate. As at 1 January 2010, the functional currencies of two of the Group's subsidiaries; SCOR Switzerland AG, and SCOR Holding Switzerland, were changed with prospective application from USD to EUR. As at 1 January 2011, the functional currencies of the UK branches of SCOR Global P&C SE, SCOR Global Life SE and SCOR SE were changed with prospective application from GBP to EUR.

Share-based payments

The caption "Share-based payments" is used to offset the cost of services received in exchange for the granting of shares, stock options or for employee stock purchase plans.

A breakdown of the movements in the various reserves is provided in Section 20.1.5 - Statement of changes in shareholders' equity.

Information relating to dividend distribution

SCOR's Combined General Meeting of 4 May 2011 resolved to distribute, for the 2010 fiscal year, a dividend of one euro and ten cents (EUR 1.10) per share, being an aggregate amount of dividend paid of EUR 201 million, calculated on the basis of the number of shares eligible for dividend as of the payment date. The ex-dividend date was 25 May 2011 and the dividend was paid on 30 May 2011.

The Combined General Meeting of 28 April 2010 decided that payment of the dividend approved for EUR 1.00 per share for 2009 could be received either in cash or in new ordinary shares, to be issued at a price set at EUR 15.96. This last option was exercised for 2,647,517 new shares for a total value of EUR 42 million, allocated to the share capital of the company for EUR 21 million and additional paid-in capital for EUR 21 million. The 2009 dividend distribution totaled EUR 179 million, of which EUR 42 million was settled in SCOR shares on 15 June 2010 and EUR 137 million was paid in cash.

INFORMATION RELATING TO DIVIDEND RESTRICTIONS

Certain group entities are subject to local regulatory requirements in the jurisdiction in which they operate which could limit their ability to pay dividends in the future

The Group's Swiss subsidiary SCOR Switzerland AG is submitted to dividend distribution restrictions. On 26 June 2007, in relation with the take-over of Converium by the company, the Swiss Financial Market Supervisory Authority (FINMA) issued an ordinance which requires its approval for e.g. dividend payments, for transactions above USD 100 million per transaction or aggregated over a calendar year USD 200 million. On 1 April 2010, FINMA revoked this ordinance, however subject to SSAG's written confirmation that the company submit all transactions over USD 100 million per transaction or USD 200 million on an aggregated basis during the calendar year to FINMA for prior approval.

20.1.6.14 NOTE 14 - FINANCIAL DEBT

The following table sets out an overview of the debt issued by the Group:

		2011		2010
		Net book		Net book
In EUR million	Maturity	value	Fair value	value	Fair value
Subordinated debt
USD 100 million (1)	06/06/2029	52	52	74	74
EUR 100 million (1)	05/07/2020	94	94	94	94
EUR 50 million (1)	Perpetual	50	50	50	50
EUR 350 million	Perpetual	261	199	261	235
CHF 650 million	Perpetual	535	477	-	-
Total subordinated debt		992	872	479	453
Other financial debt
Financial leases		10	10	2	2
Real Estate financing		409	409	182	182
Other		14	14	12	12
Total other financial debt		433	433	196	196
TOTAL FINANCIAL DEBT		1,425	1,305	675	649

(1) Amounts are not publicly traded. Therefore the Net book value are reflective of the Fair value.

SUBORDINATED DEBT

(a) USD 100 million

A 30-year subordinated note totaling USD 100 million was issued on 7 June 1999. These notes are redeemable by SCOR quarterly as from the tenth year following their issue date. These floating-rate bonds bear interest indexed on the 3-month Libor rate plus (i) 0.80% for the first ten years and (ii) 1.80% thereafter. The Group decided not to redeem the USD 100 million of subordinated floating rate notes due 2029 at their first call date in June 2009.

(b) EUR 100 million

The Company issued, on 6 July 2000, EUR 100 million in 20-year subordinated bonds, redeemable by SCOR each quarter as from the tenth year following their issuance. These floating-rate bonds bear interest indexed on the 3-month Euribor plus (i) 1.15% for the first ten years, and (ii) 2.15% thereafter. The Group decided not to redeem the EUR 100 million of subordinated bonds due 2020 at their first call date in July 2010.

(c) EUR 50 million

EUR 50 million Perpetual Step-Up subordinated notes were issued on 23 March 1999. These notes are redeemable at the issuer's option after 15 years following their issue date, and at a 5-year interval, beyond the 15 years. The floatingrate notes bear interest indexed on the 6-month Euribor plus (i) 0.75% for the first fifteen years of the issue, and (ii) 1.75% beyond the 15 years.

Covenants applicable to the aforementioned notes:

These clauses, which are binding on the issuer, allow for anticipated reimbursement in the following circumstances:

• A change in legislation or tax law which would deprive the bondholders of all or part of the interest payments stipulated in the initial "operating note".
• A change in the accounting of the instrument on the basis of accounting principles in France or the U.S., or changes in methods used by rating agencies which become unfavourable for SCOR.
• The liquidation or the complete sale or dissolution of the Company pursuant to the merger, consolidation or amalgamation with a third party, if such party fails to assume all obligations of the Company under the notes.

(d) EUR 350 million

On 28 July 2006 SCOR issued a perpetual super-subordinated debt security (Tier 1 type) in an aggregate principal amount of EUR 350 million to finance the acquisition of Revios Rückversicherung AG. The bond issue, comprised of last-rank subordinated bearer certificates with a face value of EUR 50,000 bearing interest at an initial rate of 6.154% per annum then a floating rate indexed on the 3-month EURIBOR plus a margin of 2.90%, payable quarterly. There is no fixed redemption date but SCOR reserves the right to redeem, in part or in whole, the bonds as from 28 July 2016.

The debt includes a clause for mandatory settlement in cash if regulatory authorities or applicable legislation modify their ability to cover the solvency margin or equivalent. If this clause becomes applicable, the issuer must pay interest in cash even if no dividend has been paid, or proceed with the reimbursement of the notes in cash. Accordingly, the entire issue is considered as a financial debt.

(e) Placement of CHF 650 million perpetual subordinated debt

On 2 February 2011, SCOR issued CHF 400 million perpetual subordinated notes, redeemable by SCOR each quarter as at payment of interest dates from 2 August 2016. The coupon has been set to 5.375% (until 2 August 2016) and 3 month CHF LIBOR plus a margin of 3.7359% thereafter.

SCOR has entered into a cross-currency swap which exchanges the principal into EUR and exchanges the coupon on the notes to 6.98% and matures on 2 August 2016.

On 11 May 2011, SCOR reopened its existing CHF perpetual subordinated notes placement by issuing an additional amount of CHF 225 million. The placement was increased to CHF 250 million at the settlement date of 3 June 2011, given the market appetite. The notes are fungible to those issued on 2 February 2011. The conditions and the accounting treatment are similar to the first placement.

SCOR has entered into a cross-currency swap which exchanges the principal into EUR and exchanges the coupon on the notes to 6.93% and matures on 2 August 2016. Refer to Note 8 – Derivative Instruments for Currency Swap fair values.

This instrument is recognized as debt because under the terms and conditions of the issuance contract, SCOR does not have an unconditional right to avoid delivering cash to settle the contractual obligation and based on projected cash flow there is no equity component of the instrument.

(f) Debt reimbursements and repurchases

During 2009, the Group provided liquidity to both its perpetual super-subordinated debt security (Tier 1 type) (TSSDI EUR 350 million) and its EUR 100 million subordinated debt issuance (call date July 2010) resulting in acquisition of own debt of EUR 99 million at an average price of 46.5%. The purchase of this debt at a discount gave rise to a consolidated pre-tax profit EUR 53.4 million which is included in other operating income during 2009.

During 2011, the Group re-purchased USD 33 million out of its own USD 100 million debt, at a price of 82.5%. The purchase price of this debt at a discount rate gave rise to a consolidated pre-tax profit of EUR 4 million.

DEBT INSTRUMENTS ISSUED – OCEANE FINANCIAL DEBT REPAID 4 JANUARY 2010

On 21 June 2004, the Board of Directors approved the issuance of a bond represented by SCOR OCEANE bonds, as approved at the Combined Shareholders' General Meeting on 18 May 2004, and delegated to its Chairman the authority required to carry out such transactions. Issued on 2 July 2004, the nominal value of this bond issuance was EUR 200 million represented by 100 million OCEANEs with a nominal value of EUR 2 each with a term of 5 years and 183 days. The bonds earned interest at a rate of 4.125% payable on 1st January of each year.

At any time from 2 July 2004 until the seventh day preceding the redemption date, bondholders were able to request conversion or exchange of the bonds for shares at a specified rate (the "conversion/exchange ratio"). During 2009 the conversion/exchange ratio was adjusted in accordance with the provisions of Article 2.6.7.3 (4) of the offering and listing prospectus in such a manner that each OCEANE gave an entitlement, via exchange or conversion, to 0.117 SCOR shares (amounting to a conversion price of EUR 17.09 per SCOR share). The Company was able to choose to provide new shares to be issued and/or existing shares.

Reimbursement and conversion

In December 2009, certain bondholders exercised their option to convert the OCEANE bonds into shares, leading to an increase of EUR 16 million in share capital and premium. The EUR 16 million increase in share capital and premium was recognized during the year ended 31 December 2009, as stated in Note 13 – Information on share capital, capital management, regulatory framework and shareholders' equity. SCOR reimbursed the remaining bondholders in cash on 4 January 2010. As at 31 December 2009, due to the change in nature of this bond in comparison to the remaining debt, the amount outstanding has been presented below financial debt on the consolidated balance sheet. The total amount repaid in cash during 2010 was EUR 184 million excluding accrued interest (EUR 191 million including interest).

The 2009 earnings per share calculation, as presented within Note 23 – Earnings per share, incorporated the EUR 16 million increase in share capital reflecting those bonds converted during 2009. No additional amounts were included within 2009 diluted earnings per share calculation as the remaining bonds at year end were no longer considered potential ordinary shares.

OTHER FINANCIAL DEBT

Real estate financing relates to the acquisition of investment properties through property-related bank loans of EUR 409 million (EUR 182 million as at 31 December 2010). The main property related bank loan amounts to EUR 170 million and is used to finance the Group's head-office in Paris, at Kléber. It bears interest indexed to the 3-month Euribor rate plus 1.35% and is redeemable in June 2018. SCOR entered into three interest rate swaps which cover its exposure to the variable interest rate whereas SCOR pays fixed 2.97 % and receives three-months Euribor. The interest rate swaps have been accounted for as cash flow hedges (for further detail refer to Note 8 – Derivative instruments). The other property-related bank loans bear interests indexed to the 3-month Euribor and redeemable between 2016 and 2021. They are used to finance other buildings owned by the Group.

Financial leases, including options to purchase freehold, total EUR 10 million (EUR 2 million as at 31 December 2010).

Other financial debt relates to deposit and guarantees of EUR 14 million (EUR 12 million as at 31 December 2010).

FINANCE COSTS

In EUR million	2011	2010	2009
Interest on subordinated debt	(4)	(4)	(5)
Interest on perpetual subordinated debt	(47)	(17)	(19)
Interest on OCEANE	-	-	(12)
Atlas V and VI (set up costs)	(3)	(2)	(6)
Finance lease	(2)	(3)	(4)
Real estate Financing	(8)	(5)	(7)
Other financial debt (1)	(30)	(15)	(8)
TOTAL	(94)	(46)	(61)

(1) The amounts presented in other financial debt include certain other Letter Of Credit charges, custodian and overdraft fees, amortization of issuance fees and other bank charges (commissions, etc).

MATURITY

The maturity profiles of financial debt is included in Note 26 – Insurance and financial risk.

20.1.6.15 NOTE 15 - CONTINGENCY RESERVES

The following table summarizes amounts included in contingency reserves:

	Reserves for post employment
In EUR million	benefits	Other reserves	Total
At 1 January 2010	76	11	87
Acquisition of a subsidiary	-	-	-
Current year provision	-	2	2
Used reserves	(14)	(4)	(18)
Reversal of unused reserves	(1)	-	(1)
Foreign exchange rate movements	3	-	3
Adjusted discount rate	15	-	15
Others	-	-	-
At 31 December 2010	79	9	88
Acquisition of a subsidiary	-	16	16
Current year provision	10	9	19
Used reserves	(8)	(3)	(11)
Reversal of unused reserves	-	-	-
Foreign exchange rate movements	1	1	2
Adjusted discount rate	5	-	5
Others	-	-	-
At 31 December 2011	87	32	119

Retirement employee benefits

These benefits amount to EUR 87 million and EUR 79 million at 31 December 2011 and 2010, respectively and include post-employment benefits such as pension plans EUR 82 million (2010: EUR 74 million) and Long service awards provisions EUR 5 million (2010: EUR 5 million).

Other reserves

The other reserves include an increase in provisions related to the Transamerica Re acquisition of EUR 17 million, provisions for loss making contract of EUR 8 million (2010: nil), other provisions related to employee and litigation of EUR 6 million (2010: EUR 5 million), and provision for restructuring cost of EUR 1 million (2010: EUR 4 million).

20.1.6.16 NOTE 16 – NET CONTRACT LIABILITIES

		SCOR Global Life	SCOR Global P&C		Total
In EUR million	2011	2010	2011	2010	2011	2010
Gross contract liabilities
Gross claim reserves	3,666	3,306	10,602	9,696	14,268	13,002
Mathematical reserves	7,293	7,420	-	-	7,293	7,420
Unearned premium reserves	85	70	1,516	1,314	1,601	1 384
Total gross insurance contract liabilities	11,044	10,796	12,118	11,010	23,162	21,806
Reserves for financial contracts	-	-	145	151	145	151
Total gross contract liabilities	11,044	10,796	12,263	11,161	23,307	21,957
Reinsurance recoverable
Ceded claims reserves & claims expense reserves	(149)	(197)	(765)	(412)	(914)	(609)
Ceded mathematical reserves	(252)	(454)	-	-	(252)	(454)
Ceded unearned premium reserves	(1)	(2)	(84)	(49)	(85)	(51)
Ceded contract liabilities	(402)	(653)	(849)	(461)	(1,251)	(1,114)
Net contract liabilities	10,642	10,143	11,414	10,700	22,056	20,843

Underwriting reserves, or contract liabilities, are subject to the use of estimates. Payments linked to these reserves are not usually fixed, either by amount or by due date. Liquidity information related to contract liabilities is included in Note 26 – Insurance and financial risk.

An aging analysis of the reinsurance asset is also included in Note 26 – Insurance and financial risk.

SCOR Global P&C

The table below shows the movement in the net reserves for unpaid losses and loss expenses of SCOR Global P&C.

The table begins by showing the initial reported year-end gross and net reserves, including IBNR, recorded at the balance sheet date at the exchange rates applicable at each balance sheet date.

The cumulative redundancy/deficiency line represents the cumulative change in estimates since the initial reserve was established. It is equal to the latest incurred claim amount less the initial reserve. The amounts in this line in the loss development tables are not a precise indication of the adequacy of the initial reserves that appear on the first and third line of the table. Trends and conditions that have affected development of liabilities in the past may not be indicative of future developments. Accordingly, it may not be appropriate to extrapolate future redundancies or deficiencies based on these tables.

The next section of the table shows the portion of the initial year-end net reserves that was paid (claims paid) as of the end of subsequent calendar year. Claims paid are converted to EUR at the average foreign exchange rates during the year of payment and are not revalued to the initial exchange rates at which the reserves were established. Additionally, payments include losses covered by unearned premium reserves, less DAC, in addition to those covered by the initial claims reserves.

The net incurred losses section is the sum of the paid claims and the change in claims reserves and IBNR at the average exchange rate of the period.

A significant portion of SCOR Global P&C reserves relates to liabilities payable in currencies other than the EUR. The fluctuations of the EUR to those currencies are embedded in the data in the below table.

The following tables present the consolidated ten-year loss development of our Non-Life operations on an IFRS basis and a three-year reconciliation of beginning and ending reserve balances on an IFRS basis. The IFRS loss development data is presented on an calendar year basis, as well as the reserve reconciliation data represents our allocation of incurred and paid losses and loss adjustment expenses between current and prior years on a calendar year basis.

In EUR million	2001	2002	2003	2004	2005	2006	2007	2008(1)	2009(1)	2010(1)	2011(1)
Gross claims reserves &
estimates -end of year (2)	8,402	8,244	7,045	6,135	6,310	5,791	9,325	9,127	9,156	9,696	10,602
Ceded claims reserves &
estimates-end of year (2)	1,462	1,313	691	533	554	490	598	467	473	412	765
Net claims reserves &
estimates –end of year (2)	6,940	6,931	6,354	5,602	5,756	5,301	8,727	8,660	8,683	9,284	9,837
Net paid losses (3) (4)											-
1 year later	2,514	2,627	1,425	896	1,000	1,026	1,766	1,992	2,069	2,080	-
2 years later	4,496	3,735	2,119	1,569	1,657	1,626	2,931	3,263	3,239	-	-
3 years later	5,425	4,557	2,666	2,075	2,092	2,155	3'870	4,107	-	-	-
4 years later	6,309	5,029	3,119	2,455	2,351	2,805	4,414	-	-	-	-
5 years later	6,591	5,436	3,456	2,640	2,917	3,205	-	-	-	-	-
6 years later	6,913	5,740	3,704	3,151	3,265	-	-	-	-	-	-
7 years later	7,154	6,051	4,169	3,467	-	-	-	-	-	-	-
8 years later	7,472	6,443	4,407	-	-	-	-	-	-	-	-
9 years later	7,808	6,647	-	-	-	-	-	-	-	-	-
10 years later	7,979	-	-	-	-	-	-	-	-	-	-
Net incurred losses (3)
1 year later	8,161	8,191	6,776	5,917	5,987	5,701	9,480	9,491	9,622	10,584	-
2 years later	8,832	8,133	6,762	5,989	6,262	5,765	9,482	9,490	9,385	-	-
3 years later	8,927	8,418	6,866	6,243	6,312	5,784	9,381	9,248	-	-	-
4 years later	9,117	8,543	7,145	6,306	6,305	5,630	9,172	-	-	-	-
5 years later	9,273	8,853	7,205	6,302	6,184	5,427	-	-	-	-	-
6 years later	9,568	8,901	7,265	6,200	6,022	-	-	-	-	-	-
7 years later	9,615	8,993	7,209	6,062	-	-	-	-	-	-	-
8 years later	9,749	8,999	7,124	-	-	-	-	-	-	-	-
9 years later	9,767	8,948	-	-	-	-	-	-	-	-	-
10 years later	9,732	-	-	-	-	-	-	-	-	-	-
Cumulative
redundancy/(deficiency)	(2,792)	(2,017)	(770)	(460)	(266)	(126)	(445)	(588)	(702)	(1,300)	-
Gross cumulative inception
to date incurred losses as (2) at 31 December 2011	12,037	10,779	8,011	6,854	6,731	5,865	9,866	9,822	9,832	10,991	-
Ceded cumulative inception
to date incurred losses as at
(2) 31 December 2011	2,305	1,831	887	792	709	438	694	574	447	407	-
Net cumulative inception to
date incurred losses as at (2)
31 December 2011	9,732	8,948	7,124	6,062	6,022	5,427	9,172	9,248	9,385	10,584	-
Unearned premium reserve (UPR)
Gross UPR – end of year	1,664	1,617	1,124	978	637	575	1,108	1,099	1,135	1,384	1,516
Ceded UPR – end of year	253	130	76	40	24	18	39	40	40	51	84
Net UPR – end of year	1,411	1,487	1,048	938	613	557	1,069	1,060	1,095	1,333	1,432
Deferred acquisition
costs (DAC)
Gross DAC – end of year	232	204	129	132	137	108	230	227	238	278	325
Ceded DAC – end of year	49	25	5	3	2	-	2	1	-	1	5
Net DAC – end of year	183	179	124	129	135	108	228	226	238	277	320

(1) The table includes balance sheet reserves for Converium for years from 2007 onwards only. Figures for 2007 reflect the completion of the initial accounting of the business combination with Converium.

(2) At period end exchange rates.

(3) At average exchange rates. (4) Includes net cumulative payments for all underwriting years as at each balance sheet date. The table below is a reconciliation of the beginning and ending liability for claims reserves and claims expenses of SCOR Global P&C for the years ended 31 December 2011 and 2010.

In EUR million	2011	2010
Gross claims reserves and claims estimates as at 1 January	9,696	9,156
Ceded claims reserves and claims estimates as at 1 January	(412)	(473)
Net claim reserves and claims estimates as at 1 January	9,284	8,683
Revaluation of opening balance at current year end exchange rates	94	396
Net claims reserves and claims estimates as at 1 January – revalued	9,378	9,079
Net claims incurred relating to the current calendar year	1,336	1,404
Net claims incurred for prior calendar years	1,300	939
Total net claims incurred	2,636	2,343
Net claims payments for the current calendar year	(92)	(90)
Net claims payments for prior calendar years	(2,080)	(2,069)
Total net claims payments	(2,172)	(2,159)
Change in scope of consolidation	(8)	-
Effect of other foreign exchange rate movements	3	21
Net claim reserves and claims estimates as at 31 December	9,837	9,284
Ceded claims reserves and claims estimates as at 31 December	(765)	(412)
Gross claims reserves and claims estimates as at 31 December	10,602	9,696

Analysis of Asbestos & Environmental IBNR reserves and claims paid

	For the year ended 31 December
		Asbestos (1)	Environment (1)
	2011	2010	2011	2010
Gross reserves, including IBNR reserves (in EUR million)	117	123	16	18
% of Non-Life gross reserves	1.0%	1.1%	0.1%	0.2%
Claims paid (in EUR million)	6	8	1	2
Net % of Group Non-Life claims paid	0.3%	0.4%	0.0%	0.1%
Actual Number of claims notified under non-proportional
and facultative treaties (In EUR million)	9,967	9,746	8,350	8,272
Average cost per claim(1) (in EUR)	15,513	15,204	3,739	3,901

(1) Does not include claims which result in no ultimate cost and claims notified only for precautionary reasons for which the amount is not evaluated.

SCOR Global Life

The change in Life mathematical reserves for the years ended 31 December 2011 and 2010 was as follows:

In EUR million	2011	2010
Gross mathematical reserves as at 1 January	7,420	7,412
Change in scope of consolidation	(274)	-
Changes	81	(222)
Impact of foreign exchange movements	66	230
Gross mathematical reserves as at 31 December	7,293	7,420
Reinsurance Recoverable
Ceded mathematical reserves as at 1 January	(454)	(439)
Change in scope of consolidation	121	-
Changes	71	5
Impact of foreign exchange movements	10	(20)
Ceded mathematical reserves as at 31 December	(252)	(454)
Net mathematical reserves as at 1 January	6,966	6,972
Net mathematical reserves as at 31 December	7,041	6,966

(A) GUARANTEED MINIMUM DEATH BENEFIT (GMDB)

In connection with its October 2007 acquisition of Converium Holdings AG ("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.

Its GMDB business indirectly exposes SCOR Global Life to asset risk on the variable annuity policyholders' funds. SCOR Global Life must pay, in the event of death, the excess of the GMDB over the account balance or the excess of the GMDB over the cash surrender value, depending on the definition of the underlying reinsurance agreements. A fall in the value of the variable annuity policies' funds therefore leads to higher expected claims amounts. The variable annuity policyholders invest their funds in a wide variety of U.S. equity, other equity, fixed interest, money market, balanced and other funds. Hence SCOR Global Life is exposed to losses, through higher death claims, if these funds fall in value. Note that these funds are not held by SCOR Global Life. The assets remain with the originating ceding companies.

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 of 31 December 2011, cover in total approximately 0.6 million policies written by two cedants. These treaties were issued mainly in the late 1990's and incorporate various benefit types.

Different types of Guaranteed Minimum Death Benefits are covered, including:

• Return of premium: The GMDB is the amount of total deposits adjusted for partial withdrawals, if any.
• Ratchet: After a given number of years, the GMDB is adjusted to the current account balance, if greater. Most common is a 1-year ratchet, meaning that the GMDB is adjusted annually on the policy's anniversary date.
• Roll-up: The GMDB increases each year from the initial premium adjusted for later deposits and partial withdrawals, as the case may be, by a fixed percentage. Rollup guarantees reinsured under SCOR Global Life's agreements grant an annual accumulation percentage between 3% and 7%. In many products, especially for higher rollup percentages, an upper limit applies (e.g. 200% of the paid policyholder premium adjusted for later deposits and partial withdrawals).
• Reset: After a given number of years, the GMDB is adjusted to the current account balance. This means that the GMDB can be reduced but often not below the paid-up premium (adjusted for later deposits and partial withdrawals).

Guarantees that increase over time are, for a majority of the assumed business, only applied up to a certain age. This implies that SCOR Global Life will be released from the risk when the beneficiary reaches this age limit.

There are some risks which are specific to the GMDB portfolio. Due to the nature of the product, the remaining liability is influenced by developments on the financial markets, particularly changes in the price of equities and fixed income securities, fluctuations in interest rates, and the implied volatility on equity options. The liability is also dependent on policyholder behavior, particularly on the exercise of partial withdrawal options, but also on other aspects, such as lapse behavior and the use of options to choose the underlying funds.

As a retrocessionaire, SCOR Global Life is exposed to uncertainties concerning data received from its retrocedants and the original ceding companies and also due to the inherent reporting lag. SCOR Global Life is also exposed to risks inherent to the model used for the assessment of the liability under its portfolio.

There can be no assurance that SCOR's GMDB portfolios will not deteriorate in the future, which could have a material adverse effect on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

(B) LIABILITY ADEQUACY TEST

The liability adequacy test conducted at year end 2011 did not detect any deficiencies for either the Non-Life or Life segment for the year ended 31 December 2011.

(C) SHARE OF RETROCESSIONAIRES IN CONTRACT LIABILITIES

An analysis of the share of retrocessionaires in the Group's contract liabilities by rating of the retrocessionaires and collateral from retrocessionaires in favor of SCOR at 31 December 2011 and 2010 is as follows:

In EUR million	AAA	AA	A	BBB	< BBB	Not rated	Total as at 31 December 2011
Share of retrocessionaires contract liabilities	-	357	696	85	2	111	1,251
Securities pledged	-	5	192	12	-	95	304
Deposits received	-	87	354	55	1	28	525
Letters of credit	-	64	77	15	-	22	178
Total collateral from retrocessionaires in favor of SCOR	-	156	623	82	1	145	1,007
Share of retrocessionaires contract liabilities net of collateral(2)	-	201	73	3	1	(1) (34)	244

In EUR million	AAA	AA	A	BBB	< BBB	Not rated	Total as at 31 December 2010
Share of retrocessionaires contract
liabilities	16	529	455	77	13	24	1,114
Securities pledged	-	11	39	-	-	90	140
Deposits received	4	206	224	52	-	7	493
Letters of credit	-	26	32	1	-	2	61
Total collateral from retrocessionaires in favor of SCOR	4	243	295	53	-	99	694
Share of retrocessionaires contract liabilities net of collateral(2)	12	286	160	24	13	(75)(1)	420

(1) To limit credit risk related to retrocessionaires, certain unrated retrocessionaires are obliged to pledge assets to the value of their maximum potential contract liability, even though the actual retrocessionaire liability to SCOR recorded in the balance sheet is lower.

(2) The total collateral from retrocessionaires is related to the contract liabilities recorded in the balance sheet and also to potential losses that have not yet occurred.

20.1.6.17 NOTE 17 - PROVISIONS FOR EMPLOYEE BENEFITS

The post-employment benefits granted by the Group vary based on legal obligations and local requirements. Group employees are entitled to short term benefits (holiday pay, sick leave and profit sharing) and long-term benefits (service awards, loyalty bonus and seniority bonus) and post-employment benefits classified as defined benefit or defined contribution plans (termination benefit, pension).

The short-term benefits granted are recognized as an expense for the period by the different entities of the Group.

DEFINED CONTRIBUTION PLANS

Defined contribution plans include plans whereby an employer makes periodic contributions to an external plan which manages all administrative and financial aspects. These external plans relieve the employer of all future obligations and manage the payment to employees of all amounts which are due (e.g. National insurance pension scheme, complementary pension scheme (AGIRC/ARRCO in France), defined contribution retirement plans).

The payments made by the Group are expensed during the period in which the expense was incurred.

The amounts paid under defined contribution plans were EUR 12.9 million, EUR 11.3 million, and EUR 7.8 million for the years ended 31 December 2011, 2010, and 2009 respectively.

TERMINATION BENEFIT

These plans call for the payment of a lump sum, calculated by reference to the employee's length of service within the Group and the salary level at the time of departure. These plans relate primarily to employees of the French and Italian entities.

The employees of SCOR in Paris take benefit of an agreement "Indemnité de Fin de Carrière" signed during 2001. This agreement has been cancelled as of 28 September 2009 with coverage valid until 31 December 2010.

The lump sum defined benefit is granted to SCOR employees only if they are employed by SCOR at the date of their retirement and if they are eligible under the conditions stated in this agreement.

DEFINED BENEFIT PLANS

An employer's obligation under a defined benefit plan is to provide the agreed amount of benefits to current and future beneficiaries. If the defined benefit plans is not wholly funded, provisions are recognized.

The discounted obligation is calculated based on the projected unit credit method by taking into consideration actuarial assumptions, salary increase, retirement age, mortality, turnover and discount rates. Assumptions defined are based on the macroeconomic environment of each country in which the Group operates.

Modifications to actuarial assumptions or differences between these assumptions and actual amounts give rise to actuarial differences which are recorded in Other Comprehensive Income during the period in which they occur, in accordance with Group accounting principles.

(a) Pension plans

The main defined benefit pension plans relate mainly to Switzerland, North America and France. These locations represent 47%, 19% and 16%, respectively, as at 31 December 2011, (43%, 20%, and 16%, respectively, at 31 December 2010), of the Group's obligation under defined benefit plans.

These plans are mostly pre-financed via payments to external organizations which are separate legal entities.

(b) Actuarial assumptions

Actuarial assumptions used for the year end evaluations are as follows:

	US	Canada	Switzerland	UK	Euro zone
Assumptions as at 31 December 2011
Expected return on assets as at 1 January 2011	7.50%	3.00%	4.00%	7.00%	5.00%
Expected return on assets as at 31 December 2011	7.50%	3.00%	2.90%	5.60%	3.40%
Discount rate	4.87%	5.11%	2.50%	5.50%	4.25%
Salary increase	-	-	2.00%	3.80%	2.50%
Assumptions as at 31 December 2010
Expected return on assets at 1 January 2010	7.50%	3.00%	4.00%	7.00%	4.50%
Expected return on assets at 31 December 2010	7.50%	3.00%	4.00%	7.00%	5.00%
Discount rate	5.35%	5.38%	2.75%	5.20%	4.00%
Salary increase	-	-	2.00%	4.00%	2.50%
Assumptions as at 31 December 2009
Expected return on assets at 1 January 2009	7.50%	4.00%	4.60%	6.40%	4.50%
Expected return on assets at 31 December 2009	7.50%	3.00%	4.00%	7.00%	4.50%
Discount rate	5.75%	5.51%	3.25%	5.60%	5.00%
Salary increase	N/A	N/A	2.00%	3.50%	2.50%

Discount rates are defined with reference to high quality long term corporate bonds with duration in line with the duration of the obligations evaluated. In Switzerland the discount rates are determined by reference to high quality government bonds due to the absence of a deep market in high quality corporate bonds.

Expected returns on assets are determined plan by plan. They depend on the asset allocation and expected performance prevailing on that date applicable to the period over which the obligation is to be settled. These are reflected in the assumptions above.

An increase or decrease in the discount rate of 0.25% would result respectively in a decrease in the estimated pension liability of approximately EUR 8 million or an increase of approximately EUR 6 million (2010: a decrease of EUR 9 million relating to an increase in the discount rate of 0.25%) with the offsetting impact recorded in equity.

(c) Defined benefits pension cost

		2011					2010				2009
In EUR million	Total	Europe	Switzer land	North America	Total	Europe	Switzer -land	North America	Total	Europe	Switzer -land	North America
Service cost	8	4	4	-	8	4	4	-	8	4	4	-
Interest cost	7	3	2	2	8	4	2	2	8	3	2	3
Expected return on assets	(5)	(1)	(2)	(2)	(5)	(1)	(2)	(2)	(5)	-	(3)	(2)
Amortization of past service cost	-	-	-	-	1	1	-	-	1	1	-	-
Settlement / curtailment (1)	-	-	-	-	(14)	(13)	-	(1)	(3)	(3)	-	-
Total pension cost	10	6	4	-	(2)	(5)	4	(1)	9	5	3	1

(1) 2010: includes EUR 12.5 million profit relating to a French agreement « indemnité de Fin de Carrière », which had been cancelled in 2009.

The actual returns on plan assets were EUR 3.1 million for the year ended 31 December 2011 (2010: EUR 4.9 million and 2009: EUR 6.5 million).

(d) Balance sheet amounts

In EUR million	2011	2010	2009	2008	2007
Defined benefit obligation	216	199	178	166	154
Plan assets	125	114	95	88	92
Deficit	91	85	83	78	62
Experience adjustments on plan liabilities	2	-	(1)	(2)	(2)
Experience adjustments on plan assets	(3)	-	2	(16)	-

The following schedule reconciles the movements in the balance sheet amounts for the year ended 31 December 2011 and 2010:

	Total		Switzer	North	Total		Switzer	North
In EUR million Reconciliation of defined	2011	Europe	land	America	2010	Europe	land	America
benefit obligation
Obligation as at 1 January	199	72	85	42	178	71	71	36
Service cost	8	4	4	-	8	4	4	-
Interest cost	7	3	2	2	8	4	2	2
Employee contributions	3	-	3	-	2	-	2	-
Plan amendment	(1)	(1)	-	-	-	-	-	-
Curtailments	-	-	-	-	-	-	-	-
Settlements (1)	-	-	-	-	(14)	(13)	-	(1)
Acquisition / Divestiture	-	(1)	1	-	-	-	-	-
Benefit payments	(6)	(1)	(3)	(2)	(14)	(9)	(3)	(2)
Liability (gains)/losses due to
change in assumptions	(1)	(5)	2	2	14	11	-	3
Liability (gains)/losses due to
experience	2	2	3	(3)	-	4	(4)	-
Effect of foreign exchange	5	-	4	1	17	-	13	4
Obligation as at 31
December	216	73	101	42	199	72	85	42
Reconciliation of fair value
of plan assets
Fair value of assets as at 1
January	114	14	68	32	95	15	53	27
Expected return on plan
assets	5	1	2	2	5	1	2	2
Employer contributions	8	4	4	-	14	7	4	3
Employee contributions	3	-	3	-	2	-	2	-
Settlements	-	-	-	-	(1)	-	-	(1)
Acquisition / Divestiture	-	-	-	-	-	-	-	-
Benefit payments	(6)	(1)	(3)	(2)	(14)	(9)	(3)	(2)
Asset gains / (losses) due to
experience	(3)	(2)	-	(1)	-	-	-	-
Effect of foreign exchange					13	-	10	3
Fair value of assets as at 31	4	-	3	1
December	125	16	77	32	114	14	68	32
Net defined benefit
obligation as at 31
December - Deficit	91	57	24	10	85	58	17	10
Unrecognized past service
costs	(6)	(5)	(1)	-	(6)	(5)	(1)	-
Asset ceiling limitation	2	2	-	-	-	-	-	-
Accrued / (Prepaid)	87	54	23	10	79	53	16	10
Analysis of funded status
Funded or partially funded
obligation as at 31 December	169	31	98	40	164	41	85	38
Fair value of plan assets as at
31 December Funded status as at 31	125	16	77	32	114	15	68	31
December - deficit	44	15	21	8	50	26	17	7
Unfunded obligation as at 31
December	47	42	3	2	35	32	-	3
Total funded status as at 31
December – deficit	91	57	24	10	85	58	17	10

(1) 2010: includes EUR 12.5 million profit relating to a French agreement « indemnité de Fin de Carrière », which had been cancelled in 2009.

The following table summarizes the movements in accrued (prepaid) balances recorded in the consolidated balance sheets as at 31 December 2011 and 2010:

In EUR million	Total 2011	Europe	Switzer land	North America	Total 2010	Europe	Switzer land	North America	Total 2009	Europe	Switzer land	North America
Accrued /
(Prepaid) as at 1 January	79	53	16	10	77	50	17	10	74	43	19	12
Total pension cost					(2)	(5)	4	(1)	9	5	3	1
Benefits paid by	10	6	4	-
employer	-	-	-	-	-	-	-	-	(1)	(1)	-	-
Employer
contribution	(8)	(4)	(4)	-	(14)	(7)	(4)	(3)	(9)	(2)	(3)	(4)
Acquisitions/divest
itures	-	(1)	1	-	-	-	-	-	-	-	-	-
Actuarial (gains)/losses immediately recognized in other comprehensive income (OCI)	5	-	5	-	14	15	(4)	3	3	4	(2)	1
Effect of foreign
exchange	1	-	1	-	4	-	3	1	1	1	-	-
Accrued / (Prepaid) as at
31 December	87	54	23	10	79	53	16	10	77	50	17	10

(e) Plan assets

The following table includes the allocation of plan assets as at 31 December 2011 and 2010:

In EUR million	Europe	Switzerland	North America
2011
Equities	39%	20%	47%
Bonds	15%	60%	47%
Other	46%	20%	6%
2010
Equities	35%	19%	45%
Bonds	12%	59%	45%
Other	53%	22%	10%

As at 31 December 2011, employer contributions for the year ahead are expected to amount to EUR 8 million (2010: EUR 6 million).

20.1.6.18 NOTE 18 - STOCK OPTIONS AND SHARE AWARDS

The Group has established various free share and stock option plans for the benefit of some of its employees (the plans are equity settled only). The terms of these awards are defined and approved by its Board of Directors at the grant date.

The total expense for the year relating to share based payment is EUR 29 million (2010: EUR 31 million), with EUR 5 million (2010: EUR 6 million) relating to share options granted from 2007 to 2011 plans (2010: 2006 to 2010) and EUR 24 million (2010: EUR 25 million) relating to free shares granted from 2007 to 2011 plans (2010: 2006 to 2010). For 2011 plans, amortization of the grant date fair value has been aligned to commence at the date of employee notification.

The share-based payment plans are described below. There have been no cancellations or modifications to any of the plans during 2011.

Stock option plans

The Group grants its employees options or share subscription plans under the following terms:

	Date of award	Options exercisable	Date of expiration of	Exercise price	New shares issued subject to option
Plan	by the Board	on	plan	in EUR	plans
2000	4 May 2000	5 May 2004	3 May 2010	185.1	13,286
2000	31 August 2000	1 September 2005	30 August 2010	173.5	62,461
2001	4 September 2001	4 September 2005	3 September 2011	185.1	93,462
2001	3 October 2001	4 October 2005	2 October 2011	131.1	31,148
2003	28 February 2003	28 February 2007	27 February 2013	27.3	111,034
2003	3 June 2003	3 June 2007	2 June 2013	37.6	143,233
2004	25 August 2004	26 August 2008	25 August 2014	10.9	486,251
2005	16 September 2005	16 September 2009	15 September 2015	15.9	623,269
2006	14 September 2006	15 September 2010	14 September 2016	18.3	795,771
2006	14 December 2006	15 December 2010	14 December 2016	21.73	394,500
2007	13 September 2007	13 September 2011	12 September 2017	17.58	1,417,000
2008	22 May 2008	22 May 2012	21 May 2018	15.63	279,000
2008	10 September 2008	11 September 2012	10 September 2018	15.63	1,199,000
2009	23 March 2009	23 March 2013	22 March 2019	14.92	1,403,500
2009	25 November 2009	25 November 2013	25 November 2019	17.117	88,500
2010	18 March 2010	19 March 2014	19 March 2020	18.40	1,378,000
2010	12 October 2010	13 October 2014	13 October 2020	17.79	37,710
2011	22 March 2011	23 March 2015	23 March 2021	19.71	701,500
2011	1 September 2011	2 September 2015	2 September 2021	15.71	308,500

The stock options are available after 4 or 5 years regardless of whether the employee is still actively employed by the Group.

The terms and conditions of the stock options plan of 22 March 2011 and 1 September 2011, similar to those previously decided by SCOR (notably as regards to the presence condition), provide that the options allocated to Partners can be exercised at the earliest 4 years after the grant date, if the presence condition is met in addition to the satisfaction of certain performance conditions.

The exercise of all of the stock options allocated are, in addition to the presence condition, subject to fulfillment of three out of four of the performance conditions outlined below:

• The S&P financial strength rating must be at least "A" in 2011 and 2012;
• The P&C business combined ratio must be less than or equal to 102% on average in 2011 and 2012;
• The Life business operating margin must be higher than or equal to 3% on average in 2011 and 2012;
• The SCOR Group's ROE for the financial years ending 31 December 2011 and 31 December 2012 must exceed the risk-free rate in 2011 and 2012 by at least 300 points on average.

The table below presents the changes and the current stock option plans at the end of the year along with the average corresponding exercise price.

	2011		2010
	Number of options	Average exercise price in EUR per share	Number of options	Average exercise price in EUR per share
Outstanding options at 1 January	7,373,264	19.63	6,394,052	21.66
Options granted during the period	1,010,000	18.49	1,415,710	18.38
Options exercised during the period	121,603	15.91	145,254	13.61
Options expired during the period	115,170	171.58	73,301	175.50
Options forfeited during the period	149,687	16.91	217,943	22.38
Outstanding options at 31 December	7,996,804	17.41	7,373,264	19.63
Exercisable at 31 December	2,831,304	-	1,861,054	-

The average remaining life of the options and the average exercise price for 2011 and 2010 are presented below.

	Outstanding options
		2011			2010
Range of exercise prices in EUR	Average weighted exercise price in EUR	Average weighted residual life	Number of outstanding options	Average weighted exercise price in EUR	Average weighted residual life	Number of outstanding options
from 10 to 50	17.41	6.65	7,996,804	17.22	7.13	7,258,094
from 51 to 100	-	-	-	-	-	-
from 101 to 150	-	-	-	131.10	0.75	28,834
from 151 to 200	-	-	-	185.10	0.23	86,336
from 201 to 250	-	-	-	-	-	-
from 10 to 250	17.41	6.65	7,996,804	19.63	6.96	7,373,264

The fair value of options is estimated by using the binomial method which takes into account the terms and conditions under which the options were granted. The following table lists the characteristics used at the end of 2011, 2010 and 2009:

	1 September 2011 Plan	22 March 2011 Plan	12 October 2010 Plan	18 March 2010 Plan	25 November 2009 Plan	23 March 2009 Plan
Fair value at grant date (EUR)	2.39	2.61	2.40	3.10	3.16	3.74
Exercise price (EUR)	15.71	19.71	17.79	18.40	17.117	14.92
Expected life	4 years	4 years	4 years	4 years	4 years	4 years
Historical volatility (1)	26.62 %	25.69 %	27.24 %	28.71 %	33.01 %	37.26 %
Dividend	5.44 %	5.28 %	5.28 %	5.28 %	4.87 %	4.87 %
Risk-free interest rate	1.74 %	2.60 %	1.50 %	2 %	2.12 %	2.75 %

(1) The historical volatility used to determine the fair value of stock options is based on an historical volatility over periods corresponding to the expected average maturity of the options granted, which is partially smoothed to eliminate extreme deviations and to better reflect long term trends.

Free share plans

The Group also awards free shares to its employees under the following terms:

Date of grant	Date of vesting	Number of shares originally granted	Estimated price on grant date
22 September 2004	10 January 2005	1,962,555	EUR 1.20
7 December 2004	10 January 2005	2,434,453	EUR 1.41
7 December 2004	10 November 2005	2,418,404	EUR 1.41
7 November 2005	1 September 2007	8,471,998	EUR 1.584
4 July 2006	5 July 2008	8,030,000	EUR 1.638
7 November 2006	8 November 2008	666,000	EUR 1.988
21 November 2006	22 November 2008	2,760,000	EUR 2.108
24 May 2007	24 May 2009	1,442,000	EUR 20.85
7 May 2008	8 May 2010	195,000	EUR 15.63
7 May 2008	8 May 2012	84,000	EUR 15.63
26 August 2008	27 August 2010	427,500	EUR 15.16
26 August 2008	27 August 2012	771,500	EUR 15.16
3 March 2009	4 March 2011	65,800	EUR 15.155
3 March 2009	4 March 2013	149,600	EUR 15.155
16 March 2009	17 March 2011	593,500	EUR 15.085
16 March 2009	17 March 2013	694,000	EUR 15.085
15 April 2009	16 April 2011	30,500	EUR 16.29
15 April 2009	16 April 2013	85,500	EUR 16.29
25 November 2009	26 November 2011	72,000	EUR 16.66
25 November 2009	26 November 2013	16,500	EUR 16.66
2 March 2010	3 March 2012	746,430	EUR 18.25
2 March 2010	3 March 2014	862,130	EUR 18.25
12 October 2010	13 October 2012	26,500	EUR 17.91
12 October 2010	13 October 2014	18,410	EUR 17.91
17 December 2010	18 December 2014	6,120	EUR 19.00
7 March 2011	8 March 2013	663,480	EUR 21.06
7 March 2011	8 March 2015	687,060	EUR 21.06
1 September 2011	2 September 2013	15,800	EUR 16.68
1 September 2011	2 September 2015	320,850	EUR 16.68
1 September 2011 (LTIP)	2 September 2017	415,500	EUR 16.68
1 September 2011 (LTIP)	2 September 2019	297,500	EUR 16.68
12 December 2011	13 December 2013	51,340	EUR 17.44
12 December 2011	13 December 2015	108,480	EUR 17.44

The terms and conditions of the performance share plan of 7 March 2011, 1 September 2011 (except LTIP) and 12 December 2011, similar to those usually decided by SCOR (notably as regards to the presence conditions for the first two years) provide that after the vesting period of 2 years for beneficiaries tax resident in France (and an obligation to retain shares for a period of 2 years after the end of the vesting period) and of 4 years for beneficiaries not tax resident in France, the final acquisition of these shares will be subject to the condition of presence of 2 years for each non-Partner employee and to the satisfaction of performance conditions for Partners.

All the allocation of the performance and free share plan of 7 March 2011, 1 September 2011 (except LTIP) and 12 December 2011 to the Chairman and Chief Executive Officer (and those allocated to the other members of the COMEX, to the Executive Global Partners and to the Senior Global Partners) and half of the allocation to the other Partner beneficiaries (less Senior Global Partners), are subject to performance conditions.

The vesting of these shares will be effective, in addition to the presence conditions, if three out of four of the performance conditions outlined below are met:

• The S&P financial strength rating must be at least "A" in 2011 and 2012;
• The P&C business combined ratio must be less than or equal to 102% on average in 2011 and 2012;
• The Life business operating margin must be higher than or equal to 3% on average in 2011 and 2012;
• The SCOR Group's ROE for the financial years ending 31 December 2011 and 31 December 2012 must exceed the risk-free rate in 2011 and 2012 by at least 300 points on average.

The terms and conditions of the performance share plan of 1 September 2011 (LTIP), provide that after the vesting period of 6 years for beneficiaries tax resident in France (and an obligation to retain shares for a period of 2 years after the end of the vesting period) and of 8 years for beneficiaries not tax resident in France, the final acquisition of these shares will be subject to the condition of presence of 6 years for each beneficiary and to the satisfaction of performance conditions.

All the shares made under the LTIP scheme are not only subject to the satisfaction of the same performance conditions as those set for the 22 March 2011 Plan (for the description of the performance conditions, refer above) and also to a market condition based on the comparison of the Total Shareholder Return (TSR) of SCOR with the ones of its main competitors over 2 periods of 3 and 6 years (respectively between 2011 and 2014 and between 2014 and 2017).

The fair value of the free shares corresponds to the market value adjusted taking into account the dividends and nontransferability costs, estimated using a forward acquisition/disposal method with a turnover assumption. The following table lists the characteristics used at the end of 2011, 2010 and 2009:

	12 December 2011 Plan	1 September 2011 Plan - LTIP	1 September 2011 Plan	7 March 2011 Plan	2 March 2010 Plan
Fair value at grant date (EUR)	14.56 for French residents 12.94 for Non French residents	6.64 for French residents 5.36 for Non French residents	13.93 for French residents 12.39 for Non French residents	17.63 for French residents 15.73 for Non French residents	15.3 for French residents 13.6 for Non French residents
Expected life	2 years for French residents 4 years for Non French residents	6 years for French residents 8 years for Non French residents	2 years for French residents 4 years for Non French residents	2 years for French residents 4 years for Non French residents	2 years for French residents 4 years for Non French residents
Dividend	5.44%	5.44%	5.44%	5.28%	5.28%
Risk-free interest rate	2.1%	2.24%	1.74%	2.6%	2%

	12 October 2010 Plan	17 December 2010 Plan	3 March 2009 Plan	16 March 2009 Plan	15 April 2009 Plan	25 November 2009 Plan
Fair value at grant date (EUR)	15 for French residents 13.4 for Non French residents	15.9 for French residents	13.3 for French residents 12.5 for Non French residents	13.2 for French residents 12.4 for Non French residents	14.3 for French residents 13.4 for Non French residents	14.6 for French residents 13.7 for Non French residents
Expected life	2 years for French 4 years for Non-French residents	2 years for French residents	2 years for French residents 4 years for Non-French residents	2 years for French residents 4 years for Non-French residents	2 years for French residents 4 years for Non-French residents	2 years for French residents 4 years for Non-French residents
Dividend	5.28%	5.28%	4.87%	4.87%	4.87%	4.87%
Risk-free interest rate	1.5%	2.1%	2.238%	2.422%	2.312%	2.119%

20.1.6.19 NOTE 19 – INCOME TAXES

INCOME TAX EXPENSE

The main components of income taxes for the years ended 31 December 2011, 2010 and 2009 are presented below:

2011	2010	2009
(74)	(114)	(9)
(22)	18	(26)
16	(5)	(100)
79	22	184
1	43	(2)
		47
82	(1)	(110)
1	6	6
83	5	(104)
	-	(36)

RECONCILIATION OF EXPECTED TO ACTUAL TAX EXPENSE

A reconciliation of the income tax expense, obtained by applying the French tax rate of 36.10% for 2011, and 34.43% for 2010 and 2009 respectively to income before income taxes, minority interest and income (losses) from associated companies consolidated under the equity method, to the actual income tax expense recorded in the statement of income is presented in the table below. The effective rate in 2011 is 0.0% (2010: 7.8% and 2009: (14.7)%).

The main reconciling items are due to the difference between local income tax rate of each taxable entity and the Group tax rate, permanent differences reported by each entity, reduced rates and specific items, including the recognition of tax-exempt gain from bargain purchase for the acquired Transamerica Re business resulting in a EUR 44 million reconciling item.

In EUR million	2011	2010	2009
Income before income tax	330	455	324
Theoretical income tax at 36.10% (for 2011) and 34.43% (for 2010, 2009)	(119)	(157)	(111)
Reconciling items to actual income tax (expense) / benefit
Differences between French and local tax rates	53	43	40
Tax-exempt income	61	15	23
Non-deductible expenses	(16)	(6)	(21)
Recognition or utilization of tax losses for which no deferred tax assets have been recognized	-	5	108
Write-down and reversal of previous write-down of deferred tax assets	13	52	10
Changes in tax risk provision	(25)	(21)	-
Non creditable / refundable withholding tax	(4)	(1)	-
Changes in tax rates	3	43	(2)
Share based payments	2	(5)	-
Income taxes prior years	37	(4)	-
Others	(5)	-	-
ACTUAL TAX (EXPENSE) / BENEFIT	-	(36)	47

The French income tax rate of 34.43% in previous years has been changed in 2011 to 36.10% with effect on taxable results of the fiscal years 2011 and 2012 and will be 34.43% again from fiscal year 2013 onwards. This temporary tax rate change would have only marginal impact on the net deferred tax assets of the French tax group and, consequently, it has not been taken into account for the measurement of deferred taxes.

Income tax risk provisions have been reviewed and adjusted as part of the regular tax risk provisioning process.

Due to the finalization of income tax returns and refinement of prior periods' income tax positions in 2011, particularly in Germany and France, prior year tax benefits were recognized.

In 2010 the tax rate change impact results from a tax law change in France and the revaluation of deferred taxes for UK companies due to the change of the UK income tax rate from 28% to 27% effective April 2011.

In December 2010, the French Parliament enacted a new tax law regarding the taxation of the French capitalization reserve ("reserve de capitalization", a French insurance statutory provision). As a result French insurance companies have to pay a 10 % exit tax on the capitalization reserve position as of 31 December 2009. In return any increase or release of the capitalization reserve is no longer taken into consideration in the calculation of income taxation from 1 January 2010 onwards. Therefore, there is no longer any deferred tax impacts to be considered.

The existing deferred tax liabilities related to this position measured at 34.43% were released, resulting in a net tax benefit of 24.43 % of the capitalization reserve as of 2009. Therefore, the income tax expense for the year 2010 includes a benefit of EUR 42 million for the change in tax law. Changes in tax risk provision are included within Other Liabilities.

In 2009, the effective tax rate was mainly driven by the reactivation of deferred tax assets of the U.S. operations.

The standard tax rates for the primary locations in which the Group has operations are as follows:

	2011	2010	2009
France	36.10 %	34.43 %	34.43 %
Switzerland	21.17 %	21.17 %	21.17 %
Germany	32.45 %	31.58 %	31.58 %
United Kingdom	26.00 %	28.00 %	28.00 %
United States	35.00 %	35.00 %	35.00 %
Singapore	17.00 %	17.00 %	17.00 %

INCOME TAX EFFECTS RELATING TO OTHER COMPREHENSIVE INCOME

	Before tax	2011 Tax (expense)	Net of tax	Before tax	2010 Tax (expense)	Net of tax	Before tax	2009 Tax (expense)	Net of tax
In EUR million	amount	benefit	amount	amount	benefit	amount	amount	benefit	amount
Effect of
changes in
									(21)
									342
accounting	(4)	(4)	(8)	(67)	24	(43)	(82)	28	(54)
Net gains /losses on cash									-
Actuarial gains / losses not recognized in									(8)
									8
									267
foreign exchange rates Revaluation of assets available for sale Shadow flow hedge income Other changes TOTAL	117 (307) (21) (5) 1 (219)	- 82 3 7 (5) 83	117 (225) (18) 2 (4) (136)	136 87 - (14) 2 144	- (25) - 6 - 5	136 62 - (8) 2 149	(21) 480 - (8) 2 371	- (138) - - 6 (104)

DEFERRED TAX

Deferred tax assets and liabilities and the related expense or benefit as at and for the years ended 31 December 2011, 2010 and 2009 were generated by the following items:

	Balance sheet as at 31 December		Deferred taxes benefit (expense) for the period
In EUR million	2011	2010	2009	2011	2010	2009
Deferred tax liabilities
Deferred acquisition costs	(18)	(164)	(141)	21	(8)	1
Unrealized revaluations and
temporary differences on investments	(63)	(119)	(37)	(45)	(21)	(37)
Equalization reserves	(13)	(29)	(18)	-	(17)	29
Value of business acquired	(190)	(111)	(155)	17	24	(18)
Goodwill	-	-	-	-	-	-
Financial instruments	(7)	(5)	(6)	(5)	(3)	(18)
Claims reserves	(145)	(33)	(3)	(27)	7	(1)
Capitalization reserve	-	-	(62)	-	62	(13)
Other temporary differences	(199)	(76)	(20)	(64)	(27)	2
Elimination of internal capital gains	(3)	(4)	-	-	-	-
TOTAL DEFERRED TAX LIABILITIES	(638)	(541)	(442)	(103)	17	(55)
Deferred tax assets
Unrealized revaluations and
temporary differences on investments	84	95	1	20	22	2
Retirement scheme	8	5	17	-	3	3
Net operating losses for carry forward	693	575	603	30	(34)	64
Financial instruments	8	4	1	7	3	(2)
Claims reserves	78	52	41	15	(10)	(48)
"Shadow accounting"	54	13	(12)	2	-	(3)
Other temporary differences	143	117	19	102	25	140
Elimination of internal capital gains	8	22	17	4	(1)	(5)
TOTAL DEFERRED TAX ASSETS	1,076	883	687	179	8	151
Valuation allowance	(39)	(59)	(25)	20	35	(14)
TOTAL	399	283	220	96	60	82

Applying the deferred tax netting methodologies in accordance with IFRS the amount of deferred tax liabilities and deferred tax assets stated in the balance sheet are as follows:

BALANCE SHEET AMOUNTS AS AT 31 DECEMBER
Deferred tax liabilities	(254)	(192)	(251)
Deferred tax assets	653	475	471
NET DEFERRED TAX ASSETS
(LIABILITIES)	399	283	220

EXPIRATION OF TAX LOSSES AVAILABLE FOR CARRY-FORWARD

In EUR million	Available tax losses carried forward	Tax losses carried forward for which no DTA is recognized	At 31 December 2011 Deferred tax asset recognized	At 31 December 2010 Deferred tax asset recognized
2012	-	-	-	39
2013	47	20	2	-
2014	234	37	30	3
2015	-	-	-	14
Thereafter	485	11	160	151
Indefinite	1,416	69	461	368
TOTAL	2,182	137	653	575

Recognition of deferred tax assets on tax losses carried forward is assessed on the availability of sufficient future taxable income and local tax rules - i.e. unlimited carry forward in France, 20 years carry forward period in the United States and 7 years carry forward period in Switzerland. In 2011, a change in the French Tax Law on tax loss carry forward resulted in the utilization of tax losses being capped to EUR 1 million plus 60 % of the remaining current year taxable result. The forecast of taxable income are based on the main assumptions described in Note 1 - Accounting principles and methods. The result of their analysis is that SCOR expects to utilize all recognized tax loss carry forwards before expiry.

The operating losses which have not been activated as deferred tax assets relate primarily to the French tax Group and subsidiaries in Switzerland.

20.1.6.20 NOTE 20 - INVESTMENT INCOME

The tables below show the analysis by type of investment income and split by category of financial assets:

ANALYSIS BY TYPE
In EUR million	2011	2010	2009
Interest income on investments	240	314	272
Dividends	50	40	31
Rental income from real estate	40	29	27
Other income (including cash and cash equivalent)	29	37	66
Ordinary investment income	359	420	396
Realized gains and losses on investments	187	206	177
Unrealized gains and losses on investments	(7)	-	19
Investment impairment	(51)	(57)	(233)
Real estate amortization	(11)	(9)	(14)
Other investments expenses	(15)	(35)	(27)
Net investment income excluding deposit and currency items	462	525	316
Interest income on funds withheld and contract deposit	205	217	212
Interest expense on funds withheld and contract deposit	(15)	(19)	(26)
Currency gains (losses)	13	(15)	12
TOTAL INVESTMENT INCOME	665	708	514

ANALYSIS BY CATEGORY OF FINANCIAL ASSET

In EUR million	2011	2010	2009
Real estate investments	46	37	40
Available for sale investments	426	501	222
Investments at fair value through income	(1)	5	12
Loans and receivables	174	178	190
Derivative instruments	(8)	(1)	4
Other (including cash and cash equivalents), net of other investment
expenses	28	(12)	46
TOTAL	665	708	514

20.1.6.21 NOTE 21 – NET RESULTS OF RETROCESSION

The table below shows the net results of retrocession for the years ended 31 December 2011, 2010 and 2009:

	SCOR Global	2011 SCOR Global		SCOR Global	2010 SCOR Global		SCOR Global	2009 SCOR Global
In EUR million Ceded gross written	Life	P&C	Total	Life	P&C	Total	Life	P&C	Total
premiums	(345)	(391)	(736)	(286)	(265)	(551)	(333)	(245)	(578)
Change in ceded unearned premiums	(1)	32	31	1	7	8	(5)	-	(5)
Ceded earned premiums	(346)	(359)	(705)	(285)	(258)	(543)	(338)	(245)	(583)
Ceded claims (1)	137	402	539	204	63	267	219	135	354
Ceded commissions	126	32	158	101	15	116	91	2	93
Net results of retrocession	(83)	75	(8)	20	(180)	(160)	(28)	(108)	(136)

(1) Total of 2011 includes inter-segment recharges of expenses of EUR 1 million which are eliminated on consolidation (refer to Note 2 – Segment Information).

20.1.6.22 NOTE 22 - OTHER OPERATING AND ADMINISTRATIVE EXPENSES

Other operating and administrative expenses include expenses incurred by the Group, excluding gross commissions, as follows:

In EUR million	2011	2010	2009
Staff costs (1)	267	220	205
Taxes other than income taxes	12	17	17
External charges for services	189	184	179
OTHER OPERATING AND ADMINISTRATIVE EXPENSES	468	421	401

(1) 2011 Staff costs include the Transamerica Re staff costs since August 2011 and an increase in staff headcount at SCOR whereas staff costs in 2010 were positively impacted by the the release of the provision related to sundry employee benefits schemes which were reformed or cancelled with an impact on 2010.

These expenses are further allocated into categories by function as follows:

In EUR million	2011	2010	2009
Acquisition and administrative expenses	292	263	251
Investment management expenses	26	24	22
Claims settlement expenses	30	29	28
Other current operating expenses(1)	120	105	100
OTHER OPERATING AND ADMINISTRATIVE EXPENSES	468	421	401

(1) The amounts presented above for 2009 include Highfields settlement and related legal expenses of EUR 12 million, net of expected recovery.

	Ernst&Young				Mazars			Total
In EUR	taxes)	Amount (excluding	%		taxes)	Amount (excluding	%		taxes)	Amount (excluding	%
thousand	2011	2010	2011	2010	2011	2010	2011	2010	2011	2010	2011	2010
Audit (1)	3,813	2,883	75%	70%	3,415	3,122	84%	92%	7,229	6,005	79%	80%
SCOR SE	538	533	11%	13%	528	523	13%	15%	1,067	1,055	12%	14%
Fully consolidated subsidiaries	3,275	2,350	64%	57%	2,887	2,599	71%	77%	6,162	4,949	67%	66%
Other audit related (2)	1,216	535	24%	13%	650	179	16%	5%	1,866	714	20%	9%
SCOR SE	1,150	54	22%	1%	569	41	14%	1%	1,719	95	19%	1%
Fully consolidated subsidiaries	66	481	1%	12%	81	138	2%	4%	147	619	2%	8%
Other (3)	86	706	2%	17%	-	85	-	3%	86	791	1%	10%
Legal. tax. social security	86	88	2%	2%	-	31	-	1%	86	119	1%	2%
Other	-	618	-	15%	-	54	-	2%	-	672	0%	9%
TOTAL	5,115	4,124	100%	100%	4,065	3,386	100%	100%	9,181	7,510	100%	100%

Group audit fees for services rendered during the year are detailed below:

(1) Statutory audit and certification of local and consolidated financial statements

(2) Other specific audit assignment related to statutory audit.

(3) Other services, rendered by the Auditors to the fully-consolidated companies and due diligence.

20.1.6.23 NOTE 23 - EARNINGS PER SHARE

Basic and diluted earnings per share are calculated as follows for the years ended 31 December 2011, 2010 and 2009 respectively:

	At 31 December 2011 Shares(1),(2)			At 31 December 2010 Shares(1),(2)			At 31 December 2009 Shares(1),(2)
In EUR million	Net income (numer ator)	(denomi nator) (thousands)	Net income per share (EUR)	Net income (numer ator)	(denomi nator) (thousands)	Net income per share (EUR)	Net income (numer ator)	(denomi nator) (thousands)	Net income per share (EUR)
Net income	330	-	-	418	-	-	370	-	-
Earnings per share
Net income attributable to ordinary shareholders Diluted earnings per	330	183,379	1,80	418	180,125	2.32	370	179,455	2.06
share
Dilutive effects	-	-	-	-	-	-	-	-	-
Stock options and share based compensation(3)	-	3 475	-	-	4,034	-	-	1,804	-
Net income attributable to ordinary
shareholders and
estimated conversions	330	186 854	1.77	418	184,159	2.27	370	181,259	2.04

(1) Average number of shares during the period. See Note 1 of the consolidated financial statements

(2) After stock consolidation on 3 January 2007: 1 new share equals 10 old shares

(3) Calculated assuming all options are exercised where the average SCOR share price for the year exceeds the option exercise price

20.1.6.24 NOTE 24 - RELATED PARTY TRANSACTIONS

Parties are considered to be related if one party has the ability to directly or indirectly control the other party or exercise significant influence over the other party in making financial or operational decisions.

The Group's related parties include:

• Key management personnel, close family members of key management personnel, and entities which are controlled, significantly influenced by, or for which significant voting power is held by key management personnel or their close family members;
• Subsidiaries, joint ventures and associates; and
• Post-employment benefit plans for the benefit of the Group's employees.

The Group has several business relationships with related parties. Transactions with such parties are made in the ordinary course of business and on substantially the same terms and conditions including interest rates and collateral as those prevailing at the time for comparable transactions with other parties.

SCOR SE is the ultimate parent of the Group. As noted above transactions between SCOR SE and its subsidiaries meet the definition of related party transactions. Where these transactions are eliminated on consolidation they are not disclosed in the group's financial statements. A list of the Group's subsidiaries, associates and joint venture is shown below.

Transactions with key management personnel

Key management personnel are those individuals having responsibility and authority for planning directing and controlling the activities of the Group. The Group considers that the members of the Executive Committee and the Board constitute key management personnel for the purposes of IAS 24.

The total gross compensation of key management personnel, which include short-term employee benefits, postemployment benefits, other long-term benefits, termination benefits and share-based payments, for 2011, 2010, and 2009 financial years is outlined below.

(a) Cash compensation

The total gross cash compensation of key management personnel for 2011, 2010, and 2009 financial years is presented below:

In EUR	2011	2010	2009
Fixed compensation	5,142,595	4,512,763	4,097,798
Variable compensation	3,427,169	2,738,301	3,176,218
Profit sharing	59,333	74,039	-
Premiums/allowances	115,440	127,855	102,124
TOTAL CASH COMPENSATION	8,744,538	7,452,958	7,376,140

(b) Post-employment benefits

No retirement benefits (or commitments) have been paid to key management personnel during the period.

The total commitment of the Group for defined benefit retirement plans for the eligible members of the Executive Committee in France, Germany and Switzerland amounts to EUR 25 million as at 31 December 2011 (EUR 21 million as at 31 December 2010 and EUR 23 million as at 31 December 2009).

(c) Non-monetary benefits

The members of the Executive Committee also benefit from the use of a vehicle for business purposes; the Chairman and Chief Executive Officer has a company car with driver. Certain members of the Executive Committee receive a housing allowance because of their dual duties in two geographically separated units.

(d) Other benefits

In the event that the Chairman and Chief Executive Officer is dismissed or his departure is imposed due to a change in the structure of the share capital of the Company or in the strategy of the Group, which in each case substantially affects the content of his duties or the continuation of his activities and the normal exercise of his powers within the Company, the Chairman and Chief Executive Officer will benefit from (i) a cash payment equal to the amount of fixed and variable compensations paid to him by the Group for the two financial years prior to his departure (depending on certain performance criteria determined by the Board of Directors upon recommendation of its Compensation and Nomination Committee), (ii) a cash payment compensating him for his inability to exercise stock options granted prior to his departure date and which he would otherwise be unable to exercise due to the vesting period conditions set forth in the applicable stock option plan, in an amount to be determined by an independent expert using the "Black-Scholes" pricing model, and (iii) a cash payment compensating him for his inability to definitively acquire Ordinary Shares granted to him for free prior to his departure and which he would otherwise be unable to acquire due to the terms and conditions of the applicable free share allocation plan, for a price per Ordinary Share equal to the average of the Company's share price on the date of his departure.

In the event of a change in the structure of the share capital of the Company, if a member of the Executive Committee is dismissed (except for reason of serious or gross misconduct) or if he decides to resign, he will benefit from (i) a cash payment equal to the amount of fixed and variable compensations paid to him by the Group for the one financial year prior to his departure, (ii) a cash payment compensating him for his inability to exercise stock options granted prior to his departure date and which he would otherwise be unable to exercise due to the vesting period conditions set forth in the applicable stock option plan, in an amount to be determined by an independent expert using the "Black-Scholes" pricing model, and (iii) a cash payment compensating him for his inability to definitively acquire Ordinary Shares granted to him for free prior to his departure and which he would otherwise be unable to acquire due to the terms and conditions of the applicable free share allocation plan. The amount of this cash payment is equal to the product of the number of shares concerned by the average value of the opening prices of the Ordinary Shares of SCOR SE in the Paris Stock exchange during the twenty trading days preceding the date of the change in the structure.

SCOR SE PROVIDES SERVICES AND BENEFITS TO ITS SUBSIDIARY COMPANIES OPERATING IN FRANCE AND WORLDWIDE AS FOLLOWS

Provision of services

Provision of technical support in relation to risk management information technology and reinsurance services. Services are charged for annually on an arms' length basis.

Provision of benefits

Issue of share options and share awards to employees of subsidiaries. Costs are charged for annually based on the underlying value of the awards granted calculated in accordance with the guidance set out in IFRS 2. See Note 18 - Stock options and share awards for further details.

Parent company guarantees

SCOR SE provides parental guarantees to a number of operating subsidiaries. Under the terms of these parental guarantees contracts of insurance or reinsurance between clients and the Group companies are covered so that clients benefit from the additional financial security of SCOR SE.

In 2011, SCOR SE granted parental guarantees to:

• SCOR Life Reassurance Company (SLIRC) (Delaware);
• SCOR Life Insurance Company (SLAC) (Delaware);
• SCOR International Reinsurance Ireland Ltd (SIRI);
• Various Group entities to guarantee their obligations towards AEGON of the in the frame of the acquisition of Transamerica Reinsurance.

Loans

SCOR SE provides loans to Group companies in the normal course of business remunerated at market rates.

SIGNIFICANT SUBSIDIARIES, INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

Significant subsidiaries, investments in associates and joint ventures are included in the table below where material to the Group.

		2011		2010
			Percentage		Percentage	Consolidation
SCOR SE and its direct subsidiaries		Country Control Interest Control Interest				method
SCOR SE	France	100.00	100.00	100.00	100.00	Parent
General Security Indemnity Company of
Arizona	United States	100.00	100.00	100.00	100.00	Full
General Security National Insurance
Company	United States	100.00	100.00	100.00	100.00	Full
Prévoyance Ré	France	100.00	100.00	100.00	100.00	Full
SCOR AFRICA Ltd	South Africa	100.00	100.00	100.00	100.00	Full
SCOR GIE Informatique	France	100.00	100.00	100.00	100.00	Full
SCOR Perestrakhovaniye	Russia	100.00	100.00	100.00	100.00	Full
SCOR Reinsurance Company	United States	100.00	100.00	100.00	100.00	Full
SCOR U.S. Corporation	United States	100.00	100.00	100.00	100.00	Full
SCOR Global Investment SE	France	100.00	100.00	100.00	100.00	Full
SCOR Alternative Investments SA	Luxemburg	100.00	100.00	-	-	Full
SCOR Services Asia Pacific Pte Ltd	Singapore	100.00	100.00	100.00	100.00	Full
CAL Re Management Inc	United States	100.00	100.00	100.00	100.00	Full
SCOR Reinsurance Escritório de Representação no Brasil Ltda	Brasil	100.00	100.00	100.00	100.00	Full
SCOR Global LIFE SE and its
subsidiaries
SCOR Global Life SE	France	100.00	100.00	100.00	100.00	Full
ReMark Group BV	Netherland	100.00	100.00	100.00	100.00	Full
ReMark International BV	Netherland	100.00	100.00	100.00	100.00	Full
Revios Canada Holding Corp. Ltd.	Canada	100.00	100.00	100.00	100.00	Full
Revios Canada Ltd	Canada	100.00	100.00	100.00	100.00	Full
SCOR Financial Services	Ireland	100.00	100.00	100.00	100.00	Full
SCOR Global Life Re Insurance Company
of Texas	United States	100.00	100.00	100.00	100.00	Full
SCOR Global Life Reinsurance (Barbados) Ltd.	Barbados	100.00	100.00	100.00	100.00	Full
SCOR Global Life Reinsurance Company
of America	United States	100.00	100.00	100.00	100.00	Full
SCOR Global Life Reinsurance
International (Barbados) Ltd.	Barbados	100.00	100.00	100.00	100.00	Full
SCOR Global Life Reinsurance Ireland Ltd	Ireland	100.00	100.00	100.00	100.00	Full
SCOR Global Life Americas Reinsurance
Company	United States	100.00	100.00	100.00	100.00	Full
Sweden Reinsurance Co. Ltd Revios US Holding Inc	Sweden United States	100.00 100.00	100.00 100.00	100.00 100.00	100.00 100.00	Full Full
SCOR Life Insurance Company (SLAC)	United States	100.00	100.00	-	-	Full
SCOR Life Reassurance Company (SLRC)	United States	100.00	100.00	-	-	Full
SCOR International Reinsurance Ireland
Ltd (SIRI)	Ireland	100.00	100.00	-	-	Full
SCOR Global Life US Re Insurance
Company Escritório de Representação no
Brasil Ltda	Brasil	100.00	100.00	100.00	100.00	Full
SCOR Global Life Australia Pty Ltd	Australia	100.00	100.00	-	-	Full
SCOR Global P&C SE and its subsidiaries
SCOR Global P&C SE	France	100.00	100.00	100.00	100.00	Full
SCOR Reinsurance Asia Pacific Pte Ltd	Singapore	100.00	100.00	100.00	100.00	Full
SCOR Reinsurance Company (Asia) Ltd	Hong Kong	100.00	100.00	100.00	100.00	Full
SCOR (UK) Group Ltd	United Kingdom	100.00	100.00	100.00	100.00	Full
SCOR Canada Reinsurance Company	Canada	100.00	100.00	100.00	100.00	Full
SCOR Global P&C Ireland Ltd	Ireland	100.00	100.00	100.00	100.00	Full
SCOR Global South Africa (Pty) Ltd	South Africa	100.00	100.00	100.00	100.00	Full

			2011		2010
			Percentage		Percentage	Consolidation
		Country Control Interest Control Interest				method
SCOR P&C Ireland Holding Limited	Ireland	100.00	100.00	100.00	100.00	Full
SCOR UK Company Limited	United Kingdom	100.00	100.00	100.00	100.00	Full
SCOR Underwriting Ltd	United Kingdom	100.00	100.00	100.00	100.00	Full
Blue Star Management Ltd	United Kingdom	100.00	100.00	-	-	Full
SCOR Services International Ltd	Hong Kong	100.00	100.00	100.00	100.00	Full
SCOR Services Japan Co	Japan	100.00	100.00	100.00	100.00	Full
SCOR Holding (Switzerland) AG and its
subsidiaries
SCOR Holding (Switzerland) AG	Switzerland	100.00	100.00	100.00	100.00	Full
SCOR Finance Guernsey Ltd	Guernsey	100.00	100.00	100.00	100.00	Full
SCOR Holding (UK) Ltd	United Kingdom	100.00	100.00	100.00	100.00	Full
SCOR Insurance (UK) Ltd	United Kingdom	100.00	100.00	100.00	100.00	Full
SCOR Switzerland AG	Switzerland	100.00	100.00	100.00	100.00	Full
SCOR Services Switzerland AG	Switzerland	100.00	100.00	100.00	100.00	Full
PPG Lime Street Ltd	United Kingdom	100.00	100.00	-	-	Full
Real Estate Businesses
Finimo Realty Pte Ltd	Singapore	100.00	100.00	100.00	100.00	Full
SCOR Auber	France	100.00	100.00	100.00	100.00	Full
SCI Le Barjac	France	100.00	100.00	-	-	Full
SCOR Properties	France	100.00	100.00	-	-	Full
5 avenue Kléber SAS	France	100.00	100.00	-	-	Full
Financial Activity
FCP SGI Euro Govies	France	100.00	100.00	100.00	100.00	Full
FCP Euro ABS AAA	France	100.00	100.00	100.00	100.00	Full
FCP Euro Corporate	France	100.00	100.00	100.00	100.00	Full
FCP Euro Covered AAA	France	100.00	100.00	100.00	100.00	Full
FCP Euro Equities	France	100.00	100.00	100.00	100.00	Full
FCP Euro High Yield	France	100.00	100.00	100.00	100.00	Full
Associates and Joint Ventures
ASEFA SA Seguros y reaseguros	Spain	39.97	39.97	39.97	39.97	Equity interest
MUTRE SA	France	33.33	33.33	33.33	33.33	Equity interest
SCOR Channel Limited	Guernsey	99.86	99.86	99.86	99.86	Equity interest
SCOR Gestion Financière	France	100.00	100.00	100.00	100.00	Equity interest
Cogedim Office Partners	France	43.54	43.54	-	-	Equity interest

20.1.6.25 NOTE 25 - COMMITMENTS RECEIVED AND GRANTED

The general reinsurance regulatory environment requires that underwriting liabilities be collateralized by pledged assets, cash deposits or letters of credit.

Reinsurance commitments are recognized as liabilities within underwriting reserves and are offset by assets which are maintained for the settlement of claims. When the liabilities are not offset by cash deposited with the ceding companies, the underwriting reserves may be covered by pledged securities or letters of credit granted to ceding companies which are disclosed within off-balance sheet commitments.

In EUR million	2011	2010
Commitments received
Unused lines of credit (1)	150	134
Letters of credit – retrocessionaires (2)	178	61
Endorsements, sureties	8	14
Other commitments received	8	-
TOTAL COMMITMENTS RECEIVED	344	209
Commitments given
Letters of credit (3)	1,279	1,201
Pledged securities	3,965	3,691
Endorsements, surety	16	68
Other commitments given	53	54
TOTAL COMMITMENTS GIVEN	5,313	5,014
Collateral received from retrocessionaires
TOTAL COLLATERAL RECEIVED FROM RETROCESSIONAIRES (4)	1,007	694

(1) Unused lines of credit represent those facilities available to the Group to enable it to meet its liquidity requirements. These include overdrafts and lines of credit, but exclude letter of credit facilities. The Group has total letter of credit facilities available to it of USD 929 million, composed of several syndicated and bilateral lines with international banks.

(2) Includes letters of credits received from external retrocessionaires.

(3) Represents the total amount of letter of credits granted by the Group in favor of its cedants, including those issued by banks on behalf of the Group.

(4) This is the total carrying amount of financial assets pledged as collateral for liabilities or contingent liabilities, including Securities pledged, deposits received and letters of credit from retrocessionaires detailed in Note 16.

Assets including investment securities, real estate and shares in associates for a total amount of EUR 3,965 million (2010: EUR 3,691 million) have been pledged to financial institutions, in order to guarantee the letters of credit granted to SCOR cedants.

Minimum payments under operating lease commitments, estimated minimum rental income amounts received by SCOR as part of its real estate investment activities and commitments to purchase properties are included within Note 5 – Tangible assets.

Parental guarantees provided by SCOR SE to a number of operating subsidiaries have been presented within Note 24 – Related party transactions.

Minimum net worth under stand-by letter of credit facilities

In accordance with the terms of its stand by letter of credit facilities, the Group must meet certain minimum requirements relating to net worth. The Group currently meets all such requirements.

20.1.6.26 NOTE 26 - INSURANCE AND FINANCIAL RISK

Framework

The principal risk the Group faces under insurance and reinsurance contracts is that the actual amounts of claims and benefit payments, or the timing thereof, differ from expectations. The frequency of claims, severity of claims, actual benefits paid, subsequent development of long-tail claims and external factors beyond the Group's control, including inflation, legal developments and others have an influence on the principal risk faced by the Group. Additionally, the Group is subject to the quality of claims management by ceding companies and other data provided by them. In spite of these uncertainties, the Group seeks to ensure that sufficient reserves are available to cover its liabilities.

Generally, SCOR's ability to increase or maintain its portfolios of reinsurance risks in its Non-Life and Life divisions may be subject to external factors such as economic risks and political risks.

NON-LIFE REINSURANCE RISKS

(a) Property

SCOR's property business underwritten by its property and casualty division, which it refers to in this Registration document as "SCOR Global P&C," "Non-Life" or its "Non-Life division," is exposed to multiple insured losses arising from a single or multiple events, which can be catastrophic, being either caused by nature (e.g. hurricane, windstorm, flood, hail, severe winter storm, earthquake, etc.) or by the intervention of a man-made cause (e.g., explosion, fire at a major industrial facility, act of terrorism, etc.). Any such catastrophic event can generate insured losses in one or several of SCOR's lines of business.

The insured losses may be covered under various different lines of business within the Property business such as fire, engineering, aviation, space, marine, energy and agricultural.

(b) Casualty

For SCOR's casualty business, the frequency and severity of claims and the related indemnification payment amounts can be affected by several factors. The most significant factors are the changing legal and regulatory environment, including changes in civil liability law and jurisprudence. Additionally, due to the length of amicable, arbitral and court procedures, the casualty business is exposed to inflation risks regarding the assessment of claim amounts. Additional exposure could arise from so-called emerging risks, which are risks considered to be new or subject to constant evolution, and thus particularly uncertain in their impact. Examples of such risks are electromagnetic fields or nanotechnology.

(c) Cyclicality of the business

Non-Life insurance and reinsurance businesses are cyclical. Historically, reinsurers have experienced significant fluctuations in operating income due to volatile and unpredictable developments, many of which are beyond the control of the reinsurer including primarily, frequency or severity of catastrophic events, levels of capacity offered by the market and general economic conditions and to varying extents the price competition and capacity available.

The primary consequences of these structural factors are to reduce or increase the volume of Non-Life reinsurance premiums on the market, to make the reinsurance market more competitive, and also to favour the operators who are most attentive to the specific needs of the cedants. This could lead potentially to a loss of competitive advantage for SCOR.

Beyond the general trends, the premium rate cycle affects certain geographic markets and/or certain lines of business in a differentiated fashion and independently of each other.

(d) Risk management

Underwriting guidelines in place within SCOR Global P&C specify (i) the underwriting rules and principles to be complied with, (ii) underwriting capacities delegated to the underwriters and pricing actuaries in each of the markets and lines of business in which the Group operates, as well as (iii) the relevant maximum acceptable commitments per risk and per event. They are reviewed and updated annually by the Underwriting Management function and approved by the Chief Executive Officer and Chief Risk Officer of SCOR Global P&C. Any request for deviations from the underwriting guidelines is subject to special referral procedures at two key levels. At the first level, the request is submitted by the underwriting units to the Underwriting Management function, and where applicable, to the Legal Department. At the second level, for exposures exceeding certain thresholds or with specified characteristics, the request is submitted by the Underwriting Management function to the Group Risk Management function of SCOR SE.

Pricing guidelines and parameters are set to provide consistency and continuity across the organization but also to take into account differences between markets and lines of business as well as the geographical location of the client and the risks insured. Parameters are revised at least once a year to consider, as the case may be, the changing market conditions and environment. Contracts that meet certain risk thresholds are subject to mandatory peer reviews that have to be performed and documented before the pricing is completed. SCOR Global P&C employs a data system which allows management to monitor and review the results from the pricing tools.

Underwriting cross-reviews are initiated by SCOR Global P&C Risk Management to evaluate the quality of underwriting of particular underwriting units or certain lines of business, to identify risks, to assess the appropriateness and effectiveness of controls and to propose risk-management measures, including mitigating actions.

(e) Risk assessment

Catastrophe management is split into three sections under SCOR Global P&C: portfolio accumulation, optimization and procedures; research and development; and modeling in support of underwriting. Descriptive guidelines for each of the main business processes are available: 'catastrophe methodologies', 'data quality & modeling', 'accumulation control', , 'Cat pricing' and 'system & processes'. For Cat pricing, a matrix organization described in the guidelines has been implemented in each Hub, distributing the responsibility of Cat pricing to the Cat modelers, the pricing actuaries or the underwriter. In addition, a system of Cat referrals has been introduced in excess of a given threshold.

For all SCOR's property business, it evaluates the accumulations generated by potential natural events and other risks. Pursuant to the rules and procedures, Regional Managers from SCOR's natural catastrophes risks modeling team monitors the structure of the portfolio for each region or country and the data is consolidated under the supervision of the Head of natural catastrophes risks modeling.

The Group tracks natural catastrophe accumulation (earthquakes, wind and flood perils…) for all exposed countries worldwide. Depending on the region of the world and the peril in question, it uses a variety of techniques to evaluate and manage its total exposure. The Group quantifies this exposure in terms of a maximum commitment. It defines this maximum commitment, taking into account policy limits, as the potential maximum loss caused by a catastrophe affecting a geographic area, such as a storm, hurricane or earthquake, and occurring within a given return period. SCOR estimates that its potential maximum losses for catastrophes, before retrocession, come from windstorms in Europe, hurricanes in the U.S., typhoons in Japan or from earthquakes in Japan or the U.S.

The Group makes extensive use of proprietary external models from industry-leading catastrophe model suppliers, including Risk Management Solutions RiskLink® ("RMS") and AIR Worldwide Catrader® ("AIR"), and licenses all the region/peril combinations available from each vendor. In addition, it has access to local cat model expertise for Australia from Risk Frontiers, a commercial provider of tools developed at Macquarie University. Access to multiple external models allows the Group to better appreciate the strengths and limitations of each model and make adjustments where appropriate, and it is well equipped with alumni from AIR and RMS within the Natural Catastrophe Risk Modelling team.

In 2011, SCOR operationally uses the RMS modelling results format as its common framework for assessing accumulations of natural catastrophe risk, including catastrophe risk management controls (Capacity Monitoring) and provision of data to its internal capital models, and retrocession department.

These tools enable the Group to quantify its exposure in terms of a probable maximum loss ("PML") at various levels of probability for each peril and geographic location. The overall aggregate annual PML per peril, allowing for potential multiple events, provides the information required to determine the level of retrocession and other alternative risk transfer solutions (e.g., catastrophe bonds) that are needed to ensure that the net aggregate exposure remains within predefined tolerance limits.

The probabilistic catastrophe modelling approach captures the uncertainty related to the likelihood of a given event occurring (frequency uncertainty) as well as the uncertainty associated with the amount of loss, given that a particular event has occurred (severity uncertainty). A sound understanding of the uncertainties associated with the model's key parameters is essential for the interpretation of the model outcome and thus for decision-making. The outcomes for each model describe a bandwidth of loss estimates and not a unique value. In order to identify and stress-test the key parameters, systematic sensitivity analyses are carried out.

For peril/zones where neither internal nor external models are available, the following approaches are used:

• Pricing is performed based on actuarial techniques using historical losses and other benchmarks.
• Accumulations are performed either on a notional basis (i.e. sum of event limits for underwritten share), or on a "manual PML" basis, applying a mean damage ratio to the peak zone aggregates.

This method is validated by the Research & Development Cat team, who performs comparative studies with other peril/zones of similar hazard and vulnerability characteristics.

(f) SCOR Global P&C faces concentration risks related to its broker business

SCOR produces its non-life business both through brokers and through direct relationships with insurance company clients. For the year ended December 31, 2011, approximately 64% of Non-Life gross premiums were produced through brokers. In 2011, SCOR had two brokers that accounted for approximately 34% of its Non-Life gross premiums. Because broker business is concentrated with a small number of brokers, SCOR is exposed to concentration risk. A significant reduction in the business generated through these brokers could potentially reduce premium volume and net income.

(g) Geographic concentration

Like other reinsurance companies, SCOR may be exposed to multiple insured losses to property or to the person arising from a single occurrence, whether a natural catastrophe such as a hurricane, windstorm, flood, hail, severe winter storm, earthquake, or a man-made catastrophe such as an explosion, fire at a major industrial facility or an act of terrorism. Any such catastrophic event may generate insured losses in one or more of the Group's lines of business.

The frequency and severity of such catastrophic events, particularly natural hazards, are by their nature unpredictable. The inherent unpredictability of these events makes forecasts and risk evaluations uncertain for any given year. As a result, SCOR's claims experience may vary significantly from one year to the next, which can have a significant impact on its profitability, and financial position. In addition, depending on the frequency and nature of losses, the speed with which claims are made and the terms of the policies affected, it may be required to make large claim payments within a short period. SCOR may be forced to fund those obligations by liquidating investments in distressed market conditions, or by raising funds under unfavorable conditions. In particular, its most significant exposure to natural catastrophes in Non-Life relates to earthquakes, storms, typhoons, hurricanes, floods and other weather-related phenomena like hail or tornados. The Group evaluates its natural catastrophe exposure by means of catastrophe modeling software.

The models it uses depend very much on the underlying parameters. Any future deviations in these parameters will produce varying results depending on the sensitivity of the model to each parameter. Furthermore, the models can only be applied to certain areas and must respect certain conditions. Catastrophic events could occur in areas not covered by the models and could therefore generate losses which exceed those predicted. Reality is always more complex than that reflected by the models and this represents a risk for SCOR.

Although the Group attempts to limit its exposure to acceptable levels, it is possible that multiple concurrent catastrophic events could have a material adverse effect on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

(h) Other concentrations

Information on exposures to asbestos and environmental claims is included in Note 16 — Contract liabilities.

LIFE REINSURANCE

The main categories of risk for life reinsurance underwritten by SCOR's life division are biometric, behavioral and catastrophe risks as well as credit risk (see Credit Risk" below), market risks and currency risks (see Market Risk" below).

(a) Biometric risks

The assessment of biometric risks is at the center of underwriting in life reinsurance. These are risks which result from adverse developments in mortality, morbidity, longevity or from epidemic/pandemic claims. These risks are evaluated by the actuaries, research centers and medical underwriters of SCOR Global Life, who analyze and use information from SCOR Global Life's own portfolio experience, from the ceding companies as well as relevant information available in the public domain, such as mortality or disability studies and tables as available from various sources, e.g., actuarial associations or medical research bodies.

Mortality risk

Mortality risk is the risk of negative deviation from planned results due to higher than anticipated death rates resulting from either the inherent volatility, an adverse long-term trend or a mortality shock event in the reinsured portfolio.

Morbidity risk

Products such as critical illness, short-term and long-term disability and long term care, which all contain morbidity risk, are subject to the risk of negative trends in health, as well as to the consequences of improved medical diagnoses capabilities which increase the number of claims that otherwise would possibly have remained undetected. Products providing cover for medical expenses are subject to the risk of higher than anticipated incidence rates and inflation of medical costs.

Longevity risk

Longevity risk refers to the risk of a negative deviation from planned results due to the insured or annuitant living longer than assumed in the pricing of the insurance cover. This risk exists within annuity and long-term care covers and within other longevity protection products.

Pandemic

In life reinsurance, a major risk lies in the occurrence of a severe pandemic. In the past century, three major outbreaks of influenza occurred and claimed millions of lives. The occurrence of a similar event could cause large losses to the Group, due to an increased mortality far beyond the usual volatility. Experts closely monitor current influenza virus strains and those of other infectious diseases. A lethal virus strain not only of influenza but of any other communicable disease could lead to a heavy increase in mortality rates and increased medical costs which could significantly affect SCOR's results.

The potential loss relating to a severe pandemic is estimated using models. However, the limited amount of data available, combined with the generic model risk, increases the uncertainty in the results. The financial outcome of a severe pandemic could, therefore, differ considerably from that expected by the model, thus leading to a significantly higher loss than expected.

(b) Behavioral risks

SCOR Global Life is also exposed to risks related to policyholder behavior. This includes risks such as lapsation, antiselection at policy issue, resale of policies, unexpected number of exercises of policy options by the policyholder, and fraudulent applications.

Lapsation

Lapses refer to either non-payment of premium by the policyholder or to policies which are terminated by the policyholder before the maturity date of the policy. Depending on the product design, higher or lower policyholder lapses than assumed in the pricing may reduce SCOR Global Life's expected future income. Policyholder lapses may differ from expectations due to a changing economic environment or other reasons, such as changes in tax incentives for the insurance policies, tarnished reputation of the cedant or from the introduction of more attractive insurance products in the market.

Anti-selection

Anti-selection refers to the problem of asymmetry of information between the insured and the insurer. An individual applying for life or health insurance cover usually has better knowledge about his or her own state of health than the insurer. The risk to the (re)insurer is of policyholders deliberately deciding to:

• take out a policy in the knowledge that either their chances of claiming is high or higher than average;
• terminate a policy in the knowledge that their chances of claiming are low or lower than average; or
• choose and exercise a policy option which allows to increase the policyholder's expected benefit.

This might lead to a portfolio composition which differs from the one assumed during pricing and might imply lower than expected profits for both the direct insurer and reinsurer.

Resale

In general, for most individual life covers, the policyholder and the insured person are identical. The pricing of these policies is based on this assumption. However, there is a trend, especially in the U.S., where policyholders that can no longer afford or for other reasons do not want to continue to pay the premiums, are selling their polices and the eventual death benefit to third parties who continue to pay the premium. These "stranger owned life insurance," or STOLI, lead to deviations between actual and expected lapse rates which can be a risk to the insurer and reinsurer of the cover.

(c) Catastrophe risks

As previously indicated, natural or man-made catastrophic events can cause very significant material damage affecting the Non-Life activities of the Group. In addition, such events could cause multiple deaths and serious injuries which could potentially seriously impact the Life activities of SCOR, particularly under contracts covering groups of employees working at the same location.

(d) Risks linked to the types of guarantees

Certain life insurance products include guarantees, most frequently with respect to premium rates, insurance benefits, and surrender or maturity values, or guarantees with regard to interest accrued on reserves or policyholder funds. Other guarantees may exist, for example, with regard to automatic adjustments of benefits or options applied in deferred annuity policies.

Such guarantees may be explicitly or implicitly covered by the reinsurer under the reinsurance contract and if so expose the reinsurer to the risk of adverse developments which increase the value of the guarantee and thereby necessitate respective increases in benefit reserves.

(e) Risk control

Mandates for underwriting life reinsurance business are assigned to teams on a mutually exclusive basis. Life reinsurance treaties are underwritten by life reinsurance experts familiar with the specific features of their markets. The life business is underwritten in line with the market specific underwriting and pricing guidelines.

Underwriting and pricing guidelines defined by SCOR Global Life specify the underwriting rules and principles to be complied with, underwriting capacities delegated to the underwriters and pricing actuaries in each of the markets in which the Group operates, as well as maximum acceptable commitment per risk and per event. In particular, these guidelines specify the type and the terms and conditions under which business is considered as acceptable. Furthermore, they set out the retention of SCOR Global Life for various risks and types of covers. They are approved by the Chief Executive Officer and Chief Risk Officer of SCOR Global Life. Business opportunities going beyond the stipulations of these guidelines are subject to a special referral procedure at two key levels in order to ensure that the business respects defined risk-adjusted return criteria and risk tolerance limits. These cases are examined at the SCOR Global Life level by the Life Central Actuarial and Underwriting Department and by the Risk Management Department and, where applicable, the Finance Department. These departments are located in Charlotte, in Cologne, Paris and Zurich. Cases which may have a significant impact on the balance sheet of the Group are additionally reviewed by the Group Risk Management function. Thresholds or conditions for a referral to Group Risk Management are defined in specific guidelines.

(f) Risk assessment

In order to ensure that SCOR Global Life is continually kept up-to-date with biometric trends and scientific developments, SCOR Global Life uses the expertise of four dedicated technical research centers within the Life Central Actuarial and Underwriting Department to analyze and assess the key factors underlying mortality/longevity, Long-Term Care and disability risks. The SCOR Global Life Research Centers provide recommendations for the implementation of the research results into the pricing, underwriting control and determination of exposure limits.

In order to reduce potential behavioral risk, SCOR Global Life carries out a thorough assessment of the client, the client's target clientele, the market and the design of the insurance product.

Anti-selection risks are mitigated through careful product design and a well-defined medical and financial underwriting selection process. SCOR mitigates lapse risk through appropriate reinsurance treaty clauses, as well as product, client and market diversification in which the lapse risk exposure is variable.

Biometric risks, other than pandemic risk, are diversified on a geographic and a product basis. Biometric risks are those risks which result from adverse developments in mortality, morbidity, longevity or from epidemic/pandemic claims.

A significant part of the reinsured premium in respect of Disability, Long Term Care (LTC) and Critical Illness (CI) products includes premium adjustment clauses. In the case of LTC, the premium adjustments are designed to offset potentially improving longevity. In the case of CI, premium adjustments mitigate potential negative impacts on future claims patterns due to a general deterioration in health and improved medical diagnosis.

Peak mortality, disability and critical illness risks are covered either by surplus per life retrocession programs, or, in some cases, by excess of loss per life or per event retrocessional coverage.

(g) Risks linked to collateral requirements

The availability and cost of collateral, including letters of credit, asset trusts and other credit facilities, could adversely affect SCOR's operations and financial condition.

Regulatory reserve requirements in various jurisdictions in which SCOR operates may be significantly higher than the reserves required under IFRS. A regulation in the U.S., commonly referred to as Regulation XXX (or Triple X) and adopted by most states as of 1 January 2000, requires a relatively high level of regulatory, or statutory, reserves that U.S. life insurance and life reinsurance companies must hold on their statutory financial statements for various types of life insurance business, primarily certain level premium term life products. The reserve requirements under Regulation XXX increase over time and are normally in excess of reserves required under IFRS in other jurisdictions. The increase and the ultimate level of XXX reserves will depend upon the mix of business and future production levels in the U.S.

SCOR might overtime retrocede certain XXX-related cash flows and reserves to such affiliated or unaffiliated reinsurers that are authorized in the ceding company domicile or provide collateral in an amount equal to the ceded reserves. Such collateral must be provided in the form of withheld funds, NAIC (National Association of Insurance Commissioners) approved commercial bank letters of credit, the placement of assets in trust for the ceding company's benefit, or by other means pre-approved by the ceding company's regulator.

Based on the assumed rate of growth in SCOR's current U.S. business plan, and the increasing level of XXX reserves associated with this business, it expects the amount of required XXX reserves, retrocession and required collateral to grow significantly. With regard to retrocession to affiliates, SCOR would be required to secure such collateral.

In connection with these reserve requirements, SCOR faces the following risks:

• The availability of collateral and the related cost of such collateral in the future could affect the type and volume of business it reinsures and could increase costs.
• The Group may need to raise additional capital to support higher regulatory reserves, which could increase the overall cost of capital.
• If SCOR, or its retrocessionaires, are unable to obtain or provide sufficient collateral to support their statutory ceded reserves, it may be required to increase regulatory reserves. In turn, this reserve increase could significantly reduce statutory capital levels and adversely affect SCOR's ability to satisfy required regulatory capital levels that apply, unless it is able to raise additional capital to contribute to its operating subsidiaries.
• Because term life insurance is a particularly price-sensitive product, any increase in insurance premiums charged on these products by life insurance companies, in order to compensate them for the increased statutory reserve requirements or higher costs of insurance they face, may result in a significant loss of volume in their life insurance operations, which could, in turn, adversely affect life reinsurance operations.

SCOR cannot assure investors that it will be able to implement actions to mitigate the effect of increasing regulatory reserve requirements.

(h) Recapture risk

Under certain long term reinsurance treaties, ceding companies have the right to totally or partially recapture the book of business ceded under the reinsurance treaty after a pre-defined number of years after the inception of the treaty. The exercise of such recapture options may reduce SCOR Global Life's expected future income.

INTERDEPENDENCE OF THE NON-LIFE AND LIFE REINSURANCE BUSINESSES

Non-Life and Life reinsurance activities take place in two different market environments. They are subject to heterogeneous external constraints, which generally have only very limited correlation with each other. However, in some extreme scenarios Non-Life and Life risks and financial market and credit risks could accumulate. This exposes SCOR to accumulation and/or correlation risks which are difficult to quantify.

Unforeseen events, such as natural catastrophes or terrorist attacks, can cause significant damage. These types of risk primarily affect Non-Life business areas. However, in cases where SCOR faces a large number of casualties, the possibility of the losses also affecting its Life lines of business as well cannot be excluded.

In the event of a very large natural catastrophe with many victims, the losses generated in Life and Non-Life could potentially accumulate, with losses on financial assets related to the potential reaction of markets (e.g., interest rates, exchange rates and equity market prices). In the same way, a major pandemic event may cause financial market turmoil or business interruptions.

The Group takes into account the effect of the diversification between its two divisions: Life and Non-Life, in its internal model, by setting parameters for the interdependence of the various lines of business.

SCOR's ability to grow or maintain its portfolios in the Life and Non-Life reinsurance divisions may be subject to correlated external factors, such as economic and political risks.

Economic risks are related to slowdowns in economic growth or recessions in the major markets. This may lead households to take out less insurance, to suspend certain premium payments, or to terminate the insurance policies underlying the existing Life and Non-Life treaties earlier than anticipated.

Political risks, which are characterized by social and political instability in certain countries, are particularly significant in emerging markets. These risks could lead to significantly reduced business growth in the Group's markets.

There is no guarantee that SCOR is protected from unexpected changes in Life or Non-Life claims frequency or severity or erroneous assumptions in the underwriting and pricing that could have a material adverse impact on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

SCOR manages its exposure to catastrophes through careful business selection, limiting its exposure to certain geographic areas, monitoring the aggregation of risks per geographic area, and retroceding part of these risks to other reinsurers selected on the basis of public information on their financial strength, or to financial markets.

CREDIT RISK

Credit risk is the risk that one party to a financial instrument or other asset (such as retrocessionaires) will cause a financial loss to the other party by failing to discharge an obligation. SCOR is mainly exposed to the following credit risks:

(a) Fixed income portfolios

Credit risks on fixed income securities cover two areas of risk.

Firstly, a deterioration in the financial situation of an issuer (sovereign, public or private) may result in an increase in the relative cost of refinancing and a reduction in the liquidity of the securities issued leading to a reduction in the value of such securities. Secondly, the borrower's financial situation can cause it to become insolvent and lead to the partial or total loss of coupons and of the principal the Group invested.

SCOR mitigates these risks by implementing a policy of geographic and sector diversification. Limits by counterparty exposure and by rating are also defined. An a posteriori quarterly analysis by segment (business sector, geographical area, counterparty, rating) enables critical risks to be identified and evaluated in order to take appropriate actions.

The Group has a prudent investment policy and put great importance on several selection criteria including internal assessments, the rating provided by the rating agencies to the issuer and the liquidity of the securities purchased.

Fixed income investments are managed by SCOR Global Investments SE or by external managers. In all cases, investment guidelines are provided to managers and strict monitoring is carried out over the global portfolio by the respective Group entities. Whether managed internally or externally, each entity monitors, either directly or via an intermediary, the changes in value of the investment assets. In general, the tactical allocation of the global portfolio is defined by the Group Investment Committee which meets each quarter. It is chaired by the Group's Chief Executive Officer and is composed of the Group Chief Financial Officer, the Group Chief Risk Officer, the Chief Economist, the Chief Executive Officer of SCOR Global P&C and the Chief Executive Officer of SCOR Global Life, the Chief Executive Officer of SCOR Global Investments SE and other representatives of SCOR Global Investments.

The Group has a prudent investment policy and put great importance on several selection criteria including internal assessments, the rating provided by the rating agencies to the issuer and the liquidity of the securities purchased.

(b) Receivables from retrocessionaires

SCOR transfers part of its risks to retrocessionaires via retrocession programs. The retrocessionaires then assume, in exchange for the payment of premiums by SCOR, the losses related to claims covered by the retrocession contracts. So, in the event of default of the retrocessionaire, SCOR would be liable to lose the coverage provided by its retrocessionaires whereas it would retain liability to the cedant for the payment of all claims covered under the reinsurance contract.

Moreover, the Group is exposed to a credit risk in the event of a payment default by the retrocessionaires of the balance of the profit and loss retrocession account due in respect of its cession.

The policy for the management of retrocessionaire credit risk is entrusted to the Security Committee who is responsible for analyzing the financial security of each retrocessionaire and defining the terms and conditions and limits of amounts ceded per retrocessionaire, per rating and per geographical area. The Security Committee meets regularly and pays particular attention to the retrocessionaires' default risk in the treaty renewal period.

Several actions taken by the Security Committee to quantify the risk are:

• the analysis of the financial ratings of the retrocessionaires;
• the analysis of external studies prepared by the security departments of the main reinsurance brokers; in this regard SCOR meets the security departments of two large reinsurance brokers at least twice a year to analyze the security of its retrocessionaires.

Furthermore, to reduce the credit risk arising from its retrocessionaires, SCOR:

• requests that certain of its retrocessionaires provide that all or a portion of the receivables from its retrocession contracts be guaranteed by collateral (cash deposits, letters of credit, pledging of securities etc.) in favor of SCOR;
• carries out an active commutation policy in Non-Life.

The Group's retrocession department regularly monitors its exposure to retrocessionaires by taking into account all relevant accounting balances (estimated and actual claims, premiums, reserves and deposits, pledges and security deposits).

SCOR seeks to reduce its dependence on its traditional retrocessions by using alternative risk transfer solutions such as the multi-year securitization of catastrophic risk in the form of ILS or mortality swaps or the issuance of contingent capital securities. The credit risk that SCOR may be exposed to, through these alternative risk transfer solutions, can be more limited than the credit risk related to traditional retrocession arrangements.

The retrocessionaires' part in the reserves split by retrocessionaires' financial rating is included in Note 16 — Contract liabilities.

In spite of the measures to control and reduce the risk of defaults of its retrocessionaires, the occurrence of one or more of such default could have a material adverse impact on SCOR's business, present and future premium income, its net income, its cash flows, its financial position, and potentially on the price of its securities.

(c) Receivables and deposits with cedants

There are three aspects of credit risk related to contracts with cedants.

Firstly, SCOR may be exposed to credit risk in relation to amounts deposited with ceding companies in respect of reserves which cover its current and future liabilities. Depositing these amounts does not a priori discharge the Group of its liability towards cedants in case it is not able to recover these amounts in the event of default of cedants.

Secondly, SCOR is exposed to a credit risk in the event of a payment default by the cedants of the balance of the profit and loss reinsurance account due under its acceptance of a portion of their risks.

Thirdly, SCOR is exposed to a credit risk in the event of a payment default by the cedants of the premiums due under its acceptance of a portion of their risks. In cases where such an event does not lead to termination of the reinsurance contract, any offset between contractual obligations between the two parties is dependent on court decisions, and it is possible that the Group will remain liable for paying claims without being able to offset the unpaid premiums.

Thus, the inability of its cedants to fulfill their financial obligations could affect SCOR's current and future revenues, net income, cash flow and financial position.

Credit risks related to contracts with cedants are mitigated through a quarterly examination of exposure and associated risks. Depending on the financial situation of the principal cedants, actions aimed at reducing or limiting exposure or mitigating the risk through guarantees on deposits (for example, via offset clauses) may be carried out. Moreover, should their financial strength deteriorate between the time their financial commitment is made and the time it must be honored, an appropriate financial provision is established in the Group's accounts corresponding to the liability for which a loss is considered probable.

(d) Receivables from non-(re)insurance debtors

SCOR is exposed to a credit risk in the event of a payment default by a debtor not linked to the Group by a reinsurance or retrocession treaty. This can be, for instance, advances to providers, social security contribution collection agencies or states, or loans to employees, etc.

(e) Cash deposits at banks

SCOR is exposed to the risk of losing all or part of any cash deposited with a retail bank in the event such a bank is no longer able to honor its commitments (e.g., following liquidation).

The current main risk for the Group is the significant concentration of deposits in a small number of banks. This risk is a direct result of the selection of the most stable banks.

The inability of one or several banks to return its deposits to SCOR could have a material adverse impact on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

Concentration risk is mitigated by defining counterparty exposure limits. Furthermore, SCOR selects bank counterparties according to their rating and quality of their credit. SCOR also considers the public assistance (e.g., loans, guarantees of deposits, nationalizations) certain banks may benefit from during the financial crisis, as they are important in the economy of their country.

(f) Deposits with custodians

As part of the management of its investment portfolio, SCOR deposits the securities it owns with a number of approved custodians. In the case of default of a custodian, depending on the local regulation applicable to the custodian, all or part of these securities could become blocked.

The risk of losing all or part of securities the Group owns could have a material adverse impact on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

(g) Credit & surety

SCOR is exposed to credit risk through its Credit & Surety portfolio. By reinsuring the liabilities of its clients, which are insurers providing surety bonds and/or credit insurance policies, the Group must indemnify its ceding companies, for the portion that it reinsures, in the event of the default of companies on which its ceding companies are exposed.

This business is situated in many countries, mostly in Europe and across a diverse range of activity sectors.

SCOR's Credit & Surety business does not cover either credit default swaps (CDS) or real estate loans, notably in the U.S., nor is it exposed to the various U.S. credit "monoliners" or "guarantors."

SCOR's underwriting policy is particularly prudent in this area. SCOR specifically monitors its main exposures in this sector. In addition, SCOR benefits from the expertise of its specialized cedants in terms of risk prevention, since the cedants continuously adjust their own exposure levels based on changes in the financial strength of the debtors they are insuring.

Multiple defaults of companies (or in the event of the default of a major company) on which the ceding companies are exposed could have a material adverse impact on SCOR's business, present and future revenues, net income, cash flows, and financial position, and potentially, on the price of its securities.

(h) Future profits of Life Reinsurance treaties

Credit risk on future profits from Life reinsurance policies arises from two risk factors.

First of all, the payment of future profits expected under Life reinsurance contracts necessarily implies that the cedant is solvent: for this reason, SCOR risks a reduction in the value of its portfolio of Life contracts in the event of a deterioration in the financial strength of the cedant. In such a case, it is possible that the VOBA and deferred acquisition costs ("DAC") may as a consequence need to be written down and as a consequence, its shareholders' equity would be reduced accordingly.

Secondly, a reduction in the value of future profits could arise from a massive unexpected lapsation of policies following a deterioration of the cedant's financial rating or an event which has a negative effect on SCOR's image.

The Group, therefore, has exposure to a credit risk linked to the insolvency and to the image of its cedants, which, if this were to occur, could have an adverse impact upon its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

(i) Default of pool members

SCOR participates, for certain risk categories that are particularly heavy (particularly terrorist risks), in various groups of insurers and reinsurers ("pools") aimed at pooling the relevant risks among the members of each group. In the event of a total or partial default by one of the members of a group, it could be required to assume, in the event of joint liability of the members, all or part of the liabilities of the defaulting member. In such a case, its business, present and future revenues, net income, cash flows, financial position, and potentially, the price of its securities could be adversely impacted.

In the context of its business, SCOR may be exposed to claims arising from the consequences of terrorist acts. These risks, the potential significance of which can be illustrated by 11 September 2001 attack on the World Trade Center ("WTC") in the U.S., can affect both individuals and property.

Certain countries do not permit the exclusion of terrorist risks from insurance policies. Due to these regulatory constraints, the Group has actively supported the creation of insurance and reinsurance pools involving insurance and reinsurance companies as well as public authorities in order to spread the risks of terrorist activity among the members of these pools. It participates in pools created in certain countries, such as France (GAREAT), Germany (Extremus), the Netherlands (NHT) and Belgium (TRIP), which allows the Group to have limited and known commitments. In the U.S., the Terrorism Risk Insurance Act passed in November 2002 for a period of three years, which was extended to 31 December 2007 by the Terrorism Risk Insurance Extension Act, was renewed for seven years, until 31 December 2014 by the Terrorism Risk Insurance Program Reauthorization Act ("TRIPRA"). It established a federal assistance program to help insurance companies cover claims related to terrorist acts. TRIPRA requires that terrorist acts be covered by insurers. Despite TRIPRA, and the federal aid that it provides, the U.S. insurance market is still exposed to some significant risks in this area. Therefore, SCOR monitors very closely its exposure to the U.S. market, primarily because of the insurance obligation created by the law. In addition to the commitments described above, SCOR does reinsure, from time to time, terrorist risks, usually limiting, by event and by year of insurance the coverage that ceding companies receive for damage caused by terrorist acts.

Beyond the potential impact on its non-life book, a terror event could also affect the Group's life portfolio. Although the insured losses from past events have been comparatively small in relation to the non-life losses, a future terrorist act, such as a "dirty bomb", could claim a substantial amount of insured lives.

After the attack of 11 September 2001, the Group adopted underwriting rules designed to exclude or limit its exposure to risks related to terrorism in its reinsurance contracts, in particular in those countries and/or for the risks expected to be most exposed to terrorism. However, it has not always been possible to implement these measures, particularly in its principal markets. For example, certain European countries do not permit the exclusion of terrorist risks from insurance policies.

As a result, future terrorist acts, whether in the U.S. or elsewhere, could cause SCOR significant claims payments, and could have a significant effect on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

(j) Risk of accumulation of the above risks

The aforementioned risks could accumulate in either a single counterparty, in the same sector of activity or the same country. SCOR attaches particular importance to the establishment of and respect of counterparty exposure limits. The annual examination of its exposure enables the Group to identify and quantify the risks and, in case of accumulations, formulate appropriate responses.

(k) Concentration

The carrying amounts of the Group's financial assets exposed to credit risk by counterparty credit quality, excluding consideration of collateral held or other credit enhancements is included in Note 6 — Insurance business investments (for fixed income securities) and Note 16 — Contract liabilities (for the share of retrocessionaires in insurance and financial liabilities).

SCOR maintains its investment policy in high-quality assets and in countries with the lowest sovereign risk. SCOR has no assets linked to sovereign risk in Greece, Ireland, Portugal or Spain.

(l) Aging of financial assets

The following table provides an overall analysis of the aging of financial assets as at 31 December 2011:

		1-12	12-24	24-36	> 36
In EUR million	Current	months	months	months	months	Total
Available-for-sale investments	9,492	-	-	-	-	9,492
Fair value through income	127	-	-	-	-	127
Derivative instruments	158	-	-	-	-	158
Loans and receivables	9,872	-	-	-	-	9,872
Reinsurance assets	1,251	-	-	-	-	1,251
Insurance receivables	3,886	253	62	17	41	4,259
Taxes receivable	47	-	-	-	-	47
Other accounts receivable	391	-	-	-	-	391
Cash and cash equivalents	1,281	-	-	-	-	1,281
TOTAL	26,505	253	62	17	41	26,878

The following table provides an overall analysis of the aging of financial assets as at 31 December 2010:

		1-12	12-24	24-36	> 36
In EUR million	Current	months	months	months	months	Total
Available-for-sale investments	11,458	3	-	-	-	11,461
Fair value through income	40	-	-	-	-	40
Derivative instruments	94	-	-	-	-	94
Loans and receivables	7,830	68	-	-	-	7,898
Reinsurance assets	1,114	-	-	-	-	1,114
Insurance receivables	2,936	569	58	41	41	3,645
Taxes receivable	50	-	-	-		50
Other accounts receivable	256	2	5	-	-	263
Cash and cash equivalents	1,007	-	-	-	-	1,007
TOTAL	24,785	642	63	41	41	25,572

Financial assets have been aged within the above aging analysis according to their original due date. The due date for each of these instruments may vary dependent on the nature of the asset. Reinsurance assets and insurance receivables business credit terms are typically based on normal terms of trade, as specified within contracts. Insurance receivables include estimates, which are presented as current. The available-for-sale investments and fair value through income categories presented above include fixed income securities and equity securities. For fixed income securities, amounts are only presented as non-current if the security has not been redeemed on the date of maturity and therefore the amount receivable is past due. For equity securities, due to the absence of a contractual date of redemption, these instruments are presented as current. Other assets presented in the above aging analysis, including derivative instruments, loans and receivables, cash and cash equivalents and other accounts receivable, are presented in a similar manner as those instruments described above, dependent on the existence of a redemption date.

Impairment information relating to financial assets is included in Note 6 - Investments, Note 7 - Loans and receivables, and Note 10 - Accounts receivables and debts with cedants and retrocessionaires and Note 20 — Investment income.

LIQUIDITY RISK

SCOR needs liquidity to pay its operating expenses, interest on its debt and dividends on its capital stock, and replace certain maturing liabilities. Without sufficient liquidity, the Group may be forced to curtail its operations, and business will suffer. The principal internal sources of the Group's liquidity are insurance premiums, cash flow from its investment portfolio and assets, consisting mainly of cash or assets that are readily convertible into cash.

Liquidity risk is increased in situations of market disruption as SCOR may need to sell a significant portion of its assets quickly and at unfavorable terms. Additional information on the Group's liquid assets is included in " Note 6 — Insurance Business Investments."

Some facilities SCOR uses to grant letters of credit to cedants require a 100% collateral in case of non-compliance with financial covenants or in case of a decrease in the Group's financial strength rating. Significant changes in the Group's solvency or rating could force it to collateralize these facilities at 100%, which would thus result in a deterioration of its liquidity level. Additional information on SCOR's letter of credit facilities is included in "Note 25 — Commitments Received and Granted."

Considering the above, SCOR is exposed to risks of short-term or medium-term payouts, and it cannot be guaranteed that it will not be exposed to such risks in the future, which could have a material adverse impact on its business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

Additional information on the timing of repayments is included in this note.

(a) Maturity profiles

(i) SCOR Global P&C

The technical reserves of SCOR Global P&C are established on an undiscounted basis (except workers compensation). The table below includes the estimated maturity profiles of the Non-Life insurance liabilities based on payment patterns derived from historical data.

Non-Life insurance liabilities In EUR million	0-1 year	1-3 years	3-7 years	> 7 years	Total
As at 31 December 2011	3,598	3,223	2,716	2,581	12,118
As at 31 December 2010	2,867	2,925	2,569	2,649	11,010

The analysis of the balance sheet reserve movements, including net paid losses is included in Note 16 - Contract liabilities.

(ii) SCOR Global Life

The cash flows of the life business have been prepared on a best estimates basis. The amounts below represent the estimated timing of the gross cash flows resulting from recognized insurance liabilities. For long term life reinsurance, benefit payments are typically settled net of premiums (for treaties with periodic premium payments). Where reserves are deposited with the client, the settlement normally also includes certain other account items, primarily the release of the deposits. For contracts where funds held are used to offset the amounts settled between SCOR and its cedants, funds held to cover the life insurance liabilities in the table below mature at the same date as the respective Life insurance liabilities.

Life claim reserves are predominantly paid out within zero to five years.

The table below reflects gross cash outflows / (inflows).

Life Insurance liabilities In EUR million	< 1 year	1-5 years	6-10 years	> 10 years	Total
As at 31 December 2011(1)	1,542	3,299	1,415	4,787	11,044
As at 31 December 2010(2)	1,441	3,100	1,416	4,839	10,796

(1) The figures as at 31 December 2011 include the cash flows of the Transamerica business.

(2) The figures as at 31 December 2010 still include the cash flows for the US Annuity business which was sold during 2011.

(b) Financial debt

Maturity profiles have been prepared based on undiscounted contractual maturities and include contractual interest payments. In the case of perpetual debt, or debt which is subject to multiple redemption dates, the analysis below assumes such debt is redeemed on the contractual redemption date and not on the optional reimbursement dates. Perpetual debt is classified within the column "more than 5 years" due to an absence of a maturity date. Of the amounts below, EUR 253 million (1) (2010: EUR 337 million) relates to variable rate debt

At 31 December 2011		Debt maturity profiles
In EUR million	Interest rate ranges	Less than 1 year	Between 1 to 5 years	Greater than 5 years(2)	TOTAL
Subordinated debt	2.38% - 6.98%	57	222	1,022	1,301
Other financial debt	3.43% - 4.57%	32	192	291	515
TOTAL		89	414	1,313	1,816

At 31 December 2010		Debt maturity profiles
In EUR million	Interest rate ranges	Less than 1 year	Between 1 to 5 years	Greater than 5 years(1)	TOTAL
Subordinated debt	1.50% - 6.15%	22	89	522	633
Other financial debt	1.30% - 4.60%	94	51	90	235
TOTAL		116	140	612	868

(1) This amount excludes subordinated perpetual debt which has been swapped from variable interest rate to fixed interest rate.

(2) The interest for perpetual debt as at 31 December 2011 represent EUR 33 million on a yearly basis (2010: EUR 14 million).

The previous tables are based on the IFRS 7 disclosure requirements and do not represent the intention of the Group to call the debt back before maturity.

Maturity analyses of financial assets that are held for managing liquidity risk are presented within Note 6 – Insurance business investments.

The Group holds a finance lease which contains an option to purchase an investment property at the end of the lease term. The amount of the minimum payments and their discounted values are presented within Note 5 – Tangible assets and real estate investments. In addition, various entities in the Group rent their office headquarters. The minimum payments relating to these operating leases are presented within Note 5 – Tangible assets and real estate investments.

MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices and macroeconomic variables. Market risk comprises three types of risk: currency risk, interest rate risk and valuation risk.

(a) Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument or balance sheet amount will fluctuate because of changes in foreign exchange rates. The following types of foreign exchange risk have been identified by SCOR:

(i) Transaction risk

Fluctuations in exchange rates can have consequences on the Group's reported net income because of the conversion results of transactions expressed in foreign currencies, the settlement of balances denominated in foreign currencies and the lack of perfect matching between monetary assets and liabilities in foreign currencies.

(ii) Translation risk

SCOR publishes its consolidated financial statements in euros, but a significant part of its income and expenses, as well as its assets and liabilities, are denominated in currencies other than the euro. Consequently, fluctuations in the exchange rates used to convert these currencies into euros may have a significant impact on its reported net income and net equity from year to year.

SCOR's main non-French legal entities are located in Switzerland, the United States, the United Kingdom and Asia Pacific. The shareholders' equity of these entities is denominated mainly in euros, U.S. dollars, Canadian dollars or British pounds.

As a result, changes in the exchange rates used to convert foreign currencies into euros, particularly the fluctuation of the U.S. dollar against the euro, have had and may have in the future, an adverse effect on SCOR's consolidated shareholders' equity. SCOR does not fully hedge its exposure to this risk. The impact of the fluctuation in the exchange rates used to translate foreign currencies into Euros on its consolidated shareholders' equity is described in consolidated statements of changes in shareholders' equity.

SCOR has issued debt instruments in currencies other than euro, currently U.S. dollars and Swiss Francs, and to the extent that these are not used as a hedge against foreign currency investments, SCOR is similarly exposed to fluctuations in exchange rates.

Forward sales and purchases of currencies are included in Note 8 — Derivative instruments.

Some events, such as catastrophes, can have an impact on the matching of assets and liabilities in a currency which can generate a temporary unmatched position which is not covered by currency contracts or hedges.

In spite of the measures to control and reduce SCOR's exposure to fluctuations of exchange rates of major currencies, such fluctuation could have a material adverse impact on SCOR's business, present and future revenues, net income, cash flows, financial position, and potentially, on the price of its securities.

(b) Interest rate risk

Interest rate risk is the risk that the value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Interest rate fluctuations have direct consequences on the market value of SCOR's fixed-income investments and therefore on the level of unrealized capital gains or losses of the fixed-income securities held in the Group's portfolio. The return on the securities held also depends on changes in interest rates. Floating rate instruments expose the Group to cash flow interest risk, whereas fixed interest rate instruments expose the Group to fair value interest risk.

(i) Interest rate risks on Investments

The Group's objective is to maintain an appropriate mix of fixed and variable rate instruments. It also manages the maturities of interest bearing financial assets.

Interest rate fluctuations have direct consequences on the market value of SCOR's fixed-income securities and therefore on the level of unrealized capital gains or losses of the fixed-income securities held in the Group's portfolio. The return on the securities held also depends on changes in interest rates. Interest rates are very sensitive to a number of external factors, including monetary and budgetary policies, the national and international economic and political environment, and the risk aversion of economic agents.

During periods of declining interest rates, income from investments is likely to fall due to investment of net cash flows at rates lower than those of the existing portfolio (dilutive effect of new investments). During such periods, there is therefore a risk that the Group's return on equity objectives are not met. In addition, in these periods of declining interest rates, SCOR's fixed-income securities are more likely to be redeemed early in cases where bond issuers benefit from an early redemption option and can borrow at lower interest rates. Consequently the probability of needing to reinvest the proceeds at lower interest rates is increased.

On the other hand, an increase in interest rates and/or fluctuations in the capital markets could lead to a fall in the market value of fixed income securities held by SCOR. In the case of a need for cash the Group may be obliged to sell fixed income securities, possibly resulting in capital losses to the Group

SCOR analyzes the impact of a major change in interest rates on each of its portfolios and at the global level and identifies the unrealized capital loss that would result from a rise in interest rates. The instantaneous unrealized capital loss is measured for a uniform increase of 100 basis points in rates or in the event of a distortion of the structure of the yield curve. Portfolio sensitivity analysis to interest rate changes is an important risk measurement and management tool which may lead to decisions for reallocation or hedging.

However, there can be no assurance that its risk management measures and sensitivity analysis will be sufficient to protect the Group against all the risks related to variations in interest rates.

(ii) Interest rate risks on financial debt

Financial debt is not carried at fair value. For the Group, interest rate risk is limited to the interest paid on variable rate debt.

(iii)Interest rate risks on insurance liabilities

The Group has certain life insurance contracts which are sensitive to fluctuations in interest rates.

Life

Although in general all long term liabilities are discounted, in most cases there is no immediate accounting impact from a 100 basis point change in interest for the following reasons:

• For the German, Italian, Swiss and Austrian markets, valuation interest rates are typically locked-in at the minimum interest rate guaranteed by the ceding companies on the deposited assets covering the liabilities.
• For the business written in the U.K., Scandinavia, U.S. (traditional, non-savings products), and France (excluding Long Term Care), valuation interest rates are locked-in based on a prudent estimate of the expected rate earned on assets held less a provision for adverse deviation.

There is no requirement for a material change in reserves for life products with guaranteed minimum death benefit (GMDB) in the event of a 100 basis point change in interest rates.

For Long Term Care products in France, ceding companies use valuation rates established by French regulators which are based on a prudent proportion of the moving average of long-term government rates. The bulk of the reserves are deposited. The interests on these deposits are often linked to the assets of the ceding companies and minimum interest rates on deposits are at least the valuation rate. Ceding companies are usually doing a proper matching of assets and liabilities. Hence a 100 basis point decrease in interest rates would have no significant impact.

Non-Life

There are no material amounts of discounted reserves in the Non-Life portfolio which would result in interest sensitivities. Additionally, for lines of business where there are interest sensitivities at the level of the ceding company and for which no direct information on these sensitivities is submitted to SCOR level (e.g., the bodily injury portion of automobile), SCOR considers that the information provided by the ceding company is not necessarily representative of the evolution in interest rates. The IBNR calculations performed by SCOR using methods other than the loss ratio method do not represent a material portion of the recorded reserves and therefore the sensitivity is not considered material.

(c) Valuation risk

Valuation risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Group's valuation exposure relates to financial assets and financial liabilities whose values will fluctuate as a result of changes in market prices, principally investments in equity securities.

(i) Valuation risk on investments

The majority of the Group's investments are in debt securities. For investments made in equity securities, the Group's objective is to develop and manage a high-quality diversified portfolio. The equity portfolio is regularly monitored.

All investments, whether held directly or in mutual funds, are aggregated and valued on a regular basis. This approach allows for the monitoring of changes in the portfolio and the identification of investments with higher than average volatility. The Group's exposure is reviewed at regular Investment Committee meetings.

SCOR is also exposed to equity price risk. A widespread and sustained decline in the equity markets could result in an impairment of SCOR's equity portfolio. Such impairment could affect the Group's net income.

SCOR's exposure to the equity market results both from direct purchases and through certain (re)insurance products including Guaranteed Minimum Death Benefit (GMDB) business.

Equity prices are likely to be affected by risks which affect all of the market (uncertainty on economic conditions in general, such as changes in GDP, inflation, interest rates, sovereign risk, etc.) and/or by risks which influence a single asset or a small number of assets (specific or idiosyncratic risk).

SCOR is, therefore, exposed to a risk of capital losses on equity exposures — if it were to occur — which could adversely impact the Company's net income, cash flows, financial position and potentially, the price of its securities.

(ii) Valuation risk on Insurance liabilities

Life

In general, equity movements have no impact on the reported liabilities of the life business as the underlying policies and reinsurance contracts are typically unrelated to equity prices. For some risk premium treaties (where the underlying insurance policies are unit-linked or universal life) the sums at risk and thus the expected claims, vary with the movement of the underlying assets. However, under almost all reinsurance programs, premiums are also linked to the sums at risk such that the liability would not materially change.

The premiums on the Guaranteed Minimum Death Benefit (GMDB) business underwritten by the SCOR Group in the U.S. market vary with the value of the underlying assets rather than the sum at risk. Thus, premiums would decrease under a decline of the equity values whereas the expected claims would increase thus leading to an increase in the liability. However, included in the reserve calculation is a prudent margin for this fluctuation. Accordingly, there is no requirement for a material change in reserves in the event of a 10% change in equity values.

Non-Life

The Non-Life business is not sensitive to equity price risk.

(d) Sensitivity to market risk

The following table summarizes the accounting sensitivity of the Group's consolidated income and consolidated equity to market risks based on reasonably possible movements in key variables with all other variables held constant. The assumptions included are:

(i) Interest rate risk

The interest sensitivities for equity presented in the table below include the movements on the debt security portfolio, cash and cash equivalents, structured notes, the impact of changes in interest rates on variable rate financial debt and the GMDB business. The annuity business of the life operation in the U.S. was sold in 2011 and has no effect on the sensitivities as at 31 December 2011.

The interest sensitivities for profit & loss presented in the table below shows the impact of changes in fair value of financial assets at fair value through P&L held at closing date, and change in income on variable rate financial assets held at closing date, following an increase/decrease of interests of 100 basis points. An estimate of the impact on the future profit & loss following a change of 100bps is herefore included. However, SCOR does not include in this analysis the impact that changes in interest rates might have on the reinvestment of future cash flows, as future cash flows of our business are difficult to predict and asset allocations might change over time.

(ii) Equity price risk

SCOR conducted an analysis of the sensitivity of the impairment of equity securities, by applying the accounting policy and application rules set out in Note 20.1.6.1 (H) to theoretical future market value changes. SCOR estimates that, excluding any impairment arising to duration, a further uniform decline of 10% from 31 December 2011 market values would generate a future further impairment of equity securities of EUR 7 million (2010: with an equivalent decline, no future further impairment of equity securities; 2009: with an equivalent decline, EUR 12 million). It should be noted that this figure should not be scaled up or down as the impairment rules are not a linear function of market value. For example a scenario with a market value decline of 20% would not double the potential further equity impairment.

As previously mentioned, the Life and Non-Life business have minimal sensitivity to equity price movements.

The market sensitivities of the Group are estimated as follows:

	31 December 2011		31 December 2010		31 December 2009
In EUR million	Income (2) (3)	Equity (2) (3)	Income (2) (3)	Equity (2) (3)	Income (2) (3)	Equity (2) (3)
Interest +100 basis point	9	(187)	8	(198)	3	(201)
% of Equity	0.2%	(4.3)%	0.2%	(4.6)%	0.1%	(5.2)%
Interest – 100 basis points	(9)	154	(8)	174	(3)	204
% of Equity	(0.2)%	3.5%	(0.2)%	4.0%	(0.1)%	5.2%
Equity markets +10% (1)	-	50	-	75	1	72
% of Equity	-	1.1%	-	1.7%	0.0%	1.9%
Equity markets -10% (1)	(7)	(50)	-	(70)	(13)	(67)
% of Equity	(0.2)%	(1.1)%	-	(1.6)%	(0.3)%	(1.7)%

(1) Excludes investments in hedge funds which normally do not have a uniform correlation to equity markets and securities where SCOR has a strategic investment including where the Group has a substantial shareholding but does not meet the "significant influence" criteria in IAS 28.

(2) The reduction in equity represents the estimated net asset impact independently to the amount of impairment recognized in the profit and loss account.

(3) Net of tax at an estimated average rate of 27% in 2011 (28% in 2010 and 25% in 2009).

(iii) Currency risk

SCOR has a balance sheet hedging approach whereby there is an objective to match monetary assets and liabilities in each foreign currency so that the fluctuation in the exchange rate has no material impact to the reported net income. The policy is to closely monitor the net monetary currency positions and, where appropriate, execute either cash arbitrages or forward hedges.

In addition, during 2009 the Group entered into net investment hedges to reduce its exposure to variations in the net assets of USD functional currency subsidiaries. These hedges resulted in a total negative foreign exchange impact of EUR 13 million within equity (2010: EUR 22 million and 2009: EUR 1 million). As at 31 December 2011, the Group does have one hedge of net investment remaining in place. See Note 8 – Derivatives instruments.

The Group recognized a net foreign exchange gain of EUR 13 million for the year ended 31 December 2011 (2010: loss of EUR (15) million and 2009: gain of EUR 14 million).

For currency translation risk(1), the following sensitivity analysis considers the impact in equity of a 10% movement in the exchange rates of the Group's two largest translation risk currency exposures, USD and GBP relative to EUR.

		Equity impact
In EUR million	Currency movement	2011	2010	2009
USD/EUR	+10%	213	132	130
% of Equity		4.8 %	3.1 %	3.3 %
USD/EUR	-10%	(213)	(132)	(130)
% of Equity		(4.8) %	(3.1) %	(3.3) %
GBP/EUR	+10%	28	31	34
% of Equity		0.6%	0.7 %	0.9 %
GBP/EUR	-10%	(28)	(31)	(34)
% of Equity		(0.6) %	(0.7) %	(0.9) %

(1) This analysis excludes the impact of hedging activity. During 2009, the Group entered into a net investment hedge to reduce its exposure to variations in the net assets of USD functional currency subsidiaries as described above.

20.1.6.27 NOTE 27 - LITIGATION

The following litigation matters shall be mentioned:

Converium Class Action Settlement:

As a result of its acquisition of Converium (which has since become SCOR Holding (Switzerland)), SCOR assumed the burden of several litigation matters (including putative class action complaints) before the U.S. District Court for the Southern District of New York (the "U.S. Court") against Converium and several of its officers and directors.

On 25 July 2008, SCOR Holding (Switzerland) executed a definitive settlement agreement in the U.S. class action complaints. On 12 December 2008, the U.S. Court issued an Order and Final Judgment approving the settlements as fair, reasonable and adequate and dismissing with prejudice all claims against the defendants in the proceedings, including those asserted against SCOR Holding (Switzerland) and certain of its former officers and directors.

SCOR negotiated a definitive agreement for the settlement of the claims of non-U.S. purchasers of Converium securities. A petition was submitted on 9 July 2010 and a revised petition on 1 October 2010 to the Court of Appeal of Amsterdam in the Netherlands (the "Dutch Court"), which is the only non-U.S. court likely to maintain jurisdiction for approving a binding settlement agreement pursuant to which payment of the indemnification to non-U.S. purchasers of Converium securities can be effected. The Dutch Court approved the definitive settlement agreement in the U.S. class action complaints on 17 January 2012. Subject to their right to opt out, eligible non-U.S. purchasers of Converium securities are bound to the settlement agreement pursuant to Dutch law. The Dutch Court approval is final and not subject to appeal by the eligible shareholders to a higher Dutch court. This agreement had no additional financial impact to SCOR.

In Europe:

On 29 January 2008, the Spanish competition authority (Comisión Nacional de la Competencia, or the "CNC") commenced a sanctioning procedure against SCOR Global P&C SE Ibérica Sucursal, a branch of SCOR Global P&C, and a number of other insurance and reinsurance companies. The procedure related to alleged antitrust practices regarding the commercial conditions applied to customers in the market for decennial insurance for construction in Spain. The CNC argued that such practices could result in an infringement of Article 1 of Law 15/2007, of 3 July 2007, on Competition (the "Competition Act") (which prohibits agreements and concerted practices that may have as an object or effect the restriction of competition in the market).

After an initial investigatory phase, the Directorate of Investigation of the CNC confirmed its initial accusation and referred the matter to the Council of the CNC for a final decision. The CNC issued its decision on 12 November 2009 which puts an end to the proceeding regarding the decennial insurance against, inter alia, SCOR Ibérica Sucursal. Pursuant to such decision, SCOR was required to pay a fine of EUR 18.6 million. Other insurers and reinsurers were also fined in relation to the same matter. SCOR filed an appeal on 21 December 2009 before the Administrative Chamber of the National Hearing. SCOR intends to challenge the decision of Council of the CNC, including substance of the litigation and calculation of the fine.

SCOR is confident in the success of this appeal with regards to the merits of its argument, upon the calculation of the reinsurance prices as well as upon the excessive amount of the fine.

On 18 June 2009, SCOR commenced an action before the Commercial Court of Nanterre against an insurance company with respect to the recovery of the attorney's fees and costs arising from the Highfields Capital LTD, Highfields Capital I LP and Highfields Capital II LP litigation covered by the directors and officers insurance policy. The proceedings are on-going.

SCOR and its subsidiaries are involved in legal and arbitration proceedings from time to time in the ordinary course of their business.

Litigation matters give rise to an accrual when they meet the recognition requirements of a provision under IAS 37 provision, contingent liabilities and contingent assets. See note 15 – Contingency reserves for the detail of accruals booked. In certain instances, in accordance with IAS 37.92, some required information, in particular the amount of accruals, are not disclosed as they are expected to prejudice seriously the position of SCOR in a dispute with other parties.

20.1.6.28 NOTE 28 – SUBSEQUENT EVENTS

None

20.2 Auditing of historical consolidated financial information

In application of the EC Commission Regulation No. 809/2004, the following information is included by reference in this Registration Document:

• (i) The report from the Statutory Auditors on the consolidated financial statements for the financial year ending 31 December 2010 published pages 274 to 276 of the registration document filed with the Autorité des Marchés Financiers on 8 March 2011 under Number D. 11-0103.
• (ii) The report from the Statutory Auditors on the consolidated financial statements for the financial year ending 31 December 2009 published pages 264 to 266 of the registration document filed with the Autorité des Marchés Financiers on 3 March 2010 under Number D.10-0085

The report from the Statutory Auditors on the consolidated financial statements for the financial year ended 31 December 2011 is reproduced below:

Report of Statutory Auditors on the consolidated financial statements

To the Shareholders,

In compliance with the assignment entrusted to us by your Annual General Meeting, we hereby report to you, for the year ended 31 December 2011, on:

• the audit of the accompanying consolidated financial statements of SCOR SE,
• the justification of our assessments,
• the specific verifications and information required by French law.

These consolidated financial statements have been approved by the Board of Directors at their meeting on 7 March 2012. Our role is to express an opinion on these financial statements, based on our audit.

I. Opinion on the consolidated financial statements

We conducted our audit in accordance with the professional standards applicable in France; those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes verifying, by audit sampling and other selective testing procedures, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used, the significant estimates made by the management, and the overall financial statements presentation. We believe that the evidence we have gathered in order to form our opinion is adequate and relevant.

In our opinion, the financial statements give a true and fair view of the assets, liabilities, financial position and results of the consolidated group in accordance with the accounting rules and principles applicable under IFRS, as adopted by the European Union.

II. Justification of our assessments

Accounting estimations used in the preparation of the Financial Statements for the year ended 31 December 2011 have been performed in an uncertain environment, related to the financial crisis in the Euro zone, accompanied by a liquidity and an economic crisis, which make difficult the comprehension of economic outlook. In this context, in accordance with the requirements of Article L. 823-9 of the French Commercial Code (Code de Commerce), we have performed our own assessments that we bring to your attention on the following matters:

Notes 1- "(G) real estate investments", 1 - "(H) financial instruments", 5, 6 and 8 to the consolidated financial statements describe the principles and methods used to estimate the valuation and impairment of investments and derivative instruments.

In the specific context of the financial crisis, we examined the control system in place, detailed in note 26 to the consolidated financial statements, relative to the inventory of direct and indirect exposures, and the system in place for their assessment, as well as the valuation methods and write-down policies applicable to certain financial instruments. We have obtained assurance that the information provided in the aforementioned notes is appropriate, and that the approaches and policies described were properly applied by the Group.

Notes 1 - "(F) intangible assets", 3 and 4 to the consolidated financial statements describe the principles and methods used to assess the valuation of goodwill and the value of business acquired for the Life and Non-Life reinsurance portfolios. The methods used to carry out these annual impairment tests are described in note 4 to the consolidated financial statements.

We have examined the approaches used in the impairment tests, the cash flow forecasts and the consistency of the assumptions used. We have verified that the information described in note 4 to the consolidated financial statements is appropriate.

Notes 1 - "(R) Taxes" and 19 to the consolidated financial statements describe the principles and methods used to perform the valuation of deferred tax assets as well as the deferred tax assets impairment test.

We have assessed the approaches used in this impairment test, the forecasted cash flows and the assumptions made. We have verified that the information described in note 1 - "(R) Taxes" to the consolidated financial statements is appropriate.

As stated in notes 1 - "(B) Use of estimates", 1 - "(N) Accounting principles and methods specific to reinsurance business", 7, 10, 11 and 16 to the consolidated financial statements, the technical accounts specific to reinsurance are estimated on the basis of reinsurance commitments or on statistical and actuarial bases, particularly in the case of accounts not received from cedents recognised as receivables, technical reserves, and deferred acquisition costs. The methods used to calculate these estimates are described in the notes to the consolidated financial statements.

Our audit work consisted in assessing the data and assumptions on which the estimates are based, in reviewing the company's calculations, in comparing estimations from prior periods with actual outcomes, and in examining senior management's procedures for approving these estimates.

Note 3 - "Acquisitions and disposals" to the consolidated financial statements describes the methods and assumptions used for the final valuation of net assets, and by comparison with the acquisition price, of the negative goodwill following the acquisition of Transamerica Re.

Our audit consisted of assessing the reasonableness of the assumptions used by the management and in verifying calculations leading to the company valuation.

Note 27 "Litigation" to the consolidated financial statements describes the litigation encountered by the Group.

We examined the Group's procedures to identify these risks, to evaluate and reflect them in the financial statements.

Notes 1 - "(O) pension obligations and related benefits" and 15 to the consolidated financial statements specify the valuation methods applied to pension obligations and other related obligations.

Our work consisted of assessing the data and assumptions used, reviewing the company's calculations and verifying that the information in notes 1 - "(O) pension obligations and related benefits" and 15 to the consolidated financial statements are appropriate.

These assessments were made as part of our audit of the consolidated financial statements taken as a whole and therefore served in forming our audit opinion expressed in the first part of this report.

III. Specific verification

We have also performed the specific verification required by law in accordance with professional standards applicable in France regarding the information relative to the Group included in the management report.

We have no matters to report regarding its fair presentation and conformity with the consolidated financial statements.

Paris-La Défense, 7 March 2012

The Statutory Auditors

MAZARS ERNST & YOUNG Audit

Michel BARBET-MASSIN Antoine ESQUIEU Guillaume FONTAINE

Other information audited by the legal controllers

The Registration Document as a whole is the subject of a review completion letter sent by the statutory auditors to SCOR.

The Report by the Chairman of the Board of Directors on the conditions for the preparation and organization of the work of the Board of Directors and on internal control procedures, pursuant to Article L. 225-37 of the French Commercial Code, featured in Appendix B, has been the subject of a report by the SCOR statutory auditors, which is also included in Appendix B.

The third-party agreements executed in 2011 or continued during 2011, as defined by Articles L. 225-38 and following of the French Commercial Code have been the subject of a specific report by the statutory auditors in Section 19.3.

The SCOR SE's corporate accounts for the financial periods ending 31 December 2011, 2010 and 2009, included respectively in Appendix A of this Registration Document, in appendix A of the registration document filed with the Autorité des marches financiers on 8 March 2011 under the number D. 11-0103 and in appendix A of the registration document filed with the Autorité des marchés financiers on 3 March 2010 under the number D. 10-0085 with the Autorité des marches financiers, have been the subject of reports by the statutory auditors, featured respectively in Appendix A of this Registration Document, in appendix A of the registration document filed with the Autorité des marches financiers on 8 March 2011 under the number D. 11-0103 and in appendix A of the registration document filed with the Autorité des marchés financiers on 3 March 2010 under the number D. 10-0085 with the Autorité des marches financiers.

20.3 Sources of financial information not extracted from the audited financial statements of the issuer and indication of such absence of audit

Not applicable

20.4 Date of most recently audited financial information

31 December 2011.

20.5 Interim and other financial information

Not applicable.

20.6 Dividend distribution policy

The resolution to be presented to the Annual General Meeting to approve, during the first half of 2012, the accounts for the financial year 2011, sets out the distribution of a dividend of EUR 1.10 per share for the financial year 2011.

The statute of limitations for dividends is 5 years. Dividends whose payment has not been requested shall be allocated to the administration de domains.

See also Section 20.1.6 – Notes to the consolidated financial statements, Note 23 - Earnings per share.

20.7 Litigation and arbitration procedures

Please see Section 20.1.6 – Notes to the consolidated financial statements, Note 27 – Litigation.

20.8 Material change in financial or commercial situation

No material change has occurred in the Group's financial or commercial situation since the end of the financial year 2011.

ADDITIONAL INFORMATION

21.1	Share capital	291
21.2	Charter and Bylaws	300

21 ADDITIONAL INFORMATION

21.1 Share capital

21.1.1 AMOUNT OF ISSUED CAPITAL AND ADDITIONAL INFORMATION

Date	Amount of capital subscribed (In EUR)	Number of shares outstanding
31 December 2009	1,458,917,914.79	185,213,031
2 March 2010	1,457,885,613.93	185,081,978
28 July 2010	1,478,740,032	187,729,495
31 December 2010	1,478,740,032 (1)	187,729,495 (1)
7 March 2011	1,155,260.40	187,729,495
11 July 2011	1,512,224,741.93	191,980,457
31 December 2011	1,512,224,741.93	191,980,457 (2)
7 March 2012	1,512,842,643.14	192,058,901

All SCOR shares outstanding are fully paid up.

The holders of bonds convertible and/or exchangeable into new or existing SCOR shares (OCEANEs) had the option until 22 December 2009 included to exercise their share allotment right at rate of 0.117 SCOR share for each OCEANE exercised. On 23 December 2009, the Company acknowledged the conversion of 7,987,792 OCEANEs, resulting in the creation of 934,576 new SCOR shares. The OCEANEs non-exercised were reimbursed i.n cash on 4 January 2010. In compliance with Article L. 225-149 of the French Commercial Code, the Board of Directors, on 2 March 2010, acknowledged that 934,576 shares of a nominal value of EUR 7.8769723 each have been created on 31 December 2009 and that it resulted in an increase in capital of a total nominal amount of EUR 7,361,629.26 to the benefit of the holders of OCEANEs. The Board of Directors also brought the necessary amendments to the bylaws provisions relating to the share capital and to the number of shares composing it.

According to the decision of the Extraordinary Shareholders General Meeting of the Company dated 18 May 2004, in its fourth resolution to authorize the Board to grant to officers and employees options to subscribe for or purchase of shares and to acknowledge, if necessary, at its first meeting following the year end of the Company, the number and amount of new shares issued during that period following the exercise of options, the Board of Directors of SCOR SE acknowledged, on 2 March 2010, the capital increase of EUR 84,322.99 by creation of 10,705 shares with a nominal value of EUR 7.8769723 each.

Pursuant to the decision of the Extraordinary Shareholders General Meeting of the Company dated 15 April 2009, in its twenty-first resolution to authorize the Board to reduce the share capital by cancellation of treasury shares, the Board of Directors of SCOR SE decided on 2 March 2010 the share capital reduction of EUR 1,116,623.84 by cancellation of 141,758 new treasury shares with a nominal value of EUR 7.8769723 each. The reason for such decision of capital reduction is to avoid any dilutive effect of the exercise of stock-options upon the share capital. Therefore, any issuance of shares due to the exercise of stock-options is, from time to time, neutralized by the cancellation of the exact same amount of treasury shares.

According to the decision of the Extraordinary Shareholders General Meeting of the Company dated 18 May 2004, in its fourth resolution to authorize the Board to grant to officers and employees options to subscribe for or purchase of shares and to acknowledge, if necessary, at its first meeting following the year end of the Company, the number and amount of new shares issued during that period following the exercise of options, the Board of Directors of SCOR SE acknowledged, on 28 July 2010, the capital increase of EUR 540,699.01 by creation of 68,643 shares with a nominal value of EUR 7.8769723 each.

Pursuant to the decision of the Extraordinary Shareholders General Meeting of the Company dated 28 April 2010, in its eighteenth resolution to authorize the Board to reduce the share capital by cancellation of treasury shares, the Board of Directors of SCOR SE decided on 28 July 2010 the share capital reduction of EUR 540,699.01 by cancellation of 68,643 new treasury shares with a nominal value of EUR 7.8769723 each.

⁽¹⁾ This figure corresponds to the share capital and to the number of shares as acknowledged by the Board of Directors on 28 July 2010, and stated in the bylaws of the Company as at 31 December 2010. It does not take into account the shares that could have been issued between 28 July 2010 and 31 December 2010 due to the exercise of stock-options. The figures that take these shares into account are referred to in Section 20.1.6 – Notes to the consolidated financial statements, Note 13 – Information on share capital, capital management, regulatory framework and shareholders 'equity.

⁽²⁾ This figure corresponds to the share capital and to the number of shares as acknowledged by the Board of Directors on 7 March and 27 July 2011, and stated in the by-laws of the Company as at 31 December 2011. It does not take into account the shares that could have been issued between 27 July and 31 December 2011 due to the exercise of stock-options. The figures that take these shares into account are referred to in Section 20.1.6 – Notes to the consolidated financial statements, Note 13 – Information on share capital, capital management, regulatory framework and shareholders 'equity.

Pursuant to the decision of the Ordinary Shareholders General Meeting of the Company dated 28 April 2010, in its second resolution, to distribute, for the 2009 fiscal year, a dividend of one euro (EUR 1) per share and in its third resolution to offer each shareholder the option to choose between the payment of a dividend in cash or in new shares to be set at a price equal to 90% of the volume-weighted average price quoted during the twenty trading days preceding the date of this General Shareholders' Meeting, less the net amount of the dividend, rounded up to the nearest cent, i.e., EUR 15.96 per share (including EUR 7.8769723 of nominal value and EUR 8.0830277 of issuance premium, the Board of Directors acknowledged, on 28 July 2010 :

• the issuance, on 15 June 2010, in consideration of the dividend, of 2,647,517 new shares of a nominal value of EUR 7.8769723 each, with entitlement to all benefits as of the 1 January 2010, and
• that these 2,647,517 new shares have been issued at a price of EUR 15.96, i.e., a total subscription amount of EUR 42,254,371.32 (including EUR 20,854,418.07 of nominal value and EUR 21,399,953.25 of issuance premium).

According to the decision of the Extraordinary Shareholders General Meeting of the Company dated (i) 18 May 2004, in its fourth resolution, (ii) 31 May 2005 in its sixth resolution and (iii) 16 May 2006 in its fifth resolution to authorize the Board to grant to officers and employees options to subscribe for or purchase of shares and to acknowledge, if necessary, at its first meeting following the year end of the Company, the number and amount of new shares issued during that period following the exercise of options, the Board of Directors of SCOR SE acknowledged, on 7 March 2011, the capital increase of EUR 1,155,260.40 by creation of 146,663 shares with a nominal value of EUR 7.8769723 each.

Pursuant to the decision of the Extraordinary Shareholders General Meeting of the Company on 28 April 2010, in its eighteenth resolution to authorize the Board to reduce the share capital by cancellation of treasury shares, the Board of Directors of SCOR SE decided on 7 March 2011 the share capital reduction of EUR 1,155,260.40 by cancellation of 146,663 new treasury shares with a nominal value of EUR 7.8769723 each.

Pursuant to the decision of the Extraordinary Shareholders General Meeting of the Company dated 28 April 2010, in its seventeenth resolution to authorize the Board to grant the issuance of shares and/or of securities granting access to capital or giving entitlement to a debt instrument, with cancellation of preferential subscription rights, reserved for one category of entities, insuring the underwriting of the company's equity securities, SCOR SE decided, on 5 July 2011, to issue a drawdown notice of EUR 75 million under the contingent capital facility placed at its disposal by UBS whom exercised the adequate number of warrants on 11 July 2011 creating the issuance of 4,250,962 new ordinary shares, each of a nominal value of EUR 7.8769723. On 27 July 2011, le Board of Directors of SCOR SE acknowledged that the share capital of the company amounted to EUR 1,512,224,741.93.

According to the decision of the Extraordinary Shareholders General Meeting of the Company dated (i) 18 May 2004, in its fourth resolution, (ii) 31 May 2005 in its sixth resolution and (iii) 16 May 2006 in its fifth resolution to authorize the Board to grant to officers and employees options to subscribe for or purchase of shares and to acknowledge, if necessary, at its first meeting following the year end of the Company, the number and amount of new shares issued during that period following the exercise of options, the Board of Directors of SCOR SE acknowledged, on 7 March 2012, the capital increase of EUR 617,901.21 by creation of 78,444 shares with a nominal value of EUR 7.8769723 each.

As a result, on the date of the Registration Document, the registered share capital of SCOR SE is EUR 1,512,842,643.14 divided into 192,058,901 shares with a par value of EUR 7.8769723 each.

To the Company's knowledge, there is no significant pledge on the SCOR SE's shares.

Refer to Section 20.1.6 – Notes to the consolidated financial statements, Note 25 – Commitments received and granted for a description of the pledges on the Company's assets.

Number of shares authorized for convertible securities and under stock option plans
-------------------------------------------------------------------------------------	--

Issuance of OCEANEs	At 31 Dec. 2010	At 31 Dec. 2011	On the date of the Registration Document	Interest bearing date of the OCEANEs	Normal amortization date
2 July 2004	-		-	2 Aug. 2004	1 Jan. 2010
Issuance of warrants	At 31 Dec. 2010	At 31 Dec. 2011	On the date of the Registration Document	Date of availability of the warrants	Expiration date
17 Dec. 2010	19,042,848	14,791,886	14,791,886	1 Jan. 2011	31 Dec. 2013
Stock option plans	At 31 Dec. 2010	At 31 Dec. 2011	On the date of the Registration Document	Date of availability of options	Expiration date
28 Feb 2003	102,799	102,799	102,799	28 Feb 2007	28 Feb 2013
3 June 2003	129,475	129,316	129,316	3 June 2007	3 June 2013
25 Aug 2004	179,516	163,120	163,120	26 Aug 2008	26 Aug 2014
16 Sept 2005	464,112	416,569	416,569	16 Sept 2009	16 Sept 2015
14 Sept 2006	720,482	675,000	675,000	15 Sept 2010	15 Sept 2016
14 Dec 2006	149,500	147,500	147,500	15 Dec 2010	15 Dec 2016
13 Sept 2007	1,217,500	1,197,000	1,197,000	13 Sept 2011	13 Sept 2017
22 May 2008	279,000	279,000	279,000	22 May 2012	22 May 2018
10 Sept 2008	1,120,500	1,081,000	1,081,000	10 Sept 2012	10 Sept 2018
23 March 2009	1,391,000	1,347,500	1,347,500	23 March 2013	23 March 2019
25 Nov. 2009	88,500	81,000	81,000	25 Nov. 2013	25 Nov. 2019
18 March 2010	1,378,000	1,330,500	1,330,500	19 March 2014	19 March 2020
12 Oct. 2011	37,710	36,500	36,500	13 Oct. 2014	13 Oct. 2020
22 Mars 2011	-	701,500	701,500	23 Mars 2015	23 Mars 2021
20120112011 1 Sept 2011	-	308,500	308,500	2 Sept 2015	2 Sept 2021
Total	26 300 942	22,788,690	22,788,690

Refer to Section 21.1.4 – Amount of convertible securities, exchangeable securities or securities with subscription warrants for a description of the warrants issued on 17 December 2011.

Number initially authorized (date of the Shareholder's Meeting)

Outstanding number at the date of the Registration Document

Delegation of powers granted by the Extraordinary Shareholders' Meeting of [4 May]2011
19th resolution (Delegation of powers to the Board of Directors for the	25,390,466 shares (4 May 2011)
purpose of deciding upon the incorporation of profits, reserves or premiums	25,390,466 shares (Date of the
into the share capital)	Registration Document)
20th resolution (Delegation of authority granted to the Board of Directors for
the purpose of deciding on the issuance of shares and/or of securities	76,171,399 shares (4 May 2011)
granting access to capital or giving entitlement to a debt instrument, without	76,171,399 shares (Date of the
cancellation of preferential subscription rights)	Registration Document)
21th resolution (Delegation of authority granted to the Board of Directors for	36,816,176 shares (4 May 2011)
the purpose of deciding on the issuance of shares and/or of securities	36,816,176 shares (Date of the
granting access to capital or giving entitlement to a debt instrument, with	Registration Document)
cancellation of preferential subscription rights)
22th resolution (Delegation of authority granted to the Board of Directors for
the purpose of making determinations with respect to the issuance, in the	28,159,424 shares (4 May 2011)
context of an offer of shares and/or of securities granting access to capital or	28,159,424 shares (Date of the
entitling the holder to a debt instrument, with cancellation of preferential	Registration Document)
subscription rights)
23th resolution (Delegation of authority granted to the Board of Directors for
the purpose of making determinations with respect to the issuance of shares
and/or securities granting access to the Company's capital or entitling the	36,816,176 shares (4 May 2011)
holder to a debt instrument, as remuneration for shares contributed to the	36,816,176 shares (Date of the
Company in the context of any public exchange offer launched by the	Registration Document)
Company)
24th resolution (Authorization granted to the Board of Directors for the
purpose of the issuance of shares and/or securities granting access to the	19,198,045 shares (4 May 2011)
Company's capital or giving entitlement to a debt instrument, as remuneration	19,198,045 shares (Date of the
for shares contributed to the Company in the context of any public exchange	Registration Document)
offer launched by the Company or of any contributions in kind within a limit of
10% of the share capital)
26th resolution (Delegation of authority granted to the Board of Directors for
the purpose of issuing securities granting access to the Company's share	19,042,850 shares (4 May 2011)
capital, with cancellation of preferential shareholder subscription rights,	19,042,850 shares (Date of the
reserved for one category of entities, ensuring the underwriting of the	Registration Document)
Company's equity securities)
Authorizations for share issues granted by the Extraordinary Shareholders' Meeting of 4 May 2011
25th resolution (Authorization granted to the Board of Directors for the	This resolution can only be used with
purpose of increasing the number of shares issued in accordance with 20th	the 20th and 21th resolutions and is
and 21th resolutions in the event of over-subscription to the share capital	in any case capped by 11th and 12th
increase, with or without cancellation of preferential subscription rights)	resolutions
	300,000,000 shares ( 4 May 2011
28th resolution (Authority to issue shares for stock option plans)	2011)
	2,691,500 shares (Date of the
	Registration Document)
	300,000,000 shares (4 May 2011)
29th resolution (Authority to issue shares under free share allotment plans)	1,649,150 shares (Date of the
	Registration Document)
	3,000,000 shares (4 May 2011)
30st resolution (Share capital increase reserved for employees of the Group)	3,000,000 shares (Date of the
	Registration Document)
	110,561,865 shares (4 May 2011)
31nd resolution (Aggregate ceilings of the capital increases)	108,902,515 shares (Date of the
	Registration Document)
	110,561,865 shares (4 May 2011)
Total	108,902,515 shares (Date of Registration Document)

Except for the delegations granted pursuant to the 26th and the 30st resolutions, which are granted for an eighteen (18) months duration, the delegations of powers granted by the Shareholders' Meeting of 4 Mai 2011 are each granted for a twenty-six (26) months duration as from the date of the Shareholders' Meeting, i.e. until 4 July 2013, date on which it will be deemed expired if the Board of Directors did not use it.

Except for the delegation granted pursuant to the 25th resolution, which is granted for a twenty-six (26) months duration, the authorizations granted by the Shareholders' Meeting of 4 Mai 2011 are each granted for an eighteen (18) months duration as from the date of the Shareholders' Meeting, i.e. until 4 October 2012, date on which it will be deemed expired if the Board of Directors did not use it.

The total amount of shares authorized at the date of the Registration Document, including the shares that could be issued in connection with the implementation (i) of stock option plans and allotment of free shares plans, (ii) equity securities and (iii) the current delegations and authorizations is EUR 146,083,091.

21.1.2 EXISTENCE OF NON-EQUITY SHARES

Not applicable.

21.1.3 NUMBER AND VALUE OF DIRECTLY OR INDIRECTLY HELD TREASURY SHARES

The description of the stock buyback program implemented under the 17th resolution of the Annual Shareholders' Meeting of 4 May 2011 was published by the Company on 4 May 2011. The report of the Board of Directors of the Company to the Annual Shareholders' Meeting to be held in the first half of 2011 on the use of the 17th resolution will be made available to SCOR shareholders under the conditions set forth by law.

In the context of the above mentioned buyback program and this liquidity agreement were as follows: SCOR proceeded, between 4 May and 31 December 2011, to:

• the purchase of 5,345,314 treasury shares,
• the sale of 3,075,194 treasury shares,
• the transfer 690,210 of treasury shares.

On 31 December 2011, SCOR held 7,262,600 shares compared with 6,427,554 shares at 31 December 2010. The par value of these treasury shares is EUR 57,207,299.02 and their book value is EUR 120,118,236.32.

The tables hereunder detail the evolution of the trading rates of the operations on treasury shares as well as the allocation by objectives.

Month	Average monthly trading rate for purchases In EUR	Average monthly trading rate for sales In EUR	Total monthly amount of trading fees In EUR	Number of shares purchased	Number of shares sold
January 2011	19.93	19.97	0	318,275	402,544
February 2011	20.79	20.85	0	220,556	315,351
March 2011	19.68	19.80	6,092.56	733,978	361,027
April 2011	19.30	19.55	0	249 783	314,517
May 2011	20.28	20.43	0	433,101	530,791
June 2011	18.80	18.90	13,623.99	974,769	332,790
July 2011	18.45	18.52	5,323.69	802,378	468,369
August 2011	15.75	17.54	2,867.24	661,114	320,988
September 2011	15.61	15.65	3,897.48	894,437	364,732
October 2011	16.90	17.25	1,469.59	403,709	354,512
November 2011	16.80	16.98	2,593.52	553,481	443,856
December 2011	19.25	17.85	6,270.12	655,005	314,336

Objective	Number of shares as at 31/12/2011	Reallocation during the financial year	Nominal value In EUR	Percentage of share capital
1. Stimulation of the secondary market or the liquidity of the Company's shares by an investment services provider through a liquidity agreement compliant with a professional ethics charter recognized by the Financial Markets Authority	672,071	-	5,293,884.65	0.35%
2. Setting-up, implementation or hedging of any stock option plans, other plans for allocation of shares and, generally, any form of allocation to employees and/or corporate officers (mandataires sociaux) of the Company and/or of affiliated companies, including hedging of any Company stock option plan pursuant to the provisions of Articles L. 225-177 et seq. of the French Commercial Code, allocation of Company shares at no cost in the context of the provisions of Articles L. 225- 197- 1 et seq. of the French Commercial Code, allocation of Company shares as participation in profits generated by the expansion of business (participation aux fruits de l'expansion de l'entreprise) or allocation or transfer of Company shares within the framework of any employee savings plan (plan d'épargne salariale), in particular in the context of the provisions of Articles L. 3321-1 et seq., and L. 3332-1 et seq., of the French Labor Code	6,590,529	-	51,913,414.37	3.43%
3. Purchasing of shares for keeping and later remittal for exchange or as payment within the framework of possible external growth operations without exceeding the limit set by paragraph 6 of Article L. 225-209 of the French Commercial Code in the context of a merger, spin-off or contribution	-	-	-	-
4. Respect of all obligations linked to the issuance of securities granting access to capital	-	-	-	-
5. Cancellation of the shares bought back in this way, within the limits established by law in the context of a reduction in share capital approved or authorized by the shareholders	-	-	-	-

21.1.4 AMOUNT OF CONVERTIBLE SECURITIES, EXCHANGEABLE SECURITIES OR SECURITIES WITH SUBSCRIPTION WARRANTS

Pursuant to the decision of the Extraordinary Shareholders General Meeting of the Company dated 28 April 2010, in its seventeenth resolution, to delegate to the Board the authority of issuing securities granting access to the Company's share capital, with cancellation of preferential shareholder subscription rights, reserved for one category of entities, ensuring the underwriting of the Company's equity securities, SCOR signed, on 10 September 2010, a natural catastrophe financial coverage facility in the form of contingent capital equity line with UBS. Pursuant to this agreement SCOR SE issued 9,521,424 warrants to UBS on 17 December 2010 (each warrant commits UBS to subscribe for two new SCOR SE shares).

Under the transaction, SCOR was initially benefiting from a contingent EUR 150 million equity line, available in two separate tranches of EUR 75 million each: drawdown on facility being likely to result in an aggregate increase in the share capital of up to EUR 150 million (including issuance premium), in respect of which SCOR has entered into a firm subscription commitment with UBS.

Further to the drawdown, announced on July 5, 2011, by SCOR SE of EUR 75,000,000 on the contingent capital facility placed at its disposal by UBS, UBS has exercised the number of warrants required for the issuance and subscription by it of new SCOR SE shares in an aggregate amount of EUR 75,000,000 and has informed SCOR SE that it has placed the corresponding shares with investors in a private placement.

Accordingly, SCOR SE issued 4,250,962 new ordinary shares on 11 July , 2011, at an issuance price of EUR 17.643 per share (being the exercise price of the warrants). These shares were subscribed for in full by UBS, admitted to trading on the Euronext Paris regulated market immediately following their issuance and will be fully fungible with the existing SCOR SE ordinary shares

The warrants not exercised in this framework remain exercisable under the conditions described below up to the amount of the un-drawn tranche (EUR75,000,000) and until the expiry of the risk coverage period (December 31, 2013) increased by 3 months (subject to certain extension/withholding periods notably for regulatory reasons).

The issuance of the shares will be automatically triggered when the aggregated amount of the estimated ultimate net losses resulting from natural catastrophes incurred by the Group (in its capacity as an insurer/reinsurer) reaches certain thresholds in any given calendar year between 1 January 2011 and 31 December 2013 (1) . Such thresholds may be recalibrated each year by SCOR to fit the coverage levels with changes in the insurance and reinsurance market conditions within certain limits defined to ensure the consistency of the facility's risk profile over the period: as stated in strong momentum V1.1 SCOR has exercised in 2011 its right to recalibrate such thresholds and significantly increased the applicable thresholds.

The eligible worldwide natural catastrophe events under the transaction include the following:

• earthquake, seaquake, earthquake shock, seismic and/or volcanic disturbance/eruption,
• hurricane, rainstorm, storm, tempest, tornado, cyclone, typhoon,
• tidal wave, tsunami, flood,
• hail, winter weather/freeze, ice storm, weight of snow, avalanche,
• meteor/asteroid impact,
• landslip, landslide, mudslide, bush fire, forest fire and lightning.

All subscriptions for new shares by UBS, if any, will be made at a price of 90% of the volume weighted average price of the SCOR SE shares on Euronext Paris over the three trading days preceding the exercise of the warrants. UBS is committed to subscribing for the new shares but does not intend to become a long term shareholder of SCOR SE and will resell the shares by way of private placements and/or sales on the open market. UBS does not intend to become a long term shareholder of SCOR SE, and will, as the case may be, resell the shares by way of private placements and/or sales on the open market.

Finally, for the record, the warrants agreement entered into on December 17, 2010 also provided that, subject to no drawdown having been made under the facility, if the daily volume weighted average price of the SCOR SE shares on Euronext Paris falls below EUR 10 (i.e. a level of price close to the par value of the SCOR SE share), an individual tranche of EUR 75 million would be drawn down in order to ensure the availability of this financial cover (the warrants being unexercisable below par value) in case of occurrence of a natural catastrophe-type event during the remainder of the risk coverage period. Further to July 5, 2011 drawdown, this trigger hypothesis is no longer applicable.

( 1

⁾ The estimated ultimate net losses are defined as the aggregation of the individual estimated ultimate net losses of all natural catastrophe events in a given calendar year. The individual estimated ultimate net loss is the estimated pre-tax impact of any qualifying natural catastrophe event, net of all recoveries (reinsurance and derivatives) and additional expenses as recorded in the Group books.

21.1.5 INFORMATION ABOUT AND TERMS OF ANY ACQUISITION RIGHTS AND/OR OBLIGATIONS OVER AUTHORISED BUT UNISSUED CAPITAL OR AN UNDERTAKING TO INCREASE THE CAPITAL

Refer to:

• Section 15.1.3 Remuneration in the form of options and share allocation,
• Section 17.2 Information on shareholding and stock options for members of the administrative and management bodies,
• Section 17.3 Plans providing employee participation in Company,
• Appendix A Notes to the Corporate Financial Statements, Note 12 Stock Options,
• Section 20.1.6 Notes to the Consolidated Financial Statements, Note 17 Provisions for employee benefits,
• Section 21.1.1 Amount of issued capital and additional information, and
• Section 21.1.4 Amount of convertible securities, exchangeable securities or securities with subscription warrants.

21.1.6 INFORMATION ABOUT ANY CAPITAL OF ANY MEMBER OF THE GROUP WHICH IS UNDER OPTION OR AGREED CONDITIONALLY OR UNCONDITIONALLY TO BE PUT UNDER OPTION AND CHARACTERISTICS OF SUCH OPTIONS

Refer to:

• Section 15.1.3 Remuneration in the form of options and share allocation;
• Section 17.2 Information on shareholding and stock options for members of the administrative and management bodies;
• Section 17.3 Plans providing employee participation in Company;
• Appendix A Notes to the Corporate Financial Statements, Note 12 Stock Options;
• Section 20.1.6 Notes to the Consolidated Financial Statements, Note 17 Provisions for employee benefits,
• Section 21.1.1 Amount of issued capital and additional information; and
• Section 21.1.4 Amount of convertible securities, exchangeable securities or securities with subscription warrants.

The shares of Group's companies other than SCOR SE are neither under option nor agreed to be put under option.

21.1.7 HISTORY OF THE COMPANY'S SHARE CAPITAL FOR THE PERIOD COVERED BY THE HISTORIC FINANCIAL INFORMATION

Changes
Shares
					Successive	Cumulative
	Issue			Additional	amounts of	number
	price		Share capital	paid-in capital	capital	of shares
Change in capital	(in EUR)	Number	(in EUR)	(in EUR)	(in EUR)
31/12/2008					1,451,304,380.43	184,246,437
Exercise of subscription option	10.90	30,504	240,279.16	92,214.44
Cancellation of treasury shares	-	129,539	1,020,375.11	None
Exercise of subscription option	10.90	131,053	1,032,300.85	396,176.85
Conversion of OCEANE	17.09	934,576	7,361,629.26	8,614,012.88
31/12/2009					1,458,917,914.79	185,213,031
Exercise of subscription option	10.90	10,705	84,322.99	32,361.51
Cancellation of treasury shares	N/A	141,758	1,116,623.84	None
Exercise of subscription option	10.90	68,643	540,699.01	207,509.69
Cancellation of treasury shares	N/A	68,643	540,699.01	None
Payment of the dividend in
shares	15.96	2,647,517	20,854,418.07	21,399,953.25
31/12/2010					1,479,259,172	187,795,401
Exercise of subscription option	10.9	22,671	178,578.84	68,535.06
Exercise of subscription option	15.9	48,587	382,718.45	389,814.85
Exercise of subscription option	18.3	42,345	333,550.39	441,363.11
Cancellation of treasury shares	N/A	146,663	1,155,260.39	None
Exercise of subscription option	17.58	8,000	63,015.78	77,624.22
Exercise of Warrants		17.64 4,250,962	33,484,709.92	41,502,259.76
31/12/2011					1,512,546,485	192,021,303

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21.2 Charter and Bylaws

21.2.1 CORPORATE PURPOSE OF THE ISSUER (ARTICLE 3 OF THE BYLAWS)

As set forth in Article 3 of the bylaws (statuts), our corporate purpose includes the following:

• insurance, reinsurance, cession or retrocession of business of any nature in all classes and in all countries, the assumption in any form of reinsurance contracts or liabilities of any French or foreign company, organization, entity or association, and creation, acquisition, rental, lease, installation and operation of any undertaking related to these activities;
• the construction, lease, operation or purchase of any and all properties;
• the acquisition and management of all securities and other equity rights by any means including but not limited to subscription, transfer or acquisition of shares, bonds, corporate rights, partnerships and other equity rights;
• acquisition of equity investments or interests in any industrial, commercial, agricultural, financial, securities or real estate companies, the formation of any company, participation in any capital increases, mergers, demergers and spin-offs;
• administration, management and control of any company or other undertaking, direct or indirect participation in all transactions carried out by such companies or undertakings by any means including, but not limited, to participation in any company or equity investment;
• implementation and management of centralized cash resource management within the Group and the provision of services, to any Group company concerned, relating to the management and operations of centralized cash resources and;
• generally all such industrial, commercial and financial transactions, or transactions involving moveable property and real estate, as may pertain directly or indirectly to the above stated corporate purpose or as may be related to or facilitate the implementation or pursuit thereof.

21.2.2 SUMMARY OF THE BYLAWS AND INTERNAL REGULATIONS OF THE COMPANY CONCERNING THE MEMBERS OF ITS ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES

For further detail please refer to the report of the Chairman of the Board of Directors in Appendix B of the Registration Document.

Directors

Transactions in which Directors are materially interested

French corporate law and the Company's bylaws provide for prior approval and control of transactions entered into between, directly or indirectly, the Company and one of its Directors, Chief Executive Officer (Directeur Général), Chief Operating Officer (Directeur Général Délégué), any of its shareholders holding more than 10% of the registered capital or of the voting rights or, if a legal entity, the company controlling it within the meaning of article L. 233-3 of the French commercial code and, or any entity in which any of these persons is at the same time an owner, partner with unlimited liability, manager, director, member of the supervisory board or an executive officer, unless the transaction is entered into in the ordinary course of business and under normal terms and conditions.

The interested party has the obligation to inform the Board of Directors as soon as it is aware of the existence of the related party transaction, and a majority of the disinterested Directors must approve the transaction in order to validly enforce the transaction.

If a related party transaction is pre-approved by the majority of the disinterested Directors, the chairman must then report the authorized transaction to the statutory auditors within one month following the entering into of this transaction. The auditors must then prepare a special report on the transaction to be submitted to the shareholders at their next general meeting, during which the shareholders would consider the transaction for ratification (any interested shareholder would be excluded from voting). If the transaction is not ratified by the shareholders, such absence of ratification would normally and except in the case of fraud have no impact on the validity of the transaction, but the shareholders may in turn hold the Board of Directors or interested representative of the Company liable for any damages suffered as a result thereof.

Any related party transaction concluded without the prior consent of a majority of the disinterested Directors can be voided by a court, if we incur a loss as a result. In addition, an interested related party may be held liable on this basis.

Directors' compensation

Pursuant to article 13 of the Company's bylaws, the Directors receive attendance fees (jetons de presence), the maximum aggregate amount of which, determined by the shareholders acting at a Shareholders' Ordinary Annual Meeting, remains in effect until a new decision is made.

Board of Directors' borrowing powers

Under Article L. 225-43 of the French Commercial Code, the Directors, Chief Executive Officer (Directeur Général) and Chief Operating Officers (Directeurs Généraux Délégués) may not borrow money or obtain a guarantee from the Company. Any such loan or guarantee would be void and may not be relied upon by third parties.

Directors' Age Limits

Under article 10 of the Company's bylaws (statuts), Directors may hold office until the age of 77. A Director reaching the age of 77 while in office has to retire at the expiration of the term of his or her office, as determined at the Shareholders' Meeting.

Rights, privileges and restrictions attached to existing sharesVoting rights (Articles 8 and 19 of the Company's bylaws)

The voting right attached to shares is proportional to the portion of share capital they represent. During a period of two years from the reverse stock-split of the Company's shares implemented on 3 January 2007, any old share gave the right to one vote and any new share to ten votes, so that the number of votes attached to the shares shall remain proportional to the portion of share capital they represent.

The remaining old shares have been cancelled on 3 January 2009 and since then subject to applicable laws, all the shares of the Company give right to one voting right.

At all meetings, each shareholder has as many votes as the number of shares he holds or represents without limitation other than those which may result from legal requirements and the stipulations above. The difference between the distribution of share capital and the distribution of voting rights arises from the existence of treasury shares with no voting rights.

Where the shares are held by a beneficial owner, the voting rights attached to those shares belong to the beneficial owner at ordinary shareholders' meetings, and to the bare owner at extraordinary shareholders' meetings.

Failure to observe the legal and statutory obligations concerning thresholds may be sanctioned by the removal of voting rights for those shares or rights exceeding the undeclared fraction.

Statutory distribution of earnings (Art. 20 of the bylaws)

After approval of the financial statements and recognition of the existence of distributable funds consisting of the earnings for the fiscal year, less prior losses and plus, if applicable, any profit carried forward, the Shareholders' Meeting shall distribute them as follows:

• The profit available for distribution comprises the net profit for the financial year, less prior-year losses and all sums transferred to reserves pursuant to the law, plus any retained earnings;
• All or part of the profit available for distribution may be transferred by the Shareholders' Meeting to any discretionary, ordinary or extraordinary reserves or carried forward, as deemed appropriate.;
• Any remaining balance shall be distributed on all the shares in proportion to their unredeemed paid-up value, it being stipulated that during a period of two years starting from the reverse split operation on the shares of the Company, pursuant to the seventeenth resolution of the Ordinary and Extraordinary Shareholders' Meeting of 16 May 2006, shares which have been subject to the reverse split shall be entitled to an amount ten times greater than the amount to which shares which have not been subject to the reverse split shall be entitled.

The Shareholders' Meeting may distribute all or part of the discretionary reserves in the form of a full or partial dividend or as an exceptional distribution; in this case, the resolution shall expressly indicate the sums to be deducted from each reserve.

The Ordinary Shareholders' Meeting may validly take all decisions necessary to give each shareholder the option of receiving all or part of a dividend or interim dividend in the form of shares in the Company, in accordance with the terms and conditions set forth by law.

SCOR SE is required by law to establish and maintain a legal reserve at a level equal to 10% of the aggregate nominal value of its share capital and, if necessary to maintain such legal reserve, to make a minimum transfer of 5% of the net income each year to the legal reserve. The legal reserve is distributable only upon the Company's liquidation. the Company's bylaws (statuts) also provide that profits available for distribution (after deduction of any amounts required to be allocated to the legal reserve) can be allocated to one or more optional or statutory reserves or distributed as dividends, as may be determined by the Shareholders' Meeting.

Dividends may also be distributed from optional or statutory reserves, subject to approval by the shareholders and certain limitations, either as an addition to an annual dividend distribution or as an exceptional dividend distribution.

The payment of dividends is decided by the Shareholders' Meeting at which the annual accounts are approved following recommendation of the Board of Directors. If there is distributable profits (as shown on the interim balance sheet audited by the statutory auditors), the Board of Directors has the authority, subject to French law and regulations, without shareholder approval, to distribute interim dividends. Dividends are distributable to shareholders pro rata their respective holdings of Ordinary Shares. Dividends are payable to holders of Ordinary Shares outstanding on the date of the Shareholders' Meeting approving the distribution of dividends or, in the case of interim dividends, on the date of the meeting of the Board of Directors approving the distribution of interim dividends. The actual dividend payment date and the modalities of such payment are determined by the Shareholders' Meeting approving the declaration of the dividends or by the Board of Directors in the absence of such determination by the shareholders. The payment of the dividends must occur within nine months of the end of the fiscal year. Dividends not claimed within five years of the date of payment revert to the French Government. According to the bylaws (statuts), shareholders may decide in an ordinary general meeting to give each shareholder the option of receiving all or part of a dividend or interim dividend in the form of Ordinary Shares. The determination of the portion, if any, of the annual dividend that each shareholder will have the option to receive in Ordinary Shares is also made at the ordinary general meeting of shareholders following a recommendation by the Board of Directors.

Dividends paid to non-residents are in principle subject to withholding tax.

Liquidation right (Article 22 of the company's bylaws)

In the event the Company is liquidated, its assets remaining after payment of its debts, liquidation expenses and all of its remaining obligations will be distributed in full first to repay the nominal value of the Ordinary Shares, then the surplus, if any, will be distributed pro rata among the holders of Ordinary Shares in proportion to the nominal value of their shareholdings and subject to any special rights granted to holders of preferred shares, if any.

Redemption of shares

Under French law, the Board of Directors is entitled to redeem a set number of shares as authorized by the extraordinary shareholders' meeting to the aim of a capital reduction. In the case of such an authorization, the shares redeemed must be cancelled within one month after the end of the offer to purchase such shares from shareholders. The Company may also acquire its own shares without having to cancel them:

• Redemption to the aim of allocating them to the employees or to the officers of the Company (article L. 225- 208 of the French commercial code);
• Redemption in the context of a share buyback program (article L. 225-209 of the French commercial code).

Liability to further capital calls

Shareholders are liable for corporate liabilities only up to their contributions.

Share buy-back or conversion clause

The bylaws stipulate no share buy-back or conversion clause.

Pre-emptive subscription rights for securities of the same class

Under current French regulations, and in particular Article L. 225-132 of the French Commercial Code, any cash capital increase gives a pre-emptive right for shareholders to subscribe to new shares which is proportional to the amount of their shares.

The Shareholders' Meeting which decides or authorizes a capital increase may, under Article L. 225-135 of the French Commercial Code, eliminate the pre-emptive subscription right for the entire capital increase or for one or more segments of said increase and may allow or not allow a priority subscription period for shareholders. When the issue is carried out through a public offering without pre-emptive subscription rights, the issue price must be set according to Article L 225-136 of the French Commercial Code.

In addition, the Shareholders' Meeting which decides on a capital increase may reserve it for named persons or categories of persons corresponding to specific characteristics, in application of Article L. 225-138 of the French Commercial Code.

The Shareholders' Meeting may also reserve it for shareholders of another company that is the target of a public exchange offer initiated by the Company pursuant to Article L. 225-148 of the French Commercial Code or for certain persons in the context of contributions in kind in application of Article L. 225-147 of the French Commercial Code.

Jointly held shares

Subject to legal provisions concerning voting rights in meetings and the right to communication conferred on shareholders, shares are not divisible with regard to the Company, so that joint co-owners are required to be represented with the Company by one of said co-owners or by a single agent, appointed by the Court in the event of disagreement.

21.2.3 FORM, HOLDING AND TRANSFER OF ORDINARY SHARES

Article 7 of SCOR SE's bylaws ("statuts") provides that Ordinary Shares may be held in registered or bearer form, at the option of the shareholder.

Holding of Ordinary Shares

In accordance with French law concerning dematerialization ("dematerialisation") of securities, the ownership rights of holders of the Ordinary Shares are not represented by share certificates but by book entries. Equity securities, such as the Ordinary Shares, may be held in either bearer or registered form, and a holder of equity securities may change from one form of holding to the other.

We maintain a share account with Euroclear France in respect of all Ordinary Shares in registered form (the "Company Share Account"), which, in France, is administered by BNP Paribas ("BNP") acting on our behalf as our agent. Ordinary Shares held in registered form are inscribed in the name of each shareholder (either directly, or, at the shareholder's request, through such shareholder's accredited intermediary) in separate accounts (the "Shareholder Accounts") maintained by BNP on our behalf. Each Shareholder Account shows the name of the holder and such shareholder's shareholdings and, in the case of Ordinary Shares inscribed through an accredited intermediary, shows that they are so held. BNP, as a matter of course, issues confirmations as to holdings of Ordinary Shares inscribed in the Shareholder Accounts to the persons in whose names the shareholdings are inscribed, but these confirmations do not constitute documents of title.

In the case of Shares held in bearer form, the Ordinary Shares can be held on the Shareholder's behalf by an accredited intermediary and are inscribed in an account maintained by such accredited intermediary with Euroclear France separately from the Company Share Account. Ordinary Shares held in this manner are referred to as being in bearer form. Each accredited intermediary maintains a record of Ordinary Shares held through it and will issue certificates of inscription in respect thereof. Transfers of Ordinary Shares held in bearer form may only be effected through accredited intermediaries.

the Company's bylaws ("statuts") permit us to request from Euroclear France at any time the identity, address and citizenship of the holders of Ordinary Shares held in bearer form, as well the number of Ordinary Shares held by such persons and information regarding any restrictions that may be attached to the Ordinary Shares.

The Ordinary Shares held by non-French residents can be registered in an account, either maintained by an accredited intermediary or us, under the name of their intermediary, who can represent several holders. These intermediaries, acting on behalf of shareholders living outside of France, are required to declare their capacity as intermediaries as soon as the account is opened. If we request, they must also provide the identity of the actual shareholder(s).

In addition, we may, under certain circumstances as described in Section L. 228-3-1 of the French Commercial Code, request any legal entity who holds more than 2.5% of the Company's Ordinary Shares to disclose the identity of any person who owns, directly or indirectly, more than a third of such entity's share capital or voting rights. An entity not timely providing complete and accurate information may be deprived of its voting rights at any shareholders' meeting held until the date of provision of the requested identification information and the payment of dividends payable to such entity is deferred until such date. If the entity knowingly ("sciemment") refuses to comply with applicable rules, it may be deprived by a French court of all or part of the voting rights attached to the Ordinary Shares that are the subject of the information request and/or its right to dividends, for a period of up to five years.

Transfer of Ordinary Shares

An owner of Ordinary Shares residing outside France may trade such shares on Euronext. Should such owner, or the broker or other agent through whom a sale is effected, require assistance in this connection, an accredited intermediary should be contacted.

Prior to any transfer of Ordinary Shares held in registered form on Euronext, such shares must be inscribed in an account maintained by an accredited intermediary. Dealings in Ordinary Shares are initiated by the owner giving instructions (through an agent, if appropriate) to the relevant accredited intermediary.

A fee or commission is payable to the French broker, accredited intermediary or other agent involved in the transaction (whether within or outside France).

Ownership of Shares by Non-residents

Under current French law, there is no limitation on the right of non-residents or non-French shareholders to own securities of a French reinsurance company or to exercise the voting rights attached to such securities.

A French law dated February 14, 1996 abolished the requirement that a person who is not a resident of the EU needs to obtain a preliminary authorization ("autorisation préalable") prior to acquiring a controlling interest in a French company, except under special circumstances.

Under current French foreign direct investment regulations, a notice ("déclaration administrative") must be filed, however, with the French Ministry of the Economy in connection with (i) the acquisition by any person not residing in France or any group of non-French residents acting in concert if such acquisition results in the ownership by the acquirer(s) of more

than 33.33% of the share capital or voting rights or (ii) the acquisition of the Ordinary Shares or voting rights of the Company by a French company in respect of which more than 33.33% of its shares or its voting rights are held by a person not residing in France or a group of non-French residents acting in concert if such acquisition results in the ownership by the foreign controlled French company of more than 33.33% of our outstanding shares or voting rights.

21.2.4 ACTIONS REQUIRED TO MODIFY SHAREHOLDERS' RIGHTS

The rights of shareholders are set forth in the bylaws of the Company. Under Article L.225-96 par. 1 of the French Commercial Code, amendments to the bylaws must be approved by the Extraordinary Shareholders' Meeting, by a majority vote of two-thirds of the shareholders present or represented.

Attendance and voting at shareholders' meetings

In accordance with French law, there are two types of general shareholders' meetings, ordinary and extraordinary.

Ordinary general meetings of shareholders are required for matters such as the election, replacement and removal of directors, the appointment of statutory auditors, the approval of the annual report prepared by the Board of Directors and of the annual accounts and the declaration of dividends. The Board of Directors is required to convene an annual ordinary general meeting of shareholders, which must be held within six months of the end of our fiscal year. This period may be extended by an order of the President of the competent French Commercial Court. the Company's fiscal year begins on the first day of January of each calendar year and ends on the last day of December of that year.

Extraordinary general meetings of shareholders are required for approval of matters such as amendments to the Company's bylaws ("statuts"), modification of shareholders' rights, approval of mergers, increases or decreases in share capital, the creation of a new class of shares and the authorization of the issuance of securities giving access, by conversion, exchange or otherwise, to our capital. In particular, shareholder approval will be required for any and all mergers in which we are not the surviving entity or in which we are the surviving entity but in connection with which we are issuing a portion of our share capital to the shareholders of the acquired entity.

Special meetings of shareholders of a certain class of shares (such as shares with double voting rights or preferred shares) are required for any modification of the rights associated with such class of shares. The resolution of the shareholders' general meeting affecting these rights are effective only after approval by the relevant special meeting.

Other ordinary or extraordinary meetings may be convened at any time during the year. Meetings of shareholders may be convened by the Board of Directors or, if the Board of Directors fails to call such a meeting, by the statutory auditors, by the liquidators in case of bankruptcy, by shareholders owning the majority of the Ordinary Shares or voting rights after having launched a takeover bid or by an agent appointed by a court.

The court may be requested to appoint an agent either by shareholder(s) holding at least 5% of our share capital, or a duly authorized association of shareholders holding their Ordinary Shares in registered form for at least two years and holding together a certain percentage of our voting power (computed on the basis of a formula related to capitalization which on the basis of the Company's outstanding share capital as of June 30, 2011, would represent approximately 1% of our voting power) or by any interested party, including the Workers' Council ("Comité d'entreprise") in cases of urgency.

The notice calling such meeting must state the agenda for such meeting.

At least 15 days before the date set for any general meeting on first call, and at least ten days before any second call, notice of the meeting must be sent by mail to holders of Ordinary Shares who have held such Ordinary Shares in registered form for at least one month prior to the date of the notice.

Such notice can be given by e-mail to holders of Ordinary Shares in registered form who have accepted in writing this method of convocation.

For all other holders of Ordinary Shares notice of the meeting is given by publication in a journal authorized to publish legal announcements in the county in which we are registered and in the Bulletin des annonces légales obligatoires ("BALO") with prior notice given to the AMF.

At least 35 days prior to the date set for any ordinary or extraordinary general meeting, a preliminary written notice ("avis de réunion"), containing, among other things, the agenda for the meeting and a draft of the resolutions to be considered, must also be published in the BALO.

The AMF also recommends that such preliminary written notice be published in a newspaper of French national circulation.

One or several shareholder(s), holding at least a certain percentage of our share capital (computed on the basis of a formula related to capitalization which on the basis of our outstanding share capital as of June 30, 2011, would represent approximately 0.5% of our share capital), the Workers' Council or a duly authorized association of shareholders holding their Ordinary Shares in registered form for at least two years and holding together a certain percentage of the voting rights (computed on the basis of a formula related to capitalization which on the basis of the outstanding share capital as of June 30, 2011, would represent approximately 1% of SCOR SE's voting power) may, within 10 days after such publication, propose resolutions to be submitted for approval by the shareholders at the meeting.

Attendance and exercise of voting rights at ordinary general meetings and extraordinary general meetings of shareholders are subject to certain conditions. In accordance with French law and the Company's bylaws ("statuts"), the right to participate in Shareholders' Meetings is subject to registration of shares in the name of the shareholder or of the approved intermediary acting on his or her behalf, by T-0 (Paris time) on the third trading day prior to the Shareholders' Meeting, either in the nominative share registers held on the Company's behalf by the Company's agent or in the bearer share accounts held by an authorized intermediary.

The registration of shares in the bearer share accounts held by the authorized financial intermediary shall be demonstrated by a participation certificate issued by the latter, which must be attached to the remote voting form, to the proxy voting form, or to the request for an entry card completed in the name of the shareholder or on behalf of the shareholder represented by an authorized intermediary.

A certificate shall also be issued to any shareholder wishing to take part in person in the Shareholders' Meeting and who has not received his or her entry card by T-0 (Paris time) on the third trading day preceding the Shareholders' Meeting.

Each Ordinary Share confers on the shareholder the right to one vote. There is no provision in the bylaws ("statuts") for double or multiple voting rights for the Company's shareholders. Under French company law, Ordinary Shares held by entities controlled directly or indirectly by the Company are not entitled to any voting rights.

Proxies may be granted by a shareholder or, under certain conditions, by its intermediary, to his or her spouse, to another shareholder, or by sending a proxy in blank to the Company without nominating any representative. In the latter case, the chairman of the meeting of shareholders will vote the Ordinary Shares covered by such blank proxy in favour of all resolutions proposed or approved by the Board of Directors and against all others.

Voting by mail is also allowed under French company law. Forms for voting by mail or proxy forms must be addressed to the Company, either by regular mail or, pursuant to a decision of the Board of Directors, in electronic format. Mail voting forms must be addressed to the Company within a period prior to the meeting as established by the Board of Directors. Such period may not exceed 3 days before the meeting date. Proxy forms must be received by the Company no later than 3:00 p.m. (Paris time) on the day prior to the meeting.

The Board of Directors can also decide to allow the shareholders to participate in and vote at any shareholders' meeting by videoconference or by any means of telecommunication that allows them to be identified and in compliance with the conditions set by applicable regulations.

The presence in person (including those voting by correspondence) or by proxy of shareholders holding not less than one fifth (in the case of an ordinary general meeting or an extraordinary general meeting where an increase in our share capital is proposed through incorporation of reserves, profits or share premium) or one-fourth (in the case of any other extraordinary general meeting) of the Ordinary Shares entitled to vote is necessary for a quorum. If a quorum is not present at any meeting, then the meeting is adjourned. On a second call, there is no quorum requirement in the case of an ordinary general meeting or an extraordinary general meeting where an increase in the Company's share capital is proposed through incorporation of reserves, profits or share premium and the presence in person (including those voting by correspondence) or by proxy of shareholders holding not less than one fifth of the Ordinary Shares entitled to vote is necessary for a quorum in the case of any other extraordinary general meeting.

At an ordinary general meeting, a simple majority of the votes cast is required to pass a resolution. At an extraordinary general meeting, a two-third majority of the votes cast is required, except for an extraordinary general meeting where an increase in our share capital is proposed through incorporation of reserves, profits or share premium, in which situation, a simple majority is sufficient.

However, a unanimous vote is required to increase liabilities of shareholders.

The general meeting's decisions are taken by a majority (either a simple majority for ordinary general meetings or a twothirds majority for extraordinary general meeting) of the votes validly cast., Abstention by those present in person or by correspondence or represented by proxy is not deemed a vote against the resolution submitted to a vote.

The rights of a holder of shares of a class of the Company's capital stock, including the Ordinary Shares, can be amended only after an extraordinary general meeting of all shareholders of such class has taken place and the proposal to amend such rights has been approved by a two-thirds majority vote of shares of such class present in person (including those voting by correspondence) or represented by proxy. As of 31 December 2011, the Ordinary Shares constitute our only class of capital stock.

In addition to rights to certain information regarding SCOR SE, any shareholder may, between the convocation of the meeting and the date of the meeting, submit to the Board of Directors written questions relating to the agenda for the meeting. The Board of Directors is required to respond to such questions during the meetings, subject to confidentiality concerns.

21.2.5 CONDITIONS FOR CALLING ANNUAL SHAREHOLDERS' MEETINGS AND EXTRAORDINARY SHAREHOLDERS' MEETINGS (ARTICLES 8 AND 19 OF THE BYLAWS)

Shareholders' Meetings shall be called and conducted in accordance with French law. They shall consist of all shareholders, regardless of the number of shares held. Pursuant to Article 8 ("Rights attached to each share") of the bylaws ("statuts"), in the two year period from the Group's reverse stock split on 3 January 2007, each Old Share was entitled to one vote and any New Share to ten votes, so that the number of votes attached to each share was proportionate to the share capital they represented.

From 3 January 2009, the date of the cancellation of old shares, each share is entitled to one vote.

The bylaws make no provision for shares with double voting rights.

Meetings are held at corporate head offices, or elsewhere as indicated in the notice of meeting.

All shareholders may attend the Meetings, in person or through an agent, with proof of identity and of the ownership of shares, either in the form of registration in his name or a certificate from an authorized intermediary designated as account holder.

The Board of Directors of the Company determines the time period during which formalities for the immobilization of bearer shares must be completed. This period is 24 hours under ordinary circumstances.

Subject to the terms and conditions set forth by the legal and regulatory provisions in force, shareholders may send their proxy voting forms or remote voting forms concerning any Shareholders' Meeting either in paper format or, if approved by the Board of Directors, by an electronic means of communication. For instructions issued by shareholders via electronic means including proxy instructions or for electronic remote voting forms, the capture and electronic signature of the shareholder may be carried out directly, if applicable, on the dedicated website set up by the Company, by any reliable identification process that safeguards the link between the signature and the form as determined by the Board of Directors and in accordance with the conditions defined by the legal and regulatory provisions in force.

The deadline for the return of remote voting forms and proxies shall be determined by the Board of Directors. Such deadline cannot be less than one day before the date of the Shareholders' Meeting. However, if authorized by the Board of Directors, electronic remote voting forms and instructions given by electronic methods involving a proxy or a power of attorney may validly be received by the Company up until 3 p.m. (Paris time) on the day preceding the Shareholders' Meeting.

The Board of Directors of the Company may also determine that shareholders may participate in and vote at any Shareholders' Meeting by videoconference or by any other mode of telecommunication permitting the identification and effective participation of the shareholders, under the conditions set forth by the legal and regulatory provisions in force.

21.2.6 PROVISIONS THAT COULD DELAY, DEFER OR PREVENT A CHANGE IN CONTROL OR IN THE SHAREHOLDING OF THE COMPANY

Pursuant to Articles L. 322-4 and R. 322-11-1 of the French Insurance Code, any transaction allowing a person acting alone or in concert with other persons, as defined by Article L. 233-10 of the French Commercial Code, to acquire, to increase, to decrease or to cease holding, directly or indirectly, as defined by Article L. 233-4 of the French Commercial Code, an equity stake in an insurance or a reinsurance company, shall be notified by such person(s) to the ACP prior to its completion when any one of the following conditions is met:

• the portion of the voting rights held by such person(s) crosses upwards or downwards the thresholds of the tenth, the fifth, the third or half of the total number of voting rights of the Company; or
• the company becomes or ceases to be a subsidiary of such person(s).

When a decrease or sale of an equity stake, whether directly or indirectly, has been notified, the ACP verifies whether such transaction is likely to negatively affect the company's reinsured clients as well as the sound and prudent management (gestion saine et prudente) of the company itself.

The authorization granted to the acquisition or increase of stakes, whether directly or indirectly, may be subject to the compliance with commitments taken by one or several of the applying persons.

In case of failure of these rules, and without prejudice of the provisions of Article L. 233-14 of the French commercial code, upon request from the ACP, the District Attorney (procureur de la République) or any shareholder, the judge shall adjourn the exercise of the voting rights of the failing persons, until regularization of the situation.

Pursuant to Article L. 322-4-1 of the French Code of Insurance, the ACP shall also inform the European Commission of any acquisition of a stake that may grant control of a reinsurance company to a company whose registered office is located in a State not party to the European Economic Area agreement.

Upon application by the proper authority of the EU, the ACP may object during a three-month period to any acquisition of a stake liable to have the consequences referred to under the previous paragraph. The three-month time limit may be extended by the EU Council's decision.

21.2.7 DECLARATION THRESHOLDS

French law provides that any individual or legal entity, acting alone or in concert with others, that holds, directly or indirectly, more than 5%, 10%, 15%, 20%, 25%, 30%, 33 1/3%, 50%, 66 2/3%, 90%, or 95% of the shares or the voting rights attached to the shares, or whose holding decreases below any such thresholds, must notify us within four trading days of crossing that threshold, of the number of shares and voting rights it holds. An individual or a legal entity must also notify the AMF within four trading days of crossing such threshold. Any shareholder who fails to comply with these requirements will have its voting rights in excess of such thresholds suspended for a period of two years from the date such shareholder complies with the notification requirements and may have all or part of its voting rights suspended for up to five years by the commercial court at the request of our Chairman, any of our shareholders or the AMF. In addition, every shareholder who, directly or indirectly, acting alone or in concert with others, acquires ownership of shares representing 10%, 15%, 20% or 25% of our share capital must notify us and the AMF of its intentions for the six months following such acquisition. Failure to comply with this requirement will result in the suspension of the voting rights attached to the shares exceeding the applicable threshold held by the shareholder for a period of two years from the date on which the shareholder has cured such default and, upon a decision of the commercial court, part or all the shares of such shareholder may be suspended for up to five years.

In addition to the above statutory requirements, the Company's bylaws ("statuts") provide that any natural person or legal entity, acting alone or in concert, which comes to hold or ceases to hold, either directly or indirectly, a fraction of the share capital or of the voting rights of the Company equal to or greater than 2.5%, or 5%, or 10%, or 15%, must inform us by registered letter, return receipt requested, addressed to the registered office, within five trading days of the date of the crossing of such threshold, of the total number of shares and/or of securities giving access to share capital held either directly or indirectly or in concert by such natural person or legal entity. The failure to comply with this requirement is sanctioned, upon request of one or more shareholders holding at least 2.5% of our share capital, noted in the minutes of the Shareholders' Meeting, by the suspension of voting rights from all shares in excess of the non-declared fraction for any Shareholders' Meeting that may take place during a period of two years following the date of the regularization of the notification.

Regulations of the AMF generally require, subject to limited exemptions granted by the AMF, any individual or entity that acquires, alone or in concert with others, shares representing 30% or more than our share capital or voting rights, to initiate a public tender offer for all remaining outstanding securities of the company (including, for these purposes, all Ordinary Shares and all securities convertible into or exchangeable for or otherwise giving access to equity securities).

21.2.8 CONDITIONS GOVERNING MODIFICATIONS TO THE SHARE CAPITAL (OTHER THAN LEGAL PROVISIONS)

Not applicable.

MATERIAL CONTRACTS

MATERIAL CONTRACTS

None

THIRD-PARTY INFORMATION AND STATEMENTS BY EXPERTS AND DECLARATIONS OF ANY INTEREST

23.1	Expert's report	312
23.2	Information from third parties	312

23 THIRD-PARTY INFORMATION AND STATEMENTS BY EXPERTS AND DECLARATIONS OF ANY INTEREST

23.1 Expert's report

Not applicable.

23.2 Information from third parties

The Company certifies that all the following information stated in this Registration Document and received from third parties has been accurately reproduced and that as far as the Company is aware and is able to ascertain from information published by such third party, no facts have been omitted, which would render the reproduced information inaccurate or misleading:

• Data issued from the Standard & Poor's Global Reinsurance Highlights (2011 Edition) and relating to the ranking on reinsurance market participants quoted in sections 3.1 – Group key figures, 5.1.5 – Important events in the development of the issuer's business and 6.5 – Information on SCOR's competitive position;
• Ratings issued by the Standard & Poor's, Fitch Ratings, AM Best and Moody's rating agencies quoted in Section 4 – Risk factors, 4.1.9 – Financial ratings play an important role in our business; Section 6 – Business overview - 6.3 Extraordinary events influencing the principal business and markets and Section 17.3.1 – Stock option plans.
• Flaspöhler study quoted in section 6.5.2 Life reinsurance.

DOCUMENTS ON DISPLAY

24 DOCUMENTS ON DISPLAY

Throughout the period of validity of the Registration Document, the bylaws and any other document required by law may be consulted and are freely available upon request from the registered office of the Company at 5 avenue Kléber, 75016 Paris.

The document referred to in Article 222-7 of the general regulation of the AMF is incorporated in the Registration Document and is shown in Section 28 – Published Information. The information quoted therein is available for downloading from the following sites:

• Autorité des Marchés Financiers (AMF): http://www.amf-france.org
• Bulletin des Annonces Légales Obligatoires (BALO): http://balo.journal-officiel.gouv.fr
• SCOR: http://www.SCOR.com/
• L'info financière: http://www.info-financiere.fr

INFORMATION ON HOLDINGS

25 INFORMATION ON HOLDINGS

As concerns the holdings held directly by SCOR, refer to:

• Section 7 Organisational Structure;
• Appendix A Notes to the Corporate Financial Statements, Note 2.3 Subsidiaries and affiliates;
• Section 20.1.6 Notes to the Consolidated Financial Statements, Note 24 Information on related parties.

As at 31 December 2011, SCOR held indirectly shares or units in the following companies, which represent at least 10% of the consolidated net assets or generate at least 10% of the consolidated net profit or loss.

									Amount
			Share capital		Operating income	Value of	Amount remaining for the purchase of	Amount of dividends	of liabilities due to SCOR (-) and by
	Type of	%	issued in	Reserves (In EUR	after tax (in EUR	holding (in EUR	the shares (in EUR	received (in EUR	SCOR (+) (in EUR
	business	Capital	million	million)	million)	million)	million)	million)	million)
SCOR Holding Switzerland AG	Holding	100 %	382	1 584	42	1,927	-	-	-131
SCOR Switzerland AG	Reinsurance	100 %	174	687	-	1,256	-	289	-
Transamerica business (1)	Reinsurance	100 %	1	638	27	594	-	-	1
TOTAL			557	2,909	69	3,777	-	289	-130

(1) The perimeter Transamerica includes the following companies : SCOR Life Assurance Company, SCOR Life Reinsurance Company and SCOR International Re Ireland LTD

NON FINANCIAL INFORMATION

NON FINANCIAL INFORMATION

Not applicable.

FEES PAID BY THE GROUP TO THE AUDITORS

27 FEES PAID BY THE GROUP TO THE AUDITORS

Refer to Section 20.1.6 – Consolidated financial statements, Note 22 – Other operating and administrative expenses for the detail of audit fees.

PUBLISHED INFORMATION

28.1	Information published on the Autorité des Marchés Financiers (AMF) website (www.amf-france.org)	323
28.2	Information published in the Bulletin des Annonces Légales Obligatoires (BALO) [Bulletin of required legal notices publications] (www.journal officiel.gouv.fr/balo/index.php)	323
28.3	Information published on SCOR's company website (www.scor.com)	324
28.4	Information published on NYSE Euronext's website
	(www.euronext.com)	326
28.5	Information published on the Info Financières website (www.info
	financière.fr/search.php.com)	326

28 PUBLISHED INFORMATION

28.1 Information published on the Autorité des Marchés Financiers (AMF) website (www.amffrance.org)

Date	Subject
29 September 2011	Disclosure of trading in the Company's shares by members of the Board of Directors (Jean Claude Seys)
20 September 2011	Disclosure of trading in the Company's shares by members of the Board of Directors (Monica Mondardini)
16 September 2011	Disclosure of trading in the Company's shares by members of the Board of Directors (Gérard Andreck)
31 August 2011	Disclosure of trading in the Company's shares by members of the Board of Directors (Daniel Lebègue)
25 August 2011	Disclosure of trading in the Company's shares by members of the Board of Directors (Claude Tendil)
18 August 2011	Disclosure of trading in the Company's shares by members of the Board of Directors (Guylaine Saucier)
16 August 2011	Disclosure of trading in the Company's shares by members of the Board of Directors (Peter Eckert)
16 August 2011	Disclosure of trading in the Company's shares by members of the Board of Directors (Jean Claude Seys)
16 August 2011	Disclosure of trading in the Company's shares by members of the Board of Directors (Georges Chodron de Courcel)
16 August 2011	Disclosure of trading in the Company's shares by members of the Board of Directors (Daniel Valot)
11 August 2011	Disclosure of trading in the Company's shares by members of the Board of Directors (Gérard Andreck)
8 March 2011	Registration document

28.2 Information published in the Bulletin des Annonces Légales Obligatoires (BALO) [Bulletin of required legal notices publications] (www.journalofficiel.gouv.fr/balo/index.php)

Date	Subject
20 May 2011	Periodical publications – Approval of the financial statements for the financial year 2010 by the Ordinary and Extraordinary General Meeting of the Shareholders held on 4 May 2011 and allocation of income
18 April 2011	Notices of meeting – Notice of convening of the shareholders and securities holders to the Ordinary and Extraordinary General Meeting of the Shareholders of 4 May 2011
30 March 2011	Notices of meeting – Notice of meeting of the shareholders and securities holders to the Ordinary and Extraordinary General Meeting of the Shareholders of 4 May 2011

28.3 Information published on SCOR's company website (www.scor.com)

All press releases and offering circulars published on the AMF site (Section 28.1) are simultaneously published on SCOR's website. In addition, the following were published on the SCOR's website:

Date	Subject
9 February 2012	SCOR successfully concludes the January 1, 2012 renewals: 13.9 % growth, satisfactory pricing conditions (+2 %) and expected technical profitability
3 February 2012	Number of voting rights as at 31 January 2011 - Declaration pursuant to Article L. 233-8 II of the French Commercial Code and Article 233-16 of the General Regulation of the Autorité des Marchés Financiers
16 January 2012	Half-year statement of the liquidity contract between SCOR SE and EXANE BNP Paribas - Press release
6 January 2012	Number of voting rights as at 31 December 2011 - Declaration pursuant to Article L. 233-8 II of the French Commercial Code and Article 233-16 of the General Regulation of the Autorité des Marchés Financiers
16 December 2011	2011 Actuarial Awards: SCOR supports the development of actuarial science in Europe – Press release
16 December 2011	SCOR estimates its losses from the floods in Thailand at EUR 140 million net before tax – Press release
16 December 2011	Disclosure of trading in own shares (out of the liquidity agreement) made from November 4 to 22 November 2011
16 December 2011	Disclosure of trading in own shares (out of the liquidity agreement) made on 4 October 2011
16 December 2011	Disclosure of trading in own shares (out of the liquidity agreement) made from 7 September to 29 September 2011
16 December 2011	Disclosure of trading in own shares (out of the liquidity agreement) made from August 11 to August 26, 2011
16 December 2011	Disclosure of trading in own shares (out of the liquidity agreement) made on May 18, 2011
16 December 2011	Disclosure of trading in own shares (out of the liquidity agreement) made on April 15, 2011
16 December 2011	Disclosure of trading in own shares (out of the liquidity agreement) made from 1 March to 15 March 2011
12 December 2011	SCOR further extends its Atlas VI catastrophe bond program – Press release
28 November 2011	SCOR Global Life completes its first UK Longevity Reinsurance Transaction - Press release
10 November 2011	SCOR delivers a strong performance in the 3rd quarter of 2011, with net income up 70% to EUR 188 million and premiums up 15% to over EUR 2 billion – Press release
2 November 2011	SCOR is elected "Reinsurance Company of the Year' by Reinsurance Magazine
3 October 2011	Denis Kessler was made a Doctor Honoris Causa by HEC Montreal from the University of Montreal
3 October 2011	SCOR Global Life announces the launch of SOLEM, its new substandard risks rating tool – Press release
October 2011	Letter to shareholders: SCOR accelerated towards the fulfillment of its strategic plan "Strong Momentum"
28 September 2011	SCOR is elected "Best Global Reinsurance Company" for the second year in a row – Press release
26 September 2011	SCOR launches the Insurance-Linked Securities fund "Atropos" – Press release
9 September 2011	SCOR confirms it has foiled attempted scam – Press release
7 September 2011	SCOR confirms the targets of its strategic plan "Strong Momentum" at its Investors' Day 2011 – Press release
10 August 2011	SCOR finalised the acquisition of Transamerica Re – Press release
4 August 2011	Disclosure of trading in own shares (out of the liquidity agreement) made from 1 July to 6 July 2011
4 August 2011	Disclosure of trading in own shares (out of the liquidity agreement) made from 1 June to 27 June 2011
4 August 2011	Half-year statement of the liquidity contract between SCOR SE and EXANE BNP Paribas – Press release
3 August 2011	Number of voting rights as at 31 July 2011 - Declaration pursuant to Article L. 233-8 II of the French Commercial Code and Article 233-16 of the General Regulation of the Autorité des Marchés Financiers
28 July 2011	SCOR announces the publication of its interim financial report for the six months ended 30 June 2011 – Press release

Date	Subject
28 July 2011	SCOR completes a very good second quarter 2011, with net income of EUR 120 million – Press release
25 July 2011	SCOR pursues its policy of offering its clients value-added services by acquiring 100% of the capital of SOLAREH SA – Press release
25 July 2011	SCOR continues to deliver a strong performance with 22% premium growth and a 2% price increase at the mid-year Non-Life renewal campaign – Press release
19 July 2011	SCOR finalizes the sale of its US Fixed Annuity business – Press release
6 July 2011	Capital contingent: SCOR issues shares to UBS - Press release
5 July 2011	SCOR draws EUR 75 million on its contingent capital solution –Press release
4 July 2011	Number of voting rights as at 30 June 2011 - Declaration pursuant to Article L. 233-8 II of the French Commercial Code and Article 233-16 of the General Regulation of the Autorité des Marchés Financiers
st July 2011 1	Denis Kessler is elected "Reinsurance Company CEO of the Year" – Press release
16 June 2011	SCOR Global Life's Embedded Value reaches EUR 2.2 billion (EUR 12.2 per share), further demonstrating the dynamism and profitability of its franchise – Press release
7 June 2011	Number of voting rights as at 31 May 2011 - Declaration pursuant to Article L. 233-8 II of the French Commercial Code and Article 233-16 of the General Regulation of the Autorité des Marchés Financiers
18 May 2011	SCOR Global Life opens a new subsidiary in Australia – Press release
11 May 2011	SCOR successfully places CHF 225 million perpetual subordinated notes – Press release
10 May 2011	Number of voting rights as at 30 avril 2011 - Declaration pursuant to Article L. 233-8 II of the French Commercial Code and Article 233-16 of the General Regulation of the Autorité des Marchés Financiers
4 May 2011	SCOR Combined General Meeting of 4 May 2011 adopts all the proposed resolutions – Press release
4 May 2011	First quarter 2011 results: SCOR demonstrates its shock-absorbing capacity – Press release
26 April 2011	SCOR becomes the second largest Life reinsurer in the United States through the acquisition of Transamerica Re's mortality business from AEGON – Press release
13 April 2011	ORDINARY AND EXTRAORDINARY SHAREHOLDERS' MEETING OF SCOR SE TO BE HELD ON 4 MAY 2011 AT 10AM
7 April 2011	Number of voting rights as at 31 March 2011 - Declaration pursuant to Article L. 233-8 II of the French Commercial Code and Article 233-16 of the General Regulation of the Autorité des Marchés Financiers
31 March 2011	SCOR and Nanyang Technological University establish Insurance Risk and Finance Research Centre – Press release
23 March 2011	Eric Sandrin is appointed Group General Counsel of SCOR – Press release
14 March 2011	SCOR's preliminary view on the consequences of the Japanese natural catastrophes – Press release
8 March 2011	SCOR announces the publication of its 2010 Registration Document – Press release
8 March 2011	SCOR continues to combine growth with profitability in 2010: net income of EUR 418 million (up 13% from 2009) and premium income of EUR 6.7 billion (up 5% from 2009) – Press release

28.4 Information published on NYSE-Euronext's web site (www.euronext.com)

All press releases and offering circulars published on the AMF site (section 28.1) and on SCOR's web site (section 28.3) are simultaneously published on NYSE-Euronext's website. In addition, the following were published on the NYSE-Euronext's website:

Date	Subject
5 May 2011	Press release - 2011-2012 Share Buyback Program
3 March 2011	Declaration pursuant to Article L. 233-8 II of the French Commercial Code and Article 233-16 of the General Regulation of the Autorité des Marchés Financiers

28.5 Information published on the Info-Financières web site (www.info-financiere.fr/search.php.com)

All press releases and offering circulars published on the AMF site (section 28.1) and on SCOR's web site (section 28.3) are simultaneously published on the Info-Financières' website. No other information has been published on the Info-Financières' website.

APPENDIX A: UNCONSOLIDATED CORPORATE FINANCIAL STATEMENTS OF SCOR SE

1.1	Significant events of the year	329
1.2	Balance sheets	330
1.3	Income statements	332
1.4	Table of consolidated off-balance sheet commitments	335
1.5	Notes to the corporate financial statements	336
1.6	Certification of audit of historical financial information	359
1.7	Reconciliation from French GAAP to IFRS	361

APPENDIX A: UNCONSOLIDATED CORPORATE FINANCIAL STATEMENTS OF SCOR SE

1 HISTORIC FINANCIAL INFORMATION - CORPORATE FINANCIAL STATEMENTS

Pursuant to Article 28 of Regulation (EC) No. 809/2004 of the European Commission, the following information is included by reference in this Registration Document:

(i) The corporate financial statements for the year ended 31 December 2010 and the Auditors' Report pertaining thereto published on pages 312 to 342 and 343 to 344, respectively, of the registration document filed with the Autorité des Marchés Financiers on 8 March 2011 under number D. 11-0103.

(ii) The corporate financial statements for the year ended 31 December 2009 and the Auditors' Report pertaining thereto published on pages 300 to 334 and 335 to 336, respectively, of the registration document filed with the Autorité des Marchés Financiers on 3 March 2010 under number D. 10-0085.

SCOR's unconsolidated corporate financial statements for the financial year ended 31 December 2011 are shown below:

1.1 Significant events of the year

"Significant events of the year" are an integral part of the notes to the unconsolidated corporate financial statements.

This year, SCOR SE carried out the following transactions:

• On 2 February and 3 June 2011, SCOR SE issued CHF 650 million fixed rate perpetual subordinated notes in two pari-passu ranking placements of respectively CHF 400 million and CHF 250 million. The notes are redeemable by SCOR each quarter as at payment of interest date as from 2 August 2016 with a first call date of 2 August 2016. The coupon has been set to 5.375% (until 2 August 2016) and 3-month CHF LIBOR plus a margin of 3.7359% thereafter.
• SCOR SE has entered into a cross-currency swap on the first placement which exchanges the principal into EUR and exchanges the coupon on the notes to 6.98% and matures on 2 August 2016. It entered into another cross-currency swap on the second placement which exchanges the principal into EUR and exchanges the coupon on the notes to 6.925% and matures on 2 August 2016.
• SCOR SE purchased a building for future completion that is located Goebenstrasse in Cologne. The purchase price at completion is EUR 37 million. The building is expected to be completed in the course of the first quarter of 2012 and Cologne hub employees are expected to move in in the first half of the year.
• On 1 July 2011, SCOR SE's commitment to purchase SAS 5 AV. KLÉBER was exercised by OPCI SCOR PROPERTIES, a 100% Group-held entity. SAS 5 AV. KLÉBER's primary asset is an office building in Paris, a portion of which will be used by the Group and the remainder will be leased.
• On 5 July 2011, SCOR drew EUR 75 million under the contingent capital facility due to the exceptional first quarter natural catastrophe events. UBS exercised the number of warrants required for the issuance and subscription by it of new SCOR shares in an aggregate amount of EUR 75 million and informed SCOR that it had placed the corresponding shares with investors in a private placement.

SCOR issued 4,250,962 new ordinary shares on 11 July 2011 at an issuance price of EUR 17.643 per share (the exercise price of the warrants). These shares have been subscribed in full by UBS.

• In June 2011, SCOR SE incorporated SCOR ALTERNATIVE INVESTMENTS in Luxemburg with a EUR 125 000 capital. SCOR ALTERNATIVE INVESTMENTS is an asset manager specialized in Insurance Linked Securities.
• During 2011, the Group re-purchased USD 33 million out of its own USD 100 million debt, at a price of 82.5%. The purchase price of this debt at a discount rate gave rise to a consolidated pre-tax profit of EUR 4 million.
• SCOR SE received a EUR 50 million dividend for 2010 and a EUR 90 million prepaid dividend for 2011 from SCOR GLOBAL LIFE SE, as well as a EUR 51 million dividend from SCOR GLOBAL P&C SE.
• SCOR SE partially reversed the impairment on its investment in SCOR US CORPORATION by EUR 180 million.
• The loan granted by SCOR SE to SCOR Global Life for the financing of the TRANSAMERICA acquisition is EUR 708 million at 31 December 2011.

1.2 Balance sheet

1.2.1 BALANCE SHEET – ASSETS

		Gross	Impairment and	2011	2010
In EUR million		balance	depreciation	Net	Net
Intangible assets	Note 3	5	1	4	7
Investments	Notes 2 & 4	5,297	294	5,003	3,959
Real estate investments		160	5	155	153
Investments in associates		4,984	287	4,697	3,767
Other investments		153	2	151	39
Cash deposited with ceding companies		-	-	-	-
Investments representing unit-linked
contracts	Note 2	-	-	-	-
Share of retrocessionaires in underwriting reserves	Note 4	5	-	5	4
Reinsurance reserves (Life)		-	-	-	-
Loss reserves (Life)		-	-	-	-
Unearned premium reserves (Non-Life)		2	-	2	2
Loss reserves (Non-Life)		3	-	3	2
Other underwriting reserves (Non-Life)		-	-	-	-
Accounts receivable	Note 4	354	8	346	423
Accounts receivable from reinsurance
transactions		86	-	86	68
Other accounts receivable		268	8	260	355
Other assets	Note 3	347	20	327	265
Property, plant and equipment		94	20	74	63
Cash and cash equivalents		133	-	133	100
Treasury shares		120	-	120	102
Accrued income and deferred charges	Note 4	1,841	0	1,841	1,598
Due and accrued interest on rental
income		-	-	-	-
Deferred acquisition costs – assumed
(Non-Life)		62	-	62	37
Reinsurance estimates – assumed		1,743	-	1,743	1,555
Other accruals		36	-	36	6
Bond redemption premiums		-	-	-	-
Net translation adjustment		-	-	-	-
TOTAL		7,849	323	7,526	6,256

1.2.2 BALANCE SHEET – LIABILITIES

In EUR million	2011	2010
Shareholders' equity and reserves(1)	Note 5 2,614	2,503
Share capital	1,513	1,479
Additional paid-in capital	806	766
Revaluation reserves		- -
Unavailable reserve		- -
Other reserves	41	31
Capitalization reserve	3	3
Retained earnings	4	10
Net income of the year	235	204
Regulated reserves	12	10
Other capital base	854	314
Gross underwriting reserves	Note 4 3,114	2,675
Reinsurance reserves (Life)	535	473
Loss reserves (Life)	178	157
Unearned premium reserves (Non-Life)	254	183
Loss reserves (Non-Life)	1,690	1,443
Other underwriting reserves (Non-Life)	457	419
Equalization reserves (Non-Life)		- -
Underwriting reserves for unit-linked contracts		- -
Contingency reserves	Note 6 61	85
Cash deposits received from retrocessionaires	Note 4	- -
Other liabilities	Note 4 882	679
Liabilities arising from reinsurance operations	7	55
Convertible bond issue		- -
Debts to credit institutions	8	46
Negotiable debt securities issued by the company		- -
Other loans, deposits and guarantees received	769	445
Other liabilities	98	133
Deferred income and accrued expenses	Note 4 1	0
Deferred commissions received from reinsurers (Non-Life)		- 1
Reinsurance estimates – Retrocession	1	(1)
Other accruals		- -
Net translation adjustment		- -
TOTAL	7,526	6,256

(1) Data for financial years 2010 and 2011 are before appropriation of results.

1.3 Income statement

	Gross	Retroceded	2011 net	2010 net
In EUR million	transactions	transactions	transactions	transactions
UNDERWRITING ACCOUNT, NON-LIFE
Earned premiums	718	(14)	704	587
Written premiums	784	(13)	771	608
Change in unearned premiums	(66)	(1)	(67)	(21)
Allocated investment income	123	-	123	85
Other technical income	101	-	101	124
Claims expenses	(497)	(80)	(577)	(448)
Benefits and costs paid	(261)	(82)	(343)	68
Claims reserve expense	(236)	2	(234)	(516)
Expenses for increasing risk reserves	(38)	-	(38)	(31)
Acquisition and administration costs	(202)	2	(200)	(188)
Acquisition expenses	(183)	-	(183)	(165)
Administrative expenses	(19)	-	(19)	(25)
Commissions received from reinsurers	-	2	2	2
Other underwriting expenses	(64)	-	(64)	(72)
Change in equalization reserves	-	-	-	-
Change in liquidity reserves	-	-	-	-
NON-LIFE UNDERWRITING INCOME (LOSS)	141	(92)	49	57

	Gross	Retroceded	2011 net	2010 net
In EUR million	transactions	transactions	transactions	transactions
UNDERWRITING ACCOUNT, LIFE
Premiums	352	-	352	295
Investment revenues	53	-	53	40
Investment income	28	-	28	8
Other investment income	23	-	23	5
Realized gains	2	-	2	27
Unit-linked policy adjustments (capital gain)	-	-	-	-
Other technical income	33	-	33	42
Claims expenses	(205)	-	(205)	25
Benefits and costs paid	(186)	-	(186)	30
Claims reserve expense	(19)	-	(19)	(5)
Expenses for Life reinsurance and other		-
underwriting reserves	(60)		(60)	(238)
Life reinsurance reserves	(60)	-	(60)	(238)
Unit-linked contract reserves	-	-	-	-
Other underwriting reserves	-	-	-	-
Acquisition and administration costs	(92)	-	(92)	(95)
Acquisition expenses	(86)	-	(86)	(86)
Administrative expenses	(6)	-	(6)	(9)
Commissions received from reinsurers	-	-	-	-
Investment expenses	(17)	-	(17)	(14)
Internal and external investment management
expenses and interest expenses	(13)	- -	(13)	(12)
Other investment expenses	(1)	-	(1)	-
Realized losses from investments	(3)		(3)	(2)
Unit-linked policy adjustments (capital loss)	-	-	-	-
Other underwriting expenses	(29)	-	(29)	(35)
Change in liquidity reserve	-	-	-	-
LIFE UNDERWRITING INCOME (LOSS)	35	-	35	19

	2011 net	2010 net
In EUR million	transactions	transactions
NON-UNDERWRITING ACCOUNT
Non-Life underwriting income	49	57
Life underwriting income	35	19
Investment revenues	381	297
Investment income	204	61
Other investment income	163	40
Realized gains	14	196
Investment expenses	(121)	(105)
Internal and external investment management expenses and interest expense	(97)	(92)
Other investment expenses	(5)	(1)
Realized losses from investments	(19)	(12)
Gains from transferred investments	(123)	(85)
Other non-underwriting gains	-	-
Other non-underwriting expenses	-	-
Non-recurring gains	6	(3)
Employee profit sharing	(1)	(1)
Income taxes	9	25
FINANCIAL YEAR RESULTS	235	204
NET EARNINGS PER SHARE (in EUR)	1.22	1.09

1.4 Off-balance sheet commitments

		Related
In EUR million		companies	Other	2011	2010
COMMITMENTS RECEIVED	Note 15	113	1,573	1,686	1,057
Rate swaps		-	60	60	60
Rate and currency swap (cross-currency swaps)		-	528	528	-
Asset swaps		-	-	-	-
Index default swap		-	-	-	-
Caps and floors		-	-	-	-
Commercial paper		-	-	-	-
Confirmed credit		-	-	-	-
Foreign currency forward purchases		113	380	493	325
Performance bond		-	-	-	-
Mortgages		-	-	-	-
Leases from buildings purchased with finance lease		-	-	-	-
Letters of credit		-	597	597	664
Endorsements and sureties		-	8	8	8
COMMITMENTS GIVEN	Note 15	117	984	1,101	445
Endorsements, sureties and credit guarantees given		-	14	14	35
Endorsements, sureties		-	8	8	8
Letters of credit		-	6	6	27
Investment securities and assets acquired with
commitment for resale		-	-	-	-
Other commitments on investment securities, assets or revenues		6	574	580	60
Rate swaps		-	60	60	60
Rate and currency swap (cross-currency swaps)		-	511	511	-
Caps and floors		-	-	-	-
Asset swaps		-	-	-	-
Underwriting commitments		6	3	9	-
Other commitments given		111	396	507	350
Securities pledged to ceding companies		-	16	16	17
Marketable securities pledged to financial institutions		-	3	3	-
Investments in subsidiaries and affiliates pledged to financial institutions		-	-	-	-
Mortgages		-	-	-	-
Other guarantees given to financial institutions		-	-	-	-
Contract termination indemnities		-	8	8	8
Foreign currency forward sales		111	369	480	325
Property leases		-	-	-	-
COLLATERAL RECEIVED FROM RETROCESSIONAIRES		-	-	-	-

1.5 NOTES TO THE CORPORATE FINANCIAL STATEMENTS

NOTE 1 - ACCOUNTING POLICIES

The financial statements for financial year 2011 are presented in accordance with the European Directive of 19 December 1991, the French Decree 94-481 of 8 June 1994, and the Order of 20 June 1994 as amended by the Order of 28 July 1995, for which the application has been extended to include reinsurance companies. The income statement was split between the Non-Life underwriting statement, the Life underwriting statement and the nonunderwriting statement. In addition to reinsurance operations, the underwriting accounts include general expenses and income from investments relating to reinsurance activities. Income from invested shareholders' equity is recorded in the non-underwriting account.

1.1 INTANGIBLE ASSETS

Intangible assets consist of:

• software acquired or created by the Company which is capitalized and amortized over a period ranging from 1 to 5 years;
• non-depreciable goodwill.

1.2 INVESTMENTS

Investments are recorded at historical cost, excluding expenses. Investments are valued based on the asset category and the length of time over which they are expected to be held.

1.2.1 Investments in associates

The fair value of investments in associates is based on their value in use. This value is assessed based on the utility of the investment to the Company as well as the actual share price, the revalued shareholders' equity, the actual results and the future outlook.

For active reinsurance companies, the fair value is estimated based on consolidated net assets, excluding goodwill and before elimination of shares, increased by unrealized capital gains or losses and by the Embedded Value for Life Reinsurance and forecasts of future profits for Non-Life Reinsurance, net of tax. It does not include the value of future business for Life companies.

At each balance sheet date, if the carrying value of an investment in associate is less than its historical cost, an analysis is conducted in order to determine if impairment is required. The assumptions and conclusions of this analysis, conducted as at 31 December 2011, are detailed in Section 2.1.

For real estate and financial (holding) companies, the fair value is calculated as the pro rata of the net assets increased for unrealized gains, net of tax. An impairment provision is recorded on a line-by-line basis when these values are less than historical cost.

1.2.2 Equity securities and other variable-income securities

Equity securities and other variable-income securities are recorded at cost, excluding expenses. The realizable value as at the balance sheet date is determined according to article R.332-20 of the French Insurance Code, and for listed securities, corresponds to the share price on the balance sheet date. For unlisted securities; the fair value is based on net assets.

When the realizable value is more than 30% below the initial cost for more than six consecutive months, a detailed lineby-line analysis is performed to determine whether the impairment is permanent. In accordance with the Notice of 18 December 2002 (amended on 15 December 2008) issued by the Emergency Committee of the French National Accounting Commission, an impairment provision is recorded on a line-by-line basis for securities which are considered permanently impaired.

1.2.3 Bonds and other fixed-income securities

Bonds and other fixed-income securities are recorded at cost, excluding accrued interest. In compliance with article R. 332-19 of the French Insurance Code, the difference between cost and redeemable par value is amortized to income over the remaining period until maturity using the effective interest rate method.

No impairment is recognized for differences between net book value, as decreased or increased by the amortization of any premium or discount, and the realizable value. An impairment provision is recorded only in the event of issuer default.

Upon disposal, any realized gain or loss is allocated to the capitalization reserve.

1.2.4 Other assets

An impairment provision is recorded for loans or other accounts receivable due in more than one year if the fair value is less than historical cost.

1.2.5 Provision for liquidity risk on underwriting commitments

A liquidity risk reserve is recorded for the possible need to liquidate assets in order to make immediate payment on major claims. This reserve is included in underwriting reserves and is recorded when the total net book value of assets, excluding bonds and other fixed income securities (investments valued according to article R. 332-19 of the French Insurance Code), exceeds their fair value. The fair value corresponds to the market price for listed shares, the net asset value for unlisted shares and the net realizable value for investments in subsidiaries as described in Section 2.1.

Based on the calculations performed, no such reserve was required or recorded in the financial statements for 2010 and 2011.

1.3 CURRENT PROPERTY, PLANT AND EQUIPMENT

Items included in this caption are recorded at their historical cost.

Equipment, furniture and fixtures are depreciated on a straight-line or sliding scale basis depending on their estimated useful lives:

Office equipment and furniture	5 to 10 years
General fixtures	10 years
Transport equipment	4 to 5 years

Deposits and security deposits relate primarily to rented facilities.

1.4 ACCOUNTS RECEIVABLE

An allowance for bad debts relating to accounts receivable from reinsurance transactions and other receivables is recorded when recoverability is uncertain.

1.5 RETIREMENT COMMITMENTS AND SIMILAR BENEFITS

The Company records all liabilities relating to employee benefits on its balance sheet.

• End retirement indemnities: employees benefit from additional retirement benefits paid in full upon retirement. The evaluation of these indemnities depends on several factors such as age, number of years' service and salary.
• Senior management pension obligations (Article 39): The valuation of the reserve for senior management pension obligations is based on the following actuarial assumptions:
  • Discount rate: 4.25%, defined with respect to high quality long term corporate bonds (rated AA) with duration in line with the duration of the obligations evaluated.
  • Updated mortality tables for the various plans, with turnover data for managers and salary increases
  • Long-term service awards: the CNC Notice 2004-05 dated 25 March 2004 requires the recognition of a provision for long-term service awards as from 2004

In Opinion n° 2008-17 dated 6 November 2008 relating to the accounting of stock option and share purchase and underwriting plans and free share allotment plans, the CNC redefined the accounting of such benefits granted to employees and the accounting for impairment of treasury shares held for such plans. In the event of the delivery of already existing shares, the expense should be recognized over the vesting period if the attribution of shares is based on the employee remaining with the company over the vesting period. As such, at each period end, a provision for risk is recorded for the pro rata of the estimated cost (calculated as the difference between the cost to acquire the shares and nil value) to which the pro rata of the expired period, from date of attribution, to the entire vesting period is applied.

1.6 FINANCIAL BORROWINGS

This financial statement caption includes the various subordinated or unsubordinated bonds issued by the Company as described in Note 4.

Debt issuance costs are amortized over the life of the respective loan. Interest on financial debt is included in financing expenses.

1.7 RECORDING OF REINSURANCE TRANSACTIONS

Assumed reinsurance transactions:

Assumed reinsurance is recorded upon receipt of accounts transmitted by ceding companies.

Pursuant to the provisions of article R.332-18 of the French Insurance Code, accounts not yet received from ceding companies at the end of the financial year are estimated, in order to better reflect SCOR's reinsurance commitments in the financial statements. This method applies to most contracts underwritten during the current financial year and to prior-year contracts where relevant.

Estimates of premiums and commissions not yet received from ceding companies at period end are recorded in the income statement and shown on the balance sheet in account "Reinsurance estimates - assumed".

Overall, the premiums recorded for the year (premiums reported in the accounts received from cedants and estimated premiums) correspond to the estimated premium expected at the time the policy was underwritten.

Estimated claims expenses are recorded in loss reserves.

Retrocession:

The retroceded portion of assumed reinsurance, determined in accordance with the treaty terms, is recorded separately from the assumed reinsurance transaction.

The retrocessionaires' share in estimates of assumed premiums and commissions is shown in liabilities in account "Reinsurance estimates - retrocessions."

Cash deposits received from retrocessionaires are shown in liabilities on the balance sheet.

Securities pledged as collateral by reinsurers to guarantee their commitment are shown off balance sheet at their fair value.

Finite reinsurance:

Finite reinsurance treaties, as defined under article L310-1-1 of the French Insurance Code, have to be accounted for under provisions of opinion 2009-12 dated 1 October 2009 issued by the CNC (French accounting standard setter). In none of the presented years did SCOR SE underwrite any such treaty.

1.8 TECHNICAL / UNDERWRITING RESERVES

Non-Life Activity:

An unearned premium reserve is calculated either pro rata temporis on a contract-by-contract basis, or using a statistical method when the results do not differ significantly from the contract-by-contract method.

SCOR determines the amount of loss reserves at the end of the year at a level which covers the estimated amount of its commitments as well as estimated claims management costs for both reported and unreported claims (net of estimated recovery and subrogation). These reserves, which pertain to all claims, reported or unreported, are evaluated on the basis of their undiscounted "ultimate" cost. Ultimate claims expense for a contract is estimated based on statistical experience for similar policies.

Loss reserves, including estimated claims paid, are calculated based on expected results and supplement the information communicated by ceding companies.

Life Activity:

The mathematical reserves for Life reinsurance are submitted by ceding companies and completed by estimates calculated by Life actuaries using statistics based on historical date and information provided by underwriters.

Additionally, estimated claims are included in the provisions for claims payable.

The Company is required to have adequate reserves to cover its commitments after consideration of estimated investment returns, mortality, morbidity and lapse rates, and other assumptions.

A provision for increasing risk is recorded for long-term care and disability business. This risk increases with the age of the insured although the premiums are typically constant. It is equal to the difference between the discounted values of the respective commitments of the insured and insurer.

1.9 ACQUISITION COSTS OF REINSURANCE OPERATIONS

The costs associated with the acquisition of new contracts, essentially commissions, are recorded as assets within the limits of contract profitability. They are amortized over the acquisition of premiums. The acquisition costs of Life reinsurance operations are usually not deferred.

1.10 TRANSACTIONS CONDUCTED IN FOREIGN CURRENCIES

Pursuant to the provisions of article R. 341-7 of the French Insurance Code, foreign currency transactions of the Company are recorded in their original currency. For purposes of financial statement presentation, balance sheet amounts are converted into Euro using the end of period exchange rates or the rate of the closest date immediately prior to the end of the period.

As from 1 January 2008, SCOR applies the new rules relating to the accounting of transactions in foreign currencies by entities subject to the rules of the Insurance Code as required by the CNC in its opinion n° 2007-02 dated 4 May 2007.

Balance sheet positions in foreign currencies

At each balance sheet date, items in foreign currencies are converted into Euro by allocating the underlying transactions as follows:

• Transactions relating to assets and liabilities generating a "structural" foreign currency position primarily investments in subsidiaries and related impairments;
• Other transactions generating an "operational" foreign currency position.

Differences relating to the conversion of structural positions are recorded on the balance sheet whereas conversion differences relating to operational positions are recorded in income.

Off-balance sheet positions in foreign currencies

The foreign currency differences on off-balance sheet positions (forward financial instrument contracts) and the related off-balance sheet account represent unrealized foreign currency gains or losses. These differences are recorded on the balance sheet in the accounts "net translation adjustments" and "regularization of forward financial instrument contracts", based on the underlying strategy.

The objective of the "net translation adjustments" account on the balance sheet is to ensure symmetrical treatment with the accounting of the exchange difference generated by the underlying instrument:

• When the derivative is linked to a structural element, the "net translation adjustments" account remains on the balance sheet until the structural element is realized;
• When the derivative relates to a strategic investment, the "net translation adjustments" account remains until the investment is made;
• When the derivative is related to an operational item, in the context of a strategic divestiture or investment, or the derivative is linked to a non-structural financial debt, the "net translation adjustments" account is recorded in income.

The foreign currency hedging strategy is described in Note 9.

Interest differences relating to forward contracts are depreciated to interest expense or income over the effective life of the hedged operation.

1.11 PRINCIPLES RELATING TO FINANCIAL STATEMENT PRESENTATION

Allocation of expenses by function

In accordance with the Decree of 8 June 1994 and the Order of 20 August 1994 which set forth the rules and accounting principles for reinsurance companies, general expenses, previously recorded by type, are allocated to the following five functions: acquisition costs, claims settlement expenses, administrative expenses, investment portfolio management expenses, and other underwriting expenses.

Portfolio entries / transfer

Premium portfolio entries based on the accounts of ceding companies offset the risk on accounts managed by accounting year. Premium portfolio entries represent the portion of unearned premiums paid at the start of the contract and the financial year while the risk relates to previous years. Likewise, premium portfolios ceded represent the portion of unearned premium at the end of the financial year and of the contract. Premium portfolio entries and withdrawals are included in the premium written and are an integral part of premium income. Portfolio movements are recorded as premium and claim portfolio entries or transfer.

1.12 FINANCIAL INSTRUMENTS RECEIVED AND GIVEN

The use of and accounting for financial instruments comply with European Directive 2005/68/CE (also known as the Reinsurance Directive) ; with the French General Statement of Accounting Principles ("Plan Comptable Général") of 1982 ; and with French Decree No 2002-970 dated 4 July 2002, relating to the use of forward financial instruments by French insurance companies.

Such instruments may include foreign currency and interest rate swaps; caps and floors; forward currency contracts; puts and calls on equity securities and other rate options.

Income and losses in the form of interest or premiums are recorded on a pro rata basis over the life of the contract. Commitments given and received recorded at the balance sheet date reflect the nominal amount of open transactions. Any unrealized loss positions on swaps are recorded in the financial statements.

ANALYSIS OF KEY BALANCE SHEET ITEMS

NOTE 2 - INVESTMENTS

2.1 CHANGES IN INVESTMENTS

GROSS BALANCES	Opening	Impact of foreign exchange on opening	Acquisitions		Closing
In EUR million	balances	balances	creations	Disposals	balances
Land	-	-	-	-	-
Buildings	-	-	-	-	-
Shares in and advances to land and real estate companies	154	-	8	2	160
Equity interests	4,071	-	22	-	4,093
Cash deposited with ceding companies (related & associated companies)	-	-	20	-	20
Loans (related and associated companies)	163	-	967	259	871
Other investments	41	-	1,024	912	153
Cash deposited with other ceding companies	-	-	-	-	-
TOTAL	4,429	-	2,041	1,173	5,297

DEPRECIATION AND IMPAIRMENT In EUR million	Opening balances	Impact of foreign exchange on opening balances	Increases in allowances for the financial year	Reversals during the financial year	Closing balances
Land	-	-	-	-	-
Buildings	-	-	-	-	-
Shares in and advances to land and real estate companies	1	-	4	-	5
Equity interests	467	-	-	180	287
Loans (related and associated companies)	-	-	-	-
Other investments	2	-	-	-	2
TOTAL	470	-	4	180	294

Loans

The loan granted by SCOR SE to SCOR Global Life for the financing of the TRANSAMERICA acquisition is EUR 708 million at 31 December 2011 compared to EUR 123 million in 2010 that were funding the REVIOS acquisition and were fully redeemed in 2011.

Associated companies

At 31 December 2011, provisions against equity investments can be analyzed as follows:

SCOR US CORPORATION: EUR 285 million compared to EUR 465 million in 2010. A reversal of the impairment by EUR 180 million has been recorded due to an increase in the market value of this affiliate and its improved financial condition.

The shares held in SCOR US CORPORATION were valued using the following method and assumptions: enterprise value was assessed based on revalued net assets increased for the creation of future value determined using the Discounted Cash Flow (DCF) method. Projected income was used for the DCF method.

Analysis performed for other equity investments did not result in impairment provisions

2.2 SCHEDULE OF INVESTMENTS

				Unrealised
In EUR million	Gross value	Net book value	Realizable value	gains and losses
1 – Real estate investments and real estate investments in
process	160	155	213	58
2 - Shares and other variable-income securities (other than
mutual fund shares)	4,098	3,809	6,776	2,967
3 - Mutual fund shares (other than those in 4)	1	1	8	7
4 - Mutual fund shares exclusively invested in fixed-income securities	2	2	2	-
5 - Bonds and other fixed-income securities	145	145	145	-
6 - Mortgage loans	-	-	-	-
7 - Other loans and similar bills	872	872	872	-
8 - Deposits with ceding companies	20	20	20	-
9 - Cash deposits (other than those in 8) and security deposits	-	-	-	-
10 - Unit-linked investments	-	-	-	-
Sub-total	5,298	5,004	8,036	3,032
11 – Other forward instruments	1,080	1,080	1,080	-
- Investment or divestment strategy	-	-	-	-
- Anticipation of investment	-	-	-	-
- Yield strategy	-	-	-	-
- Other transactions	1,080	1,080	1,080	-
- Amortization premium/discount	-	-	-	-
12 – Total lines 1 to 11	6,378	6,084	9,116	3,032
a) including:
- investments valued according to article R.332-19	145	145	145	-
- investments valued according to article R.332-20	5,153	4,859	7,891	3,032
- investments valued according to article R.332-5	-	-	-	-
- Forward instruments	1,080	1,080	1,080	-
b) including:
- investments and forward instruments issued in OECD
countries	6,344	6,050	9,060	3,010
- investments and forward instruments issued in non-OECD countries	34	34	56	22

2.3 SUBSIDIARIES AND AFFILIATES

As at 31 December 2011, loans and advances granted by SCOR SE to its subsidiaries totaled EUR 871 million (including EUR 708 million to SCOR Global Life SE, EUR 94 million to SCOR AUBER SA and EUR 49 million to GIE Informatique) compared to EUR 161 million as at 31 December 2010 (including EUR 123 million to SCOR Global Life SE, EUR 3 million to SCOR AUBER SA and EUR 35 million to GIE Informatique).

Loans granted to SCOR SE by its subsidiaries totaled EUR 613 million (including EUR 361 million from SCOR Global P&C SE and EUR 123 million from SCOR HOLDING SWITZERLAND) compared to EUR 275 million as at 31 December 2010 (including EUR 102 million for SCOR Global P&C SE and EUR 1 million from SCOR HOLDING SWITZERLAND).

For 2011, SCOR SE recognized EUR 24 million in financial income from loans with related companies and EUR 13 million in interest (expenses) on borrowings with related companies.

Name	Original currency	Share capital (1)	Reserves (1)	Share of capital	Gross book value	Net book value	Loans and advances	Receivables against issuers	Guaranteesand pledges given (2)	Turn over (1)	Net income (1)	Dividends received
(Amounts in EUR million)	(OC) *	(OC) *	(OC) *		(EUR)	(EUR)	(EUR)	(EUR)	(EUR)	(OC) *	(OC) *	(EUR)
A- RELATED ENTITIES: DETAILED INFORMATION
- SCOR GLOBAL LIFE SE	EUR	275	569	99.99%	430	430	708	123	-	2,211	94	140
5 avenue Kléber, 75116 PARIS, France
- SCOR GLOBAL P&C SE	EUR	544	1,176	99.99%	1,465	1,465	-	-	-	2,338	5	50
5 avenue Kléber, 75116 PARIS, France
- SCOR US CORPORATION	USD	329	790	100.00%	1,314	1,030	-	2	-	826	19	-
199 Water Street, NEW YORK, NY 10038-3526 USA
- SCOR AUBER S.A. (France)	EUR	47	134	100.00%	149	149	94	-	-	36	12	-
5 avenue Kléber, 75116 PARIS, France
- SCOR Holding Switzerland AG	EUR	382	1,848	40.68%	788	788	-	-	-	-	307	-
General Guisan-Quai 26, 8022 Zurich, Switzerland
- ASEFA S.A.	EUR	18	77	39.97%	5	5	-	-	-	122	12	-
Avda Manoteras 32 Edificio A 28050 Madrid, Spain
- PREVOYANCE RE S.A.	EUR	40	17	100.00%	41	41	-	-	-	69	-	-
5 avenue Kléber, 75116 PARIS, France
-SCOR
PERESTRAKHOVANIYE.O.O.O.	RUB	7	2	100.00%	21	21	-	-	-	11	1	-
10 Nikolskaya Street, 109012, Moscow, Russian Federation
- SCOR AFRICA LTD	ZAR	-	180	100.00%	11	11	-	-	-	557	10	-
2nd Floor, West Tower, Maude Street, Nelson Mandela Square, Sandton 2196, South Africa
- SCOR GLOBAL INVESTMENT SE	EUR	3	9	100.00%	3	3	-	1	-	20	4	-
5 avenue Kléber, 75116 PARIS, France
Total A					4,226	3,942	802	126				190

Name	Original currency	Share capital (1)	Reserves (1)	Share of capital	Gross book value	Net book value	Loans and advances	Receivables against issuers	Guaranteesand pledges given (2)	Turn over (1)	Net income (1)	Dividends received
(Amounts in EUR million)	(OC) *	(OC) *	(OC) *		(EUR)	(EUR)	(EUR)	(EUR)	(EUR)	(OC) *	(OC) *	(EUR)
B- ENTITIES WITH EQUITY INTEREST
- In France					24	19	69	3
- Other than in France					2	2	-	-
Total B					26	21	69	3
TOTAL					4,252	3,963	871	129				190

(1) Data based on IFRS accounts.

(2) SCOR guarantees in full, without limits as to amounts, the underwriting liabilities of its subsidiaries pertaining in particular to their obligations relative to the payment of claims. In return, SCOR GLOBAL P&C SE and SCOR GLOBAL LIFE SE guarantee,

on behalf and for the benefit of SCOR SE, the full and prompt performance of all of SCOR SE's payment obligations under all insurance, reinsurance and financial contracts entered into by SCOR SE.

(*) OC: Original Currency

NOTE 3 - OTHER ASSETS

3.1 TANGIBLE AND INTANGIBLE ASSETS

In EUR million	Opening balances	Acquisitions / creations	Disposals	Closing balances
GROSS VALUES	87	34	22	99
Intangible assets	9	-	4	5
Goodwill	6	-	2	4
Set-up costs	-	-	-	-
Other intangible assets	3	-	2	1
Tangible assets	78	34	18	94
Deposits and security bonds	36	-	18	18
Equipment, furniture, fittings and fixtures	42	34	-	76
DEPRECIATION AND ALLOWANCES	(16)	(5)	-	(21)
Other intangible assets (excluding goodwill)	-	(1)	-	(1)
Equipment, furniture, fittings and fixtures	(16)	(4)	-	(20)

All assets and liabilities of Prévoyance RE S.A. were merged into SCOR SE on 28 December 2008. This transfer resulted in the elimination of the shares of Prévoyance RE S.A. (EUR 26 million) and the recording of all assets and liabilities of the company in the accounts of SCOR SE. A gain from bargain purchase of EUR 3.7 million was recorded in connection with this transaction.

Increase of equipment and furniture by EUR 34 million mainly related to work in progress on the German branch building.

3.2 TREASURY SHARES

As at 31 December 2011, the number of shares held as treasury shares amounted to 7,262,600 shares (i.e., 3.78% of capital) for a total value of EUR 120,118,237. These shares were acquired in the context of anticipated awards to Company employees and officers as part of share allotment plans.

In EUR million	Opening balance	Acquisitions/ creations	Disposals	Closing balance
Treasury shares
Number	6,427,554	6,900,586	(6,065,540)	7,262,600
Amount	103,377,435	124,082,360	(107,341,558)	120,118,237

NOTE 4 - TRANSACTIONS WITH SUBSIDIARIES AND AFFILIATES

	2010 Related com	Other			2011 Related com	Other
In EUR million	panies	affiliates Other		Total	panies	affiliates Other		Total
ASSETS (Gross)
Investments	4,385	1	43	4,429	5,141	1	155	5,297
Investment properties	152	-	2	154	158	-	2	160
Shares other than variable
income securities and bonds	4,070	1	39	4,110	4,093	1	152	4,246
Loans Cash deposits with ceding	163	-	2	165	871	-	1	872
companies	-	-	-	-	19	-	-	19
Share of retrocessionaires in
underwriting reserves	4	-	-	4	5	-	-	5
Accounts receivable	348	-	75	423	308	-	46	354
Accounts receivable from
reinsurance transactions	61	-	7	68	71	-	15	86
Other accounts receivable	287	-	68	355	237	-	31	268
Others assets	102	-	178	280	125	-	222	347
Accrued income and deferred
charges	1,551	-	47	1,598	1,687	-	154	1,841
Deferred acquisition costs –
assumed (Non-Life)	26	-	11	37	31	-	31	62
Other assumed reinsurance transactions	1,525	-	30	1,555	1,656	-	87	1,743
Other accruals	-	-	6	6	-	-	36	36
LIABILITIES
Other Capital base	-	-	314	314	-	-	854	854
Gross underwriting reserves	2,572	-	104	2,676	2,883	-	231	3,114
Contingency reserves	-	-	85	85	-	-	61	61
Liabilities for cash deposits
received from
retrocessionaires	-	-	-	-	-	-	-	-
Other liabilities Liabilities arising from	338	36	305	679	642	-	240	882
reinsurance operations	54	-	2	56	6	-	1	7
Financial liabilities	276	-	215	491	613	-	164	777
Other creditors	8	36	88	132	23	-	75	98
Deferred income and accrued expenses	3	-	(3)	-	1	-	-	1
Deferred commissions received
from reinsurers (Non-Life)	1	-	-	1	-	-	-	-
Reinsurance estimates – Retrocession	2	-	(3)	(1)	1	-	-	1
Other accruals	-	-	-	-	-	-	-	-

The list of material related-party transactions required by French accounting standard CRC 2010-06 issued on 7 October 2010 is not applicable to SCOR SE as all related-party transactions are with 100%-owned entities.

	2011
In EUR million	Related com panies	Other affiliates	Other	Total
Other accounts receivable	237	-	31	268
Treasury advances granted	157	-	-	157
Transfer pricing receivables	37	-	-	37
Miscellaneous	43	-	31	74
Other creditors	23	-	75	98
Treasury advances received	23	-	-	23
Miscellaneous	-	-	75	75

4.1 OTHER EQUITY AND FINANCIAL LIABILITIES

Long-term financial debt includes:

(a) Other capital base:

• EUR 50 million in Perpetual Step-Up subordinated notes issued on 23 March 1999. These notes are callable after 15 years, and at five-yearly intervals thereafter. The floating-rate notes bear interest based on the 6 month Euribor plus (i) 0.75% for the first fifteen years of the issue, and (ii) 1.75% thereafter.
• Initial EUR 350 million reduced to EUR 257 million after repurchase of EUR 93 million during 2009 undated deeply subordinated notes (Tier 1 type) issued on 28 July 2006 in connection with the financing of the acquisition of Revios Ruckversicherung AG. The bond issuance is represented by last-rank subordinated bearer notes with a par value of EUR 50,000 each bearing interest at an initial rate of 6.154% per annum, a floating rate indexed on the 3-month EURIBOR plus a margin of 2.90%, payable quarterly. No fixed redemption date is set but SCOR SE reserves the right to redeem the bonds in full or in part as from 28 July 2016
• CHF 650 million fixed rate perpetual subordinated notes issued in two pari-passu ranking placements on 2 February and 3 June 2011. The notes are redeemable by SCOR each quarter as at payment of interests date as from 2 August 2016 with a first call date of 2 August 2016. The coupon has been set to 5.375% (until 2 August 2016) and 3-month CHF LIBOR plus a margin of 3.7359% thereafter.

(b) Financial liabilities

• Initial USD 100 million reduced to USD 67 million after repurchase of USD 33 million in 2011 30-year subordinated bonds issued on 7 June 1999, callable by SCOR quarterly as from the tenth year. These floating-rate bonds bear interest based on the 3-month Libor rate plus (i) 0.80% for the first ten years of the issue, and (ii) 1.80% thereafter.
• Initial EUR 100 million (EUR 93 million after repurchase of EUR 7 million during 2009) 20-year subordinated bonds, issued on 6 July 2000 callable by SCOR quarterly as from the tenth year following their issuance. These floating-rate bonds bear interest based on the 3-month Euribor plus (i) 1.15% for the first ten years, and (ii) 2.15% thereafter.
• SCOR Holdings Switzerland (SHS) repurchased part of the subordinated perpetual debt (350 million) for EUR 93 million. This repurchase resulted in the cancellation of the debt (EUR 93 million) on 27 July 2009. In SCOR SE's accounts, this decrease in debt resulted in a new internal loan from SHS for EUR 93 million with the same characteristics as the subordinated perpetual debt.
• Loans granted to SCOR by its subsidiaries, mainly SCOR Global P&C SE (see section 2.3).

4.2 GROSS UNDERWRITING RESERVES

In EUR million	2009	2010	2011
Reinsurance reserves (Life)	231	474	535
Loss reserves (Life)	147	157	178
Unearned premiums reserves (Non-Life)	154	183	254
Loss reserves (Non-Life)	978	1,443	1,690
Other underwriting reserves (Non-Life)	389	419	457
Gross underwriting reserves	1,899	2,676	3,114

The reinsurance activity of SCOR SE comprises three treaties, a quota share with SCOR Global P&C SE, another with SCOR Global Life SE, and a third with SCOR SOUTH AFRICA; a facultative contract with Allianz which is 100 % retroceded to SCOR Global P&C SE; and the business underwritten by the Beijing branch.

4.3 MATURITY OF ASSETS AND LIABILITIES

The maturity of debt at 31 December 2011 is as follows:

In EUR million	Less than 1 year	1-5 years	+5 years	Total
Perpetual debt (other equity)	19		834	853
Convertible debt
Bank debt	8			8
Negotiable instruments
Other loans and deposits received (1)	531	93	145	769
TOTAL	558	93	979	1,630

(1) Mainly related to loan of subsidiaries described in Note 2.3.

The maturity of investments, debt, other than financial debt, and receivables is less than one year.

4.4 ACCRUED INCOME AND DEFERRED CHARGES

The analysis of accrued income and deferred charges at 31 December is as follows:

		ASSETS		LIABILITIES
En EUR million	2010	2011	2010	2011
Reinsurance estimates ─ assumed	1,555	1,743	(1)	-
Reinsurance estimates ─ assumed ─ Life	648	726	-	-
Reinsurance estimates ─ assumed ─ Non-Life	907	1,017	(1)	-
Deferred acquisition costs ─ Non-Life	37	62	1	-
Others accruals	6	35	-	-
TOTAL	1,598	1,840	-	-

The reinsurance estimates – assumed ─ Life (EUR 726 million) includes premiums for EUR 352 million, commissions payable of EUR ( 88) million and claims payable amounting to EUR 462 million.

The reinsurance estimates – assumed ─ Non-Life (EUR 1,017 million) includes premiums for EUR 570 million, commissions payable of EUR (116) million and claims to repay for EUR 563 million.

NOTE 5 - SHAREHOLDERS' EQUITY

The share capital, comprising 192,021,303 shares with a par value per share of EUR 7,8769723 totaled EUR 1,512,546,485 as at 31 December 2011.

In EUR million	2010 shareholders' equity before allocation	Income allocation	Other movements during the period	2011 shareholders' equity before allocation
Capital	1,479	-	34	1,513
Additional paid-in capital	766	(3)	43	806
Revaluation reserves	-	-	-	-
Capitalisation reserves	3	-	-	3
Other reserves	31	11	(1)	41
Retained earnings	10	(5)	(1)	4
Net income	204	(204)	235	235
Regulated reserves	10	-	2	12
TOTAL	2,503	(201)	312	2,614

• The gain for 2010, i.e., EUR 204 million, combined with a portion of retained earnings (EUR 10 million), was allocated to other reserves for EUR 11 million and to dividends for EUR 201 million.
• The issuance of shares relating to the exercise of options through 31 December 2011 for a total of EUR 2 million were allocated to the share capital of the Company for EUR 1 million and to additional paid-in capital for EUR 1 million. The exercise of options resulted in the creation of 121,603 shares.
• In the context of a contingent capital arrangement program, SCOR issued 9,521,424 warrants on 17 December 2010 to UBS, each warrant committing UBS to subscribe for two new SCOR shares (maximum amount of EUR 150 million - including issuance premium available per tranche of EUR 75 million each including issuance premium) when the aggregated amount of the estimated ultimate net losses resulting from eligible natural catastrophes incurred by the Group (in its capacity as an insurer/reinsurer) reaches certain contractual thresholds in any given calendar year between 1 January 2011 and 31 December 2013 or if no drawdown already took place in the context of the agreement and SCOR's share price drops below EUR 10.

The issuance of 4,250,962 new shares related to the first tranche of contingent capital for EUR 75 million in July 2011 was allocated to the share capital of the Company for EUR 33.5 million and to additional paid-in capital for EUR 41.5 million.

• During 2011, the Board decided upon two separate share capital reductions by cancellation of a total of 146,663 treasury shares for a total amount of EUR 1.15 million.
• All new shares were issued with voting rights.

NOTE 6 - CONTINGENCY RESERVES

GROSS BALANCES In EUR million	Opening balance	Increase	Use over the period	Reversal without use	Closing balance
Tax litigation	1	1	-	-	2
Restructuring	-	-	-	-	-
Retirement provisions	45	4	-	(17)	32
Free share allotment plans	36	26	(18)	(28)	16
Long-term awards	2	-	-	-	2
Other provisions	1	8	-	-	9
TOTAL	85	39	(18)	(45)	61

Contingency reserves amount to EUR 61 million, of which:

• EUR 16 million for free share allotment plans with the following expiry: EUR 11 million at 2012, EUR 5 million at 2013.
• EUR 19 million in reserves for post-employment benefits: retirement provisions (EUR 2 million), supplementary retirement (EUR 14 million), long-term service awards (EUR 2 million), employee litigation (EUR 1 million)
• EUR 8 million for onerous contract provision.
• EUR 16 million for retirement provisions relating to employees of the German branch.
• EUR 2 million in provisions for tax litigation.

NOTE 7 - ASSETS – LIABILITIES BY CURRENCY

Currency In EUR million	Assets 2011	Liabilities 2011	Surplus 2011	Surplus 2010
Euro	6,896	(5,958)	938	408
US Dollar	465	(674)	(209)	(381)
Pounds sterling	6	(28)	(22)	(3)
Swiss francs	52	(551)	(499)	2
Japanese yen	(49)	(33)	(82)	-
Other currencies	156	(282)	(126)	(26)
TOTAL	7,526	(7,526)	-	-

ANALYSIS OF KEY INCOME STATEMENT ITEMS

NOTE 8 - BREAKDOWN OF PREMIUMS AND COMMISSIONS

8.1 BREAKDOWN OF PREMIUMS BY GEOGRAPHIC REGION (COUNTRY WHERE CEDANT IS LOCATED)

In EUR million	2010	2011
France	316	352
North America	75	73
South America	25	36
Asia	80	205
Europe	307	352
Africa	52	58
Rest of world	56	59
TOTAL	910	1,136

SCOR SE premiums are the result of the implementation of three internal retrocession treaties entered into jointly with SCOR Global P&C SE, SCOR Global Life SE and SCOR SOUTH AFRICA as well as the Chinese branch's activity.

8.2 PORTFOLIO EVOLUTION

		2010			2011
In EUR million	Prior years	2010	Total	Prior years	2011	Total
Premiums	26	881	907	60	1,059	1,119
Portfolio entries	296	14	310	-	27	27
Portfolio transfers	(303)	(4)	(307)	(11)	1	(10)
Movements	(7)	10	3	(11)	28	17
TOTAL	19	891	910	49	1,087	1,136

8.3 CHANGE IN COMMISSIONS

In EUR million	2010	2011
Commissions - assumed	191	222
Commissions - retroceded	(2)	(2)
TOTAL	189	220

NOTE 9 - ANALYSIS OF INVESTMENT INCOME AND EXPENSES BY KIND

		2010			2011
	Related			Related
In EUR million	companies	Other	Total	companies	Other	Total
Revenues from securities	50	-	50	191	1	192
Revenues from real estate investments	16	-	16	-	-	-
Revenues from other investments	2	2	4	25	15	40
Other revenues	39	8	47	180	30	210
Realised gains	233	3	236	-	1	1
Total investment income	340	13	353	396	47	443
Management and financial costs	23	30	53	27	68	95
Other investment expenses	-	22	22	4	14	18
Realised losses	-	13	13	22	-	22
Total investment expenses	23	65	88	53	82	135

Dividends received from subsidiaries total EUR 191 million and include: SCOR Global Life SE EUR 140 million and SCOR Global P&C EUR 51 million.

In 2010, sales of GSNIC to SCOR US CORPORATION and of SCOR REINSURANCE ASIA PACIFIC to SCOR GLOBAL P&C SE gave rise to gains of EUR 37.4 million and EUR 195 million respectively.

Finally, the improvement of the financial position of SCOR US CORPORATION allowed a reversal of part of the impairment provision respectively amounting to EUR 180 million (other revenues).

Results from transactions involving financial instruments (rate swaps, interest-rate options, real estate swap) were posted to financial income in the net amount of EUR (0.5) million in 2011 compared to EUR 0.5 million in 2010.

FOREIGN CURRENCY TRANSACTIONS

Currency gains were EUR 15.1 million in 2011 compared to a loss of EUR (13.9) million in 2010.

FOREIGN CURRENCY HEDGING STRATEGY

The corporate financial statements are prepared in original currencies converted to Euros. Fluctuations in the exchange rates used to convert the accounts might generate a significant foreign exchange impact. To limit the exchange rate fluctuation risk, forward foreign currency transactions are entered into at the beginning of the year to hedge the main currency surpluses in the balance sheet at the beginning of the year and adjusted during the year for material arbitrage transactions involving currencies. Hedges include spot trades of foreign currencies, forward trades of foreign currencies and option strategies.

NOTE 10 - ANALYSIS OF GENERAL EXPENSES BY KIND AND NON RECURRING RESULT

General expenses by kind

In EUR million	2010	2011
Salaries	81	54
Retirement	9	5
Benefits	6	10
Other	5	3
Total personnel expenses	101	72
Other general expenses	128	121
TOTAL GENERAL EXPENSES BY KIND	229	193
Workforce
Executives - Paris	170	191
Employees / Supervisors -Paris	22	20
Employees / branches	585	343
TOTAL CURRENT WORKFORCE	777	554

Non-recurring result

The extraordinary result of EUR 6.2 million was generated mainly by the following:

• depreciation allowance on acquisition costs of Converium of EUR (2.5) million;
• EUR 4.2 million gain from the buy-back of 33% of the USD subordinated debt at 82.5% of par;
• EUR 5 million gain from the transfer of SCOR SE's Zurich branch net assets and liabilities to SCOR SERVICES SWITZERLAND AG.

It breaks down into extraordinary income by EUR 11.0 million and extraordinary expenses by EUR (4.8) million.

NOTE 11 - ANALYSIS OF INCOME TAX

The SCOR SE Group in France is consolidated for tax purposes with SCOR SE as the parent company of the Group, and SCOR Global P&C SE, SCOR Global Life SE, SCOR Global Investment, SCOR Gestion Financière SA, SCOR Auber SA, Prévoyance RE SA, DB Caravelle and ReMark France as subsidiaries. Under the tax agreement, SCOR SE benefits from the tax loss carry-forwards of its subsidiaries, and tax benefits are transferred back to the individual subsidiary concerned, if the entity becomes profitable in the future.

Total tax losses of the consolidated French tax Group were EUR 1,277 million as at 31 December 2011.

SCOR SE, as a stand-alone company, has a tax loss carry-forward. The corporate tax gain of EUR 9 million relates to:

• the contribution of subsidiaries that are consolidated for tax purposes by EUR 6.6 million.
• Tax credits by EUR 1 million.
• Taxes from branches of EUR 1.4 million.

NOTE 12 - STOCK-OPTIONS

The table below summarizes the status of the various stock option plans for 2011:

		Date of Board of	Date of			Number of
	Date of General	Directors	availability of	Plan expiration	Number of	options initially
Plan	Meeting	Meeting	options	date	beneficiaries	granted
2001	04/19/2001	09/04/2001	09/04/2005	09/04/2011	162	560,000
2001	04/19/2001	10/03/2001	09/04/2005	10/03/2011	1,330	262,000
2003	04/18/2002	02/28/2003	02/28/2007	02/28/2013	65	986,000
2003	04/18/2002	06/03/2003	06/03/2007	06/03/2013	1,161	1,556,877
2004	05/18/2004	08/25/2004	08/26/2008	08/26/2014	171	5,990,000
2005	05/31/2005	08/31/2005	09/16/2009	09/16/2015	219	7,260,000
2006	05/16/2006	08/28/2006	09/14/2010	09/15/2016	237	8,030,000
2006	05/16/2006	11/07/2006	12/14/2010	12/15/2016	55	2,525,000
2007	05/24/2007	08/28/2007	09/13/2011	09/13/2017	391	1,417,000
2008	05/07/2008	05/07/2008	05/22/2012	05/22/2018	8	279,000
2008	05/07/2008	08/26/2008	09/10/2012	09/10/2018	376	1,199,000
2009	05/07/2008	03/16/2009	03/23/2013	03/23/2019	360	1,403,500
2009	04/15/2009	04/15/2009	11/25/2013	11/25/2019	17	88,500
2010	04/15/2009	03/02/2010	03/19/2014	03/19/2020	316	1,378,000
2010	04/28/2010	04/28/2010	10/13/2014	10/13/2020	20	37,710
2011	04/28/2010	03/07/2011	03/23/2015	03/23/2021	55	701,500
2011	05/04/2011	07/27/2011	09/02/2015	09/02/2021	18	308,500
	Totals at 31 December 2011

Valuation

Number of which to Group directors	Of which top ten attributions	Subscription or purchase price	Number of options remaining at 31/12/2010	Number of options cancelled during 2011	Number of options exercised during 2011	Number of options remaining at 31/12/2011
150,000	77,000	185.10	86,336	86,336	-	-
1,200	2,000	131.10	28,834	28,834	-	-
450,000	170,000	27.30	102,799	-	-	102,799
288,750	122,100	37.60	129,475	159	-	129,316
1,335,000	920,000	10.90	179,516	-6,275*	22,671	163,120
1,650,000	1,290,000	15.90	464,112	-1,044*	48,587	416,569
1,900,000	1,550,000	18.30	720,482	3,137	42,345	675,000
1,000,000	1,470,000	21.73	149,500	2,000	-	147,500
311,500	276,500	17.58	1,217,500	12,500	8,000	1,197,000
279,000	279,000	15.63	279,000	-	-	279,000
-	132 ,000	15.63	1,120,500	39,500	-	1,081,000
439,000	439,000	14.92	1,391,000	43,500	-	1,347,500
-	81,500	17.117	88,500	7,500	-	81,000
501,000	485,000	18.40	1,378,000	47,500	-	1,330,500
-	29,500	17.79	37,710	1,210	-	36,500
493,000	489,000	19.71	-	-	-	701,500
108,000	239,000	15.71	-	-	-	308,500
			7,373,264	264,857	121,603	7,996,804
			144,773,149.90	22,292,647.30	1,935,200.70	139,214,228.90

*technical corrections

By application of Articles L.225-181 and R 225-137 of the French Commercial Code, the Company adjusted the price of the shares corresponding to options granted and the number of shares linked to options following the capital increases of 31 December 2002, of 7 January 2004 and of 12 December 2006. Thus, according to the provisions of Article R 228- 91 of the French Commercial Code, the adjustment applied equalizes, to the nearest hundredth of a share, the value of shares that will be received if the rights attached to share subscription and purchase options are exercised after the capital increase, while retaining the preferential subscription right, of the Company decided on 13 November 2006 and the value of the shares that would have been obtained in case those rights were exercised prior to said capital increase.

These calculations were performed individually and plan by plan, and rounded up to the nearest unit. The new basis for exercising the rights attached to the share subscription and purchase options have been calculated by entering the value of the preferential subscription right on the one hand, and the value of the share after detachment of this right on the other, as determined from the average of the opening prices during all the trading days included in the subscription period.

In addition, on 3 January 2007, the company carried out a reverse stock split of shares comprising the capital of SCOR SE with the exchange of one new share with a par value of EUR 7.8769723 for 10 old shares with a nominal value of EUR 0.78769723 per share.

The stock option plans for the years 2003 to 2010 are share subscription plans that may give rise to a share capital increase. The other plans are share purchase options.

There are no stock option plans providing for the purchase of or subscription to shares in Group subsidiaries.

In 2011, 121,603 rights of options were exercised: 22,671 rights of options exercised under the stock option plan of 25 August 2004, vested on 26 August 2008, 48,587 options exercised under the stock option plan of 16 September 2005, vested on 16 September 2009, 42,345 options exercised under the stock option plan of 14 September 2006, vested on 14 September 2010 and 8,000 options exercised under the stock option plan of 13 September 2007, vested on 13 September 2011.

NOTE 13 - EMPLOYEE SHARE-OWNERSHIP PLANS

13.1 EMPLOYEE PROFIT-SHARING AND INCENTIVE PLAN AGREEMENTS

Under these agreements, employees of SCOR SE and certain subsidiaries are entitled to invest the amounts due to them under the profit-sharing and incentive plans in a closed-end investment fund entirely invested in SCOR SE stock.

In EUR thousands	2006	2007	2008	2009	2010
Amount distributed under the profit-sharing plan	1,442	1,708	1,138	1,609	1,115
Amount distributed under the collective incentive
plan	1,540	979	-	-	-

The amount of 2011 profit-sharing payouts have been estimated in the accounts and set aside for EUR 913,051.

13.2 AMOUNT PAID INTO COMPANY EMPLOYEE SAVING PLAN

In EUR thousands	2007	2008	2009	2010	2011
Collective incentive plan *	1,133	641	-	-
Profit sharing *	679	710	472	777	501
Net voluntary payments	48	40	169	208	263
Total payments	1,860	1,391	641	985	764
NET MATCHING PAYMENTS	381	326	193	235	300
(*) Paid out in the financial year for the previous financial year

13.3 INDIVIDUAL RIGHT TO TRAINING

The number of hours accrued by the employees of SCOR SE was 13,717 on 31 December 2011.

NOTE 14 - COMPENSATION OF THE CORPORATE OFFICER

The following table presents the gross cash compensation paid in 2010 and 2011 to the Group Chairman & CEO:

Chairman and CEO

In EUR	2010	2011
Fixed compensation	1,200,000	1,200,000
Variable compensation	1,000,000	1,000,000
Directors' fees	42,850	42,800
TOTAL CASH COMPENSATION	2,242,850	2,242,800

The CEO benefits from a company car (and a shared driver).

Total pension benefits commitments relating to the corporate officer ("mandataire social") amount to EUR 14.3 million.

NOTE 15 - ANALYSIS OF COMMITMENTS GIVEN AND RECEIVED

	Commitments received			Commitments given
In EUR million	2010	2011	2010	2011
Ordinary business operations (note 15.1)	1,057	1,686	445	1,101
Financial instruments (note 15.1.1)	385	1,081	385	1,051
Confirmed credits, letters of credit and guarantees given (note 15.1.2)	664	597	44	25
Other commitments given and received (note 15.1.3)	8	8	16	25
Hybrid transactions (note 15.2)	-	-	-	-
TOTAL	1,057	1,686	445	1,101

15.1 COMMITMENTS RECEIVED AND GIVEN IN THE ORDINARY COURSE OF BUSINESS

15.1.1 Financial instruments received and given

	Commitments received		Commitments given
In EUR million	2010	2011	2010	2011
Rate swaps	60	60	60	60
Cross-currency swaps	-	528	-	511
Caps and floors	-	-	-	-
Currency forward purchases/sales	325	493	325	480
TOTAL	385	1,081	385	1,051

Commitments given and received on rate swaps for an amount of EUR 60 million are related to real estate and exchange the performance of the French property market with the performance of the German market.

Cross-currency swaps are used to hedge foreign exchange and rate risks of perpetual notes in CHF newly issued in 2011: the instruments exchange the principal of both placements for a total of CHF 650 million into EUR and exchange the coupon on the first placement to 6.98% and on the second placement to 6.925%. Both instruments mature on 2 August 2016.

Currency forward purchases and sales generated an unrealized gain of EUR 12 million.

15.1.2 Confirmed credits, letters of credit, and guarantees received and given

	Commitments received			Commitments given
In EUR million	2010	2011	2010	2011
Confirmed credit	-	-	-	-
Letters of credit	664	597	27	6
Securities pledged to financial institutions	-	-	-	-
Investments in subsidiaries and affiliates pledged to financial institutions	-	-	-	3
Real estate mortgages	-	-	-	-
Other guarantees given to financial institutions	-	-	17	16
TOTAL	664	597	44	25

SCOR SE has signed agreements with different financial institutions concerning the granting of letters of credit for EUR 597 million.

15.1.2.1 Letters of credit received

The commitments received in terms of capacity to issue letters of credit amounted to EUR 597 million, corresponding mainly to contracts signed with the banks:

• BNP Paribas: USD 136 million (EUR 104 million),
• Deutsche Bank: USD 162 million (EUR 124 million),
• Natixis: USD 6 million (EUR 4 million),
• JP Morgan: USD 120 million (EUR 92 million),
• Société Générale: USD 100 million (EUR 77 million),
• Helaba : USD 200 million (EUR 153 millions),
• Commerzbank : USD 50 million (EUR 38 million).

15.1.2.2 Letters of credit given

In consideration of its commitments relating to technical reserves, SCOR SE has granted letters of credit in the amount of USD 7 million (EUR 6 million) to cedants compared to EUR 597 million in letter of credit capacity received from banks.

15.1.2.3 Other guarantees given

The guarantee given in consideration for underwriting commitments with the cedant ACE was USD 21 million (EUR 16 million). This guarantee was in the form of securities pledged to ceding companies.

15.1.3 Other commitments given and received

		Commitments received	Commitments given
In EUR million	2010	2011	2010	2011
Commercial paper	-	-	-	-
Performance bond	-	-	-	-
Mortgages	-	-	-	-
Leases for leased buildings	-	-	-	-
Guarantees and securities(1)	8	8	8	8
Underwriting commitments	-	-	-	9
Assets pledged to ceding companies	-	-	-	-
Contract termination indemnities	-	-	8	8
Property lease	-	-	-	-
TOTAL	8	8	16	25

(1) Rent guarantee given by HSBC, collateralized by pledged securities.

15.2 COMMITMENTS GIVEN AND RECEIVED IN RESPECT OF HYBRID TRANSACTIONS

The Company no longer has any commitment with respect to hybrid transactions such as asset swaps or index default swaps.No facts in connection with the aforementioned commitments given and received have come to our knowledge, which may have an adverse impact on cash flows, cash positions or on our liquidity requirements.

NOTE 16 - POST BALANCE SHEET EVENTS

None.

NOTE 17 - LITIGATION MATTERS

The following litigation matters shall be mentioned:

Converium Class Action Settlement:

As a result of its acquisition of Converium (which has since become SCOR Holding (Switzerland)), SCOR SE assumed the burden of several litigation matters (including putative class action complaints) before the U.S. District Court for the Southern District of New York (the "U.S. Court") against Converium and several of its officers and directors.

On July 25, 2008, SCOR Holding (Switzerland) executed a definitive settlement agreement in the U.S. class action complaints. On 12 December 2008, the U.S. Court issued an Order and Final Judgment approving the settlements as fair, reasonable and adequate and dismissing with prejudice all claims against the defendants in the proceedings, including those asserted against SCOR Holding (Switzerland) and certain of its former officers and directors.

SCOR SE negotiated a definitive agreement for the settlement of the claims of non-U.S. purchasers of Converium securities. A petition was submitted on July 9, 2010 and a revised petition on 1 October 2010 to the Court of Appeal of Amsterdam in the Netherlands (the "Dutch Court"), which is the only non-U.S. court likely to maintain jurisdiction for approving a binding settlement agreement pursuant to which payment of the indemnification to the shareholders not residing in the U.S. can be effected. The Dutch Court approved the definitive settlement agreement in the U.S. class action complaints on 17 January 2012. Subject to their right to opt out, eligible non-U.S. purchasers of Converium securities are bound to the settlement agreement pursuant to Dutch law. The Dutch Court approval is final and not subject to appeal by the eligible shareholders to a higher Dutch court.

In Europe:

On 29 January 2008, the Spanish competition authority (Comisión Nacional de la Competencia, or the "CNC") commenced a sanctioning procedure against SCOR Global P&C SE Ibérica Sucursal, a branch of SCOR Global P&C, and a number of other insurance and reinsurance companies. The procedure related to alleged antitrust practices regarding the commercial conditions applied to customers in the market for decennial insurance for construction in Spain. The CNC argued that such practices could result in an infringement of Article 1 of Law 15/2007, of July 3, 2007, on Competition (the "Competition Act") which prohibits agreements and concerted practices that may have as an object or effect the restriction of competition in the market).

After an initial investigatory phase, the Directorate of Investigation of the CNC confirmed its initial accusation and referred the matter to the Council of the CNC for a final decision. The CNC issued its decision on 12 November 2009. Pursuant to such decision, SCOR was required to pay a fine of EUR 18.6 million. Other insurers and reinsurers were also fined in relation to the same matter. SCOR filed an appeal on 21 December 2009. SCOR intends to challenge the decision of Council of the CNC, including substance of the litigation and calculation of the fine.

SCOR is confident in the success of this appeal with regards to the merits of its argument, upon the calculation of the reinsurance prices as well as upon the excessive amount of the fine.

On 18 June 2009, SCOR commenced an action before the Commercial Court of Nanterre against an insurance company with respect to the recovery of the attorney's fees and costs arising from the Highfields Capital LTD, Highfields Capital I LP and Highfields Capital II LP litigation covered by the directors and officers insurance policy. The proceedings are on-going.

SCOR and its subsidiaries are involved in legal and arbitration proceedings from time to time in the ordinary course of their business. Nevertheless, other than the proceedings mentioned above, to the knowledge of SCOR, as at the date of the financial statements herein, there are no other litigation matters likely to have a material impact on the financial position, business or operating income of SCOR.

1.6 Certification of audit of historical financial information

This is a free translation into English of a report issued in French and it is provided solely for the convenience of English speaking users. This report should be read in conjunction with and construed in accordance with, French law and professional standards applicable in France.

To the Shareholders,

In compliance with the assignment entrusted to us by your Annual General Meeting, we hereby report to you, for the year ended 31 December 2011, on:

• the audit of the accompanying annual financial statements of SCOR SE,
• the justification of our assessments,
• the specific verifications and information required by French law.

These annual financial statements have been approved by the Board of Directors at their meeting on 7 March 2012. Our role is to express an opinion on these financial statements, based on our audit.

I. Opinion on the annual financial statements

We conducted our audit in accordance with the professional standards applicable in France; those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes verifying, by audit sampling and other selective testing procedures, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used, the significant estimates made by the management, and the overall financial statements presentation. We believe that the evidence we have gathered in order to form our opinion is adequate and relevant.

In our opinion, the financial statements give a true and fair view of the assets; liabilities, financial position and result of the company at 31 December 2011, in accordance with the accounting rules and principles applicable in France.

II. Justification of our assessments

Accounting estimations used in the preparation of the Financial Statements for the year ended 31 December 2011 have been performed in an uncertain environment, related to the financial crisis in the Euro zone, accompanied by a liquidity and an economic crisis, which make difficult the comprehension of economic outlook. In this context, in accordance with the requirements of Article L. 823-9 of the French Commercial Code (Code de Commerce), we have performed our own assessments that we bring to your attention on the following matters:

As stated in notes 1.7 and 1.9 to the annual financial statements, the technical accounts specific to reinsurance are estimated on the basis of reinsurance commitments or on statistical and actuarial bases, particularly the technical estimates accounted for under receivable from reinsurance transactions, gross and ceded technical reserves, and deferred acquisition costs. The methods used to calculate these estimates are described in the Notes to the annual financial statements.

Our audit work consisted in assessing the data and assumptions on which the estimates are based, in reviewing the company's calculations, in comparing estimations from prior periods with actual outcomes, and in examining senior management's procedures for approving these estimates.

Notes 1.2, 1.10, 1.12, 2 and 15.1.1 to the annual financial statements describe the principles and methods used to estimate the valuation and impairment of investments and derivative instruments.

In the specific context of the financial crisis we examined the control system in place relative to the inventory of direct and indirect exposures, and the system in place for their assessment, as well as the valuation methods and write-down policies applicable to certain financial instruments. We have obtained assurance that the information provided in the aforementioned notes is appropriate, and that the approaches and policies described were properly applied by the company.

Notes 6 and 17 to the annual financial statements describe the uncertainties relating to the potential litigation encountered by the company.

We examined the Group's procedures to identify these risks, to evaluate and reflect them in the annual financial statements.

Notes 1.5 and 6 to the annual financial statements specify the valuation methods applied to pension obligations and other related obligations.

Our work consisted of assessing the data and assumptions used, reviewing the company's calculations and verifying that the information in notes 1.5 and 6 to the annual financial statements are appropriate.

These assessments were made as part of our audit of the annual financial statements taken as a whole and therefore served in forming our audit opinion expressed in the first part of this report.

III. Specific verification

We have also performed the specific verifications required by law in accordance with professional standards applicable in France.

We have no matters to report regarding:

• the fair presentation and the conformity with the financial statements of the information given in the directors' report and in the documents to the shareholders with respect to the financial position and the financial statements;
• the fair presentation of the information given in the directors' report in respect of remunerations and benefits granted to the relevant directors and any other commitments made in their favor in connection with, or subsequent to, their appointment, termination or change in current function.

In accordance with French law, we have ensured that the required information concerning the purchase of investments and controlling interests and the names of the main shareholders has been properly disclosed in the directors' report.

Paris-La Défense, 7 March 2012

The Statutory Auditors

MAZARS ERNST & YOUNG Audit

Michel BARBET-MASSIN Antoine ESQUIEU Guillaume FONTAINE

1.7 Reconciliation from French GAAP to IFRS

The main reconciling items between French GAAP on a statutory basis and IFRS on a consolidated basis stated in the tables below relate to the consolidation of subsidiaries in the IFRS consolidated financial statements (whereas such subsidiaries are accounted for at cost less impairment in the stand alone French GAAP Parent Company financial statements) and to deferred taxes that are not recognized under French GAAP.

In EUR million	2011	2010
NET INCOME
Net Income in French GAAP (statutory basis)	235	204
Dividends from subsidiaries	(191)	(66)
Deferred taxes under IFRS	71	(9)
Other consolidation adjustments	215	290
NET INCOME IN IFRS (CONSOLIDATED BASIS)	330	419
In EUR million	2011	2010
SHAREHOLDERS' EQUITY
Shareholders' Equity in French GAAP (statutory basis)	2,614	2,503
Deferred taxes under IFRS	362	288
Other consolidation adjustments	1,531	1,620
Treasury shares	(120)	(102)
Reversal of French GAAP accrual for share award plans	16	36
SHAREHOLDERS' EQUITY IN IFRS (CONSOLIDATED BASIS)	4,403	4,345

APPENDIX B: REPORT OF THE CHAIRMAN

I	Terms and conditions for preparing and organizing the work for the board of directors	364
II	Internal control and risk management procedures	376
III	Statutory auditors' report, prepared in accordance with article L. 225-235 of the Commercial code, on the report prepared by the Chairman of the Board of Directors of SCOR SE	388

APPENDIX B: REPORT OF THE CHAIRMAN OF THE BOARD OF DIRECTORS ON THE TERMS AND CONDITIONS FOR PREPARING AND ORGANISING THE WORK OF THE BOARD OF DIRECTORS AND ON INTERNAL CONTROL AND RISK MANAGEMENT PROCEDURES IN ACCORDANCE WITH ARTICLE L. 225-37 OF THE FRENCH COMMERCIAL CODE

In accordance with the provisions of article L.225-37 of the French Commercial Code, this report serves to set forth the composition of the Board of Directors, terms and conditions for the preparation and organization of the work of the Company's Board of Director's, in addition to the internal control and risk management procedures that have been implemented by the Company.

This report has been approved by the Board of Directors on 7 March 2012.

It has been incorporated in the 2011 Registration Document of SCOR SE ("SCOR") which is available on the Company's web site (www.scor.com) and on the AMF web site (www.amf-france.org).

During its meeting on 12 December 2008, the Company's Board of Directors designated the consolidated corporate governance code listed corporations of the AFEP-MEDEF (Association Française des Entreprises Privées – Mouvement des Entreprises de France) of December 2008 and updated in April 2010 as its reference code, according to the implementation of this law on 3 July 2008 (act no.2008-649 aimed at providing various provisions regarding the adaptation of French company law with the European Community law changing articles L. 225-37 and L. 225-68 of the French Commercial Code).

Details of this code can be found on the Company's website www.scor.com or alternatively on MEDEF's website www.medef.fr.

I. Terms and conditions for preparing and organizing the work of the Board of Directors

As of the date of the Reference Document the Board of Directors is composed of 12 Directors: Denis Kessler, Chairman of the Board, Gérard Andreck, Peter Eckert, Charles Gave, Daniel Lebègue, Monica Mondardini, Luc Rougé, Guillaume Sarkozy (as representative of Malakoff Médéric Group), Guylaine Saucier, Jean-Claude Seys, Claude Tendil and Daniel Valot, and one non-voting Director: M. Georges Chodron de Courcel. Amongst these 12 Directors, 10 are independants: Gérard Andreck, Peter Eckert, Charles Gave, Daniel Lebègue, Monica Mondardini, Guillaume Sarkozy (as representative of Malakoff Médéric Group), Guylaine Saucier, Jean-Claude Seys, Claude Tendil and Daniel Valot.

The experience and competences of the Directors and the Non-Voting Director are very varied. In addition to the Chairman of the Board, four of the Directors listed, work or have worked at a high level within the insurance industry. Three Directors and the non-voting Director practice or have practiced at a high level in the financial and banking industry, one director from the media industry and finally, the main activity of 3 of them is to be directors of companies. The Board benefits from international experience with Board Members practicing their functions in Switzerland, Italy, Canada and Hong Kong.

The worldwide basis of the Group's personnel, with Luc Rouge as employee representative, elected at universal suffrage with two turns an employee to be their representative to the Board of Directors during 2 years. The new ballot was held in January 2012. Kevin J. Knoer, 55, SCOR Global P&C Underwriter in the United States, has been elected to be the employee representative to the Board of SCOR SE. He will be proposed to the General shareholders' meeting on 3 May 2012.

(A) ASSESSMENT OF THE BOARD OF DIRECTORS

Pursuant to the recommendations stated by the government code AFEP-MEDEF, an assessment of the Board of Directors was conducted in 2011. M. Daniel Valot, an independent Director, sent a questionnaire to the Directors in December 2011 regarding the composition of the Board and its Committees as well as their organization and their functioning.

8 Directors answered to this questionnaire. M Daniel Valot studied them and presented his synthesis during the Board Meeting scheduled on 7 March 2012.

The main conclusions drawn from this analysis are the following:

• The directors' answers underline a competent Board. It is composed of various personalities and experienced directors who participate actively to the Board deliberations.
• The answers highlight the smooth functioning of the Committees, particularly the Audit Committee. The roles are well shared out among the Directors and the Management.
• The Directors' fees for the Board members and Committee members are appropriate.
• It is however underlined that the Board should appoint younger directors during the next renewals.

(B) COMPOSITION OF THE BOARD OF DIRECTORS

The Board of Directors' composition is guided by the following principles:

• Application of the best in class corporate governance practices;
• An appropriate number of Board members in order to allow meaningful individual participation;
• A majority of independent Directors, pursuant to criteria adopted by the Board of Directors based on those set forth in the AFEP-MEDEF corporate governance code of listed corporations. The Audit, Risk and Compensation and Nomination Committees are fully composed of independent directors;
• Diversity of expertize. In addition to experts drawn from the insurance and reinsurance sectors, the Board of Directors has more members representing the world of banking, asset management and industry;
• An international perspective, with Directors from Italy, Canada, Hong Kong and Switzerland, and directors with extensive international experience;
• A higher rate of female Board members pursuant to French law, which states that, as of 1 January 2014 and 1 January 2017, 20% and 40% of Board Members, respectively, must be women ; and
• An in-depth evaluation, every three years, of the functioning of the Board of Directors and an update in each intervening year.
• An Internal Charter amended by the Board of Directors on 2 November 2005, on 4 July 2006, on 4 November 2010 and on 4 May 2011. The main provisions of the Internal Charter are provided below.

			Date of 1st
Name	Age	Citizenship	appointment	End of duty	Renewal dates
Denis Kessler, Chairman of the Board	59	French	04/11/2002	2017	04/05/2011
Gérard Andreck	67	French	18/03/2008	2013	04/05/2011
Peter Eckert	67	Swiss	15/04/2009	2015	04/05/2011
Charles Gave(2)	68	French(4)	04/05/2011	2013	N/A
Daniel Lebègue	68	French	15/05/2003	2013	04/05/2011
Monica Mondardini	51	Italian	28/04/2010	2014	N/A
Luc Rougé	59	French	24/05/2007	2012	04/05/2011
Guillaume Sarkozy (3)	60	French	15/04/2009	2017	04/05/2011
Guylaine Saucier(2)	65	Canadian	04/05/2011	2015	N/A
Jean-Claude Seys	73	French	15/05/2003	2013	04/05/2011
Claude Tendil	66	French	15/05/2003	2017	04/05/2011
Daniel Valot	67	French	15/05/2003	2015	04/05/2011
G. Chodron de Courcel, Non voting					31/05/05-24/05/07
Director	61	French	15/05/2003	2013	15/04/09-04/05/11
Carlo Acutis (1)	73	Italian	15/05/2003	2011	15/04/2009
Allan Chapin (1)	70	American	12/05/1997	2011	31/05/2005
Daniel Havis (1)	56	French	18/11/1996	2011	31/05/2005
André Lévy-Lang (1)	74	French	15/05/2003	2011	15/04/2009
Herbert Schimetschek (1)	74	Austrian	15/05/2003	2011	24/05/2007

A list of the members of the Company's Board of Directors in 2011 features in the table below:

(1) Directors whose appointment ended on 4 May 2011

(2) Directors appointed by the Annual Ordinary General Meeting of the Shareholders of 4 May 2011

(3) Guillaume Sarkozy represents Malakoff Médéric Group, member of the Board.

(4) Mr Charles Gave lives in Hong Kong

The Board of Directors is composed of 25 % of foreigners, of 66,6 % of Directors having a past experience in the insurance or reinsurance industry and of 83,3 % of independent Directors.

Concerning the duration and the grading of the duties of the Directors, the AFEP-MEDEF Code indicates (§12):

(i) the duration of Directors' terms of office should not exceed a maximum of four years,

(ii) Terms should be staggered so as to avoid replacement of the entire body and to favor a smooth replacement of Directors.

For historical reasons, the mandates of the entire Directors ended at the Shareholders' meeting held on 4 May 2011. In these circumstances, the Board of Directors chose a staggered renewal looking forward.. Mandates of 6, 4 and 2 years have been proposed to the vote of the Shareholders' meeting of 4 May 2011, in order to comply with the AFEP-MEDEF Code and to progressively a system of renewal by third.

At the Board Meeting held on 31 March 2004, a new set of Internal Charter (the "Internal Charter") was adopted. This Internal Charter was amended by the Board of Directors on 2 November 2005, on 4 July 2006, 4 November 2010 and on 4 May 2011. The main provisions of the Internal Charter are provided below:

Mission of the Board of Directors of the Company

Pursuant to the Internal Charter, the Board of Directors determines the Group's strategy of business plan, oversees the implementation of the business plan, and supervises management's administration. The Board meets at least four times a year. In accordance with legal provisions, it approves the financial statements, proposes dividends, and makes investment and financial policy decisions. The Board of Directors also determines the amount and the nature of the sureties, securities and guarantees that can be granted by the Chief Executive Officer on behalf of the Company. The Board's duties and responsibilities are set out in SCOR SE's bylaws (statuts).

Meetings of the Board of Directors of the Company

At least five days before any meeting of the Board of Directors, the Chairman and Chief Executive Officer is required to submit a file to the Directors including all information that will allow them to participate in the discussions listed on the agenda, and notably any useful information upon the financial situation, the treasury situation and the liabilities of the Company, in a discerning and efficient manner. Furthermore, outside of Board of Directors meetings, the Chairman and Chief Executive Officer is required to submit to the Directors any information and documents necessary to complete their duties, and the Directors may submit requests for information to the Chairman and Chief Executive Officer. In addition, Directors may ask the Chairman and Chief Executive Officer to invite the principal top executives of the Company to attend Board of Directors meetings.

Meetings held by videoconference or telecommunication

Pursuant to the provisions of Articles L. 225-37 and R. 225-21 of the French Commercial Code, the Internal Charter allows the Board of Directors to hold its meetings by videoconference or via telecommunications, providing that the identification of the participating Board of Directors members can be determined.

Independence of Directors

The application of the notion of director independence is assessed on the basis of the following primary criteria, derived from the recommendations of the AFEP/MEDEF report. An independent director:

1. must not currently be, or have been within the last five years, an employee or corporate officer of SCOR;

Generally, in order to be qualified as independent, a Director must not be or have been within the last five years an employee or corporate officer of a company consolidated by the parent company. However, the Group considers independent any external Director or any member of SCOR's Board of Directors as well as any member of the Board of Directors of SCOR's subsidiaries (such as SCOR Holding Switzerland, SCOR Switzerland AG, SCOR UK, or SCOR Reinsurance Asia Pacific Ltd) who satisfies all the other criteria shall be considered as being independent.

• 1. must not have received remuneration greater than EUR 100,000 per year from the Company within the last five years, excluding that received as directors' fees;
• 1. must not be an officer in a company in which SCOR directly or indirectly are a director, or in which an employee has been appointed as such, or in which one of SCOR's officers (currently or within the last five years) is a director;
• 1. must not be a significant client, supplier, investment banker, commercial banker to the Group or for which SCOR represents a significant share of the turnover. A significant share is a contribution to the turnover equal to the lesser of the following two amounts: more than 2% of SCOR's consolidated turnover, or an amount greater than EUR 100 million;
• 1. must not have a close family relationship with one of the Company's officers;
• 1. must not have been an auditor for the Group within the last five years;
• 1. must not have been one of SCOR's Directors for a period exceeding twelve years; and
• 1. must not represent a shareholder of the Company owning more than 5% of the share capital or voting rights.

The following table presents the results of the review of the independence of each Director made by the Board of Directors in 2011, based on the proposal of the Compensation and Nomination Committee, with regard to the criteria stated above:

Criteria	1	2	3	4	5	6	7	8	Independent
Denis Kessler	No	No	No	Yes	Yes	Yes	Yes	Yes	No
Gérard Andreck	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Peter Eckert	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Charles Gave (1)	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Daniel Lebègue	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Monica Mondardini	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Luc Rougé	No	Yes	Yes	Yes	Yes	Yes	Yes	Yes	No
Guillaume Sarkozy (2)	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Guylaine Saucier (1)	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Jean-Claude Seys	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Claude Tendil	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Daniel Valot	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes

(1) Directors appointed by the Annual General meeting on 4 May, 2011 (2) Representing Malakoff Médéric Group, Director

Missions of the Lead Independent Director

Moreover, the Board of Directors on 4 November 2010 defined into the Internal Charter the Lead Independent Director role (the "Lead Independent Director"). The Lead Independent Director is appointed amongst the independent Directors by the Board of Directors upon proposal by the Compensation and Nomination Committee. He assists the Chairman and CEO in his duties, notably for the organization and functioning of the Board and its Committees and the monitoring of the corporate governance and internal control.

He is also in charge of assisting the Board concerning the good operation of the Company's corporate governance and advising the Board upon the operations on which the Board is convened to deliberate.

He convenes the independent Directors as often as needed and at least once a year.

Finally, he advises the Directors when they suspect being in a conflict of interest.

Rights and obligations of Directors

Directors may receive training at their request on the specific nature of the Company, its business lines and its business sector. They agree to regularly attend meetings of the Board of Directors, committees of which they may be members, and general shareholders' meetings. Lastly, they are obligated to express their opposition when they believe that a decision of the Board of Directors is likely to be harmful to the Company.

Accumulation of position as Director

The Internal Charter requires that candidates for Director inform the Board of Directors of the position they currently hold as director or officer in other entities in France and other countries, as the Board of Directors has the duty to ensure compliance with the rules regarding the accumulation of position as director. Once appointed, Directors must inform the Board of Directors of any appointment they hold as a company officer within a period of five days following the appointment. Finally, Directors must inform the Board of Directors of the position they have held as director in other entities during the course of the financial year within a period of one month following the end of this financial year.

Information concerning the positions held by the SCOR Directors is provided in Section 14.1.1 Information concerning the members of the Board of Directors.

Limitations and restrictions on trading SCOR securities

The Internal Charter sets out the principal recommendations of the market authorities with regard to Directors trading the securities of their company.

First and foremost, the Internal Charter sets out the legal and regulatory provisions requiring confidentiality with regard to privileged information of which Directors could have knowledge while performing their functions.

Then, the Internal Charter requires Directors to register as owners of SCOR's equities that they themselves or their minor children are holding at the time they enter office or those acquired subsequently. In addition, the Internal Charter lays down certain restrictions on trading SCOR's securities:

• first, it is forbidden to trade in SCOR's securities while in possession of information which, when made public, is likely to have an impact on the share price. This restriction remains in effect two days after this information has been made public by a press release;
• in addition, it is forbidden to directly or indirectly conduct any transaction with regard to SCOR's securities during certain sensitive periods that the Group notifies to the Directors or during any period preceding an important event affecting SCOR and likely to influence its market price.

Lastly, Directors are required to inform the Company of all transactions conducted with regard to its securities, directly or by an intermediary, on their behalf or on behalf of a third party, by their spouse, or by a third party holding a power of attorney.

(C) PREVENTION OF RISKS OF CONFLICT OF INTERESTS

Each Director has a loyalty obligation to the Company. He or she shall not act in his or her own interest, against SCOR's interests, and must avoid any situation with risks of conflict of interests.

Through the Internal Charter of the Board of Directors, each Director undertakes not to seek or accept any function, benefit or situation from the Company or from the Group, directly or indirectly, that could jeopardize his or her independence of analysis, judgment or action, during the course of his or her functions as Director. He or she will also dismiss any direct or indirect pressure from other Directors, specific group of shareholders, creditors, suppliers or other third party.

The Board of Directors decided, in order to protect the corporate interests, to implement an internal control program to prevent risks of conflict of interest:

• 1. through a quarterly review by the Audit Committee of related party transactions, on which a report will be issued prior to examination by the Board of Directors;
• 1. through an annual review of each Director's situation, in order to analyze his or her independent status and potential existing conflicts of interests;
• 1. through the reinforcement of its Internal Charter, according to which any Director in a situation of conflict of interests undertake to resign from his or her position if the conflict situation is not solved;
• 1. through the adoption of a Code of Conduct that was communicated to all employees in 2010 and to all new hired employee. This code establishes reinforced requirements as regards the prevention of situations with risks of conflict of interests, and specifies the alert procedures ("whistleblowing"), which are reported to the Audit Committee by the Secretary General.

(D) MEETINGS OF THE BOARD OF DIRECTORS IN 2011

During the course of the financial year 2011, the Company's Board of Directors held 7 meetings on the following dates:

• 9 February 2011
• 7 March 2011
• 22 March 2011
• 4 May 2011 (2 meetings, one before the AGM and the second after it)
• 27 July 2011
• 9 November 2011

The average attendance rate of the members of the Board was 86 %.

During its meeting in 2011, the main topics which were discussed were:

• Approval of the quarterly, half-yearly, annual accounts
• Approval of the Reference Document and the Annual Report
• Risks analysis
• Solvency II project
• Group remuneration policy
• Stock allotment and subscription plan
• Assessment of the Board of Directors
• Review of acquisition plan

The following table displays the attendance of the members of the Board of Directors during 2011:

Board members	Attendance rate (%)
Denis Kessler	100
Carlo Acutis (1)	50
Gérard Andreck	71
Allan Chapin (1)	75
Georges Chodron de Courcel, non-voting Director	100
Peter Eckert	100
Charles Gave (2)	100
Daniel Havis (1)	75
Daniel Lebègue	100
André Lévy-Lang (1)	100
Monica Mondardini	71
Luc Rougé	100
Guillaume Sarkozy (3)	86
Guylaine Saucier (2)	67
Herbert Schimetschek (1)	75
Jean-Claude Seys	100
Claude Tendil	86
Daniel Valot	100

(1) Directors whose appointment ended on 4 May 2011

(2) Directors appointed by the Annual General meeting on 4 May, 2011

(3) Representing Malakoff Médéric Group, Director

(E) COMMITTEES OF THE BOARD OF DIRECTORS

Since 2003, SCOR's Board of Directors has established four advisory committees to prepare the Board's proceedings and make recommendations to it on specific subjects.

1. The Strategic Committee

The Strategic Committee is composed of Denis Kessler (Chairman), Gérard Andreck, Georges Chodron de Courcel (Non-Voting Member), Peter Eckert, Charles Gave, Daniel Lebègue, Monica Mondardini, Malakoff Médéric Group (represented by Guillaume Sarkozy), Guylaine Saucier, Jean-Claude Seys, Claude Tendil and Daniel Valot (the 'Strategic Committee'), appointed by the Board of Directors and selected among the voting and non-voting members of the Board of Directors. Their term of office coincides with their term of office on the Board of Directors.

The Committee's mission is to study the development strategies and to examine any acquisition or disposal plan concerning an amount in excess of EUR 100 million.

The Chairman of the Committee may hear any employee or officer likely to provide relevant information for a clear understanding of a given point; the presence and information provided by this individual being limited to the relevant items on the agenda. The Chairman of the Strategic Committee must exclude the non-independent members of the Committee from the review of the discussions which might create an ethical problem or a conflict of interest.

On 4 November 2010, the Internal Charter of the Strategic Committee was modified by the Board of Directors.

In 2011, the Strategic Committee met on three occasions :

Its work dealt with the whole strategy of the Group and in particular, the review of acquisition plans.

The average attendance rate of the Committee Members was 87 %. The following table states the attendance rates of the members of the Strategic Committee in 2011:

Board members	Attendance rate (%)
Denis Kessler, Chairman	100
Carlo Acutis (1)	100
Gérard Andreck	67
Allan Chapin (1)	100
Georges Chodron de Courcel, non-voting Director	100
Peter Eckert	67
Charles Gave (2)	100
Daniel Havis (1)	100
Daniel Lebègue	100
André Lévy-Lang (1)	100
Monica Mondardini	33
Guillaume Sarkozy (3)	67
Guylaine Saucier (2)	50
Jean-Claude Seys	100
Herbert Schimetschek (1)	100
Claude Tendil	100
Daniel Valot	100

(1) Directors whose appointment ended on 4 May 2011

(2) Directors appointed by the Annual General meeting on 4 May, 2011 (3) Representing Malakoff Médéric Group, Director

2. The Audit Committee

The Audit Committee is composed of Daniel Lebègue (Chairman), Guylaine Saucier, Jean-Claude Seys and Daniel Valot (the "Audit Committee"). Each of its members is independent. According to its Internal Charter, the Committee comprises between three and five members appointed by the Board of Directors of the Company and selected among the voting and non-voting members of the Board of Directors and, in compliance with the AFEP and MEDEF corporate governance code of listed corporations, it is composed of a majority of independent Directors. The term of their mandates coincides with their term of office on the Board of Directors.

Due to their past experience and the duties that they held during their career, each member of the Committee has a high level of competence in financial matters.

The Committee is responsible for reviewing the Group's financial situation, its compliance with internal policies, in addition to audits and reviews carried out by the auditors and by the internal control unit.

The Audit Committee has adopted an Internal Charter, setting forth two imperative missions:

• Accounting mission, including the analysis of periodic financial statements, the review of the relevance of choices and correct application of accounting standard, the review of the accounting treatment of any material transaction, review of the scope of consolidation, review of off-balance sheet commitments, control of the selection and remuneration of statutory auditors, oversight of any accounting and financial reporting documents before they are made public;
• Ethical and internal control responsibilities. In this context, the Audit Committee is responsible for ensuring that internal procedures relating to the collection and auditing of data, guarantee the quality and reliability of the Group's financial statements. The Audit Committee is also in charge of reviewing agreements with related parties ("conventions réglementées"), analyzing and responding to questions from employees with regard to internal controls, the preparation of financial statements and the treatment of internal accounting books and records.

The Committee may consult the Chief Financial and Accounting Officer, the Chief Internal Auditor and external auditors on these issues. During the financial year 2010, it met with the auditors, the Group Chief Financial Officer (during the review of the financial statements) and the Chief of Internal Audit. The review of the financial statements has been accompanied with a presentation made by the auditors underlying the major results of their works, as well as with a presentation made by SCOR's Chief Financial Officer describing the risks exposure and its material off-balance sheets liabilities.

The Chairman of the Committee may hear any officer or employee likely to provide relevant information for a clear understanding of a given point; the presence and information provided by this individual being limited to the relevant items on the agenda.

During its four meetings in 2011, the Audit Committee discussions focused primarily on the following matters: review of the quarterly and annual financial statements, management of the Group's debt, impact of the financial crisis upon the Group's assets, strategy plan, embedded value, impact of the litigations upon the financial statements, annual review of the work of the Audit Committees of Group subsidiaries, annual review of the Group Policies and Group Guidelines.

The Internal Charter of the Audit Committee, was approved by the Board of Directors on 18 March 2005 and modified by the Board of Directors on 4 November 2010.

The average attendance rate of the Committee Members was 90%. The following chart states the attendance of the Audit Committee's members in 2011:

Board members	Attendance rate (%)
Daniel Lebègue, Chairman	100
André Lévy-Lang (1)	50
Guylaine Saucier (2)	100
Jean-Claude Seys (3)	100
Daniel Valot	100

(1) Director whose appointment ended on 4 May 2011

(2) Directors appointed by the Annual General meeting on 4 May, 2011 (3) Member of the Audit Committee since 4 May 2011

3. The Risk Committee

The Risk Committee members are Peter Eckert (Chairman), Charles Gave, Daniel Lebègue, Malakoff Médéric Group (represented by Guillaume Sarkozy as permanent representative), Guylaine Saucier, Jean-Claude Seys and Daniel Valot.

All members are independent.

The Committee is responsible for highlighting the main risks to which the Company is exposed, regarding both assets and liabilities and for ensuring that the means put in place to monitor and manage those risks have been effectively implemented. It examines SCOR's risks and its Enterprise Risk Management (ERM) policy.

The Committee met five times in 2011, primarily to discuss the following matters: analysis of the main exposures of the Group, risk appetite, retrocession policy and coverage, solvency and contemplated Solvency II, internal model of assets and liabilities and capital allocation management, standards and guidelines for assets management, internal control and Directors' and Officers' liability insurance.

The average attendance rate of the Committee Members was 81 %. The following chart states the attendance of the members of the Risk Committee in 2011:

Board members	Attendance rate (%)
Peter Eckert, Chairman	100
Charles Gave (2)	100
Daniel Havis (1)	67
Daniel Lebègue	100
André Lévy-Lang (1)	67
Guillaume Sarkozy (3)	0
Guylaine Saucier (2)	100
Jean-Claude Seys	100
Daniel Valot	100

(1) Director whose appointment ended on 4 May 2011

(2) Directors appointed by the Annual General meeting on 4 May, 2011 (3) Representing Malakoff Médéric Group, Director

4. The Compensation and Nomination Committee

The Compensation and Nomination Committee is composed of Claude Tendil (Chairman), Georges Chodron de Courcel (Non-Voting Member), Charles Gave, Guylaine Saucier and Daniel Valot (the "Compensation and Nomination Committee"). According to its Internal Charter, the Compensation and Nomination Committee is composed of between three and five members appointed by the Board of Directors and chosen among the members of voting and non-voting members of the Board of Directors. The term of their mandate coincides with their term of office within the Board of Directors.

All the voting members of the committee are independent.

The Committee submits recommendations concerning compensation packages for the corporate officers and members of the Executive Committee of the Group, pensions, stock allotment plans and stock option plans or stock subscription plans to the Board of Directors and makes proposals concerning the composition and organization of the Board of Directors and its Committees. Its missions are described in the Internal Charter.

The Committee met five times in 2011. Its works dealt with the stock allotment and subscription plans, the modalities of remuneration of the Chairman and Chief Executive Officer and other members of the Executive Committee of the Group. The Committee focused on the renewal and composition of the Board of Directors. The Committee also worked on the general organization and the remuneration policy, and on the succession schemes of the key officers of the Group. It also does an annual review of the director's fees and expenses for the all Directors within the Group.

The Chairman of the Committee may hear any officer or employee likely to provide relevant information for a clear understanding of a given point; the presence and information provided by this individual being limited to the relevant items on the agenda.

The Internal Charter of the Compensation and Nomination Committee, was approved by the Board of Directors of the Company on 18 March 2005 and modified by the Board of Directors on 4 November 2010.

The average attendance rate of the Committee Members was 80%. The following chart states the attendance of the members of the Compensation and Nomination Committee in 2011:

Board members	Attendance rate (%)
Georges Chodron de Courcel	100
Charles Gave (2)	100
André Lévy-Lang (1)	100
Guylaine Saucier (2)	0
Claude Tendil, Chairman	100
Daniel Valot	80

(1) Director whose appointment ended on 4 May 2011 (2) Directors appointed by the Annual General meeting on 4 May, 2011

The AFEP MEDEF code of corporate governance advises that outside Board members from the Company meet on a regular basis without inside Board members. Considering that the members of the Compensation and Remuneration Committee are Board members outside of the Company (neither Managing Directors, nor employees), 4 out of 5 members are independent, and that the meetings of outside Board members provided by the AFEP MEDEF code on corporate governance would duplicate with the mandates assigned to the Compensation and Remuneration Committee, during 2011, the outside Board members did not find it necessary to organize such a meeting.

(F) PRINCIPLES AND RULES STATED FOR THE DETERMINATION OF COMPENSATION AND IN-KIND BENEFITS FOR CORPORATE OFFICERS

The data on compensation for corporate officers appears in Sections 15 – Remuneration and benefits – and 17.2 – Information on shareholding and stock options or company stock purchases by members of administrative and management bodies.

Every year, the conditions of remuneration for corporate officers and Directors are made public through the documents released for the Annual General Shareholders' Meeting. The General Shareholders' Meeting that took place on 28 April 2010 set the Directors' fees envelop at a maximum of EUR 960,000 per year. This limit has not been changed since this date. Within the limits of this amount and upon the submission of the Compensation and Nomination Committee, the Board of Directors fixed the conditions of the allotment, in order to encourage the attendance of the Directors. It was thus decided to award the Directors' fees, payable to each voting or non-voting Director as a fixed part, equal to EUR 28,000, payable in fourths and another part based on attendance by voting and non-voting Directors (1) , amounting to EUR 2,000 per meeting and participant, except for the Chairman of the Audit Committee who receives an amount equal to EUR 4,000 per meeting as special fees for his function. The payment of the Directors fees is made at the end of each quarter. Moreover, the individual independent members of the Board received in 2011 the single sum of EUR 10,000 in Company's shares, that the Director commits to keep until the end of his appointment. The paid amounts have been properly used to that effect.

Directors

A table displaying the fees allocated individually to each Director or non-voting Director can be found in Section 15.1.1 of the Registration Document.

Certain Directors or the Non-Voting Director of SCOR are also members of the Boards of Directors for the Group's subsidiary companies and as a result of this, received Directors' fees in 2011.

With the exception of the Chairman of the Board of Directors and the Director representing the employees, the members of the Board are not entitled to stock option plans for the subscription or the purchase of shares nor stock allotment plans from the Company.

No retirement contribution (or commitment) has been paid for the benefit of the Directors.

⁽¹⁾ The non-voting Directors does not receive any Directors fees for the Strategic Committee

Chairman and Chief Executive Officer

Compensation

There is no employment contract between Mr. Denis Kessler and the Company.

Following the recommendation of the Compensation and Nomination Committee, the meeting of the Board of Directors on 7 March 2011 decided that the Chairman and Chief Executive Officer:

• will receive a fixed gross annual sum of EUR 1,200,000, payable in twelve monthly installments; and
• will receive, a variable annual compensation, capped at EUR 1,000,000 determined as follows:
  • 50% on the basis of the achievement of personal objectives, defined annually at the beginning of each year by the Board of Directors of the Company on the recommendation of the Compensation and Nomination Committee; and
  • 50% on the basis of the achievement of financial objectives, defined annually at the beginning of each year by the Board of Directors of the company on the recommendation of the Compensation and Nomination Committee.

The variable compensation for year n will be paid in year n+1, as soon as the financial statement of the Company for year n is approved by the Board of Directors.

For 2011, the variable compensation of the Chairman and Chief Executive Officer has been determined according to the following criteria:

• financial criteria: Return on Equity (RoE) achieved by SCOR.
• personal criteria: implementation of Solvency II, pursue the reinforcement of the ERM and finalization of the internal model ; continuation of an active policy of increasing the value of the Group in the opinion of the investors and analysts; deepening of the employees management policy; consolidation of the Group's commercial positions; general management.

In the case of departure during financial year n:

• all the variable part of his compensation for year n-1 will be payable during year n as soon as the Company's financial statements for year n-1 are settled by the Board of Directors;
• in addition, in the case of dismissal, the amount of the variable part of his compensation for year n will be (i) determined on the basis of the variable compensation for year n-1 and prorated on the basis of the departure date for the current year n, and (ii) paid as soon as the Company's financial statements for year n-1 are settled by the Board of Directors.

In the event that the Chairman and Chief Executive Officer is dismissed or his departure is imposed due to a change in the structure of the share capital of the Company or in the strategy of the Group which in each case substantially affects the content of his duties or the continuation of his activities and the normal exercise of his powers within the Company, the Chairman and Chief Executive Officer will benefit from:

a cash payment equal to the amount of fixed and variable compensations paid to him by the Group for the two financial years prior to his departure. This payment is subject to the satisfaction of the performance criteria as defined below for at least one out of the three years preceding the date of departure of Chairman and Chief Executive Officer. The performance criteria, determined by the Board of Directors, upon the recommendation of the Compensation and Nomination Committee, will be met for the year n if at least 3 out of 4 conditions below are fulfilled.

(A). SCOR financial strength by S&P rating must be maintained (minimum) "A" on average in year n-1 and n-2;

(B). SCOR Global P&C's net combined ratio must be less than or equal to 102% on average in year n-1 and n-2;

(C). SCOR Global Life's operational margin must be higher than or equal to 3% on average in year n-1 and n-2;

(D). The SCOR group's ROE must be higher than 300 points above the risk-free rate on average in year n-1 and n-2.

The Compensation and Nominations Committee will observe whether or not the performance conditions have been met.

• a cash payment compensating him for his inability to exercise stock options granted prior to his departure date and which he would otherwise be unable to exercise due to the vesting period conditions set forth in the applicable stock option plan, in an amount to be determined by an independent expert using the "Black-Scholes" pricing model;
• a cash payment compensating him for his inability to definitively acquire SCOR SE Shares granted to him for free prior to his departure and which he would otherwise be unable to acquire due to the terms and conditions

of the applicable free share allocation plan, for a price per SCOR SE Share equal to the average of the Company's share price on the date of his departure.

The Company did not consider it necessary to make this information public directly after the meeting of the Board of Directors, during which these decisions were made. This information is released each year when the Registration Document is made available.

Stock option and free share allotment plans

On meeting on 7 March 2011, the Board of Directors, upon authorization granted by the Extraordinary general meeting of the Shareholders on 28 April 2010, and upon the recommendation of the Compensation and Remuneration Committee of 7 March 2011, decided to allot 125,000 performance shares to the Chairman and Chief Executive Officer. The granting will be effective at the end of a vesting period of two years and subject to the satisfaction of performance conditions as defined by the Compensation and Nomination Committee (see Section 20.1.6.18, Note 18 – Stock Options and Share Awards). Such granting is also submitted to a non-transferability period of two years at the end of which the shares will be available and be freely assigned. The Chairman and Chief Executive Officer shall retain 10% of these shares in the registered form until he ceases to hold his duties of corporate officer. He shall also acquire on the market un number of shares equal to 5% of the shares freely assigned to him, as soon as these free shares become transferable.

An allotment of 125,000 shares subscription options to the benefit of the Chairman and Chief Executive Officer was decided on 22 March 2011 by the same Board of Directors, upon authorization granted by the Extraordinary general meeting of the Shareholders on28 April 2010, and upon the recommendation of the Compensation and Remuneration Committee of 7 March 2011. The exercise of these subscription options is subject to the satisfaction of the same performance conditions as those of the performance shares. The Chairman and Chief Executive Officer shall retain 10% of the shares due to the exercise of the options in the registered form until he ceases to hold his duties of corporate officer of the Company.

On meeting on 27 July 2011, the Board of Directors, upon authorization granted by the Extraordinary general meeting of the Shareholders on 4 May 2011, and upon the recommendation of the Compensation and Remuneration Committee of 27 July 2011, decided on 1 September 2011, to allot 125,000 performance shares under the SCOR Long Term Incentive Plan (the "LTIP) to the Chairman and Chief Executive Officer. The granting will be effective at the end of a vesting period of six years and subject to the satisfaction of performance conditions as defined by the Compensation and Nomination Committee (for the description of the performance conditions, see Section 17.3.2, Share Allocations Plans - refer to paragraph "1 September 2011 Long Term Incentive Plan") Such granting is also submitted to a nontransferability period of two years at the end of which the shares will be available and be freely assigned. The Chairman and Chief Executive Officer shall retain 10% of these shares in the registered form until he ceases to hold his duties of corporate officer. He shall also acquire on the market un number of shares equal to 5% of the shares freely assigned to him, as soon as these free shares become transferable.

Life insurance

Finally, at the meeting of the Board of Directors on 21 March 2006, it was decided that the Chairman and Chief Executive Officer will have specific life insurance to cover the risks inherent in the duties of Chairman and Chief Executive Officer of the Company, in an amount equivalent to three years of fixed and variable compensation; the insurance will be obtained by the Company.

Benefits in kind

As the Company representative, the Chairman and Chief Executive Officer is granted with a company car with a driver. The insurance, maintenance, fuel and all costs related to the driver are paid by the Company.

Moreover, the Chairman and Chief Executive Officer receives benefits in kind, of the following nature:

• (a) a health insurance policy under the terms of a contract dated 16 September 1988;
• (b) an "all causes" death or permanent disability insurance policy for Company Executives, dated 30 June 1993. The Company is currently re-negotiating this contract and it is specified that the Chairman and Chief Executive Officer will benefit from any policy that may replace the existing policy; and
• (c) death or permanent disability insurance for an accident, underwritten on 1 January 2006; it is specified that the Chairman and Chief Executive Officer will benefit from any policy that may replace the existing one.

Retirement

Like all the Group's Executive officers based in France and employed by the Group as at 30 June 2008, the Chairman and Chief Executive Officer benefits from pension coverage capped at 50% of the reference salary, provided he has been with the Group for a minimum of five years. The rights to this pension are vested progressively, based on seniority over a period of 5 to 9 years, on the basis of the average compensation received over the last five years with the Group. The right to a supplementary pension is only acquired under the condition notably that the beneficiary is a corporate officer or an employee of the Company when he claims his rights for the pension, according to the rules in force at that time.

Powers of the corporate officers

At its meeting on 18 April 2002 and in compliance with Article L. 225-51-1 of the French Commercial Code and Article 16 of SCOR's bylaws ("Executive Management"), the Board of Directors of the Company decided that the management of the Company will be carried out under his responsibility by the Chairman of the Board of Directors, with the title of Chairman and Chief Executive Officer, who may be assisted by a Deputy Chief Executive Officer.

Denis Kessler joined the Group on 4 November 2002 with the goal to sort it out as it was facing a very difficult financial situation. The Board of Directors considered that, in order to achieve such mission, it was preferable to entrust the powers of Chairman and of Chief Executive Officer to Denis Kessler.

No limitation on the powers of the Chairman and Chief Executive Officer, other than those stipulated by law, is included in the bylaws or any decision of the Board of Directors of the Company.

General meetings of the Shareholders

The modalities of the participation of the Shareholders to the General meetings and notably the main powers of the Shareholders' General meetings, the description of the Shareholders' rights as well as the modalities of the exercise of the voting rights are set forth by the Article 19 of the Company's by-laws, an electronic version of which is available on SCOR's web site (www.scor.com).

II. Internal control and risk management procedures

Introduction

This report was prepared with the contribution of the Risk Control Department, the risk management departments of the operating companies, the Group Internal Audit Department, the General Secretary's Department and the Finance Department. It was presented to the Audit Committee on 6 March 2012 and approved by the Board of Directors of SCOR SE ("the Company") on 7 March 2012.

Because of the international activity of the Group, and to ensure a Group wide coherent approach for managing risks and operating the internal control system, the Group uses the COSO 2 framework "Enterprise Risk Management – integrated framework" published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in developing and formalizing the risk management and internal control systems.

The four general objectives sought through the application of this framework are:

• (1) to ensure that strategic objectives are properly implemented in the Group,
• (2) to ultimately achieve better operating efficiency and use of resources,
• (3) to ensure compliance with applicable laws and regulations,
• (4) to ensure reliable accounting and financial information.

The use of this framework requires us to cover the eight components set forth by the COSO 2, i.e.:

• (1) defining the internal environment,
• (2) ensuring objectives are set,
• (3) performing a risk identification,
• (4) performing a risk evaluation
• (5) defining a risk response,
• (6) documenting and formalizing control activities,
• (7) presenting the information and communication process,
• (8) ensuring monitoring of the risk management and internal control systems.

The structure of this report is in line with the eight components of the COSO 2:

• components 1 and 2 are being dealt with in the paragraph "Internal environment and setting of objectives"
• components 3, 4 and 5 are described in the paragraph "Identification and assessment of risks".
• Components 6, 7, and 8 are respectively dealt within the paragraph "principal activities and participants of risk control", "information and communication", "internal control system monitoring"
• The elements concerning accounting and financial reporting are separate and are presented in the last part.

Monitoring of the internal control procedures falls under the remit of the Group General Management. Since September 2009 SCOR's ERM is rated "strong" by Standard & Poor's.

Like any internal control system, the Group's system cannot absolutely guarantee that the risks of not achieving the COSO objectives will be totally eliminated. For example, among the various limitations inherent in the effectiveness of internal controls relating to the preparation of financial documents, those involving decision-making errors based on human judgment are particularly high in a reinsurance company. In effect, the accounting data are subject to numerous estimates, primarily because of the evaluation by the reinsurer of claim reserves, either those not yet declared to the ceding companies or the reinsurer, or those for which development is uncertain or subject to a number of assumptions.

With effect of 25 August 2011, SCOR acquired the mortality portfolio, including the operational assets and personnel, of Transamerica Re, a division of AEGON. The integration of the former Transamerica Re's risk management and internal control system is currently in progress.

(A) INTERNAL ENVIRONMENT AND SETTING OF OBJECTIVES

General organization

The Group is organized around two main reinsurance business activities and one asset-management activity:

• property and casualty reinsurance operating activities are managed by the division SCOR Global P&C. These activities include the following segments: property and casualty treaties, Business Solutions (facultative), Jointventures and Partnership, Specialties. This division hosts functional departments,
• life reinsurance operating activities are managed by the division SCOR Global Life. This division hosts functional departments,
• SCOR Global Investments SE one hand, regulated by the "Autorité des Marchés Financiers" (AMF) and fully operational since 2009, is the company managing SCOR's assets. On the other hand, SCOR Alternative Investments SA, regulated by the "Commission de Surveillance du Secteur Financier" (CCSF) in Luxemburg since the 8 July 2011, manages the Atropos fund launched the 31st August 2011.

The Group SCOR consists of the parent company SCOR SE, a European company having its registered office in Paris, avenue Kléber (France). Beyond its responsibilities of a parent company, the Company has operational responsibilities for cash management and for the retrocession of the Group's operating entities and functional responsibilities.

Following several acquisitions, in particular in 2006 and 2007, the Group has set up a functional organization structured around six regional management platforms, or Hubs": Paris, Zurich, London and Cologne for Europe, Singapore for Asia and for the Americas' hub, New York and Charlotte (since August 2011 for the life reinsurance business). Each subsidiary, branch, and representation office has a functional link to a given Hub. Each Hub includes the following functions: a Legal and Compliance Officer, a Head of Information Systems, a Head of Finance, a Head of Human Resources and a Risk Manager. Moreover several Group functions are carried out from different locations in order to fully benefit from the competencies disseminated across the world.

Following the organization of the Group within six "Hubs", the local support functions are gradually assumed by entities especially dedicated and set up in each Hub. This organization enables to create centers of expertise and to strengthen the coherence and control of our activities. Thus the head of Hub is responsible for defining the business continuity plan and implementing it in all locations within his Hub. Furthermore, the Hub is a key element for the implementation of Group procedures and policies.

Group Internal Control System: the participants

Within this environment, control responsibilities are exercised as follows:

• SCOR's Board of Directors relies on the Audit Committee and the Risk Committee to exercise its control responsibility over the objectives it has set for the Company. These committees are both chaired by independent directors;
• SCOR is represented in the governance bodies of its principal subsidiaries. Eventually, SCOR's Board of Directors, following a recommendation made by the Compensation and Nomination Committee, has decided to appoint independent directors of SCOR in each council of the principal foreign subsidiaries;
• SCOR's Executive Committee (the "COMEX") is chaired by the Chairman and Chief Executive Officer of the Company. The COMEX defines the procedures for implementing the strategy decided by the Company's Board of Directors, the underwriting plan, the financial policy, the investment policy, the risk management policy, and the management of the resources. In addition, the COMEX supervises the functioning of the Group and the Hubs through a quarterly monitoring of the bodies contributing to the sound administration of the Group. It meets on a weekly basis and all the COMEX members report to the Chairman and Chief Executive Officer of SCOR SE. The COMEX is currently made up of:
  • The Financial Department with his Chief Financial Officer (CFO),
  • The Group Risk Control Department with his Chief Risk Officer (CRO),
  • The Chief Operating Officer (COO) and his department,
  • The management of SCOR Global P&C (SGP&C) with his Chief Executive Officer and his deputy,
  • The management of SCOR Global Life (SGL) with his Chief Executive Officer and his two deputies,
  • The management of SCOR Global Investments with his Chief Executive Officer;
• established in 2011, the Group Risk Committee is a dedicated body of the COMEX in charge of the monitoring of the internal control system and risk management framework. The Group Risk Committee is made up of the COMEX members and of two additional voting members, the Group Deputy Chief Risk Officer and the Group Chief Economist. Other assurance functions such as the risk and control functions of the divisions, the Director of the Group Internal Audit are regularly convened to the Group Risk Committee meetings. Role and responsibilities of the Group Risk Committee are set out in its internal charter.
• monitoring of the internal control procedures falls under the remit of the Group General Management. The Group departments and functional or transversal departments of SCOR Global P&C, SCOR Global Life and SCOR Global Investments invested with a control responsibility have the task of defining and controlling the implementation of rules pertaining to the areas of their responsibility and applicable to all of the Group's entities. These rules, and the participants, are described in detail in part c) of this report on control activities;
• the Hubs' support departments, the operational entities of SCOR Global P&C and SCOR Global Life and the operational departments of SCOR Global Investments must apply the rules defined above. They carry out all of the first-level controls related to business management and ensure compliance with regulatory, accounting and fiscal laws, at both local and Group levels;
• the Head of Group Internal Audit Department reports directly to the Chairman and Chief Executive Officer of the Company and functionally to the Audit Committee of the Board of Directors of the Company. This standing gives it the necessary independence, and allow it the largest possible room for investigation, while at the same time ensuring the effective and timely implementation of its recommendations. The Group Internal Audit eventually checks independently the effectiveness and relevance of the internal control procedures for all the Group's entities whatever the area following a methodical risk based approach in accordance with the "International Standards for the Professional Practice of Internal Auditing" set out by the Institute of Internal Auditors and the Institute's Code of Ethics. the SCOR Internal Audit Charter, approved by the Audit Committee, defines the position within the organization, the role and areas of activity, the principles and main operating procedures of the Group Internal Audit Department.

Enterprise Risk Management and Group internal control approach

The main tasks of the Group Risk Management Department (GRM) are to further develop the Enterprise Risk Management (ERM) framework and to promote an ERM culture within the Group so that risks are managed consistently within each department. The Group Risk Management Department is supported in these tasks by the departments in charge of Risk Management at SCOR Global P&C, SCOR Global Life and SCOR Global Investments. In addition the Hub risk managers are involved in these tasks at a local level. Compliance to local regulations and constraints is ensured by Hub compliance officers.

In 2011, SCOR has established an "Internal Control System Competence Center" (ICS-CC) which reports to the Group Risk Management Department. Core objective of this competence center is to bundle the ICS knowledge in order to foster a consistent group wide ICS approach and application of ICS standards. The ICS-CC consists of experts, who are dedicated to the coordination of the internal control activities formalization within SCOR, SCOR Global P&C and SCOR Global Life and support the relevant business process owners if necessary.

The approach used to develop the internal control system is specified in the ICS Group Policy and monitored by the Board Risk Committee of the Company. The policy sets out the reference framework and details the Group principles, the responsibilities of the different participants in internal control and the quality requirements. The principal characteristics of the internal control cycle are as follows:

• a risk-based approach, i.e. addressing risks which, if not controlled, could exceed the risk tolerance limits defined by the Group (critical risks). The optimal risk response is obtained through appropriately designed key controls at company level, IT level and process level,
• on a process level, appointment of global process owners (GPO) at the Company, SCOR Global P&C, SCOR Global Life and SCOR Global Investments levels and local process owners (LPO). The GPOs' responsibility is to document the processes, identify the related critical risks, define the appropriate key controls and to ensure their deployment and application in the various entities of the Group. The LPOs' main responsibilities are to assess processes, risks and controls on a local level based on the defined global process and to ensure application of risk based control activities,
• monitoring, upon completion of the initial documentation through a self-assessment procedure on the maturity (quality) of processes and controls by their owners,
• through its periodic missions the Group Internal Audit Department assesses the internal control system and its roll-out in accordance with its risk-based audit planning. An insufficient level of maturity requires an action plan to be established.

Group standards and Group References

Group business standards and practices are governed by Group Policies established in a uniform format, by the operational divisions (SGP&C, SGL, SGI) and support functions (Finance, Risks, Operations). Policies are approved by the Group COMEX and are annually submitted for approval to the Audit Committee and to the Board of Directors of the Company. These policies are not intended to enumerate all the rules governing SCOR's activities in the different countries in which the Group operates, but rather to establish certain rules intended to ensure that SCOR Group companies and employees share a common understanding of the Group's Standards and that they work in compliance with these standards.. When approved, these documents are made available to Group employees on the SCOR intranet on a dedicated page where Group policies are all grouped together.

The establishment of Group standards and references concerns a wide range of activities, including the compliance area for which the framework has been further strengthened in 2011, in particular with regards to regulations setting out new provisions on (1) sanctions and embargoes programs, (2) prevention of insider trading, and (3) anti-bribery.

• The number of new sanctions / embargoes regulations issued by the United Nations, the European Union, the United States, the United Kingdom and many other states have increased substantially in the past year and have been subject to frequent changes. Thus, awareness raising and vigilant adherence to sanctions regulations and its frequent changes became a high priority and a number of measures were taken in order to minimize the compliance risk. A Group Guidelines on Sanctions and Embargoes are published and rolled out in order to have group-wide standards on sanctions and embargoes requirements. Regular updates on key sanctions and embargoes regimes were published and made available to underwriters, claims and accounting staff and the topic was also addressed in training initiatives for underwriters and others.
• The Group Guidelines on Trading in SCOR and other Public Securities were updated In line with a recently published guide issued by the "Autorité des Marchés Financiers" aimed at preventing insider misconduct by senior executives of listed companies. Amongst others a new blackout period of 30 days before the publication of annual and half-yearly financial results was introduced during which trading in SCOR securities by employees is prohibited.
• As part of SCOR's commitment to conduct its business activities in in line with applicable laws, its Values and Code of Conduct and its engagement in the United Nation Global Compact Initiative and due to latest regulatory requirements further guidance was issued on a Group level by means of a Group Policy on Anti-Bribery. The Policy in question gives additional guidance on prohibited conduct and on requirements regarding gifts, entertainment and hospitality and on requirements in dealing with business partners. The policy also outlines the different roles and responsibilities of the various control functions within SCOR to combat bribery.
• To embed the latest Group Compliance Policies and other legal & compliance requirements as per latest developments into the organization, training sessions targeted for underwriters, claims and accounting staff were also held.
• Training initiatives on the Code of Conduct and that were started in 2010 were continued and SCOR employees were required to confirm that they read, understood and adhered to the Code of Conduct. This Code describes the expected behavior that each employee must apply to decision making and business activities.

Setting of objectives

SCOR has implemented and formalized for several years 3 year strategic plans. The strategic plan, "Strong Momentum" (SMV1.0) covering the years 2010 to 2013 has been updated and publicly presented on the 7 September 2011 following the acquisition of Transamerica Re and the sale of IIC, our U.S. equity indexed annuity business. The updated strategic plan reaffirms the three objectives set out in the initial version of the plan SMV1.0, i.e., the optimization of the Group's risk profile, a "AA" level of financial security and a profitability target of 1,000 basis points above the risk free-rate over the cycle. "For the new initiatives set in the initial plan, SCOR has reinforced its ERM through the development of specific indicators reported on a quarterly basis to the Group Risk Committee and the Board Risk Committee of the Company in order to enable them to benefit from an overall overview of the development of these initiatives.

As mentioned here before, the COMEX defines the procedures for implementing the strategy and reviews the consistency of the operational plans or policies (e.g. underwriting, finance, retrocession, information technology) with the strategic plan. The COMEX also ensures that there is an optimal risk-based allocation of capital and diversification.

The clarity and precision of strategic objectives and their implementation within the Group ease the identification, evaluation and control of risks, whatever their nature (e.g. underwriting risk, market risk, and operational risk), possibly caused by these objectives.

(B) IDENTIFICATION AND ASSESSMENT OF RISKS

Several processes for identifying and assessing risks have been implemented to approach risk from different angles and to deal with them in an exhaustive manner. These include:

• A Risk Enquiry process: the methodology of this process is based on a large number of interviews carried out by members of the risk functions of SCOR Global P&C and SCOR Global Life with members of the COMEX, other senior managers and subject matter experts. The risks identified during the interviews are analyzed and grouped into three different categories according to their importance, with mention, if need be, of the action underway or to be recommended. This complete review is carried out once a year.
• An Emerging Risks process: emerging risks are subject to a specific process of identification and analysis. A dedicated collaborative site has been created on the Group's intranet allowing designated observers, who are experts in their field, to collate market information, articles or studies on topics that might constitute emerging risks. In addition, a special email address allows all Group employees to submit information. This information is processed by a Committee administered by the Group Risk Management Department and composed of members of the risk management function in the Division (SCOR Global P&C, SCOR Global Life, SCOR Global Investments) and of the Group actuarial function, Group Legal Department and Group Competitive Intelligence unit which is hosted by the Information Systems Department.
• An Extreme Scenarios process: this process aims to review and assess the potential impact of selected extreme scenarios. Subject specific working groups constituted of experts across the Group, coordinated by the Group Risk Management Department with the support of the divisional chief risk officer of SCOR Global P&C and SCOR Global Life, then perform quantitative studies which are summarized in specific reports. The Group Chief Risk Officer presents any major scenario, if any, which exceeds the Group's risk tolerance to the Group Risk Committee and to the Board Risk Committee of the Company.

(C) PRINCIPAL ACTIVITIES AND PARTICIPANTS OF RISK CONTROL

Because of its activities, SCOR SE is exposed to many risks: reinsurance related risks, market risks and other risks (e.g. liquidity, rating). These risks are detailed in the part 4 – Risk Factors of the 2011 Reference Document. This report does not detail these risks, but aims at summarizing the principal activities and participants of Risk Control for the following important areas.

• activities related to reinsurance,
• asset management,
• accounting management,
• Central functions.

The control activities described below are considered as the principal activities for controlling risks specific to those areas. In accordance with SCOR's internal control concept, these control activities are performed on group or company level, on core business and investment process level, or on supporting process level.

The formalization is being revised in accordance with the new Group standards.

i) Activities related to reinsurance

SCOR uses an internal model for determining economic capital managed by the Group Financial Analysis & Risk Modeling Department of the Group Risk Control Department, necessary to implement its underwriting and asset management policies and guidelines. Economic capital is allocated to SCOR Global P&C, SCOR Global Life and to the asset management, and constitutes the reference for deciding and verifying the profitability expected from each of them;

The operating and control procedures concerning underwriting, pricing, administration of reinsurance contracts and claims management are validated by SCOR Global P&C and SCOR Global Life and are applied to all underwriting segments of the company in question, regardless of location.

For SCOR Global P&C:

• most of the business underwritten is renewed on agreed dates. This situation enables SCOR to establish annual underwriting plans, both qualitative (description of the environment) and quantitative (activity budget). These plans are approved by the COMEX. ;
• a quarterly review of technical results is performed by sector (P&C Treaties, Specialties, Business Solutions) and region (EMEA (Europe, Middle East & Africa), Americas, Asia-Pacific). The review enables to analyze technical results by underwriting year, by nature and by line of business;
• underwriting and pricing guidelines, defined by SCOR Global P&C, specify the underwriting capacities delegated to each entity, as well as the underwriting rules and principles to be complied with. They follow update and approval processes as well as a formalism.
• Business opportunities going beyond the stipulations of the guidelines thus defined are subject to special referral procedures at two key levels: (1) by its Underwriting Management Department; and if need be by the legal department of the Group (2) and for cases which may have a significant impact on the balance sheet (thresholds and/or conditions defined in a procedure or specific guidelines) by the Group Risk Management Department;
• concerning claims management, the definition of a global claims and commutations management policy for all Treaty, Facultative and Specialty business of SCOR Global P&C is carried out by the Claims & Commutations Department; this department manages major, serial, contentious and latent claims. In addition, audits of the clients' claim departments are conducted by claim experts from the principal entities of SCOR in order to review important files and to provide technical support to these cedants;
• the Risk Modelling & Global Natural Hazards Department is in charge of monitoring accumulations. A "Cat" committee meets regularly to review the accumulation reporting package and decide or arbitrate the allocation of Cat capacities by country. Earthquake and storm risks are managed by market models (AIR and RMS) in the regions considered to be the most exposed;
• risks specific to the administration of contracts are subject to controls performed at the level of the subsidiaries and branches. SCOR's Group Information System includes multiple automatic controls and additional control tools;
• in order to ensure an adequate and efficient control of the reserves, a report is established on a yearly basis by the Group Actuarial Department, where the Group Chief Actuary gives his opinion on year end booked reserves' adequacy. The main objective of this report is to provide the Executive committee as well as the Board Audit Committee an overall opinion on the reserving adequacy of the P&C division but also to highlight the inherent uncertainties surrounding this assessment. The control of the reserves by the Group Actuarial Department is articulated around three axis:
  • a quarterly follow up of the claims evolution for each segment through adequate actuarial reporting procedures;
  • an internal annual actuarial analysis, including a review of all segments and a full analysis of the segments that may have a substantial impact on SCOR's balance sheet. This analysis is recorded in the Group Actuarial annual report;
  • an external annual review of SCOR Global P&C division reserves adequacy, in addition to several external reviews already required by local regulators (Canada, Australia and Hong Kong).

For SCOR Global Life:

• business is underwritten along the year. As a result, the notion of underwriting plan is different. The plan is a multiyear plan and is updated on a quarterly basis with the business actually underwritten. These plans are approved by the COMEX;
• a quarterly review of technical results is performed by region (i.e. France, Germany, UK/Ireland, Rest of Europe, North America, Asia/Pacific, Middle East, Others) and by line of business;
• underwriting and pricing guidelines, defined by SCOR Global Life, specify the underwriting capacities delegated to each entity, as well as the underwriting rules and principles to be complied with. They follow update and approval processes as well as a formalism;
• business opportunities going beyond the stipulations of the guidelines thus defined are subject to special referral procedures at two key levels: (1) by the Central Actuarial & Underwriting Department and where applicable the Risk Management Department and the Finance Department of SCOR Global Life, and (2) for cases which may have a significant impact on the balance sheet (thresholds and/or conditions defined in a procedure or specific guidelines) by the Group Risk Management Department;
• claims exceeding a predefined threshold are reviewed by the Central Actuarial & Underwriting Department of SCOR Global Life;
• for SCOR Global Life, scenarios are established in conjunction with the Risk Management Department of SCOR Global Life in order to define the need for retrocession coverage;
• risks specific to the administration of contracts are subject to controls performed at the level of the subsidiaries and branches. SCOR's Group Information System includes multiple automatic controls and additional control tools;
• the Group Chief Actuary gives his opinion on the reserves adequacy with regards to products or portfolios whose estimation is particularly difficult to assess. The scope under the review of the Group Actuarial Department, includes Guaranteed Death Benefit (GMDB) products, long term care in France, health, and finally mortality and critical illness in UK. The Group Actuarial Department does not intend to provide a second best estimate to be compared with SCOR Global Life's but check the adequacy of the assumptions leading to the division best estimate. The Group Chief Actuary then gives an opinion on the reserving adequacy on the previously named products/portfolios. In some cases, the Group Actuarial Department applies a global approach and calculates a confidence interval in order to check that the reserves booked are within the said confidence interval. Similar to the P&C side, an annual report is established by the Group Actuarial Department, where the Group Chief Actuary gives his opinion on the adequacy of the reviewed booked reserves.

For SCOR Global P&C and SCOR Global Life:

Reporting to the Group Chief Risk Officer, the Group Retrocession Department establishes and implements the external retrocession plan for P&C and Life activities. This department is responsible for its proper application, for monitoring the solvency of the retrocessionaires, the related counterparty risks and, when necessary, for the collection of balances due. Retrocession is a core component of the Group Capital Shield Policy. In this respect, the latter is approved and monitored by the Group Risk Committee of the COMEX and the Board Risk Committee of the Company.

ii) Asset management

• the Group has harmonized the principles governing asset management: the Statement of Group Investment Principles defines the Group's governance in terms of asset management and the Manual of Group Investment Guidelines determines the conditions in which SCOR Global Investments will implement, on behalf of all Group subsidiaries, the investment policy as defined by the Group's Investment Committee; both of these documents have been approved by the Group's COMEX;
• investments going beyond the stipulations thus defined are subject to special referral procedures managed by the Group Risk Management Department;
• in 2008, SCOR Global Investments SE was specially created to manage all of SCOR's financial assets and obtained on May 15th, 2009 approval from the French financial market regulatory body (AMF) as an asset management company. To this end, the management and control procedures have been revised and investment decisions are implemented by SCOR Global Investments in accordance with the directives of the Group Investment Committee and with the investment guidelines. The Group Investment Committee meets at least once every quarter. Its role is to coordinate tactical asset allocation on a Group level and to supervise the application of objectives by the asset management company, observing the constraints established;
• SCOR has outsourced the asset management of its assets. SCOR GLOBAL INVESTMENT provides SCOR with a regular reporting used for the monitoring of the portfolios. SCOR GLOBAL INVESTMENT controls the consistency and the completeness of the data used for the valuation of the assets ;
• the investment portfolios managed by external service providers are reviewed during quarterly investment committees, attended by the external fund managers, the Senior Managers of the subsidiary in question and representatives of SCOR Global Investments;
• the information systems used by SCOR Global Investments monitor transactions on publicly traded securities (audit trail, valuation of securities). Assets owned by all Group entities are since 2009 monitored in one central information system and the accounting tools implemented in Paris in 2008 have been deployed in the Group's subsidiaries. Risk monitoring tools are being deployed as well;
• a head of Compliance and Internal Control was appointed in 2009 in order to meet the requirements of the regulatory body. His role is to implement an effective internal control programme which covers all activities relating to financial asset management.

iii) Accounting management

Refer below to (F) Financial Reporting .

iv) Central functions

The Group's central functions, different from the finance and communication functions dealt with in parts (D) and (F) thereafter, comprise Risk Management, Treasury, budget & forecasting and functions relating to legal and tax issues, information systems, human resources and general service departments. These include:

• the Group Risk Management Department's primary focus is to develop and manage ERM mechanisms, promote ERM concepts throughout the Group and perform a second-level control over reinsurance underwriting as mentioned above;
• the Group Treasury Department manages the Group's operating cash flow, directly or indirectly and carries out a weekly centralized reporting of the Group's cash situation;
• control of the Group information system stands at two complementary levels: IT processes and business processes all covered by IT solutions. For IT processes a unit has been established with the Group Information System Department to deal with all issues of information system security. Periodic audits of information security applications and procedures are conducted. Since several years, SCOR has been improving its control procedures by basing them on the COBIT guidelines (Control objectives for information and technology) to cover the risks, listed in the 12 major processes of COBIT, relating to the development of programs, changes in programs, operation and access to data programs. An IT contingency plan has been established, including an emergency and back-up center located outside of SCOR's head office and covers all Group entities;
• the budgetary control system for general expenses is organized and managed by the Group Cost Control & Budget Department;
• the Group Financial Planning & Analysis Department establishes an annual financial plan for the Group by company and monitors actual data in relation to this plan on a quarterly basis. A presentation of the results of the analysis is made to the COMEX every quarter;
• the objective of the Group Tax Department is to ensure that the various entities of SCOR meet their tax obligations and promote the use of best practices in this domain;
• the General Secretary contributes on his side to the management of the following functions: (i) legal and functional governance of the Group, (ii) compliance, in connection with the Group Compliance Officer who reports to the General Secretary, (iii) regulatory control for the Group and coordination of the legal entities with the legal departments at hub level, (iv) Group's insurance policies, in particular with respect to D&O and professional liability;
• the Group Legal Department exercise a control function in areas such as the entry into agreements and the supervision of major disputes. This department is also involved where relevant in the aforementioned control with regards to underwriting of reinsurance business. It also monitor compliance with the Group's filing obligations, including toward the "Autorité des Marchés Financiers" (AMF) and the Six Swiss Exchange (SWX);
• The Group Project Office has been created early in 2011 in order to monitor the project portfolio and define standard project methodology. The Group Project Office regularly provides to the management key indicators on the project portfolio for an effective control of their status.

(D) INFORMATION AND COMMUNICATION

Financial communication:

The establishment and centralization of all financial information - particularly press releases, intended for the market, investors, financial analysts, and the press - are the responsibility of the Corporate Communications Department and the Group Corporate Finance & Finance Communications Department, which respects a formalized process. Financial information intended for rating agencies is the responsibility of the Group Corporate Finance & Finance Communications Department. All of this information is ultimately controlled by General Management.

Concerning the Registration Document, a specific process has been implemented to ensure the contribution of all relevant departments and the consistency of the information provided. A final edit is made by members of the COMEX.

The Corporate Communications Department systematically and simultaneously publishes regulated information, including press releases, via a professional host included in the official list published by the AMF and on SCOR's website (www.scor.com).

Internal communication:

SCOR strives to make all documents deemed important available to all SCOR employees on SCOR's intranet.

Furthermore, SCOR has increased the use of collaborative sites enabling it to share and retain document history or to collect and centralize information specific to certain subjects (e.g. emerging risks) from various sources.

(E) INTERNAL CONTROL SYSTEM MONITORING

Monitoring of the internal control procedures falls under the remit of General Management which is supported by two departments:

• the Group Risk Management Department
• the Group Internal Audit Department

Through its Internal Control Competence Center, the Group Risk Management Department monitors the documentation and formalization status of the processes deemed critical, according to Group standards. Besides the activities depicted in section A of this report, the Group Risk Management Department monitors the main risks to which the Group is exposed. A quarterly dashboard with Key risk indicators is reported to the Group Risk Committee and the Board Risk Committee.

The Group Internal Audit provides independent, objective assurance and consulting services designed to add value and improve an organization's operations. The internal audit activity helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management and control processes. Furthermore, the Group Internal Audit must inform the senior managers and heads of operating and functional units of any unsatisfactory conditions or risks.

The Group Internal Audit elaborates a yearly audit plan in a risk-based manner, taking the organization's risk management framework and including risk appetite levels set by management for the different activities, or parts of the organization, into account. The input of Senior Management and the Board is considered in this process. Once acknowledged and approved by the Audit Committee, it is communicated to COMEX members and posted in the SCOR portal.

The Group Internal Audit carries out a quarterly follow-up process to monitor and ensure that management actions agreed in the audit reports have been effectively implemented or that senior management has accepted the risk of not taking action. The follow-up results are provided to the Management and the Audit Committee.

The Audit Committee receives at least on a quarterly basis a report on the Internal Audit activities.

Furthermore, the Finance Department manages the "management representation letters" process, detailed in part (F) on financial reporting, which also incorporates certain points relative to internal control of accounting and financial reporting.

(F) FINANCIAL REPORTING

The accounting and finance function is the responsibility of the Chief Financial Officer (CFO), who manages all financial areas in order to have an overall view of the Group's technical and financial results.

The CFO does not, however, exercise direct control over all accounting information systems and relies on the accounting departments of operating companies, who provide him with quarterly consolidation packages, as well as on the accounting departments of SCOR Global P&C, SCOR Global Life and SCOR Global Investment who assist him in coordinating aspects relative to the processes, methods and reporting.

General accounting for SCOR subsidiaries is supported by two main auxiliary group of accounting systems, namely (1) technical reinsurance accounting: premiums, claims, commissions, technical reserves, interest on funds held; and (2) financial asset accounting: securities, bank accounts, investment income and expenses.

The processes described below concerning reinsurance accounting and calculation of technical reserves, which are within the single technical information system (OMEGA), are being applied by Group entities. A high level of control already exists in Omega. Its reengineering which has been decided as a strategic project in July 2010 by the Board of the Group and by the Executive Committee will even reinforce this strong internal control.

Concerning reinsurance accounting, numerous regular controls are conducted directly (automatic and systematic, or for consistency or by testing) by the Technical accounting teams located in the subsidiaries using both Group tools and Group or specific control reports. Quarterly inventories are also subject to specific control procedures.

(A) Concerning SCOR Global P&C:

The calculation of technical reserves (including IBNR - Incurred But Not Reported) having a significant impact on the balance sheet and income statement, is largely based on contractual and accounting data, the relevance of which is verified upstream. This calculation of technical reserves inventories is subject to the following successive controls:

• by the actuaries in charge of reserving through control reports for which the proper implementation is verified by the Group Actuarial Department;
• by the Chief Actuary, particularly for methods, tools and results;

(B) Concerning SCOR Global Life:

• the reinsurance treaties are either reviewed individually or are pooled within an affiliation treaty based on certain criteria defined in advance;
• the treaties are then subject to reserving estimates, which are reviewed at each quarterly closing either by the actuaries or at meetings attended by underwriters, technical assistants and actuaries.

Finally, reinsurance technical results are analyzed quarterly by the finance departments of SCOR Global P&C and SCOR Global Life. At year-end, the Group Chief Actuary establishes a report on the adequacy of the reserves of SCOR Global P&C and SCOR Global Life.

Monitoring of financial assets and cash flow is provided through various operating methods. The information systems used provide an audit trail of the transactions carried out. In certain entities, accounting activities are delegated to external service providers; controls implemented by these entities make it possible to verify the proper recording of accounting data and consistency of the figures. "Cash" reconciliations are made on a daily basis, for the most part, and securities are reconciled the following day (D+1) with reports from the various custodians. Portfolios managed directly are monitored in real time.

The implementation of a new information system which enables to book, value and monitor of assets owned by all Group entities improves substantially the investment accounting model., These accounting tools have been substantially deployed throughout the Group's principal subsidiaries. The completion of this project in early 2011 will improve the investment accounting organization, definition of roles, responsibilities and processes.

Regarding the process of aggregating and consolidating accounting data by the Group Accounting Department, current internal control is ensured:

• by the use of general and consolidation accounting software shared by all Group entities;
• by the definition by the Group Accounting & Consolidation Department of a closing process, clear responsibilities and a detailed financial statement closing schedule, which is monitored, in the closing period, on a daily basis;
• by a definition of responsibilities for controlling the integration of auxiliary accounting systems;
• by the centralized management of charts of accounts;
• by the works of the IFRS Centre of Excellence whose objectives are to (1) communicate developments and standards to all contributors and (2) coordinate justifications and documentations of accounting processes for complex operations.

At the end of 2009 SCOR decided to finalize its information systems integration by launching a Group wide "one ledger" project. The initial phases of this project of defining the business requirements and developing a detailed design have been completed. The conclusion of the project will provide a complete finance system integration by promoting consistency, quality visibility and intern control with the use of one general accounting software and one chart of accounts for the Group.

Control of the quarterly consolidation procedure under IFRS is provided in particular through:

• use of a market recognized consolidation software package ("SAP BFC") and common to all Group entities, which ensures the whole consolidation process through automated and formalized controls;
• the formalization of the reconciliations between the systems or auxiliary accounting methods with the general and consolidation accounting systems;
• at least three levels of control of the consistency and completeness of the consolidation package, one by the entity in question, another by the finance departments of SCOR Global P&C and SCOR Global Life and the third by the Group Finance Department;
• systematic analyses of the results, shareholders' equity, taxation and cash flow;
• internal monitoring of changes in legislation and accounting standards, together with the Group's external consultants and auditors;
• daily monitoring of the closing process of each of the Group entities;
• an audit performed by external auditors as at 31 December 2011 and a limited review as at 30 June 2011.

In addition, and without calling into question the implementation of internal control rules by SCOR and its managers, General Management requests, within the framework of the reporting and quarterly consolidation procedure, that all local managers of Group entities, as well as Senior Managers of SCOR Global P&C and SCOR Global Life, make a specific quarterly statement to the Chairman and Chief Executive Officer, and to the Group Chief Financial Officer in the management representation letters as to the reliability and fair presentation of the accounts of the entities they manage and the effectiveness of the internal controls. The results are analyzed and monitored by a committee including the General Secretary of SCOR, the Group Accounting Director, the accounting departments of SCOR Global P&C and SCOR Global Life, and the Head of the IFRS Centre of Excellence. The key points are communicated to the Executive Committee.

Conclusion on the control procedures implemented

SCOR believes that its risk management and internal control systems are appropriate and adapted to its activities and is engaged in an ongoing process to improve its internal control standards and their implementation. In 2011, the Group has pursued its efforts on compliance issues as briefly summarized in this report and enhanced its risk governance through the creation of the Group Risk Committee which is regularly informed on the risks to which the Group is exposed by means of the production of a standardized and comprehensive report (i.e. the risk dashboard) that is ultimately presented to the Board Risk Committee.

III. Statutory auditors' report, prepared in accordance with article L. 225-235 of the Commercial code, on the report prepared by the Chairman of the Board of Directors of SCOR SE

This is a free translation into English of a report issued in French and it is provided solely for the convenience of English speaking users. This report should be read in conjunction with and construed in accordance with, French law and professional standards applicable in France.

Statutory auditors' report, prepared in accordance with article L. 225-235 of the French Commercial Code (code de commerce), on the report prepared by the Chairman of the Board of Directors of SCOR SE

To the Shareholders,

In our capacity as statutory auditors of SCOR SE and in accordance with article L. 225-235 of the French Commercial Code (code de commerce), we hereby report on the report prepared by the Chairman of your company in accordance with article L. 225-37 of the French Commercial Code (code de commerce) for the year ended 31 December 2011.

It is the Chairman's responsibility to prepare and submit for the Board of Directors' approval a report on internal control and risk management procedures implemented by the company and to provide the other information required by article L.225-37 of the French Commercial Code (code de commerce) relating to matters such as corporate governance.

Our role is to:

report on any matters as to the information contained in the Chairman's report in respect of the internal control and risk management procedures relating to the preparation and processing of the accounting and financial information, and

confirm that the report also includes the other information required by article L. 225-37 of the French Commercial Code (code de commerce). It should be noted that our role is not to verify the fairness of this other information.

We conducted our work in accordance with professional standards applicable in France.

Information on internal control and risk management procedures relating to the preparation and processing of accounting and financial information

The professional standards require that we perform the necessary procedures to assess the fairness of the information provided in the Chairman's report in respect of the internal control and risk management procedures relating to the preparation and processing of the accounting and financial information. These procedures consist mainly in:

• obtaining an understanding of the internal control and risk management procedures relating to the preparation and processing of the accounting and financial information on which the information presented in the Chairman's report is based and of the existing documentation;
• obtaining an understanding of the work involved in the preparation of this information and of the existing documentation;
• determining if any material weaknesses in the internal control procedures relating to the preparation and processing of the accounting and financial information that we would have noted in the course of our work are properly disclosed in the Chairman's report.

On the basis of our work, we have no matters to report on the information relating to the company's internal control and risk management procedures relating to the preparation and processing of the accounting and financial information contained in the report prepared by the Chairman of the Board of Directors in accordance with article L. 225-37 of the French Commercial Code (code de commerce).

Other information

We confirm that the report prepared by the Chairman of the Board of Directors also contains the other information required by article L. 225-37 of the French Commercial Code (code de commerce). Paris-La Défense, 7 March 2012

The Statutory Auditors

MAZARS ERNST & YOUNG Audit

Michel BARBET-MASSIN Antoine ESQUIEU Guillaume FONTAINE

APPENDIX C: ENVIRONMENTAL IMPACT OF SCOR'S ACTIVITY

APPENDIX C: ENVIRONMENTAL IMPACT OF SCOR'S ACTIVITY

Information required under Article R. 225-105 of the Commercial Code

Environmental policy: framework

SCOR's environmental policy is guided by the international initiative to which it has subscribed (i.e. United-Nations Global Compact on one side and the Kyoto Statement of the Geneva Association). These two initiatives form the framework in which SCOR SE (the "Company") and its main subsidiaries implement the Group's environmental policy ("SCOR").

Although reinsurance is not an industrial activity, SCOR strives to conduct its global operation in accordance with the environmental principles which are set out by the United-Nations Global Compact with regards to prevention, protection and precaution. Therefore, the environmental policy aims to reduce the environmental impacts directly linked to SCOR's activity and whose main source is derived from office management (energy consumption, water consumption…), business travel (in particular air travel due to the international nature of it's activity) and to a lesser extent office equipment (furniture, Information Technology equipment, paper…).

Scor's environmental policy : general organisation and main areas

The Group's environmental policy is decentralised at "hub" level (in Europe, Cologne, London, Paris and Zurich, in Asia Pacific, Singapore and in the Americas, Americas Hub) and monitored at Group level by the GREENSCOR manager who, besides its responsibility with regards to compliance with environmental information disclosure requirements, encourages, coordinates and mandates locally implemented environmental initiatives.

The GREENSCOR manager, appointed in 2009, relies on and reports to the Group Corporate Social Responsibility Committee (CSR Committee) where he also acts as the secretary. The CSR Committee is chaired by the Group Chief Operating Officer and gathers the Hubs' Chief Executive Officer's, as well as representatives from several central functions (compliance, Human Resources, Communication, Risk) and operational functions (SCOR Global P&C, SCOR Global Life, SCOR Global Investments).

Being mindful of controlling its direct "environmental footprint", the Group supports any initiatives which tend to minimize the environmental impacts in the following areas: (1) property offices, (2) energy efficiency with regards to its information technology system, (3) travel:

• 1. For several years now SCOR has been implementing projects in the property offices area (acquisition and site management) in order to reduce its impacts derived from offices that are occupied by SCOR's employees:
  2. With respects to offices acquisition, the site in London which is owned by the Group has been certified BREEAM ("BRE Environmental Assessment Method"). In Cologne, the future site which will host SCOR's local teams, has been awarded an European environmental label. In Paris, the headquarters is certified "Haute Qualité Environnementale" (HQE) for the design and the construction phase.
  3. With regards to facility management, beside the Zurich office whose operations are certified ISO 14001, Cologne and Paris will strive to implement respectively the following standards: EMAS ("Eco-Management and Audit Scheme") and HQE operation. These certifications are likely to be sought in the course of 2012.
• 1. With a view to reduce energy intensity of the information technology system ("GREEN IT"), actions have been taken in the field of Data management and IT furniture:
  2. The initiatives and projects conducted such as the virtualisation of the servers and the on-going consolidation of the Data Centres on one single data center with a back-up facility (the "Global Data Centre") participate to diminishing the energy intensity derived from data management. The energy efficiency target of the Global Data Centre is to reach a "Power Usage Effectiveness" (PUE) of 1.5.
  3. Two approaches have been developed with regards to computers and laptop management in order to reduce their energy intensity: the Group's fleet rationalisation (e.g. lifespan of the IT equipment, centralisation of the copiers) and acquisition of highly energy-efficient equipment (EPEAT Gold for laptop and computers on a Group-wide basis).
• 1. Streamlining of travel, which is the main contributor to the Group's Green House Gas emissions, is sought through the roll-out of highly sophisticated and efficient videopresence rooms, and the implementation of a travel policy setting out principles and rules for a proportionate use of transportation means.

Environmental indicators: scope, methodology and limitations

This report is established in accordance with regulatory requirements as set out by the law on "New Economic Regulations", modified by the article L.225 of the law on the national commitment in favour of the environment and takes into account the AMF recommendation n°2010-13 published on the 2 December 2011 and available on the AMF website.

This environmental report covers the parent company ("SCOR SE") and the main locations of its main subsidiaries in France and abroad. Activity data have been collected between the 15 December 2011 and the 20 January 2012 on a target perimeter embracing all the Group's locations where more than 30 employees were in activity at the end of the year (i.e. 31/12/2011), excluding the premises located in Charlotte (United-States, Delaware), Madrid (Spain) and Milan (Italy) which will be included in the scope of the reporting next year. Offices hosting ReMark's staff (144 employees worldwide) have also been excluded from this environmental report.

Consolidated data covers a 12 month period, from the 1 January 2011 to the 31 December 2011. Due to the unavailability of data for the full year on some of the locations included in to the environmental report, extrapolation have been done via on an estimate of the consumption over the last months of the year. Moreover, where SCOR occupies only a small share of the overall surface of the building, only consumption billed directly to Group entities has been taken into account. At present consumption included in rental charges couldn't be isolated, nor estimated in most of these cases. As a consequence, from one site to another, the information collected in each hub may entail different parameters, in particular with regards to the consolidation or not of the energy consumption derived from the use of services located in private areas of the building.

Energy consumption is expressed in KWh/Employee, water consumption expressed in m³ /Employee, and paper consumption expressed in Kg/Employee. For some data, the ratio takes into account the contractors active in the premises occupied by the staff managed by the Group.

In addition, the Group consolidates these indicators and presents them expressed in tonnes of CO2 equivalent. This conversion of the different energy sources into Green House Gas emissions is performed centrally on the basis of the conversion factors published by the French "Environment and Energy Management Agency" (Ademe) and extrapolated from the data effectively collected in each hub. The emissions calculated by the Group cover the following scope of the "Green House Gas Protocol":

• "Scope 1": direct emissions induced by the combustion of fossil energy. From premises to premises, these emissions are generated by the consumption of fuel (heating and backup generator) and the use of a fleet of vehicles,
• "Scope 2": indirect emissions induced by electricity consumption, steam and cooling. For most of the location surveyed, most of these emissions are induced by electricity procurement and on some locations such as Paris-La Defense, from urban cooling,
• "Scope 3": Other indirect emissions. In this Scope, are included emissions derived from the use of offices (socalled depreciation), business travel, commuting, waste and so on. In this Scope, SCOR is focused on air travel (the most important source of emissions) as well as train transportation.

With regards to the source of emissions (to be distinguished from the volume of emissions) within each Scope, the rate of coverage is estimated to 90% for the Scope 1 and 100% for the Scope 2. The rate of coverage for the Scope 3 is limited to approwimately 10% since the Group has adopted a pragmatic approach with a clear focus on business transportation which have an important environmental footprint.. Within this Scope, the main sources excluded are commuting and the so-called depreciation of furniture and property offices.

Scope of environmental indicators monitoring

Group: 2 040 employees excluding Remark(12/31/2011)

Target Perimeter monitored : 69% of employees managed by the Group Locations scoped-in:

• Paris Hub: Paris-La Défense, (86% of the Hub's employees)
• London Hub: London (72% of the Hub's employees)
• Cologne Hub: Cologne (100% of the Hub's employees)
• Zurich Hub: Zurich (100% of the Hub's employees)
• Singapore Hub: Singapore (55% of the Hub ETPs)
• Americas Hub: New-York, Itasca, Toronto (30% of the Hub's employees)

Environmental indicators: section of the "Grenelle 2" draft implementing measures

GENERAL POLICY WITH REGARDS TO THE ENVIRONMENT

Indicator "Grenelle 2"	2011 Data	Scope
1- Company organisation to manage, assess environmental issues and certification initiatives	Company organisation to manage, assess environmental issues and certification initiatives are developed in section : "Group's environmental policy: general organisation and main areas"	Group
2- Training and information of employees with regards to environmental protection	SCOR regularly communicates on important local initiatives in order to raise awareness of its staff (i.e. acquisition of buildings with green credentials, initiative Plant a Tree in Cologne (2010) through SCORLinks. its internal electronic newsletter Environmental principles of the Global Compact are thus reminded and further disseminated across the Group. Other channels are used to encourage a responsible use of natural resources by its employees such as stickers, leaflet.	Group
3- Resources dedicated to prevent environmental risk and pollution	Data not itemized in our budget and control monitoring system	N/A

POLLUTION AND WASTE MANAGEMENT

Indicator "Grenelle 2"	2011 Data	Scope
4- Description of the measures taken to prevent any air, water and ground pollution	Not material due to the nature of the activity (i.e. financial services). Green House Gas emissions are reported below in the section "Green House Gas emissions" (see item 11) of this table.	N/A
5- Prevention, production and recycling of waste	Most of the locations surveyed in 2011 reported on paper waste and to a lesser extent on other waste (IT & electronic, bulbs, toner, batteries, other).	Group
	In 2011, paper waste amounted to 45 Kg per employee and contractor, or 89 tons. Paper recycling is a practice implemented in most of the locations surveyed. The volume of paper sorted and collected for recycling is higher than the volume of paper purchased over the year. This difference is mainly due to archives clean-up.
6- Description of the measures taken to prevent sound and olfactory pollution	Not material due to the nature of the activity (i.e. financial services)	N/A

SUSTAINABLE USE OF RESOURCES

Indicator "Grenelle 2"	2011 Data	Scope
7- Water consumption and procurement of water	Total Group's water consumption was 26,706 m3 3 in 2011 or 11 m per employee and contractor.	Group
8- Raw materials consumption and measures taken to improve the efficiency of their use	Financial services activities do not consume directly raw materials, rather indirectly through their procurement of furniture, office equipment, Information Technology (IT) equipment and the acquisition of property offices. Where the Group has a centralised function dedicated to the purchase of offices supplies such as IT, environmental standards have been globally considered in the selection of equipment (see section : "Group's environmental policy: general organisation and main areas" on the "GREEN IT" policy). This holds true for the acquisition of property offices where a clear focus has been put on "green" credentials (i.e. environmental certification of the conception). Otherwise, furniture and office equipment are managed locally and "green" standards are progressively integrated in various areas such as the procurement of paper (boxes of paper only) where the overall consumption has reached 87 tons in 2011 (i.e. 38 kg per employees and contractors). Recycled paper and paper carrying the FSC or PEFC label represented more than 80% of total paper purchases.	Group
9- Energy consumption and measures taken to improve energy efficiency	The Group consumed 14.4 GWh in 2011 (or 221 KWh/m2 and 5,711 KWh per employee and contractor) to operate the premises occupied by its staff (lighting, heating, cooling – including data center -, power for operating various equipment). Offices' energy efficiency vary substantially from one location to another (from 71 KWh/m2 in Toronto to 266 KWh/m2 in Paris-La Defense). Most of the energy consumed in the Group's premises surveyed comes from electricity (74%). Another major source of energy consumption is driven by business transportation, in particular air travel due to the global nature of SCOR's activities. In 2011, more than 20.3 million of kilometers (or more than 12,600 kilometers per employee) were travelled either by plane (94%) or by train (6%). Main Steps taken at Group level to improve energy efficiency are described in the section "Group's environmental policy: general organisation and main areas". These global initiatives are supplemented by local initiatives such as in Zurich where traditional lighting have been replaced by more efficient technologies in certain areas of the building.	Group Zurich
10- Ground use	Not material due to the nature of the activity (i.e. financial services)	N/A

CONTRIBUTION TO CLIMATE CHANGE ADAPTATION

Indicator "Grenelle 2"	2011 Data	Scope
11- Green House Gas emissions	In 2011, the Group's emissions calculated as defined in the section "environmental indicators: scope, methodology and limitations" amounted for more than 12,768 tons of CO2 equivalent or 8.5 tons of CO2 equivalent per employee. Most of these emissions were driven by business transportation representing circa 80% of the Group's emissions of which air transportation accounted for 97%.	Group
12- How Climate Change impacts are taken into account	As an internationally reputed reinsurer involved in the coverage of natural events, SCOR closely monitors the developments linked to climate change. As well as monitoring the risks and opportunities linked to climate change as part of the steering of emerging risks (ECHO – Emerging or Changing Hazards' Observatory), SCOR has become involved with a number of corporate and community initiatives, notably the initiative led by the Geneva Association. The Group is a member of the working group "Climate Risk and Insurance" whose purpose is to contribute to the brainstorming on sustainability through an increase of the resilience of societies to climatic risk and extreme events. In addition to this participation, workshops (Campus) are regularly organised with SCOR's clients on topical issues related to climate change such as the insurance of renewable energies.	Group

BIODIVERSITY PROTECTION

Indicator "Grenelle 2"	2011 Data	Scope
13- Measures taken to limit any harm to the ecological balance, natural environment, and protected animal and plant species	Not material due to the nature of the activity (i.e. financial services)	N/A

APPENDIX D: GLOSSARY

APPENDIX D: GLOSSARY*

*This glossary is a list of selected reinsurance terms. It is not a complete list of terms used in this Document de Reference or in the insurance or reinsurance industry.

A

ACCIDENT YEAR

The accounting year in which loss events occur.

ACCOUNTING YEAR

The entity's financial year in which the accounts are recorded. Due to the time required to transfer information elating to a given period of cover, the ceding company's accounting year may differ from that of the reinsurer. For reinsurers such as SCOR and its subsidiaries, which may calculate their results before receiving the accounts from the ceding company, estimates are made for ceding company information which has not been received at the date the financial statements are prepared.

ACCUMULATION

The sum of all risks which are correlated such that a single insured event will affect these risks or all the underwritten lines relating to the same risk.

ACTUARY

Specialist who applies probability theory to Life and Non-Life insurance and reinsurance in order to measure risks and calculate premiums, as well as technical or mathematical reserves.

ADDITIONAL RESERVE

Reserves for claims are recorded in the accounting system for the amount communicated by the cedants. They can be supplemented with additional amounts calculated according to past experience, in order to take into considerations estimated future adverse developments.

ADVERSE DEVELOPMENT

Losses recorded during the period for which initial estimates recorded in previous accounting periods proved insufficient.

ASSUMED BUSINESS

Transaction whereby a reinsurer agrees to cover part of a risk already underwritten or accepted by an insurer. The opposite of ceded business.

ATTACHMENT POINT

The amount of losses above which an excess of loss reinsurance contract becomes operative.

B

BEST ESTIMATES

An actuarial "best estimate" refers to the expected value of future potential cash-flows (probability weighted average of distributional outcomes) related to prior underwritten business. Best estimates are based upon available current and reliable information and take into consideration the characteristics of the underlying portfolio.

C

CAPITAL (ADEQUACY)

Amount of capital relative to a financial institution's loans and other assets. Insurance regulators require that insurers hold a certain minimum of equity capital against their risk-weighted assets.

CAPITAL (BUFFER)

The amount of capital needed in order to protect the required capital, so that it (the required capital) cannot be eroded with a probability higher than 3%.

CAPITAL (CONTINGENT)

Funds that would be available under a pre-negotiated agreement if a specific contingency (such as a natural disaster) occurs.

CAPITAL (SHIELD POLICY)

Framework that protects SCOR shareholders, ensuring that they do not become SCOR's retrocessionaires. The capital shield is made up of three main pillars: capital buffer, risk appetite framework and hedging (retrocession, ILS, contingent capital etc.).

CASUALTY INSURANCE

Insurance primarily concerned with the losses caused by injuries to third parties by the policyholder and the legal liability imposed on the insured resulting there from.

CATASTROPHE (CAT)

SCOR defines a natural catastrophe as events involving several natural risks including but not limited to flood, windstorm, earthquake, hurricane, tsunami, that give rise to an insurable loss. For reporting purposes, the Group separately considers catastrophes as events causing pre-tax losses, net of retrocession, totaling EUR 3 million.

CATASTROPHE (OR CAT) BOND

A high performance bond which is generally issued by an insurance or reinsurance company. If a predefined occurrence takes place (such as an earthquake, tsunami, hurricane etc.), the bondholder loses all or part of his investment in the bond.

This type of insurance-linked security allows insurance and reinsurance companies to transfer peak risks (such as those arising from natural catastrophes) to capital markets, thereby reducing their own risks.

CREDIT DEFAULT SWAP

The most conventional form of credit derivatives, allows one side to buy the protection against the default of its counterparty by regularly paying a third part a premium and receiving from it the pre-determined amount in the event of default.

CEDING COMPANY (ALSO CALLED CEDANT))

Insurance company, mutual society or provident insurance provider that transfers (or "cedes") a part of the risk it has underwritten to a reinsurer.

CESSION OR CEDED BUSINESS

Transaction whereby an insurer (cedent or ceding company) either mandatorily or facultative transfers part of its risk to the reinsurer against the payment of premium. The opposite of ceded business is assumed business.

CLAIMS AND CLAIMS EXPENSE

Amount relating to actual or estimated claims made by an insured for an indemnity under an insurance contract for loss events that occurred in the accounting year.

CLAIMS RATIO

The ratio of the sum of claims paid, the change in the provisions for unpaid claims and claim adjustment expenses in relation to earned premium.

CLASS OF BUSINESS

A homogeneous category of insurance. Since 1985, French reinsurers have used a uniform presentation that distinguishes between life, fire, crop hail, credit and surety, other risks, third party liability, motor, marine and aviation classes. The last eight of these form the general class of Non-Life business. English-speaking markets generally distinguish between Property (damage to goods) and Casualty (liability insurance and industrial injury), and Life business.

COMBINED RATIO

Sum of the non-life claims ratio and the expense ratio.

COMMUTATION

A transaction through which insurers or reinsurance surrender all rights and are relieved from all obligations under the insurance or reinsurance contract in exchange for a single current payment.

CREDIT AND SURETY INSURANCE

Credit insurance provides insurance coverage against loss to a supplier caused by customer failure to pay for goods or services supplied. Surety insurance relates to sureties and guarantees issued to third parties for the fulfillment of contractual liabilities.

D

DECENNIAL INSURANCE

Decennial insurance provides insurance coverage to building owners and construction companies against losses caused by structural defects in new buildings resulting from inherent defects in design, construction or the materials employed. In a number of countries, including France, such coverage is required as a matter of law. It is generally granted for a period of ten years after construction is completed.

DEFERRED ACQUISITION COSTS (DAC)

Costs associated with the acquisition of new contracts, mainly commissions, are recorded as assets and amortized on the basis of the residual term of the contracts for Non Life business and on the basis of the recognition of future margins for Life contracts. DAC is subject to impairment resting conducted within the liability adequacy test.

DEFERED TAX ASSET

Defined under IAS 12 as amounts of income tax recoverable in future accounting periods due to temporary difference or NOL carry forward

DEPOSIT, FUNDS WITHHELD

Amounts which may be deposited with the ceding company to guarantee the reinsurer's liability. Income from securities deposited accrues to the reinsurer.

DERIVATIVE FINANCIAL INSTRUMENT

A financial instrument or other contract with the three following characteristics: a) value changes in response to a change in the underlying (e.g. interest rate, price, foreign exchange rate); b) requires no or minimal net investment, and c) is settled at a future date.

DIRECT INSURANCE

A policy taken out with an insurer by an individual or a company to cover a risk (property, service or person). This policy can either be underwritten directly with one of the insurer's agents or via a broker who receives a commission.

E

EIA

Equity Indexed Annuity

EMBEDDED VALUE

Frequently used measure of the value of expected future cash flows in life insurance and life reinsurance from the shareholder's point of view, expressed as the value of net assets plus the present value of expected profits on the insurance portfolio less cost of capital and administrative expenses.

ENTERPRISE RISK MANAGEMENT (ERM)

Enterprise Risk Management is a process, effected by an entity's Board of Directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risks to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.

EVENT

Aggregation of claims having a common origin and affecting either a single insured under more than one policy, or more than one insured.

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FACULTATIVE REINSURANCE

Reinsurance on an item-by-item or risk-by risk basis. Facultative reinsurance is usually written for very large-line risks. It may be either proportional or non proportional.

FAIR VALUE

The price for which an asset could be exchanged between knowledgeable, willing parties in an arm's-length transaction.

G

F

GOODWILL

Goodwill comprises the residual difference between the identifiable assets of an acquired entity and the purchase price paid in a business combination. Goodwill is recognized as an asset in the balance sheet, and represents future economic benefits expected to be generated from assets that are not capable of being individually identified and separately recognized. Goodwill is tested for impairment on a yearly basis.

GUARANTEED MINIMUM DEATH BENEFIT (GMBD)

The GMDB guarantees investors in a variable annuity that if the owner passes away while the market value is down, they would never get back less than their original principal.

GROSS WRITTEN PREMIUMS

Actual and estimated premiums to be received for the period from the ceding companies. Gross premiums represent the turnover for the accounting period.

GROUP POLICY

A single insurance policy that provides insurance coverage for several persons forming a homogeneous group, and generally belonging to the same company or association, against certain risks such as death, accident, sickness.

I

INSURANCE LINKED SECURITIES (ILS)

Financial instruments whose values are driven by insurance loss events. Those such instruments that are linked to property losses due to natural catastrophes represent a unique asset class, whose return is uncorrelated with that of the general financial market.

IMPAIRMENT EXPENSE

The write down which is recorded when the current fair value of the asset is less than its accounted book value.

INCURRED BUT NOT REPORTED (IBNR)

Provision for claims which have already occurred but have not yet been reported to the insurer at the balance sheet date.

L

LIABILITY ADEQUACY TEST (LAT)

An assessment of whether the carrying amount of an insurance liability needs to be increased (or the carrying amount of related deferred acquisition costs or related intangible assets, such as VOBA, decreased), based on a review of future cash flows.

LIFE AND HEALTH REINSURANCE

Collective term for the lines of business in connection with the insurance of persons, i.e. life, pension, health critical illness, long-term care and personal accident insurance.

LIQUIDATION BONUS

Profit earned on liquidation of technical reserves on settlement of a claim or expiration of a Treaty.

LOSS

Event that triggers insurance cover and reserves recognition.

LOSS ADJUSTMENT EXPENSE

Amount relating to actual or estimated claims made by an insured for an indemnity under an insurance contract for loss events that occurred in the accounting year.

LOW OR WORKING LAYER EXCESS OF LOSS REINSURANCE

Reinsurance that absorbs the losses immediately above the reinsured's retention layer. A low layer excess of loss reinsurer will pay up to a certain monetary amount at which point a higher layer reinsurer or the ceding company will be liable for additional losses. Also known as working layer reinsurance.

M

MARINE AND AVIATION INSURANCE ALSO REFERRED TO AS OFFSHORE/SPACE AND TRANSPORTATION INSURANCE

Insurance covering damage occasioned during carriage (by sea, river, land, or air) to the means of transport ("hull"), excluding motor-driven land vehicles, and to the goods carried ("cargo"), and third party liability incurred by the carrier.

MATHEMATICAL RESERVE

Amount that a Life insurance or capitalization company must set aside and capitalize in order to meet its commitments to the insured.

MORBIDITY

The probability that an individual in a given group will develop a certain disease or disorder.

MORTALITY

The relative incidence of death of Life insureds or annuitants holding a Life insurance policy.

N

NET WRITTEN PREMIUM

Gross premiums less the portion of premiums paid for retrocession.

NON-PROPORTIONAL (EXCESS OF LOSS) REINSURANCE

Reinsurance contract written to protect the ceding company from all or part of claims in excess of a specified amount retained (priority). This generally takes the form of Excess of Loss (or XL) or excess of annual loss reinsurance.

NON-TRADITIONAL REINSURANCE

Initially, this concerned a multi-year, multiline form of reinsurance whose contract terms included an aggregate limit of liability and loss sensitive features (e.g. profit sharing or additional premium). Currently, it also encompasses technical and investment accounts within a single cover, securitization of insurance risks, credit derivatives, and climate derivatives.

O

OCEANE (OBLIGATION CONVERTIBLE EN ACTIONS NOUVELLES OU EXISTANTES)

The issuer of this convertible bond may give the creditor or new shares issued for the occasion, or existing shares held in a portfolio.

P

POLITICAL RISK

All political or administrative events, actions or decisions that could lead to losses for companies contracting or investing abroad.

PREMIUMS EARNED

Premiums an insurance company has recorded as revenues during a specific accounting period.

PRIMARY INSURER

An insurance company that issues insurance contracts to the public generally or to certain non-insurance entities.

PROBABLE MAXIMUM LOSS ("PML")

The estimated anticipated maximum loss, taking into account ceding company and contract limits, caused by a single catastrophe affecting a broad contiguous geographic area, such as that caused by a hurricane or earthquake of such a magnitude that it is expected to recur once during a given return period, such as every 50, 100 or 200 years.

PROPERTY & CASUALTY (P&C) CLASSES

All insurance classes other than Life.

PROPERTY INSURANCE

Insurance that provides coverage to a person with an insurable interest in tangible property for that person's property loss, damage or loss of use.

PROPORTIONAL (PRO RATA) REINSURANCE

Reinsurer's share of claims carried by the insurer in proportion to its share of premiums received. Proportional reinsurance is generally written as a quota share of business or as surplus reinsurance.

PROVISION FOR CLAIMS PAYABLE

Reserve for claims reported but not yet settled. These are estimated by ceding companies and communicated to the reinsurer.

R

RATE

Scale showing the various premium rates applied to risks belonging to a given category of insurance (as in motor rates, fire rates).

REINSTATEMENT PREMIUMS

Additional premiums charged under certain excess of loss reinsurance contracts to restore coverage amounts after a loss.

REINSURANCE

Procedure whereby an insurance company in turns insures itself with an outside company (the reinsurer) for part or all of the risks covered by him, in return for payment of a premium.

REINSURANCE COMMISSION

Percentage of premiums paid by the reinsurer to the insurer in quota-share or facultative treaties as a contribution to the acquisition and administrative costs relating to the business ceded.

REINSURANCE PORTFOLIO

The total reinsurance business (Treaty and Facultative) written and managed by a reinsurance company.

REINSURANCE PREMIUM

Amount received by the reinsurer as a consideration for covering a risk.

REINSURANCE TREATY

Reinsurance convention between an insurer and a reinsurer defining the terms under which the risks covered by the convention are ceded and accepted. The two main categories of treaty reinsurance are proportional and nonproportional.

REINSURER

Company that undertakes to cover the portion of a risk ceded to it by the insurer.

RESERVE FOR UNEXPIRED RISKS

Reserves intended to cover the portion of the cost of claims not covered by the unearned premiums reserve, for the period between the accounts closing date and the contract expiration date.

RETENTION

Share of the risk retained by the insurer or reinsurer for its own account.

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 approved maximum total underwriting capacity (i.e. Gross Premium – Acquisition Costs) of a Lloyd's Syndicate or Member

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.

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" product is one where ultimate losses are known comparatively quickly; ultimate losses under a "long-tail" product are sometimes not known for many years.

TECHNICAL RESULT

The balance of income and expenses allocated to the insurance business and shown in the technical statement of income.

THREE-ENGINE GROUP

SCOR's three engines: SGPC (SCOR Global P&C), SGL (SCOR Global Life), SGI (SCOR Global Investments)

TWIN-ENGINE BUSINESS

The combination of SGPC and SGL underwriting capabilities

U

UNDERWRITING

Decision by an insurer or a reinsurer to accept to cover a risk upon collection of a premium.

UNDERWRITING CAPACITY

The maximum amount that an insurance or reinsurance company can underwrite. The limit is generally determined by the company's retained earnings and investment capital. Reinsurance serves to increase a company's underwriting capacity by reducing its exposure to particular risks.

UNDERWRITING CYCLE

Pattern in which Property and Casualty insurance and reinsurance premiums, profits and availability of coverage rise and fall over time.

UNDERWRITING EXPENSES

The aggregate of policy acquisition costs, including commissions, and that portion of administrative, general and other expenses attributable to underwriting activities.

UNDERWRITING RESERVES

Amounts that an insurer or reinsurer must place in reserves in order to pay out on claims insured, and on liabilities arising from policies written.

UNDERWRITING YEAR

The year commencing with the effective date of a policy or with the renewal date of that policy, to be distinguished from the Accounting year. For example, a claim may occur during the current accounting year, but which relates to a policy commencing in a prior underwriting year.

UNEARNED PREMIUM RESERVES

For each reinsurance contract, these cover the portion of premiums written during the year relating to the period between the balance sheet closing date and the date at which the reinsurance contract expires.

UNIT-LINKED CONTRACT

Life insurance contract or capitalization certificate for which the amount guaranteed and bonus amounts are expressed, not in a specific Euro amount, but by reference to one or more units of account such as mutual fund units or real estate investment trust units. Contractual guarantees are directly linked to upward or downward variations in a security listed on a regulated market or in the value of a real estate asset.

X

XXX (OR TRIPLE X)

A regulation in the U.S., commonly referred to as Regulation XXX (or Triple X) which requires a relatively high level of regulatory, or statutory, reserves that U.S. life insurance and life reinsurance companies must hold on their statutory financial statements for various types of life insurance business, primarily certain level term life products. The reserve levels required under Regulation XXX increase over time and are normally in excess of reserves required under IFRS.

VALUE OF BUSINESS ACQUIRED (VOBA)

This refers to life reinsurance portfolios acquired in a business combination. It is calculated as the present value of the stream of expected future cash flows including estimates of the future technical results, the future investment income less future administration expenses. The present value calculation is based on assumptions and risk discount factors relevant at the date of acquisition. VOBA is amortized over the lifetime of the underlying reinsurance portfolio and is subject to impairment testing as part of the LAT.

VALUE OF IN-FORCE BUSINESS (VIF)

Present value of expected future income flows from the portfolio of in-force business, discounted by a currency-specific risk discount rate and determined in accordance with local accounting principles.

APPENDIX E: MANAGEMENT REPORT

1	Operating and financial review of SCOR SE	408
1.1	Year 2011	408
1.2	Operating results of SCOR SE during the last financial years	409
2	Fluctuation of SCOR SE quotation throughout 2011	410
3	Social impact of SCOR's activities	411
3.1	Presentation	411
3.2	Group social indicators	411
3.3	Additional information	416
4	Additional information relating to the management report of the Company and the Group – Table of compliance	420

APPENDIX E: TO THE REGISTRATION DOCUMENT: MANAGEMENT REPORT

In accordance with the AMF Guide d'élaboration des documents de référence up-dated as at 20 December 2010, statements and information pertaining to the management report on the Company's and on the Group's activities in 2011, as approved by the Board of Directors on 7 March 2012 (the "Report"), are included and presented in the Registration Document 2011 which will be submitted as such to the Shareholders' Meeting convened to approve the financial statements of the financial year ended on 31 December 2011.

Therefore, the Registration Document's sections referred to in the table of compliance set forth under Section 4 hereafter, are fully incorporated to this Report of which they are deemed to be an integral part.

Statements and information relating:

• to the resolutions submitted to the Shareholders' Meeting, pursuant to the provisions of Articles R.225-83, 4° of the French Commercial Code;
• to the 2011 stock-option plans and stock purchase plans; and
• to the 2011 free shares allocation plans,

are presented in separate reports of the Board of Directors.

1 OPERATING AND FINANCIAL REVIEW OF SCOR SE

1.1 Year 2011

1.1.1 OPERATING AND FINANCIAL REVIEW OF SCOR SE IN 2011

The balance sheet of SCOR SE as at 31 December 2011 amounts to EUR 7 526 177 627 compared to EUR 6,256,412,369 at the end of 2010.

The total of financial assets of SCOR SE is EUR 5 002 595 881.

The shareholders' equity of SCOR SE is amounting to EUR 2 613 949 572 and other equities are amounting to EUR 853 709 159. The debts amounted to EUR 882 744 612 including other loans of EUR 768 708 302.

The net amount of reinsurance reserves rose to EUR 3 114 020 593.

The reinsurance result of SCOR SE as at 31 December 2011 is EUR 83 290 198 while the financial result is EUR 296 282 139.

SCOR SE's net income reached EUR 234 544 056 in 2011.

For additional information on the operating and financial situation of SCOR SE and its subsidiaries, as well as on their activities' development in 2011, please refer to Section 9, Section 20 and Appendix A of the Registration Document.

1.1.2 ADDITIONAL INFORMATION

LIABILITIES DUE TO SUPPLIERS

Pursuant to the provisions of Article L. 441-6-1 of the French Commercial Code, specific situations excepted (as, notably, litigations on invoices received), the suppliers' invoices are paid upon receipt or 30-days from the end of the month.

TOTAL AMOUNT OF EXCEPTIONAL EXPENDITURES

Pursuant to Article 223 quarter of the French General Tax Code, we remind you that the amount of the expenses and charges referred to in Article 39.4 of said Code totals EUR 120 798 for the previous fiscal year 2011 and the amount of taxation borne by the Company due to the non-deductibility of such charges should amount to a total of EUR 43 670.

REINTEGRATION OF GENERAL EXPENDITURES

None of the expenses referred to in paragraph 5 of Article 39 of the French General Tax Code are considered as nondeductible for tax income 2011.

1.2 Operating results of SCOR SE during the last financial years

1.2.1 OPERATING RESULTS OF SCOR SE DURING THE LAST FIVE FINANCIAL YEARS

Pursuant to the provisions of Article R.225-102 of the French Commercial Code, the following table presents a summary of SCOR SE operating results during each of the last five financial years:

RATIO NATURE	2007	2008	2009	2010	2011
I. - Financial position at the end of the year:
a) Social Capital ( EUR millions)	1,439	1,451	1,459	1,479	1,513
b) Number of issued shares	182,726,994(1)	184,246,437	185,213,031	187,795,401	192,021,303
c) Number of convertible bonds to shares.	10,470,000	10,470,000	10,765,428	0	0
II. - Global Profit and loss of effectives transactions ( EUR millions):
a) Turnover without taxes	1,075	981	942	910	1,136
b) Net Profit before taxes, depreciations and reserves.	(88)	(62)	(258)	184	56
c) Current income tax.	77	11	13	25	9
d) Net Profit after taxes, depreciations and reserves.	28	(64)	199	204	235
e) Allocated Net Profit amount.	147	148	185	207	211 (2)
III. - Profit and loss per share:
a) Turnover without taxes	(0.07)	(0.28)	(1.33)	1.13	0.34
b) Net Profit before taxes, depreciations and reserves.	0.19	(0.35)	1.08	1.10	1.22
c) Paid dividend per share	0.80	0.80	1.00	1.10	1.10 (2)
IV. - Salaries:
a) Number of salaries.	204	535	503	777	554
b) Gross wages amount.	16	44	44	81	54
c) Amount of paid employees benefits (Healthy contribution, others benefits, etc.).	6	11	12	21	17

(1) Accumulated shares as at 31 December 2007

(2) Subject to adjustment according to the 3 May 2012 shareholders' meeting's decision as per the allocation of 2011 income

1.2.2 DIVIDENDS DISTRIBUTED BY SCOR SE OVER THE LAST THREE FINANCIAL YEARS

Over the three previous fiscal years, the amounts distributed by SCOR SE as dividends were as follows:

Fiscal year ended on:	31/12/2008	31/12/2009	31/12/2010
Number of shares (1)	184,150,539	185,150,621	187,760,207
Net dividend per share	EUR 0.8	EUR 1	EUR 1.10
Amount eligible for the deduction allowance specified by Article 158-3 of the French General Tax Code (2)	EUR 0.8	EUR 1	EUR 1.10

(1) Number of shares of the Company, with a nominal par value of EUR 7.8769723, existing at the moment of distribution of the related dividend, including treasury shares (actions auto-détenues).

(2) For natural persons only : the dividend paid in 2009, 2010 and 2011 for the fiscal years 2008, 2009 and 2010 gave entitlement to a 40% deduction (except for dividends received after 1 January 2008, if the beneficiary has opted for fixed-rate taxation on dividends (prélèvement libératoire forfaitaire).

2 FLUCTUATION OF SCOR SE QUOTATION THROUGHOUT 2011

The following statements present the volume of transactions and the fluctuation of SCOR SE quotation on the Euronext Paris stock market by Euronext NYSE throughout the financial year 2011:

		TOTAL OF TRANSACTIONS		EXTREME MARKET PRICE
			Value	Higher	Lower
Year	Month	Volume	(million EUR)	(In EUR)	(In EUR)
	January	10,500,630	209	20.16	19.69
	February	9,680,716	201	21.02	20.61
	March	22,812,130	450	20.02	19.51
	April	11,743,751	228	19.65	19.26
	May	13,288,440	271	20.63	20.20
2011	June	11,972,302	225	19.04	18.69
	July	13,974,462	257	18.64	18.16
	August	12,723,578	202	16.27	15.48
	September	7,820,219	123	16.05	15.44
	October	7,298,114	124	17.41	16.78
	November	7,902,567	133	17.23	16.57
	December	5,706,058	101	18.06	17.51

3 SOCIAL IMPACT OF SCOR'S ACTIVITY

3.1 Presentation

Introduction

Taking into account the recommendations of the Financial Markets Authority, this appendix is based on the draft implementing decree of the New Economic Regulations (NER) law of 15 May 2001 which includes all the provisions of the former decree of 20 February, 2002. It shows how the Group ("SCOR" or the "Group") takes into account the direct social consequences of its activities and outlines the policies, actions and programs implemented in the field, both in the company, its subsidiaries in France and abroad.

This chapter consists of two sections. The first section presents a series of consistent social indicators covering the whole Group. The second section offers a set of additional information and specifically outlines the actions and programs implemented in this area within the Group.

Methodology

Information is collected by the Group Human Resources team from the various Hub Human Resources teams and broken down by country when necessary. The information system used to manage employees within the Group is PeopleSoft HR. A weekly consistency check of the PeopleSoft HR database is done within Group Human Resources in charge of the consolidation.

Each category in this section corresponds to an indicator of the NER law which is then explained ¹ .

Perimeter

The items in the second chapter focus on the entire group to the exclusion of Telemed and ReMark (these subsidiaries of SCOR Global Life SE are independently managed in terms of Human Resources). The study boundaries are specified for all the categories presented in the second chapter.

Limit of the data collection and reliability

The definitions of the social indicators can slightly differ from one country to another. Nevertheless, the SCOR indicators used in the tables below remains consistent and meaningful at Group level. Unless otherwise indicated, no estimate is performed to calculate these indicators.

3.2 Group social indicators

3.2.1 Distribution by Hub (1)

Indicator "Grenelle 2": Distribution of the employees by Geographical Area

	2011	2010	2009
Hub Paris	665	631	581
Hub Americas	603	306	306
Hub Zurich	237	253	256
Hub Köln	211	202	206
Hub London	174	149	144
Hub Singapore	150	124	118
TOTAL excluding ReMark	2,040	1,665	1,611
ReMark (2)	144	157	179
TOTAL	2,184	1,822	1,790

(1) The headcount is calculated on the basis of the employees registered at 31 December (consequently the former Transamerica Re employees are included for the year 2011). Each hub covers a region and may encompass several countries. For example, the Paris Hub covers France, Spain, Italy, Belgium, the Netherlands, Russia and South Africa. As the temporary workers and the external service providers are managed according specific rules in each country, this data is not mentioned in the headcount this year.

(2) SCOR Global Life SE controls 100% of the capital of ReMark. ReMark acquired ESG in May, 2009. Due to its specific activity, ReMark is managed independently from the Group in terms of human resources.

¹ The slight differences compared to the decree are systematically mentioned.

3.2.2 Distribution by gender

Indicator "Grenelle 2": Distribution of the employees by gender

	2011
Male	1,062
Female	978
Total	2,040

3.2.3 Distribution by status

Indicator "Grenelle 2": Distribution of the employees (by status)

	2011
Partners(1)	574
Non-Partners	1,466
Total	2,040

(1) Definition of the Partner: see Section 8 –" Total Compensation: Elements relating to the remuneration policy". The Corporate Officer is included in this population.

3.2.4 Distribution by department

Indicator "Grenelle 2": Total Headcounts (by department)

	2011	2010(1)	2009
SCOR Global P&C	658	656	905
SCOR Global Life(2)	817	452	510
SCOR Global Investments (3)	45	39	25
Group Functions and Support	520	518	171
TOTAL excluding ReMark	2,040	1,665	1,611
ReMark(4)	144	157	179
TOTAL	2,184	1,822	1,790

(1) Since 2010, the headcount are calculated according to the department (the highest Organization's decision level for HR and budget processes to which any employee is linked) in accordance with the management of the group. The "Group Functions and Support" division includes the Group Finance, Risk and Operations departments as well as the departments directly managed by the Chairman and Chief Executive Officer. Each Hub covers a region and may encompass several countries. For example, the Paris Hub covers France, Spain, Italy, Belgium, the Netherlands, Russia and South Africa.

(2) For 2011, the division SCOR Global Life includes all the former Transamerica Re employees. (3) SCOR Global Investments (100% subsidiary of SCOR SE) was created in February 2009 with the transfer of the employees dedicated to asset management.

(4) SCOR Global Life SE controls 100% of the capital of ReMark. ReMark acquired ESG in May 2009. Due to its specific activity, its own business model and its own organization, ReMark is managed independently from the Group in terms of human resources.

3.2.5 Distribution by type of contract

Indicator "Grenelle 2": Total Headcounts (by contract type)

	2011
Permanent Contract	2,023
Fixed-Term Contract	17
Total (including the ex-TransAmerica Re employees)	2,040
Trainees*	77
Total including trainees	2,117

(*) We consider that the trainees are paid and under a tripartite relationship between the company, the school and the student.

3.2.6 Hiring (1)

Indicator "Grenelle 2": Hiring (by contract type and by gender)

			2011
	Male	Female	Total
Permanents contracts	71	102	173
Fixed-term contracts	11	2	13
Trainees	33	46	79

(1) The group has no particular difficulty in hiring this year.

Methodology: the definitions for "Fixed-term contracts" and "Trainees" can vary from one country to another. We consider that every employee in fixed-term contract has signed a working contract mentioning a date of termination. We consider that the trainees are paid and under a tripartite relationship between the company, the school and the student. The ex-TransAmerica Re employees have been included in the Human Resources Information System later in the year 2011: they are not included in these figures.

3.2.7 Departures

Indicator "Grenelle 2": Departures

			2011
	Male	Female	Total
Retirement	9	2	11
Resignation	55	59	114
Dismissal	16	24	40
End of Fixed-term contract	7	6	13
Decease	-	1	1
Trainees	33	42	75

Methodology: the ends of "fixed-term Contract" are definitive departures from SCOR: we exclude the employees which signed a permanent contract in 2011 following their fixed-term contract. The TransAmerica Re employees have been included in the Human Resources Information System later in the year 2011: they are not included in these figures.

3.2.8 Total compensation*

Indicator "Grenelle 2": Compensation (composition of the package)

	In EUR
Average fixed remuneration as of 31/12/2011**	78,100
Average bonus***	12,200
Total granted shares****	16,600
Total	106,900

(*) The Corporate Officer is excluded.

(**) The average fixed remuneration is based on the annual remuneration of reference paid to the employee, prorated on the actual working time.

(***) The bonus includes the profit sharing scheme for France. (****) Amount calculated by multiplying the number of shares granted by the fair value for each plan which is calculated by respecting the IRFS rules.

Key elements on the remuneration policy

A full description of the remuneration policy of the group is accessible to all the employees from the Company's intranet. This policy is consistent across all the hubs and is applied to the entire Group. In accordance with the values of the Group, one of the objectives of this policy beyond the retention of the employees and the reward of the performance is not to encourager excessive risk-taking.

As a global company organised today into six Hubs located in the main financial centers of the world, SCOR pays competitive base salaries in order to be a competitive player on the job market and to attract talent.

SCOR maintains a holistic approach to compensation. In the case of both Partners and Employees there are multiple dimensions to the compensation components: a fixed and a variable part; an immediate and a deferred part; an individual and a collective part. The components include base cash salary, annual cash bonus, shares and options where applicable, pension schemes as well as other benefits.

Base salaries are set according to criteria that consider a variety of factors, such as conditions on the local labour market, professional education and professional experience before entering SCOR, the accumulated expertise, the present position of the jobholder, and his responsibilities.

SCOR reviews the base salaries on a yearly basis to reward individual performance as well as when new responsibilities are assumed by the job-holder. An automatic adjustment to inflation is not applied as a general rule and is only granted in the few countries where legally required.

SCOR has established a Partners Program. This program, which aims to associate the Partners to the capital of the Group, applies to approx. 25 % of the total number of staff. It is a specific and selective program in terms of sharing information, career development and compensation schemes.

There are four main Partner Levels: Associate Partners (AP), Global Partners (GP), Senior Global Partners (SGP), and Executive Global Partners (EGP). With the exception of the EGP level, these levels are then divided into two levels, allowing seniority or special achievement promotions.

Nomination and promotion of the Partners is a formal and carefully elaborated process occurring every year during a particular Executive Committee session ("COMEX" of SCOR). The candidates must have demonstrated their skills, leadership and commitment consistently in the past.

For employees (non-Partners) the SCOR cash bonus is a reward for individual performance over the previous year. Depending on the rating received in the individual appraisal by the employee's direct superior, the bonus varies between 0% and 6%. This scale is increased by a multiplier in some Hubs in order to take account of the specificity of the local labor markets.

For the appointed Partners, the SCOR cash bonus system is linked directly to the staff appraisal rating (pre-defined band widths) and also to the Return on Equity that SCOR achieved in the past financial year.

The basis of the cash bonus calculation is the gross paid annual base salary. The cash bonus components for SCOR Partners are linked to the Partner Level.

The Partners of SCOR are also eligible for free shares and stock options. However, this does not mean that an allocation has to occur every year or that every Partner receives an allocation. The process is supervised by the Compensation and Nomination Committee which consists only of independent members of the Board of Directors and is informed of all the individual shares and options grants.

Moreover a new compensation scheme has been implement for the benefit of selected managers and executives of the Group with the goal to ensure retention of its key employees while extending the horizon of performance measurement.

This new compensation scheme, the Long Term Incentive Plan (LTIP), thus reflects the orientation of the Group to implement compensation schemes in accordance with best market practices enabling us to involve even more our key employees in long term development of the Group.

In addition, the Group pursues a policy of employee shareholding which resulted in the allocation to the non-Partners of 215,400 shares in 2009 and 221,160 shares in 2010 and 141,020 in 2011.

3.2.9 The employer social security contributions

Indicator "Grenelle 2": Compensation (amounts of the employer social security contributions)

Amounts of the employer social security contributions paid in 2011

Hub	(In EUR Thousands)
Hub Paris	31,395
Hub Americas	8,226
Hub Zurich	2,450
Hub Köln	2,257
Hub London	5,274
Hub Singapore	982
Total	50,584

Description of the main schemes of retirement and compulsory health for the major countries in which SCOR operates

	Compulsory Retirement Scheme	Complementary Retirement Scheme	Compulsory Health Scheme	Complementary Health Scheme
France	Basic scheme applicable to all employees. In addition, supplementary scheme managed by the organizations AGIRC ("cadres") and ARRCO ("cadres and "non cadres") by accumulating points, the scales depends in particular on the status and date of birth of the employee.	"Indemnités de Départ à la Retraite", "Congés Fin de Carrière" and supplemental Defined Benefit Plan for a limited number of beneficiaries (with an executive status).	Social security for all employees under French contract: reimbursement of health care costs (illness, accident, pharmacy) based on a scale reviewed annually.	For all employees under French contract: compulsory mutual insurance company agreement of branch (RPP) + Additional mutual insurance.
Germany	The pension amount is determined based on three elements: the sum of personal earnings points, the multiplier, the present value of pension. The pension is payable from age 65.	Six defined benefits pension schemes (for three of them, the payment of the pension benefits is calculated on the duration of affiliation to the pension scheme, for the three others, the pension schemes serve the purpose of supplying benefits to the employees in their retirement, in case of disability as well as of ensuring provisions in case of an employee's death.	All the employees are obliged to have a health insurance (basically: statutory health insurance). With an annual income of more than 50.850 €, the employee can choose after one year if he/she wants to stay with the statutory health insurance.	-
United Kingdom	The mandatory retirement plan is managed by the state ("Basic State Pension"). The amount of full basic state pension for a single person is GBP 97.65 per week for the period from 6 April 2010 to 5 April 2011.	One defined benefits pension schemes (the pension is equal to 1/60th of the final pensionable salary for each year of membership of the scheme up to normal retirement date). And 5 defined contribution pension schemes (individual funds accumulate from contributions and investment returns.	National health Service (provides a comprehensive range and free of charge health services).	Private Medical benefit for employees and their dependants (101 employees).
United States	Progressive formula based on the amount of average monthly income (AIME: Average Indexed Monthly Earnings).	Six defined benefits pension schemes (the amount of annual benefit is paid at normal retirement date in monthly instalments for life is 46% of average monthly compensation, multiplied by a fraction, not exceed 1 and based on seniority upon retirement. One defined contribution pension scheme. (401k).	-	United Health Care: medical, vision and pharmacy insurance including preventative, well-care visits and emergency care. Cost is divided between SCOR and employee (95 employees for New York, 32 employees for Itasca, 303 employees for Charlotte).
Singapore	Switzerland The earning related pension is between CHF 13,260 and twice that level (respectively 18 % and 36 % of average earnings). The system of mandatory occupational pensions is built around "defined credits" to an individual's pension account. Central Provident Fund	One defined benefits pension schemes (Pension fund of SCOR Switzerland). -	Medicare for all employees: insurance for Illness (payment of Salary during Illness), insurance for Accident (payment of Salary during Accident, including costs for treatment). Working professionals	- MSIG Group Hospitalisation
	(CPF) is a mandatory		who are Singapore	& Surgical Policy (76

retirement savings scheme	citizens or permanent	employees).
for Singapore citizens and	residents are
permanent residents. The	automatically provided
maximum CPF contribution	with a low-cost medical
rate for employer and	insurance – a basic tier
employee is 15.5% and 20%	of insurance protection
respectively.	for all Singaporeans.

3.2.10 Distribution by age

Indicator "Grenelle 2": Diversity and Equal Opportunities

Distribution by age*

By age	2011
Less than 30 years	175
31-40 years	462
41-50 years	436
51-60 years	337
More than 60 years	27
Total	1,437

(*) Due to local laws, the age of the employees working in the hub Americas has not been taken into account in these figures.

3.2.11 Distribution by type of working time

Indicator "Grenelle 2": Organization of the working time

Distribution of the employees by type of working time (and by gender)

			2011
	Male	Female	Total
Full-time employees	1,051	845	1,896
Part-time employees	11	133	144
Total (including the TransAmerica Re employees)	1,062	978	2,040

3.3 Additional information

3.3.1 Organization of the working time

	Indicator "Grenelle 2"
The annual working time in the Group is 201 days for the employees with status "cadres" in France, 204 days for the employees with status "non-cadres" in France, 216 days in Spain, 224 days in Italy, 214 days for Belgium, 220 days in Netherlands and Russia, 222 days in South Africa, 226 days for Ireland and UK, 222 days in Switzerland, 222 days in Germany, 225 days in Austria, 232 days in New York (USA), 229 days in Itasca (USA), 230 days in Toronto (Canada), 228 days in Charlotte (USA), 227 days in Australia and in China, 223 days in Hong-Kong, 217 days in India, 223 days in Malaysia, 225 days in South Korea, 229 days in Singapore, 215 days in Tokyo, 228 days in Taiwan. As the concept of overtime does not exist in all countries and	Organization of the working time
the calculation of the overtime is very different from one country to another according to the local law, it is not possible to present this data on a comparable basis this year.
The length of absence* in the Group is 7,765 days for France, 8 days for Belgium, 159 days for Spain, 532 days for Italy, 365 days for Russia, 14 days for South Africa, 609 days for Ireland, 840 days for United-Kingdom, 1,844 days for Switzerland, 2,246 days for Germany, 7 days for Austria, 648 days in New York (USA), 159 days in Itasca (US), 259 days in Canada, 320 days in Charlotte (US), 2 days in Australia, 15 days in China, 70 days in Hong-Kong, 21 days in Malaysia, 11 days in South Korea, 594 days in Singapore, 3 days in Japan, 5 days in Taiwan.	Organization of the working time

(*) Sick leave, accident, maternity/paternity leave, sabbatical vacation, exceptional leave are included.

3.3.2 Social relations

	Indicator
European Committee meetings were held in 2011 (3 meetings in Paris on 15/03/2011, 29/09/2011 and 16/12/2011 and one meeting in Cologne on 31/05/2011).	"Grenelle 2" Organization of the social dialogue
71 meetings were held with staff representatives in Europe (17 meetings in Paris, 4 meetings in Italy, 2 meetings in Russia, 4 in Switzerland, 43 meetings in Germany, 1 meeting in Austria).	Organization du dialogue social
7 collective agreements were signed within the Group in 2011 (5 agreements were signed in France on 17/02/2011 ("Amendment of continuation the agreement concerning the Projected Management of Jobs and Skills of the employees of SCOR in Paris from January 18th, 2008 to September 17th, 2011"), 11/05/2011 ("Amendment number 5 to the agreement concerning the participation of the employees in results of SCOR in Paris of December 28th, 2007"), 18/07/2011 ("Wage draft agreement on 2011"), 15/09/2011 ("Amendment number 2 of continuation the agreement concerning the Projected Management of Jobs and Skills of the employees of SCOR in Paris of January 18th, 2008") and 28/10/2011 ("Statement of discord with unions concerning the device of sharing of profits and the SCOR one-sided decision"), 2 agreements were signed in Germany on January 2011 and titled "Biometric Authentication at the desktop" and "Information and communication technology".	Collective agreements review
In 2011, the expenses of the Works Council in Paris dedicated to the realization of the social activity were EUR 565,291.85, excluding operating expenses (and including summer camps costs*). The main benefits for the employees are:  The "crédit loisirs": an annual lump sum credit is proposed to each employee for the reimbursement of the theatre tickets, movie tickets, shows tickets, sporting and cultural activities  The benefits for children such as the vouchers for the school year, the "early childhood" premium, the summer camps and recreation centres, the holidays assistance,  The Christmas gifts through vouchers,  The preferential rates for the winter holidays / summer,  A contribution to the complementary health insurance in France.	Works Council activity

(*) The summer camps are managed by the Work Council (social activities) but refer to a supplementary budget dedicated and defined by the company. The amount of expenses for summer camps amounted to EUR 97,644.01 in 2011.

3.3.3 Health and security

	Indicator "Grenelle 2"
14 meetings were held with the staff representatives in the Group to discuss the conditions of	Health and
local health and safety (including 9 meetings in Paris, 1 meeting in Italy on, and 4 in Switzerland).	security
1 employee was declared unable to work in 2011 in the Group (in France)	Health and security
3 accidents on the working place with sick leave were recorded at 31 December 2011 (2 in	Frequency of
France, 1 in Germany).	accidents (rate)
SCOR complies with all provisions of the International Labour Organization. The social climate	Compliance with
within the Group can be considered as good. A good social dialogue exists in each Hub and at	ILO core
European level.	conventions

3.3.4 Training

		Indicator "Grenelle 2"
	The strategic objectives of this policy are :	Description of the
	To have one consistent SCOR-wide Training and Development approach to ensure uniformity and fairness,	training policy
	To give some managerial competence in determining SCOR's contribution,
	To apply a stringent process of validation, control and monitoring,
 instrument,	To make T&D policy an individual business-case-driven investment and retainment
	To allow some limited consideration to local particularities required by local labour law, e.g. in France and Germany
hours not available for this hub).	20,752 training hours (EUR 544,906) were offered in the hub of Paris, 3,873 training hours (CHF 667 777) were offered in the hub of Zurich, 7,025 training hours (EUR 265,484) were offered in the hub of Cologne, 1,338 training hours (USD 61 940) were offered in the hub of New York (excluding former Transamerica Re, whose employees attended 371 training hours between August and December 2011), 855 training hours were offered in the hub of Singapore (SGD 54,000). In addition, the training cost in the hub of London was GBP 68 627 (number of training	Number of training hours
job).	SCOR has 77 interns as of 31 December 2011. (47 in France, 13 in Germany, 7 in Switzerland, 6 in the US, 2 in Canada, 2 in the United-Kingdom). The working contracts differ according to the countries and the training objectives. They all aim to introduce the students to the workplace: internship or "contrat d'alternance" to validate a diploma, apprenticeship contract for a technical	Description of the training policy (internship)

3.3.5 Diversity and equal opportunities

	Indicator "Grenelle 2"
A code of conduct was introduced in 2009, in which SCOR is committed to provide a work environment free from discrimination and / or harassment based on gender, sexual orientation, race or religion, condition of staff representative, exercise of trade union office and disability.	Discrimination and promoting diversity
 During the Compensation and Nomination Committee in July 2011, SCOR has reminded its commitments to reinforce the equality between women and men at work : particular attention concerning the number of women in the Partnership (between 2008 and 2011: + 19 women in the Partnership, increase of 10% compared to men), promotion of female actuaries based on volunteering, compliance with internal equity when making decisions to increase, evaluate or promote Partners (reminder sent to the managers with the user guide), recruitment process designed to eliminate any risk of discrimination.	Equality between women and men
 On-going negotiations for an agreement about diversity and equal opportunities in 2012 in France
 Continuation of the Reduction of differences in compensation between men and women and declension of the principles of professional equality of the agreement within SCOR in France (agreement signed on 24/11/2010).
 Measurements of non-discrimination for the older employees has been applied in the hubs, especially in Paris where an agreement has been signed in 2009 (about the non discrimination and equal treatments, recruitment and job retention, anticipation of the changes during the career, skills management for the seniors).	Discrimination and promoting diversity
 In Germany and in Switzerland: lunches called "equal opportunity lunches" are settled. The objective is to develop a reflection on the discrimination and the equality between women and men on the workplace.
The number of disabled workers in the Group was 9, including 5 in France, 2 in Italy, 1 in Germany, 1 in New York (US).	Employment and integration of disabled employees

3.3.6 Manner in which SCOR takes into account the territorial impact of its activities in terms of employment and regional development

Not applicable.

3.3.7 Relations between the company and integration associations, teaching establishments, environmental defence associations, consumer associations and neighbouring residents

Particular efforts are made in favour of training establishments or ones promoting the integration of handicapped people. The Group also uses protected workshops.

SCOR is a regular partner of educational establishments or integration associations. This collaboration is intended to promote integration and access to jobs.

The SCOR Group participates in the financing of establishments through the apprenticeship tax, namely institutes or establishments that provide apprenticeship training. Each year, SCOR accommodates apprentices or young people on professionalization contracts, who are assigned to technical or administrative functions.

3.3.8 How SCOR SE promotes the provisions and basic agreements of the organisation of work with its subcontractors and ensures that its subsidiaries comply with these provisions and basic agreements / How the Company's foreign subsidiaries take into account the impact that their activities have on regional development and local populations

With regard to its worldwide activities, SCOR endeavours to adopt best practices in each of its locations.

Any employee who deals with a supplier must, before concluding a contractual partnership, ensure that such supplier gives an undertaking to comply with the requirements of the Code of Conduct established in 2011 by the SCOR Group and which apply to all its employees.

4 ADDITIONAL INFORMATION RELATING TO THE MANAGEMENT REPORT OF THE COMPANY AND THE GROUP – TABLE OF COMPLIANCE

Are fully incorporated into this Report, of which they are integral part, the information and statements set forth in the various sections of the Registration Document referred to in the table of compliance below:

MANAGEMENT REPORT REGISTRATION DOCUMENT STATEMENTS DEALING WITH THE MANAGEMENT OF THE GROUP IN 2011
	Analysis of the Group business development, results and financial
	situation
		Sections 3, 9 and 20
	2011 fiscal year's important events for the Group and SCOR SE	Section 5.1.5, 6 and Appendix A. § 1.1
	Research and development activities within the Group and the Company	Section 11
	Main risk factors exposure for the Group	Section 4
	STATEMENTS DEALING WITH THE MANAGEMENT OF SCOR SE IN 2011 :
	Company's securities
	- Amount of issued capital, capital increase and additional information	Section 21.1.1 and Appendix A
	- Operations performed by the Company on its own shares	Section 21.1.3
	- Issuance of bonds and similar securities	Appendix A and Section
		20.1.6.14
	- Share capital ownership and structure	Section 18.1
	- Cross shareholdings	(1) - (2)
	- Elements which could have an impact in case of a tender offer	-
	- Fluctuation of quotation related risks	Section 4
	- Employees' shareholding in SCOR SE - Adjustment of the conversion basis for securities granting access to the	Sections 17 and 18.1
	share capital	Section 20.1.6.14
	Board of Directors
	- Composition	Section 14.1.1
	- List of the other functions and offices held by the Board Members in
	2011	Section 14.1.1
	- Delegation of competences / powers granted to the Board	Section 21.1
	Compensation and benefits granted to SCOR SE's officers and
	executives in 2011	Section 15
	Securities held by the Board Members	Section 17.2.1
	Environmental impacts of the SCOR's activity	Appendix C
	Recent development and prospects	Section 12 and Appendix A -
		Note 16
	SUBSIDIARIES AND AFFILIATES :
	Group Chart	Section 7
	Subsidiaries' business overview in 2011	Sections 6, 7, 9 and Appendix A § 2.3
	Purchase of shareholdings in 2011	Sections 20.1.6.3 and 4.1.11

REPORT OF THE CHAIRMAN OF THE BOARD OF DIRECTORS ON THE CONDITIONS FOR THE PREPARATION AND ORGANISATION OF THE WORK OF THE BOARD OF DIRECTORS AND THE INTERNAL CONTROL PROCEDURES SET UP BY THE ISSUER Appendix B

(1) The Company did not hold any cross shareholding in 2011.

(2) To our knowledge, there is no element which could have an impact in the event of a tender offer.

APPENDIX F: CROSS REFERENCE TABLE – ANNUAL FINANCIAL REPORT

APPENDIX F: CROSS REFERENCE TABLE – ANNUAL FINANCIAL REPORT

In order to assist readers of the Annual Financial Report, the following table cross-references the information required by Article L.451-1-2 of the French Monetary and Financial Code.

	Page
Statement by the person responsible for the Registration Document	9
Management report	408
Review of the parent company's and consolidated group's profit or loss, financial position, risks, and share issue authorizations (Articles L.225-100 and L.225-100-2 of the French Commercial Code)	15, 90, 18, 291
Information about items that could affect a public offer, as required by Article L.225-100-3 of the French Commercial Code	291
Information about share buybacks (Article L.225-211, paragraph 2, of the French Commercial Code)	295
Financial statements
Full-year financial statements	329
Statutory Auditors' report on the full-year financial statements	388
Consolidated financial statements	190
Statutory Auditors' report on the consolidated financial statements	285

European Company With a share capital of EUR 1,512,842,643.14 RCS Paris B 562 033 357

Corporate Office 5 avenue Kléber 75016 Paris France

Mail adress 5 avenue Kléber 75016 Paris France

Telephone : +33 (0)1 58 44 70 00 Fax : +33 (0)1 58 44 85 00