PARIS, April 19, 2002 (PRIMEZONE) -- Jacques Blondeau chaired SCOR's (NYSE:SCO) Annual Shareholders' Meeting, held in Paris on Thursday, April 18, 2002; all the resolutions submitted for approval were adopted.
During the meeting, the Chairman commented the strategic initiatives implemented by the Group in recent months:
-- Consolidation of its activities in growth sectors, with its
decision to withdraw completely from "Program Business" and
partially from the Surety market in the United States, as well as
its progressive withdrawal from the Health sector.
-- Reduction of its risk profile, with the placement in January 2002
of a Cat Bond, Atlas Re II, and, in April 2002, of a protection
for its Credit Reinsurance risks.
-- Reallocation of resources to its core business, namely following
the sale of the Group's investment in Coface and its Fulcrum
business unit, respectively in March and April 2002.
-- Increase in Group shareholders' equity, at the time of Sorema's
acquisition and the creation of Irish Reinsurance Partners in July
and December 2001.
The Chairman noted that, as a result of these initiatives, SCOR has the appropriate level of shareholders' equity to pursue its targets in terms of strong organic growth. He indicated, however, that in the event of a major acquisition, the Group may call on the markets.
Jacques Blondeau confirmed that, in terms of commercial development, SCOR had been able to strengthen its market shares across its different sectors of activity. He also mentioned the marked improvement in rates and underwriting conditions, which have continued to prevail since the beginning of the year, particularly the April 1st renewals in Asia.
In answer to different questions put forward by the shareowners, the Chairman reiterated the importance of the role of Corporate Governance at SCOR and the measures that have been in place for several years now, notably as regards:
-- Executive management's variable compensation: varies according to
the level of the Group's consolidated results. The Chairman & CEO
and the President & COO therefore received no variable
compensation in 2001; their total compensation was reduced by 40%.
-- Stock options: eligible to all Group employees, stock options were
allocated to 162 Managers throughout the world in 2001. The option
plans are served by shares bought on the market with no dilutive
effect to shareowners.
-- Directors' fees vary according to the number of board meetings
held, which amounted to nine in 2001.
The Meeting approved the proposed dividend of EUR 0.45 per share (including a tax credit of EUR 0.15), which will be paid on May 2, 2002. Furthermore, the Chairman confirmed the Group's objective to return soon to a good level of profitability.
The full effects of these measures taken by SCOR, in a market environment that has now turned highly positive, will be progressively felt over the course of the financial year. 2002, exceptional events notwithstanding, should therefore mark a return to levels of profitability that are in line with the Group's aims.
Jacques Blondeau thanked the Group's teams for their unfailing efforts and professionalism and SCOR's shareowners for their commitment and loyalty.
With 30 offices around the world, serving clients in over 150 countries, SCOR is France's largest reinsurer and one of the industry world leaders. Thanks to its ability to provide innovative technical and service support, the SCOR Group has built up a well balanced portfolio of Property and Casualty, Life, Accident & Health and Specialty reinsurance products and services. The Group's ratings, which include AA- from Fitch, A (Excellent) from AM Best and A+ from Standard & Poor's, reflect its financial strength and underwriting expertise. SCOR shares, which belong to the SBF 120, Bloomberg European Insurance, NEXT 150 and Dow Jones STOXX indexes, are listed in Paris and New York. SCOR has a widely diversified international shareholder base, with more than 20,000 shareholders in 64 countries.
Certain statements contained in this press release are forward-looking statements that are based on risks and uncertainties that could cause actual results, performance or events to differ materially from those in such statements. Additional information regarding risks and uncertainties is set forth in the current annual report of the company.