Scor Global Investments, the Scor Group's asset management company, said it achieved a return on invested assets of 3.1% in the first nine months of 2015, thanks to its active portfolio management in the low yield environment.
It said it was maintaining its prudent investment strategy and has decided to temporarily further increase liquidity by two percentage points, compared with the second quarter of 2015, to 11% of the invested assets portfolio, while maintaining the fixed-income portfolio duration (excluding cash) broadly stable at 4.0 years at 30 September 2015.
In the first half of the year, the asset manager had increased liquidity by 4 percentage points to 9% of the invested assets portfolio, while maintaining the fixed-income portfolio duration (excluding cash) stable at 4.1 years, at 30 June 2015 (IAR, 29 July, Scor Global Investments makes good first-half investment return).
"The stable average rating of AA- bears witness to the quality of the fixed-income portfolio," the company said. Scor Global Investments continues to have no exposure to sovereign debt from Greece, Ireland, Italy, Portugal or Spain.
At 30 September 2015, the expected financial cash flow over the next 24 months stood at €6.1bn ($6.65bn) "facilitating dynamic management of the reinvestment policy in view of a possible rise in interest rates."
During the first nine months of 2015, invested assets generated a contribution of
€408m. Active asset management by Scor Global Investments enabled the group to record capital gains of €145m over the period, mainly from the equity portfolio.
The return on invested assets stood at 3.1% for the first nine months of 2015, compared with 2.9% for the same period last year. Taking account of funds withheld by cedants, the net rate of return on investments stood at 2.6% for the first nine months of 2015. The reinvestment yield was 2.0% at the end of the third quarter of 2015.
Invested assets (excluding funds withheld by cedants) amounted to €17.355bn at
30 September 2015. The composition was: 9% cash, 78% fixed income (of which 2% were short-term investments), 3% loans, 3% equities, 5% real estate and 2% other investments.
Total investments, including €8.960m of funds withheld, stood at €26.315bn at
30 September 2015, compared with €24.854bn at 31 December 2014.
