Obbligazione SCORA 3.625% ( FR0013179314 ) in EUR

SCORA

98.65 EUR ▼

Francia

FR0013179314 ( in EUR )

3.625% per anno ( pagato 1 volta l'anno)

26/05/2048

Prospetto opuscolo dell'obbligazione SCOR FR0013179314 en EUR 3.625%, scadenza 26/05/2048

27/05/2026 ( In 53 giorni )

SCOR è un gruppo assicurativo e riassicurativo globale che offre soluzioni di riassicurazione, assicurazione e gestione del rischio a clienti in tutto il mondo.

L'obbligazione SCOR (ISIN: FR0013179314), emessa in Francia, con scadenza il 26/05/2048, offre un tasso di interesse del 3,625% pagabile annualmente, ed è attualmente negoziata al 98,65% del valore nominale in EUR.

PROSPECTUS DATED 25 MAY 2016

SCOR SE
500,000,000 Fixed to Reset Rate Subordinated Notes due 27 May 2048
Issue Price: 99.799 per cent.
This prospectus constitutes a prospectus (the Prospectus) for the purposes of Article 5.3 of the Directive 2003/71/EC of the European Parliament and
of the Council dated 4 November 2003, as amended, which includes the amendments made by Directive 2010/73/EU of the European Parliament and
of the Council dated 24 November 2010 and by Directive 2013/50/EU of the European Parliament and of the Council dated 22 October 2013 (the
Prospectus Directive) and the relevant implementing measures in the Grand-Duchy of Luxembourg.
The 500,000,000 fixed to reset rate subordinated notes due 27 May 2048 (the Notes) of SCOR SE (the Issuer or SCOR) will be issued outside
France on 27 May 2016 (the Issue Date) in the denomination of 100,000 each.
Unless previously redeemed, purchased or cancelled in accordance with the terms and conditions of the Notes, the Notes will be redeemed at their
Principal Amount (i.e. 100,000 per Note) on 27 May 2048 if the Conditions to Redemption and Purchase are satisfied and otherwise as soon as the
Conditions to Redemption and Purchase are satisfied as further specified in "Terms and Conditions of the Notes -- Redemption and Purchase". The
Issuer shall have the right (subject, in particular, to the Prior Approval of the Relevant Supervisory Authority) to redeem the Notes, in whole but not
in part, on the First Call Date and on any Interest Payment Date thereafter as further specified in "Terms and Conditions of the Notes -- Redemption
and Purchase". In addition, the Issuer may (subject, in particular, to the Prior Approval of the Relevant Supervisory Authority) redeem the Notes at
any time for tax reasons or following a Rating Event, a Capital Disqualification Event, an Accounting Event or if the conditions for a Clean-up Call
are satisfied, as set out in "Terms and Conditions of the Notes -- Redemption and Purchase".
Each Note will bear interest on its principal amount (i) from (and including) the Issue Date to (but excluding) 27 May 2028 (the First Call Date), at a
fixed rate of 3.625 per cent. per annum payable annually in arrear on 27 May in each year, commencing on 27 May 2017 and (ii) from (and including)
the First Call Date to (but excluding) the Redemption Date, at the relevant Reset Rate of Interest payable annually in arrear on 27 May in each year,
commencing on 27 May 2029, as further specified in "Terms and Conditions of the Notes -- Interest". Payment of interest on the Notes may at the
option of the Issuer, or shall, be deferred under certain circumstances, as set out in "Terms and Conditions of the Notes - Interest - Interest Deferral".
The Luxembourg Commission de Surveillance du Secteur Financier (the CSSF) is the competent authority in Luxembourg, pursuant to the
Prospectus Directive and the Luxembourg law on prospectuses for securities of 10 July 2005 as amended by law dated 3 July 2012, for the purpose of
approving this Prospectus. Application has been made to the Luxembourg Stock Exchange for the Notes to be listed on the Official List and admitted
to trading on the Regulated Market (within the meaning of Directive 2004/39/EC of the European Parliament and of the Council dated 21 April 2004)
of the Luxembourg Stock Exchange. By approving this Prospectus, the CSSF gives no undertaking as to the economic and financial soundness of the
transaction or the solvency of the Issuer in line with the provisions of article 7 (7) of the Luxembourg law on prospectuses for securities.
The Notes will be issued in dematerialised bearer form (au porteur). Title to the Notes will be evidenced in accordance with Article L.211-4 et seq.
of the French Code monétaire et financier by book-entries (inscription en compte) in the books of Account Holders. No physical document of title
(including certificats représentatifs pursuant to Article R.211-7 of the French Code monétaire et financier) will be issued in respect of the Notes. The
Notes will, upon issue, be inscribed in the books of Euroclear France, which shall credit the accounts of the Account Holders, as set out in "Terms and
Conditions of the Notes Denomination, Form and Title of the Notes".
The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act) or under any securities law
of any state or other jurisdiction of the United States and may not be offered or sold within the United States or to U.S. persons (as defined in
Regulation S under the Securities Act) except in transactions exempt from or not subject to the registration requirements of the Securities Act and in
compliance with any applicable state securities laws. Accordingly, the Issuer is offering the Notes only to non-U.S. persons outside the United States
in offshore transactions within the meaning of and in reliance upon Regulation S under the Securities Act (Regulation S).
The Notes are expected to be rated A by Standard & Poor's Credit Market Services France, a division of The McGraw-Hill Companies, Inc (S&P)
and A- by Fitch Ratings (Fitch). As at the date of this Prospectus, S&P and Fitch are established in the European Union and are registered under the
Regulation (EC) No. 1060/2009 of the European Parliament and of the Council dated 16 September 2009, on credit rating agencies, as amended by
Regulation (EU) No. 513/2011 (the CRA Regulation). As such, S&P and Fitch are included in the list of credit rating agencies published by the
European Securities and Markets Authority (ESMA) on its website (at http://esma.europa.eu/page/list-registered-and-certified-CRAs) in accordance
with the CRA Regulation. A credit rating is not a recommendation to buy, sell or hold securities and may be suspended, revised or withdrawn by the
rating agency at any time without notice.
Copies of this Prospectus are available on the websites of the Luxembourg Stock Exchange (www.bourse.lu) and of the Issuer (www.scor.com) and
may be obtained, without charge on request, at the principal office of the Issuer during normal business hours. Copies of all documents incorporated
by reference in this Prospectus are available (i) on the website of the Luxembourg Stock Exchange (www.bourse.lu).and (ii) on the website of the
Issuer (www.scor.com) and may be obtained, without charge on request, at the principal office of the Issuer during normal business hours.
An investment in the Notes involves certain risks. Potential investors should review all the information contained or incorporated by
reference in this document and, in particular, the information set out in the section entitled "Risk Factors" before making a decision to invest
in the Notes.
Structuring Advisor
BNP Paribas
Joint Bookrunners and Joint Lead Managers
BNP Paribas
Commerzbank
Crédit Agricole CIB
J.P. Morgan
Natixis
UBS Investment Bank

1

Certain information contained in this Prospectus and/or documents incorporated herein by reference has
been extracted from sources specified in the sections where such information appears. The Issuer confirms
that such information has been accurately reproduced and that, so far as it is aware and is able to ascertain
from information published by the above sources, no facts have been omitted which would render the
information reproduced inaccurate or misleading. The Issuer has also identified the source(s) of such
information.
Any websites included in the Prospectus are for information purposes only and do not form part of the
Prospectus.
References to the Group are to the Issuer, together with its consolidated subsidiaries.
This Prospectus is to be read in conjunction with any supplement, that may be published between the date of
this Prospectus and the date of listing of the Notes on the Official List and admission to trading of the Notes
on the Regulated Market of the Luxembourg Stock Exchange, and all documents which are incorporated
herein by reference (see the section entitled "Documents Incorporated by Reference"). This Prospectus shall
be read and construed on the basis that such documents are incorporated in, and form part of, this
Prospectus.
The Joint Bookrunners and Joint Lead Managers (as defined in the section entitled "Subscription and Sale",
herein the Managers) have not independently verified the information contained herein. Accordingly, no
representation, warranty or undertaking, express or implied, is made and no responsibility or liability is
accepted by the Managers as to the accuracy or completeness of any of the information contained or
incorporated by reference in this Prospectus or any other information provided by the Issuer in connection
with the issue and sale of the Notes.
This Prospectus constitutes a prospectus for the purpose of Article 5.3 of the Prospectus Directive and the
relevant implementing measures in the Grand Duchy of Luxembourg, in respect of, and for the purposes of
giving information with regard to, the Issuer, the Group and the Notes which, according to the particular
nature of the Issuer and the Notes, is necessary to enable investors to make an informed assessment of the
assets and liabilities, financial position, profit and losses and prospects of the Issuer and the Group.
In connection with the issue and sale of the Notes, no person is or has been authorised by the Issuer or the
Managers to give any information or to make any representation not contained in or not consistent with this
Prospectus and if given or made, such information or representation must not be relied upon as having been
authorised by the Issuer or the Managers.
Neither the delivery of this Prospectus nor the offering, sale or delivery of any Notes shall in any
circumstances imply that the information contained herein concerning the Issuer is correct at any time
subsequent to the date hereof or that there has been no change in the affairs of the Issuer or those of the
Group since the date hereof or the date upon which this Prospectus has been most recently supplemented or
that there has been no adverse change in the financial position of the Issuer or that of the Group since the
date hereof or the date upon which this Prospectus has been most recently supplemented or that any other
information supplied in connection with the issue and sale of the Notes is correct as of any time subsequent
to the date indicated in the document containing the same. The Managers do not undertake to review the
financial condition or affairs of the Issuer during the life of the Notes or to advise any investor in the Notes
of any information coming to its attention. Investors should review, inter alia, the documents incorporated
by reference into this Prospectus when deciding whether or not to subscribe for or to purchase any Notes.
Neither this Prospectus nor any other information supplied in connection with the issue and sale of the Notes
(a) is intended to provide the basis of any credit or other evaluation or (b) should be considered as a
recommendation by the Issuer or the Managers that any recipient of this Prospectus or any other
information supplied in connection with the issue and sale of the Notes should purchase any Notes. Neither
this Prospectus nor any other information supplied in connection with the issue and sale of the Notes
constitutes an offer or invitation by or on behalf of the Issuer or the Managers to any person to subscribe for
or to purchase any Notes.

2

In making an investment decision regarding the Notes, prospective investors should rely on their own
independent investigation and appraisal of (a) the Issuer, the Group, their business, their financial condition
and affairs and (b) the terms of the offering, including the merits and risks involved. The content of this
Prospectus is not to be construed as legal, business or tax advice. Each prospective investor should consult
its own advisers as to legal, tax, financial, credit and related aspects of an investment in the Notes and the
suitability of investing in the Notes in light of its particular circumstances. The Managers do not undertake
to review the financial condition or affairs of the Issuer or the Group after the date of this Prospectus nor to
advise any investor or potential investor in the Notes of any information coming to the attention of the
Managers. Potential investors should, in particular, read carefully the section entitled "Risk Factors" set
out below before making a decision to invest in the Notes.
This Prospectus does not constitute an offer to sell or the solicitation of an offer to buy any Notes in any
jurisdiction to any person to whom it is unlawful to make the offer or solicitation in such jurisdiction. The
distribution of this Prospectus and the offer or sale of Notes may be restricted by law in certain jurisdictions.
The Issuer and the Managers do not represent that this Prospectus may be lawfully distributed, or that any
Notes may be lawfully offered, in compliance with any applicable registration or other requirements in any
such jurisdiction, or pursuant to an exemption available thereunder, or assume any responsibility for
facilitating any such distribution or offering. In particular, no action has been taken by the Issuer or the
Managers which would permit a public offering of any Notes or distribution of this Prospectus in any
jurisdiction where action for that purpose is required. Accordingly, no Notes may be offered or sold,
directly or indirectly, and neither this Prospectus nor any advertisement or other offering material may be
distributed or published in any jurisdiction, except under circumstances that will result in compliance with
any applicable laws and regulations. Persons into whose possession this Prospectus or any Notes may come
must inform themselves about, and observe, any such restrictions on the distribution of this Prospectus and
the offering and sale of Notes. In particular, there are restrictions on the distribution of this Prospectus and
the offer or sale of Notes in the United States, the United Kingdom and France, see the section entitled
"Subscription and Sale".
This Prospectus is being provided for informational use solely in connection with the consideration of a
purchase of the Notes to qualified purchasers in offshore transactions complying with Rule 903 or Rule 904
of Regulation S under the U.S. Securities Act. Its use for any other purpose is not authorised. This
Prospectus may not be copied or reproduced in whole or in part, nor may it be distributed or any of its
contents be disclosed to anyone other than the prospective investors to whom it is being provided.
In this Prospectus, unless otherwise specified or the context requires, references to euro, EUR and are to
the single currency of the participating member states of the European Economic and Monetary Union
which was introduced on 1 January 1999.
In connection with the issue of the Notes, BNP Paribas (herein referred to as the Stabilising Manager, (or
persons acting on behalf of the Stabilising Manager), may over-allot or effect transactions with a view to
supporting the market price of the Notes at a level higher than that which might otherwise prevail but in
doing so the Stabilising Manager shall act as principal and not as agent of the Issuer. However, there is no
assurance that the Stabilising Manager (or persons acting on behalf of the Stabilising Managers) will
undertake stabilisation action. Any stabilisation action may begin on or after the date on which adequate
public disclosure of the final terms of the offer of the Notes is made and, if begun, may be ended at any time,
but it must end no later than the earlier of thirty (30) calendar days after the issue date of the Notes and sixty
(60) calendar days after the date of the allotment of the Notes. Any stabilisation action or over-allotment
must be conducted by the Stabilising Manager (or person(s) acting on its behalf) in accordance with all
applicable laws and rules. As between the Issuer and the Stabilising Manager, any loss resulting from over-
allotment and stabilisation shall be borne, and any profit arising therefrom shall be retained, by the
Stabilising Manager.

3

FORWARD-LOOKING STATEMENTS
Certain statements contained herein are forward-looking statements including, but not limited to, statements
that are predictions of or indicate future events, trends, business strategies, expansion and growth of
operations plans or objectives, competitive advantage and regulatory changes, based on certain assumptions
and include any statement that does not directly relate to a historical fact or current fact. The Issuer and the
Group may also make forward-looking statements in its audited annual financial statements, in its interim
financial statements, in its prospectuses, in press releases and other written materials and in oral statements
made by its officers, directors or employees to third parties. Forward-looking statements are typically
identified by words or phrases such as, without limitation, "anticipate", "assume", "believe", "continue",
"estimate", "expect", "foresee", "intend", "may increase" and "may fluctuate" and similar expressions or by
future or conditional verbs such as, without limitation, "will", "should", "would" and "could." Undue reliance
should not be placed on such statements, because, by their nature, they are subject to known and unknown
risks, uncertainties, and other factors and actual results may differ materially from any future results,
performance or achievements expressed or implied by such forward-looking statements. Please refer to the
section entitled "Risk Factors" below.
SCOR SE operates in a continually changing environment and new risks emerge continually. Forward-
looking statements speak only as of the date they are made and SCOR SE does not undertake any obligation
to update or revise any of these forward-looking statements, to reflect new information, future events or
circumstances or otherwise.

4

TABLE OF CONTENTS
Section
Page
Persons Responsible for the Information Given in the Prospectus ..................................................................... 6
Risk Factors ........................................................................................................................................................ 7
General Description of the Notes ..................................................................................................................... 43
Documents Incorporated by Reference ............................................................................................................ 56
Cross-Reference List ........................................................................................................................................ 57
Terms and Conditions of the Notes .................................................................................................................. 60
Use of Proceeds ................................................................................................................................................ 80
Description of the Issuer ................................................................................................................................... 81
Recent Developments ....................................................................................................................................... 82
Taxation ............................................................................................................................................................ 92
Subscription and Sale ....................................................................................................................................... 95
General Information ......................................................................................................................................... 97

5

PERSONS RESPONSIBLE FOR THE INFORMATION GIVEN IN THE PROSPECTUS
To the best knowledge of the Issuer (having taken all reasonable care to ensure that such is the case), the
information contained in this Prospectus is in accordance with the facts and contains no omission likely to
affect its import. The opinions and intentions expressed in this Prospectus with regard to the Issuer are
honestly held. The Issuer accepts responsibility for the information contained in this Prospectus.
SCOR SE
5, avenue Kléber
75016 Paris
France

Duly represented by:
Denis Kessler
Président du Conseil d'administration et Directeur Général

6

RISK FACTORS
Prior to making an investment decision, prospective investors in the Notes offered hereby should consider
carefully, among other things and in light of their financial circumstances and investment objectives, all the
information of this Prospectus (including information incorporated by reference herein) and, in particular,
the risks factors set forth below. Each of the risks highlighted below could have a material adverse effect on
the business, operations, financial conditions or prospects of the Issuer, which in turn could have a material
adverse effect on the amount of principal and interest which investors will receive in respect of the Notes. In
addition, each of the risks highlighted below could adversely affect the trading price of the Notes or the
rights of investors under the Notes and, as a result, investors could lose some or all of their investment.
The Issuer believes that the factors described below represent the principal risks inherent in investing in the
Notes, but this section is not intended to be exhaustive and the inability of the Issuer to pay interest, principal
or other amounts on or in connection with any Notes may be caused by events the occurrence of which, in
the view of the Issuer, is so unlikely that they should not be considered significant risks based on information
currently available to the Issuer or which it may not currently be able to anticipate.
Prospective investors should make their own independent evaluation of all risk factors contained in this
section.
Words and expressions defined in the section entitled "Terms and Conditions of the Notes" herein shall have
the same meanings in this section.
The order in which the following risks factors are presented is not an indication of the likelihood of their
occurrence.
RISK FACTORS RELATING TO THE ISSUER
The information included herein referring to the nature and extent of risks arising from financial instruments
and insurance and reinsurance contract as required by IFRS 7 Financial Instruments Disclosures and
IFRS 4 Insurance contracts, is an integral part of the consolidated financial statements of the Issuer as at
31 December 2015. As such, the corresponding information is audited.
The Group regularly conducts reviews of the risks that could have a material adverse effect on its activity, its
financial situation or its results (or capacity to reach objectives), and considers that no other significant risk
than those disclosed below exists. This section corresponds to the management's current view of the Group's
main risks.
The Group has identified the following categories of risks:
Strategic risks
Underwriting risks related to the Non-Life and Life reinsurance business
Market risks (including credit spread risk)
Counterparty default risks
Liquidity risks
Operational risks
If the risks disclosed herein were to occur, such occurrence may have a significant effect on the Group's
business, present and future revenues, net income, cash flows, financial position, and potentially, on its share
price.
All risks described herein are managed through a variety of mechanisms in the Group's ERM (Enterprise
Risk Management) Framework and must be considered together with the following information contained in
the 2015 DDR which is incorporated by reference in this Prospectus:

7

Section 3.3 for a description the risk main management measures, processes and hedging positions
planned or implemented by the Group in order to identify, assess and mitigate the risks on pages 141
to 152 of the 2015 DDR and;

Appendix A Report of the chairman on the internal control for a description of the Group risk
management organization as well as the role and functioning of each administrative and management
bodies and teams involved in risk management and relevant control activities on pages 246 to 260 of
the 2015 DDR.
Although risk management mechanisms have been designed and rolled out across the Group in order to
prevent all risk factors from having a significant impact on the Group, there is no guarantee that these risk
management mechanisms achieve their intended objective. Many of the Group's methods for managing risk
and exposures are based upon the use of observed historical market behavior, of statistics based on historical
models, or the use of expert judgment. As a result, these methods may not fully predict future exposures,
which can be significantly greater than what 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
the Group. This information may not always be accurate, complete, up-to-date or properly evaluated.
The Group may also be exposed to emerging risks, which include new threats but also evolving risks, and are
characterized by a very high degree of uncertainty. They may arise from the numerous changes to the
environment in which the Group operates, such as changes in professional practices, changes in legal,
jurisdictional, regulatory, social, political, economic, financial and/or environmental conditions.
Emerging risks may adversely affect the Group's reinsurance business due to either a change in
interpretation of the contracts or by increasing the frequency and/or severity of claims. Such risks may also
lead to higher fluctuations than expected in macro-economic indicators such as interest rates and price level,
or disruptions in financial markets, further impacting the Group's business. In addition, emerging risks may
also have a direct impact on the Group's operations, for instance by generating unexpected additional
expenses. Examples of emerging risks include: cyber-attacks, non-controlled bio-experiments, climate
change, electromagnetic fields, extreme social unrest and Eurozone break-up.
Therefore, the Group cannot exclude the possibility of exceeding its risk tolerance limits due to an incorrect
estimation of its risks and exposures. This may induce an adverse impact on the Group's business, present
and future revenues, net income, cash flows, financial position, and potentially, on the Group's share price.
1.
STRATEGIC RISKS
"Strategic risk" covers two different kinds of risks: (i) those entailed by the strategy itself, such as
the accumulation of risks or development in lines of business or less known markets, and the
financial or operational risks related to acquisitions, and (ii) risks that could hinder the success of the
strategy, whether arising from external factors, such as an adverse economic environment, or internal
factors, such as certain causes of operational risks. Therefore many of the risks discussed in the next
section, including emerging risks, could also impact the success of the strategy.
1.1
Risks related to the macro-economic environment affecting the Group's strategy
The main risks are the uncertain economic recovery, impacting on the Group's growth, especially in
emerging countries, and the poor returns on financial markets amplifying the adverse competitive
environment.

8

Difficult conditions in the global capital markets and the economy generally may materially
adversely affect the Group's business and results of operations.
The Group's results of operations could be materially affected by the global capital markets
conditions and the economy in France, other countries in continental Europe, the United Kingdom,
the United States of America and elsewhere around the world, particularly in Latin America and
Asia Pacific. Any continued deterioration in macroeconomic trends could have an adverse effect on
the Group's business and results of operations, even more so as the global economy is still in
convalescence since the 2008 financial crisis and remains vulnerable to negative economic, financial
and geo-political shocks fueled by on-going tensions or open conflicts in several regions across the
world. In particular, the growing debt of governments in advanced economies and of private
companies in emerging countries could generate significant adjustments if the main central banks
were to raise interest rates. As a result, financial markets could enter a period of high volatility which
could lead to adverse consequences such as waves of company defaults, or a major liquidity crisis.
The financial situation in many countries of the Eurozone remains unstable and downgrades of some
states' financial ratings have occurred. While the Group 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 1.3.5.4 Net investment income on pages 36 to 39 of the
2015 DDR and Section 4.6 Notes to the consolidated financial statements, Note 7 Insurance
Business Investments on pages 184 to 193 of the 2015 DDR.
The global economy may suffer from a sharp turn in American monetary policy, which could spur a
rise in interest rates all along the yield curve. Financing conditions could thus deteriorate across
sectors and economies. In particular, the emerging and developing countries may suffer from capital
outflows in the wake of such a US monetary normalization.
This difficult environment and the continuing market upheavals may have an adverse effect on the
Group, from both an investment and reinsurance business viewpoint.
Impact on the Group's investments
The Group has a large investment portfolio. In the event of extreme prolonged market events, such
as global credit crises, the Group could incur significant losses in its investment portfolio.
Refer to Section 4.6 Notes to the consolidated financial statements, Note 7 Insurance Business
Investments on pages 184 to 193 of the 2015 DDR, which includes analyses of unrealized and
realized investment losses.
Even in the absence of a market downturn, the Group remains exposed to a substantial risk of loss
due to market volatility. See Section 3 Market Risks; the Group is exposed to other risks arising
from the investments it owns.
Impact on the Group's reinsurance business
The Group is also dependent upon customer behavior / premium growth. The Group's premiums are
likely to decline in such circumstances and its profit margins could erode. In an economic downturn
characterized by higher unemployment, lower household income, lower corporate earnings, lower
business investment and lower consumer spending, the demand for the Group's and its clients'
products could be adversely affected. Factors such as government and consumer spending, business
investment, the volatility and strength of both debt and equity markets, and inflation, all affect the
business and economic environment and ultimately, the size and profitability of the Group's
business.

9

In addition, the Group may experience an elevated incidence of claims or be impacted by a decrease
in demand for reinsurance and increased surrenders of policies from the cedents (see paragraph on
lapse risk in Section 2.2 Life Reinsurance) that could affect the current and future profitability of its
business. Although written premiums have seen steady growth in prior years, a prolonged economic
crisis could result in lower written premiums in the future.
These adverse changes in the economy could materially affect the Group.
The Group is exposed to significant and protracted deviations of the general price level from its
trend
The Group's liabilities are exposed to a significant 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 (medical among others) and motor bodily injury
claims. In addition, the Group 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.
The Group'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. Increased inflation could also have an unfavorable impact 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 the Group's equity portfolio. Any negative fluctuations in equity values would lead to a
similar decrease in the shareholders' equity.
Conversely, the Group's liabilities could be exposed to a protracted period of deflation which could
exert a negative pressure on reinsurance prices and decrease the value of new premiums.
A protracted period of deflation would induce a decrease of interest rates all along the yield curve
and may therefore negatively impact the returns on the Group's fixed income assets. In addition, the
value of the Group's equity portfolio might be reduced as deflation could reduce the future cash
flows of the companies whose stocks are part of the Group's portfolio.
In conclusion, both high inflation and a protracted episode of deflation could have a material adverse
effect on the Group.
Risks related to regulatory initiatives failing to stabilize the financial markets
Governmental initiatives intended to alleviate the 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 the Group'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 in the UK, the US1, and in
France2 as well as the Basel III agreements reached by the Basel Committee on Banking
Supervision. Additionally, the EU has established the European Stability Mechanism (ESM) to assist
European governments with their budgetary deficits and to stabilize the sovereign debt markets in
the Eurozone.
These initiatives and other proposals or actions may then have other consequences, including
material effects on interest rates and foreign exchange rates, and in particular, the future viability of

1 Under the Emergency Economic Stabilization Act of 2008
2 Under the Financial and Banking Regulation Act of 2010

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