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Dynamic duo?

Dear friend,

I hate management presentations, with all their stupid organo-grams and pie-charts. Give me straight talking any day.

So I had fun reading through Scor’s “dynamic lift” project. There are enough circular flow charts in there to make even a blind man dizzy.

You too can have the same fun checking through it all — but in case you start to feel a little light-headed, here is what analysts at Keefe Bruyette and Woods had to say about SCOR’s projections.

“SCOR has indicated that the 13% return should be achieved without capital repatriations beyond ordinary dividends. It has also stated that Converium's own standalone target of 14% is too ambitious … we believe SCOR would have to achieve a 15-16% RoE on a standalone basis to get to 13% pro forma if Converium hits its own targets. If Converium is weaker, SCOR must implicitly have a standalone return that is even higher.”

Now for the coup de grace:

“We find the numbers very difficult to square without assuming returns in SCOR that are out of line with the wider reinsurance sector.”

Well now that a formal tender offer has been tabled and the clock is properly ticking, it’s up to you to decide who's right.

Personally, both targets look ambitious to me, but then what do I know?

After all, I’ve already admitted that management-speak charts give me a headache!


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