By: A.M. Best
A.M. Best has upgraded SCOR’s Financial Strength Rating to ‘A+ (Superior)’ from ‘A (Excellent)’ and raised its Issuer Credit Rating to ‘aa-‘ from ‘a+’.
According to A.M. Best, this decision reflects “SCOR’s track record of strong and resilient operating profitability and its very strong risk-adjusted capitalisation, despite persisting challenging market conditions.”, adding that “the ratings also reflect SCOR’s excellent business profile as a tier 1 reinsurer, its well-diversified portfolio of non-life and life reinsurance, and the group’s excellent enterprise risk management (ERM) framework.”
A.M. Best also recognizes that “SCOR’s business model and conservative risk appetite relative to reinsurance peers support low volatility in both earnings and capital adequacy”, adding that “further underpinning the group’s stability of both earnings and risk-adjusted capitalisation is its excellent ERM framework’, which “incorporates sophisticated capital management tools, which are fully integrated into the operational and strategic decision-making processes of the group.”
A.M. Best based its decision on SCOR’s “excellent business profile as a tier 1 global reinsurer, which has enabled the group to develop a diversified portfolio which is well-balanced between life and non-life” and “enables SCOR to effectively manage local and global market cycles, which has become increasingly beneficial considering the persisting challenging market conditions of the global reinsurance sector.”
Denis Kessler, Chairman and CEO of SCOR, comments: “We are absolutely delighted with this decision by A.M. Best to upgrade our rating to ‘A+’. We are very happy that A.M. Best recognizes the superiority of SCOR’s business model, which is characterized in particular by high diversification, optimal solvency, active risk management and prudent asset management. This decision by A.M. Best follows the upgrades of our rating to ‘AA-‘ by S&P and Fitch in 2015 and to ‘Aa3’ by Moody’s in 2016. We are approaching the renewal period with excellent momentum. All our teams are mobilized to provide our clients worldwide with first-class P&C and Life reinsurance services, supported by a high level of solvency”.