AM Best Affirms Credit Ratings of SCOR SE and Its Main Operating Subsidiaries.
ENPNewswire-September 23, 2021--AM Best Affirms Credit Ratings of SCOR SE and Its Main Operating Subsidiaries
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Release date- 22092021 - AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'aa-' (Superior) of SCOR SE (SCOR) (France) and its main operating subsidiaries.
Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) on SCOR's outstanding rated instruments. The outlook of these Credit Ratings (ratings) is stable. See below for a detailed listing of companies and ratings.
The ratings reflect SCOR's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management.
SCOR's balance sheet strength is underpinned by risk-adjusted capitalisation that exceeds the level required to support the strongest assessment, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best expects SCOR's risk-adjusted capitalisation to be maintained at the strongest level prospectively, supported by its conservative investment portfolio and robust retrocession programme designed to shield its capital base. A partially offsetting factor is SCOR's reliance on soft capital components, which include hybrid debt, value of in-force life business and a contingent capital facility.
SCOR's operating performance is strong, demonstrated by a 10-year (2011-2020) weighted average return-on-equity ratio of 7.9% (as calculated by AM Best). In 2020, SCOR delivered a net profit of EUR 234 million (2019: EUR 422 million), despite exposure to significant natural catastrophe events and COVID-19 pandemic-related losses. Despite elevated mortality experience due to COVID-19 in 2020, profits from SCOR's life reinsurance business partly offset losses in property/casualty reinsurance, demonstrating the benefit of the group's good balance of earnings. Additionally, healthy investment income contributes to operating profitability.
For the first half of 2021, the group reported a net profit of EUR 380 million (half-year 2020: EUR 26 million), positively impacted by the execution of SCOR's retrocession contract with Covea. The impact of the retrocession agreement, under which 30% of all life in-force business carried by SCOR Global Life Reinsurance Ireland Designated Activity Company and SCOR Life Ireland Designated...
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