AM Best has downgraded the Financial Strength Rating (FSR) to A (Excellent) from A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a+” (Excellent) from “aa-” (Superior) of SCOR SE (SCOR) (France) and its main operating subsidiaries. Concurrently, AM Best has downgraded the Long-Term Issue Credit Ratings (Long-Term IRs) on SCOR’s outstanding rated instruments. The outlook of these Credit Ratings (ratings) has been revised to stable from negative. 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 adequate operating performance, very favourable business profile and appropriate enterprise risk management (ERM).
The rating downgrades reflect the deterioration in SCOR’s operating performance, which is no longer considered supportive of AM Best’s previous strong assessment.
In 2022, SCOR reported a sizable net loss of EUR 301 million and a combined ratio of 113.2%, driven by above-budget natural catastrophe losses and reserve strengthening carried out in the third quarter of the year. SCOR’s five-year average (2018-2022) non-life combined ratio and return-on-equity ratio are 102.5% and 3.5%, respectively, as calculated by AM Best. The group’s earnings diversification between non-life and life segments somewhat moderates volatility in its overall technical results. Non-life technical losses, recorded in each of the past six years, have been offset by profits from SCOR’s life portfolio in five of the six years, despite elevated mortality driven by the COVID-19 pandemic. In 2022, the life result was positively impacted by active management of the in-force book and a sizable excess reserve release in the third quarter.
While the group’s management has implemented remedial actions to improve underwriting performance, such as reduction of its peak exposures (natural catastrophe risk and U.S. mortality risk), nonrenewal of unprofitable…
The post AM Best Downgrades Credit Ratings of SCOR SE and Its Main Operating Subsidiaries… – Press Release appeared first on CaymanMama.com.
from CaymanMama.com https://ift.tt/qp6ZJla
No comments:
Post a Comment