AM Best Affirms Credit Ratings of SCOR SE and Its Main Operating Subsidiaries

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 Covéa. 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 Activity Company was ceded to Covéa, on half-year net income was EUR 311 million.

SCOR is a top tier global reinsurer, with excellent product and geographic diversification. The group’s internationally recognised franchise, long-standing client relationships and technical expertise allow SCOR to effectively manage local and global reinsurance market cycles. The group is well-positioned to benefit from improved property/casualty reinsurance market conditions.

The FSR of A+ (Superior) and Long-Term ICRs of “aa-” (Superior) have been affirmed, with a stable outlook, for SCOR SE and its following operating subsidiaries:

• SCOR Switzerland AG
• SCOR UK Company Limited
• SCOR Reinsurance Asia-Pacific Pte Ltd
• SCOR Global Life USA Reinsurance Company
• SCOR Global Life Americas Reinsurance Company
• SCOR Global Life Reinsurance Company of Delaware
• SCOR Reinsurance Company
• SCOR Canada Reinsurance Company
• General Security National Insurance Company
• General Security Indemnity Company of Arizona

The following Long-Term IRs have been affirmed with a stable outlook:

SCOR SE—

-- “a” (Excellent) on EUR 500m 3.625% subordinated notes, due 2048

-- “a” (Excellent) on EUR 600m 3.00% subordinated notes, due 2046

-- “a” (Excellent) on EUR 250m 3.875% perpetual subordinated notes

-- “a” (Excellent) on EUR 250m 3.25% subordinated notes, due 2047

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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