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

AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of SCOR SE (SCOR) (France) and its main operating subsidiaries. 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 adequate operating performance, very favourable business profile and appropriate enterprise risk management.

SCOR’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR), supporting its very strong balance sheet strength assessment. AM Best expects SCOR’s risk-adjusted capitalisation to be maintained at least at the very strong level prospectively, supported by the group’s conservative investment portfolio and robust retrocession programme. 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 assessment is adequate, supported by improved underwriting in 2023 and solid investment activities result over the business cycle. In 2023, SCOR delivered a net profit of EUR 812 million under IFRS 17 supported by all business activities (2022: EUR 301 million loss under IFRS 4 driven by above-budget natural catastrophe losses and reserve strengthening carried out in the third quarter of the year). The improvement in the group’s technical performance in 2023 reflects the benefit of the remedial actions implemented since 2022, including the reduction of peak exposures, as well as improved pricing conditions in most segments of the global reinsurance market.

SCOR is a top tier global reinsurer, with excellent product and geographical diversification. The group’s internationally recognised franchise, long-standing client relationships and technical expertise allow SCOR to manage local and global reinsurance market cycles effectively. The group is well-positioned to benefit from improved reinsurance market conditions and positive pricing momentum, while executing on its stated objective to reduce earnings volatility.

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

• 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 stable outlooks:

SCOR SE—

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

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

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

-- “a-” (Excellent) on EUR 250 million 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 Performance Assessments, 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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