AM Best Places Credit Ratings of SCOR SE and Its Main Operating Subsidiaries Under Review With Developing Implications
July 24 2024 - 3:37PM
Business Wire
AM Best has placed under review with developing
implications the Financial Strength Rating (FSR) of A (Excellent)
and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a+”
(Excellent) of SCOR SE (SCOR) (France) and its main operating
subsidiaries. See below for a detailed listing of companies and
Credit Ratings (ratings).
The ratings have been placed under review with developing
implications following SCOR’s publication of an update on its
second-quarter 2024 and full-year 2024 results. In its press
release, published on 15 July 2024, SCOR announced that it has
decided to accelerate its life & health (L&H) reserving
assumptions review subsequent to negative experience variance in
first-quarter 2024. As a consequence, the L&H insurance service
result (ISR) is expected at EUR -400 million for second-quarter
2024, driven notably by updates on reserves and negative experience
variance. As a result, the L&H ISR for full-year 2024 is
expected to be significantly below the EUR 500 million target
previously communicated. Reserving assumption changes will also
impact the organisation’s pre-tax L&H contractual service
margin (CSM), with a negative adjustment (at current yield curves)
of EUR 900 million as per second-quarter 2024.
SCOR’s announcement notes that the reserving review is ongoing
and could lead to potential further negative adjustments to the ISR
or CSM during the second half of 2024 in a worst-case scenario.
AM Best expects the ratings to remain under review until SCOR’s
reserving review has been finalised, the new strategic plan for
L&H business is disclosed in December 2024, and until AM Best
completes its assessment of the impact on the rating fundamentals
of SCOR.
The FSR of A (Excellent) and the Long-Term ICRs of “a+”
(Excellent) were placed under review with developing implications
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 Issue Credit Ratings were placed under
review with developing implications:
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.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Morgane Hillebrandt Senior Financial Analyst +31 20 808
3176 morgane.hillebrandt@ambest.com
Dr. Mathilde Jakobsen Senior Director, Analytics +31 20 808
3118 mathilde.jakobsen@ambest.com
Christopher Sharkey Associate Director, Public Relations +1
908 882 2310 christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1 908 822
2318 al.slavin@ambest.com