French reinsurer SCOR has welcomed Standard & Poor’s(S&P) decision to affirm its ‘AA-’ rating with ‘stable outlook’, recognizing the group’s ability to absorb the shock of the COVID-19 pandemic crisis.SCOR has been informed of S&P's decision to affirm the financial strength rating for the Group and its main subsidiaries at “AA-”, with a “stable outlook”.
According to S&P, this decision reflects their expectation that SCOR “will maintain capital adequacy above the 'AAA' level under S&P’s risk-based model and improve earnings in 2021-2022, with market leading positions in life and P&C reinsurance”.
Amog the SCOR's strength,S&P has highlighted-
-SCOR’s “market-leading positions in the global P&C and life reinsurance markets and its well diversified business mix by product and line of business”;
-SCOR's “ability to leverage moderate price increases in global P&C reinsurance over the past 18 months, as well as a robust retrocession program that enabled it to reduce earnings volatility”;
-SCOR’s capital adequacy, based on their risk-based model, will stay well above the 'AAA' level in 2020-2021 and that the Group’s solvency ratio will likely remain comfortably within its target capital range of 185%-220% in 2020”. They believe that the Group “continues to be sufficiently capitalized to cope with further market volatility and possible large man-made losses or natural catastrophe events to which it remains exposed”.
Denis Kessler, Chairman & Chief Executive Officer of SCOR, commented “We welcome Standard & Poor’s decision to affirm SCOR’s Financial Ratings. This decision demonstrates the Group’s ability to offer its clients an optimum level of security and the resilience of its business model, particularly in the current pandemic crisis. It also clearly reinforces the relevance of our strategy as a global Tier one reinsurer”.