A.M. Best Europe – Ratings Services Limited has affirmed the financial strength rating (FSR) of ‘A’ (Excellent) and the issuer credit rating (ICR) of “a” of French reinsurer SCOR SE and its subsidiaries. Best also affirmed the subordinated debt ratings on SCOR. The outlook for all ratings remains stable.
The acquisition of Transamerica Re’s life portfolio is “likely to strengthen SCOR’s global reinsurance profile and raise its prominence in the US life reinsurance market,” said Best. The transaction will “provide international portfolios that are complementary to SCOR’s existing profile, focused mainly on traditional life mortality business, which will assist future development of SCOR’s life business. The acquired business also conforms to SCOR’s performance targets.”
In addition Best noted that “risk-adjusted capitalization following completion of the acquisition is expected to remain supportive of SCOR’s current ratings, and financial leverage will also remain within A.M. Best’s tolerance level. Furthermore, SCOR’s capital position is sufficient to absorb the catastrophe losses experienced in the first quarter of 2011 arising from Australia, New Zealand and Japan.”
The rating agnecy said it would continue to “closely monitor implementation of the acquisition plans to ensure that execution is in line with expectation.”
Best summarized the various entities covered by its ratings as follows:
The FSR of ‘A’ (Excellent) and the ICR of “a” have been affirmed for SCOR SE and its following subsidiaries:
SCOR Global Life SE
SCOR Global P&C SE
SCOR Switzerland AG
SCOR Rueckversicherung (Deutschland) AG
SCOR UK Company Ltd
SCOR Reinsurance Asia-Pacific Pte Ltd
The following subordinated debt ratings are also affirmed:
— “bbb+” on EUR 100 million [$148.5 million] subordinated step-up notes, due 2020
— “bbb+” on USD 100 million subordinated step-up notes, due 2029
— “bbb+” on EUR 350 million [$520 million] 6.154% undated deeply subordinated notes
— “bbb+” on EUR 50 million [$74.2 million] subordinated step-up notes issued by
Société d’Etudes et de Placements Financiers and guaranteed by SCOR,
due 2049
— “bbb+” on CHF 400 million [$458.5 million] 5.375% undated deeply subordinated notes
Source: A.M. Best
Topics Reinsurance
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