A.M. Best Lowers SCOR Group Ratings to A- (Excellent)

November 25, 2002

A.M. Best announced that it has lowered the financial strength rating of French reinsurer SCOR and its subsidiaries from A (Excellent) to A- (Excellent), and will keep all of the group’s ratings under review with negative implications.

A.M. Best also lowered SCOR’s senior debt and convertible bond ratings to “a-” from “a+” and its subordinated debt rating to “bbb” from “a-” and affirmed its AMB- rating of SCOR’s Commercial Paper Program.

The move follows SCOR’s announcement of further deterioration of 150 million Euros and its expected full-year 2002 loss of 400 million Euros, mainly due to adverse reserve developments and losses from its equity portfolio. (See IJ Website Nov. 18)

“The ratings will remain under review until A.M. Best has fully assessed SCOR’s revised underwriting strategy and updated actuarial analyses. SCOR’s maintenance of consolidated risk-based capital at a level consistent with an A- financial strength rating will be largely dependent on the successful completion of its proposed rights issue of EUR 381 million over the next two months,” said the announcement. “Failure to raise additional funds will place the current capitalisation under further strain, which could trigger a downgrade.”

The rating changes affect the following companies, Best indicated:
— SCOR Canada Reinsurance Company
— SCOR Deutschland Ruckversicherungs AG
— SCOR Italia Riassicurazioni S.p.A
— SCOR Reinsurance Asia-Pacific Pte Ltd
— SCOR Reinsurance Company(*)
— SCOR UK Company Ltd
— General Security Property and Casualty Company
— General Security Insurance Company
— General Security Indemnity Company
— General Security Indemnity Company of Arizona
— General Security National Insurance Company
— Commercial Risk Reinsurance Company Ltd
— Commercial Risk Re-Insurance Company
— SCOR Life U.S. Re Insurance Company
— Republic-Vanguard Life Insurance Company
— Investors Insurance Corporation

(*)SCOR Reinsurance Company is a U.S. trading company

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