As part of its overall rating actions on France’s SCOR Group (See related article in International section), A.M. Best Co. has upgraded the financial strength rating to “A-” (Excellent) from “B++” (Very Good) and the issuer credit ratings to “a-” from “b++” of SCOR Reinsurance Company and its subsidiaries, General Security National Insurance Company (both of New York, NY) and General Security Indemnity Company of Arizona, collectively known as SCOR US Group. The ratings are being removed from under review and assigned a stable outlook.
The rating actions “consider the recent demonstration of explicit support” provided by the SCOR S.A. in the form of an $80 million capital infusion into its U.S. subsidiary, SCOR Reinsurance Company,” Best noted. “Capital infusions now total approximately $580 million over the last five year period. This most recent capital infusion was necessary to enhance the company’s risk-adjusted capitalization in anticipation of SCOR US Group’s re-emergence into the U.S. market, the planned assumption of the SCOR Latin America treaty and facultative portfolio in 2007 and the absorption of any residual prior year adverse loss reserve development, which is anticipated to be at lower levels from prior years.”
Best also indicated that the “SCOR US Group continues its commutation strategy as a way of strengthening its surplus position and has refocused its business model toward a treaty reinsurance book. SCOR US Group is doing this by exiting from program and some facultative lines of business, as well as reducing or exiting other unprofitable lines.”
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