Standard & Poor's has raised SCOR’s and its core guaranteed subsidiaries long-term credit and insurer financial strength ratings to "A" from "A-" with a stable outlook. According to Standard & Poor’s the ratings decision reflects the continuing positive trend in SCOR's non-life underwriting performance and recognizes the resilience of SCOR's financial and business profile to major financial shocks. SCOR has successfully restored its financial strength and has reduced and diversified its risk profile. S&P further stressed that the January reinsurance renewals indicate a positive trend in pricing adequacy, providing further earnings momentum and offsetting some of the decline in investment yields. The new ratings also reflect their view of SCOR's strong competitive position, strong capitalization, strong liquidity and invested asset quality, and commitment to building a strong enterprise risk management (ERM) program.

 

Denis Kessler, Chairman and Chief Executive Officer of SCOR, comments: “We strongly welcome this decision by S&P. The upgrade to a strong ‘A’ rating reflects the Group’s very solid balance sheet and the successful completion of the acquisition of Converium. The upgrade is also the result of a successful business strategy that is withstanding the current financial crisis, enabling SCOR to benefit from its very strong market position in an attractive reinsurance market environment. For SCOR this upgrade serves also as a testimony that we are well on track in terms of achieving the solvency, profitability and capital management objectives set out in the three-year strategic plan ‘Dynamic Lift V2’ published in 2007.”

 

The decision by Standard & Poor’s follows last year’s upgrades from Fitch to "A" and Moody’s to "A2". Standard & Poor’s had set SCOR on a positive outlook on 3 September 2008.

 

The press release by Standard & Poor’s can be accessed via their homepage: http://www.standardandpoors.com