Moody’s assigns A1 IFSR to SCOR and institutions, outlook maintained at stable

Global rating agency Moody’s Ratings has affirmed the A1 insurance financial strength ratings (IFSR) of French reinsurer SCOR and its core businesses, all with stable outlooks. At the same time, all debt ratings were affirmed by Moody’s.

Despite rebalancing its insurance portfolio, SCOR has maintained its franchise strength in the global reinsurance market and its high level of business and geographic diversification, as reflected in this rating action.

The statement also reflects the improvement in SCOR’s property and casualty (P&C) reinsurance underwriting performance since 2023, driven in part by a reduction in natural catastrophes and adverse loss experience in the prior year.

Moody’s noted positively that SCOR has begun implementing a more conservative P&C compensation reserve approach, which, if successful, should support lower volatility earnings going forward.

But that improvement was tempered by an assumptions review in SCOR’s Life reinsurance segment, which has already negatively impacted the company’s net result of negative €112 million for the first half of 2024. It also reduced the life contracted service margin and a measure of future profitability.

Moody’s said SCOR’s capital remains strong, consistent with its rating level, but the company is expected to maintain its Solvency II ratio near the lower end of its target range of 185-220%, at least in the short term, overturning previous assumptions about the upper end of its target range.

Moody’s stable outlook reflects the expectation that SCOR will maintain its strong position in both the global P&C and Life reinsurance sectors, gradually improve profitability in both earnings levels and volatility, and maintain the Solvency II ratio within its target range.

Moody’s will continue to monitor SCOR’s future actions to update its ratings.