PUBLISHED AT 12:22AM CET
SCOR has been informed of Fitch’s decision to affirm the Group’s Financial Strength Rating of ‘AA-‘ (Very Strong) and Long-Term Issuer Default Rating (IDR) at ‘A+’. Fitch has also affirmed the ratings of SCOR’s core operating subsidiaries. The Outlooks are Stable.
According to Fitch, this decision reflects “Fitch’s current assessment of the impact of the coronavirus pandemic, including its economic impact, under a set of rating assumptions.”
Fitch assesses “SCOR’s capitalisation and leverage as very strong”, both in their “rating and stress cases and versus the last two years. Fitch does not foresee a material weakening of SCOR’s capital strength in the medium-term, assuming a normal level of catastrophe losses.”
The agency concludes that “We expect the assumed pro-forma COVID-19 related losses to be one-off and manageable for SCOR; we expect the resulting weaker profitability to recover to a normalised ROE of around 8% by end-2021.”
Denis Kessler, Chairman & Chief Executive Officer of SCOR, comments: “We welcome Fitch’s decision to affirm SCOR’s Financial Ratings. This decision, which clearly demonstrates the soundness of our strategy as a Tier 1 global reinsurer, testifies to the resilience of the Group’s business model in the current pandemic crisis.”
The Fitch press release is available on the agency’s homepage at the following address: http://www.fitchratings.com.