French reinsurer Scor has had its long-term issuer default rating and insurer financial strength ratings upgraded by Fitch, owing to its strong solvency and moderate debt in relation to its risk profile.
The ratings agency upgraded Scor's long-term issuer IDS and IFS ratings to 'A+' from 'A'. It simultaneously upgraded Scor's junior subordinated debt to 'A-' from 'BBB+'.
The outlook on the IDRs and IFS ratings is stable.
"Scor has improved its capital adequacy over the past three years as a result of well-controlled underwriting practices and a cautious investment policy. Debt leverage has increased while remaining in line with expectations for the current ratings," Fitch said.
"Fitch notes Scor's ability to successfully expand its business position via external growth and to swiftly integrate acquired operations. As a consequence, business position and diversification have significantly improved over the past five years.
"In addition, prices paid for acquisitions have usually been conservative, resulting in a manageable amount of intangible assets on the group's balance sheet."
Scor's profitability has been under pressure over the past three years, especially at the non-life division, as a consequence of material natural catastrophes.
Fitch expects Scor to promptly adjust policies terms and conditions in order to restore profitability.
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