Fitch Ratings has upgraded SCOR's Long-term Issuer Default Ratings (IDRs) and Insurer Financial Strength (IFS) ratings to 'A'+ from 'A'. Fitch has simultaneously upgraded SCOR's junior subordinated debt to 'A-' from 'BBB+'. The Outlook on the IDRs and IFS ratings is stable.
The upgrades reflect SCOR's strong solvency and moderate debt in relation to its risk profile. SCOR's ratings are also supported by significant business and risk diversification. The ratings also take into account the group's consistent and comprehensive strategy, solid business position, and somewhat volatile profitability.
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 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.
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