Moody's upgrades SCOR from A1 to Aa3, with a stable outlook
(Thomson Reuters ONE) -
Press Release
23 September 2016 - N° 22
Moody's upgrades SCOR from A1 to Aa3, with a stable outlook
Moody's Investors Service (Moody's) has today upgraded SCOR SE's insurance
financial strength rating to Aa3 from A1, and its subordinated debt rating to
A2(hyb) from A3(hyb). The outlook is stable. Moody's also upgraded the ratings
of various SCOR SE subsidiaries.
This follows Moody's decision in December 2015 to raise SCOR's outlook to
"positive" from "stable"[1].
Moody's highlights that this upgrade reflects (i) SCOR's improved franchise,
(ii) its diversified business profile and lower exposure than peers to the
segments currently under the most pricing pressure, (iii) the high stability of
its profits and (iv) its strong and stable capitalisation.
Over the course of SCOR's new strategic plan, "Vision in Action", Moody's
expects SCOR to "continue to gradually strengthen the group's franchise and
diversification without significantly increasing the group's risk profile". With
regard to the Group's targets, Moody's comments that SCOR's "targeted level of
profitability (800 bps over the risk-free rate) and of capital (Solvency II
ratio in the 185%-220% range) will contribute to maintain an overall credit
profile commensurate with a Aa3 insurance financial strength rating".
In terms of franchise, Moody's believes that "SCOR is one of the reinsurers
which has and will benefit the most from the structural changes in ceding
companies' behaviour". Moody's also values SCOR's diversified business model
which "positively differentiates it from A1 reinsurers and is also a key
strength of the group's credit profile". The rating agency stresses that "this
diversification, together with a relatively lower exposure to the most volatile
reinsurance segments (e.g., natural catastrophes) than peers, translates into a
high level of stability in earnings".
Regarding the current environment, Moody's expects "the impact of pricing
pressures on SCOR's profits to remain moderate, thanks to relatively low
exposure to the segments under most pricing pressure currently and a high weight
of proportional reinsurance and of primary insurance businesses".
Denis Kessler, Chairman and CEO of SCOR, comments: "This decision highlights the
relevance of SCOR's strategy and business model. The reasons given by Moody's
for this upgrade are fully consistent with the profitability and solvency
targets of SCOR's new strategic plan "Vision in Action", launched on 7 September
2016".
Moody's press release is available on the agency's homepage at the following
address:
https://www.moodys.com/
*
* *
Contact details
Marie-Laurence Bouchon
Group Head of Communications
+33 (0)1 58 44 76 10
mbouchon(at)scor.com
Bertrand Bougon
Head of Investor Relations
& Rating Agencies
+33 (0)1 58 44 71 68
bbougon(at)scor.com
http://www.scor.com/
SCOR photo gallery
Twitter: (at)SCOR_SE
Forward-looking statements
SCOR does not communicate "profit forecasts" in the sense of Article 2 of (EC)
Regulation n°809/2004 of the European Commission. Thus, any forward-.looking
statements contained in this communication should not be held as corresponding
to such profit forecasts. Information in this communication may include
"forward-looking statements", including but not limited to statements that are
predictions of or indicate future events, trends, plans or objectives, based on
certain assumptions and include any statement which does not directly relate to
a historical fact or current fact. Forward-looking statements are typically
identified by words or phrases such as, without limitation, "anticipate",
"assume", "believe", "continue", "estimate", "expect", "foresee", "intend", "may
increase" and "may fluctuate" and similar expressions or by future or
conditional verbs such as, without limitations, "will", "should", "would" and
"could." Undue reliance should not be placed on such statements, because, by
their nature, they are subject to known and unknown risks, uncertainties and
other factors, which may cause actual results, on the one hand, to differ from
any results expressed or implied by the present communication, on the other
hand.
Please refer to the 2015 reference document filed on 4 March 2016 under number
D.16-0108 with the French Autorité des marchés financiers (AMF) posted on SCOR's
website www.scor.com (the "Document de Référence"), for a description of certain
important factors, risks and uncertainties that may affect the business of the
SCOR Group. As a result of the extreme and unprecedented volatility and
disruption of the current global financial crisis, SCOR is exposed to
significant financial, capital market and other risks, including movements in
interest rates, credit spreads, equity prices, and currency movements, changes
in rating agency policies or practices, and the lowering or loss of financial
strength or other ratings.
The Group's financial information is prepared on the basis of IFRS and
interpretations issued and approved by the European Union. This financial
information does not constitute a set of financial statements for an interim
period as defined by IAS 34 "Interim Financial Reporting".The Group's financial
information is prepared on the basis of IFRS and interpretations issued and
approved by the European Union. This financial information does not constitute a
set of financial statements for an interim period as defined by IAS 34 "Interim
Financial Reporting".
--------------------------------------------------------------------------------
[1] See press release N°35 -2015, issued on 15 December 2015.
SCOR Press Release:
http://hugin.info/143549/R/2044290/763371.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: SCOR via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 23.09.2016 - 18:25 Uhr
Sprache: Deutsch
News-ID 496689
Anzahl Zeichen: 7277
contact information:
Town:
Paris
Kategorie:
Business News
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