NU Online News Service Aug. 26, 12:19 p.m. EDT
Fitch Ratings said it has upgraded the outlook on its "A" rating of SCOR SE and its subsidiaries to "positive" from "stable" to reflect "the resilience of the group's financial strength."
The outlook impacts the group's Insurer Financial Strength (IFS) and Long-term Issuer Default Ratings (IDRs).
Fitch pointed to SCOR's conservative investment policy, reduced debt leverage and continued strong capital adequacy amid volatile financial markets and a less favorable claims environment as reasons for the improved outlook.
Denis Kessler, chairman and chief executive officer of SCOR, said, "The group is delighted with Fitch's decision, which bears witness to the new significant achievements made by SCOR over the past two years."
SCOR reported in February that its January renewals saw business volume up 7 percent, as well as improved underwriting profitability and overall positive price changes.
The company said these results were in line with projections announced in September.
Fitch said the ratings also took SCOR's strong business and risk diversification, solid business position and resilient profitability into account, adding it expects this favorable trend to develop further, which could possibly trigger a rating upgrade in the coming 12-to-24 months.
Baring any exceptional event, Fitch said it expects SCOR's capital adequacy will stabilize around its current strong level as future retained earnings are likely to compensate for increased capital requirements, largely relating to internal growth and small- to medium-size acquisitions.
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