AM Best has placed under review with developing implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a+” (Excellent) of SCOR SE (SCOR) (France) and its main operating subsidiaries. See below for a detailed listing of companies and Credit Ratings (ratings).

The ratings have been placed under review with developing implications following SCOR’s publication of an update on its second-quarter 2024 and full-year 2024 results. In its press release, published on 15 July 2024, SCOR announced that it has decided to accelerate its life & health (L&H) reserving assumptions review subsequent to negative experience variance in first-quarter 2024. As a consequence, the L&H insurance service result (ISR) is expected at EUR -400 million for second-quarter 2024, driven notably by updates on reserves and negative experience variance. As a result, the L&H ISR for full-year 2024 is expected to be significantly below the EUR 500 million target previously communicated. Reserving assumption changes will also impact the organisation’s pre-tax L&H contractual service margin (CSM), with a negative adjustment (at current yield curves) of EUR 900 million as per second-quarter 2024.

SCOR’s announcement notes that the reserving review is ongoing and could lead to potential further negative adjustments to the ISR or CSM during the second half of 2024 in a worst-case scenario.

AM Best expects the ratings to remain under review until SCOR’s reserving review has been finalised, the new strategic plan for L&H business is disclosed in December 2024, and until AM Best completes its assessment of the impact on the rating fundamentals of SCOR.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) were placed under review with developing implications for SCOR SE and its following operating subsidiaries:

• SCOR UK Company Limited
• SCOR Reinsurance Asia-Pacific Pte Ltd
• SCOR Global Life USA Reinsurance Company
• SCOR Global Life Americas Reinsurance Company
• SCOR Global Life Reinsurance Company of Delaware
• SCOR Reinsurance Company
• SCOR Canada Reinsurance Company
• General Security National Insurance Company
• General Security Indemnity Company of Arizona

The following Long-Term Issue Credit Ratings were placed under review with developing implications:

SCOR SE—

-- “a-” (Excellent) on EUR 500 million 3.625% subordinated notes, due 2048

-- “a-” (Excellent) on EUR 600 million 3.00% subordinated notes, due 2046

-- “a-” (Excellent) on EUR 250 million 3.875% perpetual subordinated notes

-- “a-” (Excellent) on EUR 250 million 3.25% subordinated notes, due 2047

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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