Fitch Ratings downgrades SCOR's rating

Fitch Ratings has revised downwards SCOR's financial strength and long-term credit ratings as well as those of its main operating subsidiaries. The first rating has been revised from "AA-" to "A+" while the second has been lowered from "A+" to "A". The outlook remains stable.

Over the past five years (2017-2021), the French group's financial performance has been negatively impacted by losses related to natural catastrophes, the pandemic, and the low investment income. The five-year average combined ratio stood at 100.6% and the return on equity (ROE) at 5.5%.

As at 30 September 2022, the reinsurer has recorded a 509 million EUR (495.323 million USD) loss, mainly attributable to the heavy cost of natural catastrophe claims, which reached 907 million EUR (882.629 million USD).

The rating agency nevertheless commends the company's strong capitalization, its favorable business profile and its strong leverage.

The stable outlook is explained by SCOR's implementation of an action plan, which would enable it to turn around its profitability within one to two years.