Standard & Poor's (S&P) has downgraded SCOR's long-term financial strength and credit rating from "AA-" to "A+". The outlook on the rating is stable.
This decision was justified by the pressure on the French reinsurer's profitability. SCOR has been faced with several risks, including the pandemic, natural catastrophes and very low interest rates.
The company has posted a net loss of 509 million EUR (495.323 million USD) against a net profit of 339 million EUR (394.654 million USD) in the first nine months of 2021.
In order to improve its profitability, the reinsurer has set up a series of measures for the year 2023 in an environment marked by the tougher property and casualty reinsurance market, the rise in interest rates and the improvement of the health situation. SCOR is also working on the January 2023 renewals.
S&P expects these measures to contribute to the recovery of the French group's technical and overall profitability in 2023, while maintaining its position in the life, property and casualty reinsurance markets.