S&P lowers SCOR

S&P said it lowered its issuer rating on SCOR SE to A+ from AA-.

“The rating action reflects that SCOR's operating performance has not met our expectations or kept in line with that of AA- rated peers, with the trend accelerating in the first nine months of 2022. This is partially due to the challenging price environment in the P/C business pre-2022, elevated natural catastrophes, volatile technical margins from the life reinsurance business, and lower investment income,” S&P said in a press release.

The agency noted management is working on improving earnings. It cut exposure to natural catastrophe, which will decline about 20% by year-end 2022 versus 2021. The company also trimmed its exposure to U.S. property and climate-sensitive businesses. Furthermore, SCOR has desensitized itself to inflation by fortifying its P/C reserves by €485 million.

The outlook is stable.

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