Following the quarterly update provided by global reinsurer AM Best, has placed the Financial Strength Rating (FSR) at A (Excellent) and the Long-Term Credit Ratings (Long-Term ICRs) at ‘a+’ (Excellent) of SCOR SE (France) and its key operating subsidiaries under review as implications evolve.

SCOR announced in a press release its decision to accelerate the review of its reserve assumptions in the Life and Health insurance business due to negative experience variance in the first quarter of 2024. As a result, the Life and Health insurance business is expected to achieve a result of -EUR 400 million for the second quarter of 2024, driven by the reserve updates and negative experience variance.

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L&H’s net income for the full fiscal year 2024 is now expected to be significantly below the previously announced target of €500 million. The changes in reserve assumptions will also impact the organization’s pre-tax L&H contractual service margin, with a negative adjustment of €900 million from Q2 2024, based on current yield curves.

Read more: SCOR Provides Update on Second Quarter 2024 Results

SCOR noted that the reserve review is ongoing and could lead to further negative adjustments to ISR or CSM during the second half of 2024 in a worst-case scenario.

AM Best expects the ratings to remain under review until the completion of the SCOR reserves review, the disclosure of the new strategic plan for the L&H business in December 2024, and AM Best completes its assessment of the impact on the fundamentals of the SCOR rating.

The FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) have been placed under review as the implications for SCOR SE and its operating subsidiaries, which include SCOR UK 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 and General Security Indemnity Company of Arizona, evolve.

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