A.M. Best Affirms Credit Ratings of Société Centrale de Réassurance
The ratings reflect SCR’s balance sheet strength, which
SCR’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is narrowly maintained at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by high levels of unrealised investment gains and prudent reserving. Maintenance of risk-adjusted capitalisation at this level is likely to be dependent on the company’s ability to generate and retain sufficient earnings to absorb growth, and accommodate the cost associated with the explicit guarantee provided by the Moroccan state and the high dividend requirements of its main shareholder, state-owned Caisse de Dépôt et de Gestion. A further offsetting rating factor to the balance sheet strength assessment includes the significant exposure to the high financial system risk in
Despite a challenging market environment, SCR’s operating performance has remained strong over the past five years, supported by a solid technical profitability and stable net investment returns. The company has reported a five-year (2013-2017) weighted average combined ratio of 83.4% and return on equity of 14.7%. The combined ratio deteriorated to 94.9% in 2017, driven by higher frequency of attritional losses and increasing acquisition expenses following a change in business mix. However, improvements in the life technical account and higher investment gains enabled SCR’s net income to double to MAD 492 million in 2017.
Despite a loss of business due to the phasing out of the compulsory cessions between 2007 and 2013, SCR continues to have a good market position in
Despite growth in its international portfolio over recent years, SCR’s activities remain heavily concentrated in
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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United States Practice Management Systems Market Size, Share & Trends Analysis Report, 2018-2025 – ResearchAndMarkets.com
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