AM Best Affirms Credit Ratings of Société Centrale de Réassurance
AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Société Centrale de Réassurance (SCR) (
The ratings reflect SCR’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
SCR’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). SCR’s BCAR score benefits from prudent technical reserve margins. Furthermore, the company’s risk-adjusted capitalisation has been moderately supported by internal capital generation as high dividend distributions to the company’s main shareholder, Caisse de Dépôt et de Gestion (CDG), a state-owned investment vehicle for the Kingdom of
Historically, SCR has reported strong results with a five-year (2018-2022) weighted average return on equity of 12.0%. The company’s earnings have been driven by solid investment returns, with a five-year (2018-2022) weighted average investment yield (including gains) of 5.5% and supported by good underwriting performance. SCR’s weighted average non-life combined ratio of 91.8% over the past five years reflects the profitability of its domestic Moroccan portfolio and benefits from favourable reserve development stemming from SCR’s legacy compulsory cessions business. However, the company has experienced weaker underwriting performance in 2022, with a non-life combined ratio of 101.2%. In 2023, the company’s exposure to the earthquakes in Turkiye and
SCR has a solid market position in
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Source: AM Best
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