A.M. Best Affirms "A+" -Superior- Rating of SCOR Group.OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 3, 1998--A.M. Best Co. has affirmed the A+" (Superior) rating of SCOR SCOR Scientific Committee on Oceanic Research SCOR Supply Chain Operations Reference model SCOR Small Corporate Offering Registration SCOR Specialized Center of Research (White Plains, NY) SCOR Second Cousin Once Removed Group. The group rating applies to SCOR Group, its seven reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. subsidiaries and their insurance subsidiaries based on the consolidation of these companies. The affected companies are: SCOR, SCOR Italia, SCOR Deutschland, SCOR UK, SCOR Canada, SCOR Asia-Pacific (including SCOR Asia-Pacific Australian branch, SCOR Re Far East and SCOR Reinsurance Company Asia) and SCOR Reinsurance Co., United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. (including General Security subsidiaries). The group rating recognizes the unconditional guarantee from the parent, SCOR, Paris, for all reinsurance and insurance business written by the rated subsidiaries. The subsidiaries receive capital support from the parent and operate as a single reinsurance unit backed by the full underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. capacity and financial and technical resources of the group. The group rating also reflects the centrally established underwriting guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. for SCOR's subsidiaries to ensure the diversification and management of risk with respect to its business by line and class of business. The SCOR Group has been successful in maximizing returns on shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. by consolidating its leadership position through expansion in selected markets, focusing on higher margin core business segments and broadening its shareholder base and access to capital. SCOR has acquired a competitive size and financial strength,reducing operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and leveraging information technology, while maintaining long-standing alliances with ceding cede tr.v. ced·ed, ced·ing, cedes 1. To surrender possession of, especially by treaty. See Synonyms at relinquish. 2. companies and brokers and limiting its general exposure to catastrophe risk. The rating reflects SCOR's ability to combine financial capacity with technical expertise in the field of large risks. It also acknowledges SCOR's status as a lead underwriter Lead underwriter The head of a syndicate of financial firms that are sponsoring an initial public offering of securities or a secondary offering of securities. Could also apply to bond issues. in industrial and commercial property risks and specialty classes, such as offshore and onshore oil and gas activities, major infrastructure projects, space insurance and contractors insurance. Given its technical underwriting expertise of high-value commercial structures, some of the largest insured industrial groups have frequent contacts with SCOR to meet their insurance and risk management loss prevention needs. The rating also takes into consideration SCOR's competitive market advantage, gained from its flexibility in setting terms and conditions and its lack of dependency on any single market's pricing conditions. Other positives include SCOR's record earnings in 1997, limited exposure to environmental and asbestos claims, strong reinsurance programs and management's conservative operating strategy and risk-management skills. The rating outlook for SCOR Group is stable. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.
CONTACT: Jeffrey Dunsavage
908/439-2200, ext. 5618
dunsavj@ambest.com
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