A.M. Best Affirms Rating of SCOR.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 9, 2003 A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) 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 (Paris, France) and its guaranteed subsidiaries (see list of rated subsidiaries below). At the same time, A.M. Best has affirmed the ratings of the group's debt and commercial paper (see list below). The under review status of all the ratings, applied in October 2002, has been removed. A negative outlook has been assigned. The rating actions reflect the successful completion of SCOR's rights issue of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 381 million in December 2002, more conservative 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. plans for 2003 and a higher degree of prudence in reserves following third quarter reserve additions. Successful rights issue--SCOR has announced successful completion of its EUR 381 million rights issue. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. A.M. Best's risk-based capital model, this new funding will enable SCOR to underwrite its planned account in 2003, whilst maintaining capital at a level commensurate with its A- rating. Conservative underwriting plans--SCOR plans to decrease its net written premiums in 2003 by nearly EUR 350 million. Exposure to U.S. facultative facultative /fac·ul·ta·tive/ (fak´ul-ta?tiv) not obligatory; pertaining to the ability to adjust to particular circumstances or to assume a particular role. fac·ul·ta·tive adj. 1. liability business and alternative 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. will be reduced, and the company has confirmed that it will not recommence Re`com`mence´ v. i. 1. To commence or begin again. 2. To begin anew to be; to act again as. He seems desirous enough of recommencing courtier. - Johnson. v. t. 1. To commence again or anew. underwriting of credit derivatives Credit Derivative Privately held negotiable bilateral contracts that allow users to manage their exposure to credit risk. Credit derivatives are financial assets like forward contracts, swaps, and options for which the price is driven by the credit risk of economic agents (private , a market from which it withdrew in November 2001. These changes have reduced SCOR's risk profile, although exposure to certain risks will decline over an extended period. Credit derivatives were written with a maximum maturity of five years. Reserve additions--As a result of third quarter additions, reserves at SCOR Reinsurance Company in the 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. and Commercial Risk Partners in Bermuda have been raised to the best estimate level advised by independent consulting actuaries. At the end of third quarter 2002, the company also added EUR 30 million to its reserves for credit business. A.M. Best believes that although these measures provide for a higher degree of prudence, scope for further deterioration remains. Expectations: - SCOR's rating is predicated upon a 2002 consolidated ---- net loss in line with the company's third quarter estimate of EUR 400 million. A significantly higher loss may trigger a rating downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. . - A.M. Best anticipates substantial improvement in SCOR's consolidated performance in 2003, subject to normal loss experience. The financial strength ratings of A- (Excellent) of the following companies have been affirmed and a negative outlook has been assigned: - SCOR - SCOR Canada Reinsurance Company - SCOR Deutschland Ruckversicherungs AG - SCOR Italia Riassicurazioni S.p.A - SCOR Reinsurance Asia-Pacific Pte Ltd - SCOR Reinsurance Company* - SCOR UK Company Ltd - General Security Indemnity Company - General Security Indemnity Company of Arizona - General Security National Insurance Company - Commercial Risk Reinsurance Company Ltd - Commercial Risk Re-Insurance Company - SCOR Life U.S. Re Insurance Company - Republic-Vanguard Life Insurance Company - Investors Insurance Corporation *SCOR Reinsurance Company is a U.S. trading company. The following ratings on existing debt have been affirmed and a negative outlook has been assigned: -- "a-"rating on five-year convertible bonds -- "a-" rating on senior unsecured EUR medium term note program -- "bbb" rating on EUR 100 million cumulative subordinated notes, due 2020 -- "bbb" rating on USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 100 million subordinated step-up notes, due 2029 -- "bbb" rating on EUR 50 million subordinated perpetual step-up notes issued by Societe d'Etudes et de Placements Financiers and guaranteed by SCOR -- AMB-2 rating on EUR Commercial Paper Program A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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