A.M. Best Places Ratings of SCOR and Sorema Under Review.Business Editors & Insurance Writers OLDWICK, N.J.--(BUSINESS WIRE)--April 11, 2001 A.M. Best Co. has placed the A+ (Superior) financial strength 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, Paris, France, under review with negative implications. At the same time, A.M. Best has placed the A (Excellent) financial strength rating of Sorema, Paris, France under review with developing implications. The rating actions follow the April 4, 2001 announcement by SCOR that it is in private discussions with Groupama, Paris, France regarding the acquisition of its wholly owned 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. units, Sorema SA and Sorema NA (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ) and subsidiaries. Following a strategic review, Groupama management has decided to change its approach to reinsurance business and concentrate on its French and international primary insurance operations. Sorema's operating performance has progressively declined over the past five years, affected by a high frequency and severity of losses, both from natural catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). events and industrial losses. As a result of French storm losses in 1999, Groupama made financial contributions to Sorema at year-end 2000 to help restore some of the company's profitability. The deal, if completed, will reinforce SCOR's position as the leading French reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. and put pressure on its own financial strength as it implements necessary measures to reverse Sorema's declining earnings trend. The ratings will remain under review pending any formal close of the transaction. This will include a review by A.M. Best of the 2000 financials for both groups and further discussions with SCOR' s management concerning details of its ongoing business strategy and impact of the operations of Sorema. The A+ (Superior) financial strength rating with negative outlook on Groupama and its insurance subsidiaries will remain unaffected by the spin off of the reinsurance business. Groupama is France's largest mutual and second-largest multibranch insurance group. The A (Excellent) financial strength ratings of the following Sorema Group members have been placed under review with developing implications. The rating continues to have a negative outlook. -- Sorema S.A. -- Sorema North America Reinsurance Company -- Fulcrum Insurance Company -- Rampart Insurance Company -- Western Continental Insurance Company The A+ financial strength ratings of the following SCOR Group members have been placed under review with negative implications: -- 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) -- 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) -- SCOR Life U.S. Re Insurance Company (including Republic-Vanguard Life Insurance Company) -- Commercial Risk Partners, Bermuda (including Commercial Risk Reinsurance Co. Ltd., Commercial Risk Re-Insurance Co. and Commercial Risk Luxembourg) The following outstanding security ratings Security ratings Commercial rating agencies' assessment of the credit and investment risk of securities. of SCOR Group have been placed under review with negative implications: -- "a"--cumulative subordinated notes, due 2020 -- "aa-"--senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. medium-term note Medium-term note (MTN) A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc. program -- "aa-"--five-year convertible bonds -- "a"--subordinated perpetual PERPETUAL. That which is to last without limitation as to time; as, a perpetual statute, which is one without limit as to time, although not expressed to be so. step-up notes, issued by Societe d'Etudes et de Placements Financiers and guaranteed by SCOR -- "a"--subordinated step-up notes due 2029 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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