The ratings reflect SCR’s good level of risk-adjusted capitalisation, strong business profile in the North African markets and explicit support provided by the Moroccan state. Offsetting rating factors are the potential volatility in technical profitability arising from a change in business mix following the withdrawal of mandatory cessions from
In 2013, following an excellent operating performance that translated into a net result of MAD 406.8 million, SCR’s risk-adjusted capitalisation improved substantially.
SCR maintains a strong competitive position as the leading reinsurer in the Moroccan market. Following the withdrawal of mandatory cessions and in order to maintain its profile, SCR is replacing lost business through setting up quota share arrangements with domestic insurers. SCR’s business profile should also benefit from its pivotal role in the new natural catastrophe protection system in
Despite SCR producing strong results in recent years, prospective earnings are likely to be volatile as a result of the company’s plans to expand its footprint into
Continued strong operating performance and further improvement in risk-adjusted capitalisation could lead to positive rating actions. Downward rating pressure could occur if SCR has a prolonged deterioration in technical performance, if the socio-political and economic conditions in
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best
This rating announcement has been issued by A.M. Best
Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS
Senior Financial Analyst
Associate Director, Analytics
Manager, Public Relations
Assistant Vice President, Public Relations