AM Best has assigned a financial strength rating of B++ to Morocco's national reinsurer, Société Centrale de Réassurance...
AM Best has assigned a financial strength rating (FSR) of B++ (Good) and an issuer credit rating (ICR) of “bbb” to Société Centrale de Réassurance (SCR), (Morocco). The ratings have been assigned a stable outlook.
The ratings of SCR reflect the company's excellent business position as Morocco's national reinsurer, improving operating performance and adequate risk-adjusted capitalisation. The rating also factors the loss absorption agreement with the Moroccan State.
AM Best believes that SCR has an excellent business position as Morocco's national reinsurer, where its writes 70% of gross premiums, either through its compulsory cession or in the open market. SCR's compulsory cession portfolio (55% premiums at year-end 2006) is to be phased out by 2012, following the signing of a free trade agreement. Notwithstanding this, AM Best believes that SCR is successfully replacing this business by growing its non compulsory reinsurance business locally and by the introduction of natural catastrophe reinsurance in Morocco during 2007.
