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A.M. Best Revises Outlook to Positive for SCOR SE's North American Life and Non-Life Subsidiaries


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Mariza Costa
Senior Financial Analyst – P/C
(908) 439-2200, ext. 5308
mariza.costa@ambest.com

Joan Sullivan
Senior Financial Analyst – L/H
(908) 439-2200, ext. 5144
joan.sullivan@ambest.com
Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - SEPTEMBER 11, 2015 10:30 AM (EDT)
A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of "a+" of SCOR Global Life USA Reinsurance Company (SCOR Global Life USA) (Wilmington, DE), SCOR Global Life Americas Reinsurance Company (Wilmington, DE) and SCOR Global Life Reinsurance Company of Delaware (Wilmington, DE) (collectively referred to as SCOR U.S. Life). Additionally, A.M. Best has revised the outlook to positive from stable and affirmed the FSR of A (Excellent) and the ICR of "a+" for SCOR Reinsurance Company (New York, NY), SCOR Canada Reinsurance Company (Toronto, Ontario, Canada), General Security National Insurance Company (New York, NY) and General Security Indemnity Company of Arizona (Phoenix, AZ).

The revised outlook for the ratings of SCOR U.S. Life reflects its key role as the North American life reinsurance marketing arm of SCOR SE (SCOR) (France). SCOR U.S. Life is one of the largest life reinsurers in the United States, having gained significant scale through two substantial domestic acquisitions over the past four years: Transamerica Re's life mortality business and Generali USA Life Reassurance Company. The ratings also incorporate explicit parental support provided by SCOR to SCOR U.S. Life in the form of parental guarantee agreements. Moreover, the ratings reflect SCOR U.S. Life's strong risk-adjusted capital position, recent positive statutory earnings, conservative investment portfolio and strong market share positions within the United States to support its parent's focus on traditional life mortality business.

Offsetting rating factors include high levels of competition in the North American life reinsurance market and the ongoing volatility inherent in SCOR U.S. Life's statutory operating performance that results from its acquisition strategy and integration costs. Additionally, SCOR U.S. Life will need to manage the reinvestment risk associated with redeployment of cash in a continuing low interest rate environment.

The revised outlook for the ratings of SCOR Reinsurance Company, SCOR Canada Reinsurance Company, General Security National Insurance Company and General Security Indemnity Company of Arizona reflects the companies' key role as the North American non-life operating entities for SCOR. SCOR's North American-domiciled non-life subsidiaries provide geographic diversification to SCOR by providing access to the United States, Canada, Latin America and Caribbean. The ratings also incorporate explicit support from SCOR through parental guarantee agreements. Furthermore, the ratings reflect the companies' recently improved operating performance, strong risk-adjusted capital, even as the market becomes increasingly competitive, and very strong enterprise risk management capabilities.

Partially offsetting these rating factors are the increased competition in North America, continued decline in reinsurance pricing and a low interest rate environment that continues to impact investment portfolios.

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria Center.

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