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Join on Telegram Rabat – Morocco’s Societe Centrale de Reassurance (SCR), the reinsurance arm of the state-owned CDG Capital Group, maintains a stable outlook with a rating set at ‘AAA,’ according to Fitch, a benchmark American rating agency.
The rating reflects SCR’s strong capital position, “record of sound financial performance,” and “adequate reserving and reinsurance practices,” Fitch said in a recent report.
Published on July 28, the report explains that SCR enjoys an “unlimited guarantee” derived from its major shareholder, the state of Morocco, giving it a strong advantage over peer reinsurance companies in the country.
The positive outlook is also based on the company’s push to expand international operations and diversify product offerings, Fitch argued, adding that SCR is following a prudent investment strategy compared to domestic peers.
Regarding its capital position, SCR scored “Very Strong”’ in 2021, echoing the results from the previous year.
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The reinsurance company also boasts a record of sound financial performance, with an estimated return on equity (ROE) averaging 11% in 2021, slightly below its five-year average of 13%.
According to Fitch’s report, these positive results are driven by the company’s robust investment strategy resulting in an investment yield of 5.3%. In addition, the report lauded SCR’s “robust” risk-management strategy.
As part of SCR’s strategy to diversify operations, the company announced earlier this year joining the Islamic financing landscape by launching Morocco’s first Islamic reinsurance company.
After creating a new subsidiary, SCR announced it would launch a wide range of product offerings in accordance with Sharia law.
