Morocco: SCR expands to Azerbaijan
Source: Middle East Insurance Review | Nov 2022
Société Centrale de Réassurance (SCR), a reinsurer in Morocco and the second-largest Africa-based reinsurer, is expanding overseas by taking its underwriting activities to the Azerbaijani market.
“SCR is now registered with the Azeri regulator, the Central Bank of the Republic of Azerbaijan (CBAR), as a licensed reinsurer authorised to provide reinsurance covers in the domestic market,” the reinsurer said in a statement.
Through this new market, state-controlled SCR aims to strengthen its positioning in Asia and establish the image of a regional reinsurer with strong capacity and technical expertise.
In July 2022, Fitch Ratings affirmed SCR’s National Insurance Financial Strength (IFS) Rating at ‘AAA(mar)’. The outlook was ‘Stable’. The National IFS Rating of SCR reflects its ownership and exposure to sovereign debt, the reinsurer’s strong capital position, record of sound financial performance, and adequate reserving and reinsurance practices.
The ratings agency noted that SCR was gradually increasing its international diversification, as reflected in the share of the gross premiums written outside Morocco of 25% in 2021, up from 22% in 2018. However, Fitch believes that the increasing international presence would not result in a substantial weakening of the credit profile of the reinsurer.
SCR, a subsidiary of the state-owned Caisse de Dépôt et de Gestion (CDG) group, underwrites proportional and non-proportional reinsurance treaties and facultative contracts, mainly in traditional insurance lines, such as motor or property, but also in specialty lines, such as marine, aviation or engineering. M