Ratings agency AM Best has affirmed the A(excellent) financial strength rating of French reinsurer SCOR. A negative outlook has been assigned.

AM Best said the ratings action was based on the reinsurer's successful completion of a E381m (£248m) rights issue last December.

Revised conservative underwriting plans for 2003, through a reduction in exposure to US liability, also prompted a fall in its risk profile.

At the end of third quarter 2002, the company also added E30m (£19m) to its reserves for credit business. This had strengthened its degree of reserve prudence, Scor said.

A Scor statement added: "AM Best anticipates substantial improvement in SCOR's consolidated performance in 2003. A significantly higher loss may trigger a rating downgrade.

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