5 February 2014 News

Big reinsurers gain as buyers restructure: SCOR

French reinsurer SCOR has said it witnessed and benefitted from further changes to the reinsurance market in the recent January renewals with more cedants restructuring their programmes in favour of bigger players able to offer global solutions across many lines of business.

The company said it grew its premiums by 5 percent in the recent January renewals while its expected net technical profitability remains stable. This follows on from an 8 percent growth in gross written premiums in 2012 for its global property/casualty book.

It said that although prices are variable across lines, primary rates are largely compensating for softening reinsurance prices.

But the overwhelming trend it is witnessing at the moment is of cedants many large and mid-sized players are reconsidering their reinsurance buying strategies and restructuring their reinsurance programmes.

It believes a ‘tiering’ is taking place in the market, which is benefiting larger and most diversified reinsurers operating as true multi-liners in terms of pricing and underwriting capabilities and able to offer a global approach to client relationships.

Victor Peignet, CEO of SCOR Global P&C, said SCOR has benefitted from this process. “Having anticipated the market changes, SCOR Global P&C has proven to be a leading reinsurance player in the market, positioned among the preferred partners for insurers. This is particularly true concerning our targeted clients with whom we have largely managed to increase our shares, taking advantage of their programme restructurings.

“The January 2014 renewals confirm our analysis of the ongoing bifurcation of the reinsurance market and reinforce our conviction that SCOR Global P&C is set to be among the beneficiaries of this tiering of the industry. In this context, size and diversification combined with the capabilities to cover all lines and offer global approaches to cedants are key competitive advantages.”

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