CCR Re plots expansion into life area

CCR Re is looking to grow its life portfolio as it says profitability in this segment is better than in the property/casualty (P&C) market where rates remain under significant pressure, CEO Bertrand Labilloy, told Monte Carlo Today.

CCR Re is focused on P&C business, which represents 63 percent of its portfolio. Life represents 29 percent and specialty lines 8 percent of the portfolio structure.

CCR Re is also changing the business mix of the organisation in other ways.

“We have already reduced our exposure to long-term risks such as third-party liability motor. We are working on the diversification of our cat exposure,” Labilloy said.

The diversification in nat cat can be done by increasing CCR Re’s shares in treaties. As the shares are currently relatively small, they can easily be increased, Labilloy said. Currently, CCR Re’s non-life exposure is concentrated in northern Europe, Canada, the Middle East, and Asia. The reinsurer wants to have some non-life exposure to Eastern Europe, South America, and Australasia.

Given the current market conditions, CCR Re is not planning to grow its overall non-life books and wants instead to seize opportunities in the life segment.

“We have strong franchises. For us, it is not difficult to offer new services. There are no barriers to entry,” Labilloy said.

CCR Re’s life business operates primarily in France and the Middle East. “Growth is very strong on the life side,” he noted.

In order to expand the exposure to the life segment further, CCR Re is considering entering new markets such as Canada, Israel and the Lebanon, Labilloy said. In preparation for the expansion, CCR Re is recruiting experts and underwriters.

“We can provide the expertise and can differentiate ourselves from competitors,” he said. “We have the capacity to be very agile and offer dedicated services to small and medium direct insurers,” he explained.

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