SCOR takes 5% premium growth at April renewal on 7% rate gain

Global reinsurer  SCOR claimed a 5% increase in gross written premium for the portfolio renewed at the April 1 renewal deadline on a 7% average increase in rate, the company has revealed.

That apparent shrinkage in overall risk exposure came as SCOR continues to evacuate the agriculture segment in line with a Q2 2022 plan to cut agro-PMLs by 50%. Excluding agro, SCOR put the premium gain at a much headier 17%.

“In this supportive market, SCOR is actively pursuing the deployment of its capital by building on its relationships with its long-term clients,” management said in its release.

Rate increases were focused on non-proportional treaties at 23%, to largely match the 24% achieved at January 1. SCOR claimed "notably" average rate on line increases on CAT XL programs of 20% in Japan and 40% in the US and India.

Technical profitability has very likely risen “significantly” on the rate increase, management claimed.

Marked to the new IFRS17 accounting standards and, seemingly counter to IFRS17 taken against constant economic assumptions, SCOR increased its gross contractual service margin on its renewed portfolio (ex-agro) by 25% from the prior year mark, management said.

For treaty P&C lines, gross premiums were up 12% (at constant FX) with growth focused in excess-loss treaties where retentions rose “significantly” and a 13% cut to nat cat exposures to keep total nat cat POMLs stable, management claimed.

For global lines excluding agriculture, gross premiums were up 28% at constant FX, reflecting growth in engineering and alternative solutions lines.

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