Cat losses hit CCR but open market reinsurance unit drives growth

Higher levels of catastrophe losses pushed profits at French government-backed reinsurer CCR down in 2016 but the company enjoyed some healthy growth largely driven by it writing more business in the open reinsurance market via the newly-created CCR Re.

The company’s net profit fell to €295 million in the year compared with €429 million in 2015. This was largely because of higher insured losses, which reached €1.1 billion compared with €689 million a year earlier.

Its combined ratio for the period increased to 89.9 percent compared with 76.8 percent the year before.

But the company enjoyed some growth. Its overall gross written premium increased to €1.31 billion, a 2.2 percent increase compared with €1.28 billion a year earlier.

It said this was driven by the consolidation of the open market reinsurance portfolio. Premium income from public reinsurance was stable at €872 million but premium income from open market reinsurance increased by 5.8 percent to €443 million euros, thanks to a life reinsurance portfolio that generated opportunities for profitable growth.

CCR chairman Pierre Blayau said: “Our 2016 results, impacted by significant loss experience, prove the pertinence and reliability of the CCR business model. Furthermore, they testify to our efforts to improve the company's operational efficiency.”

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