CCR Re enjoys 2020 growth and big uplift in Jan 1 renewal
French reinsurer CCR Re has reported a significant improvement in market conditions in the year-end renewals with improvements in treaty wordings with additional exclusions and solid rate increases across much of its portfolio.
The reinsurer said it enjoyed premium income growth of 12 percent in the January 1, 2021, renewals, at constant exchange rates – up to €50 million. CCR Re underwrote about €500 million of business in the January renewals, around 70 percent of its annual premium income volume in both property/casualty and life & health reinsurance.
For 2020 as a whole, it has also revealed some key preliminary figures (unaudited), which show gross written premiums reaching €649 million, up 16 percent compared to 2019 full year. The impact of the Covid-19 and Beirut events meant a combined ratio of 103.2 percent. It said it anticipates a net income of €18 million.
It said it expects the trends shown in the last renewal to be sustained over the course of the next rounds of renewals. Of the growth, it said some €65 million came from new treaties and €25 million from conditions improvement and treaty changes.
On the life and health side, which represents about one third of CCR Re global portfolio, it said the renewal was flat. In the regions where CCR Re operates, the sector has demonstrated its shock absorbing capacity with COVID-19. Therefore, there have been few significant improvements.
On the Property and Casualty side, its written premiums were up 13 percent. CCR Re said it achieved a strong growth on motor business with €70 million premium income year-over-year, up 33 percent compared to January 2020.
In addition, CCR Re said it took advantage of the increase in primary prices under proportional covers that represents 68 percent of its property/casualty book, notably on the specialty insurance with the significant rises on marine (+20 percent) and Aviation (+25 percent).
CCR Re also said it achieved some de-risking adjustments on the credit and surety line, although the latter has not been negatively impacted by Covid-19 so far. Premium volume decreased by 30 percent. In terms of geographical exposures, the expansion in Northern Europe (including Scandies, Germany and the UK) was particularly successful as the premium volume grew by 31% year-on-year.
It said across all property/casualty books, treaty wordings were improved with additional exclusions and CCR Re noted satisfactory hardening conditions. As for property side, this upward trend is driven by an exceptional series of natural and manmade disasters. For treaties that had remained loss-free, price increases ranged between 3 percent and 5 percent set at better levels compared to past renewals.
On the liability side, better prices and conditions were obtained to face sustained low interest rates and increasing legal threats on the reserves. Such improvements were reached up to 10 percent for loss-free programmes.
Bertrand Labilloy, chairman & CEO of CCR Re, said: "The January 2021 renewals demonstrate the quality and the relevance of CCR Re business model across all regions and lines of business. Looking forward, we are in a strong position both in terms of franchise and robustness to meet our clients and partners expectations.”
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