French reinsurer CCR Re enjoys 16% increase in GWP in first half of 2019
French government backed reinsurer CCR Re enjoyed strong growth driven by new business and met its strategic targets in the first half of 2019, improving gross written premiums by 16 percent year on year.
CCR Re posted a net income of €17 million for the period, stable year on year despite an unfavourable tax effect. Its gross written premiums for the first half of the year was €441 million, an increase of 16 percent on the prior year period.
The company's combined ratio improved to 98.2 percent at June 30, 2019, compared with 99.8 percent in H1 2018.
However, CCR Re's Life technical margin slipped to 5.2 percent (from 6.8 percent in first half 2018) due to the revaluation of claim expenses, notably in respect of terminated business. The market value of CCR Re assets amounts to €2.4 billion at the end of the period, which is up €94 million compared to December 31, 2018.
The France-based reinsurer said its growth was due to newly signed business contracts representing 22 percent of the portfolio.
CCR Re was formed in January 2017 when its parent, French-government backed CCR, split its open market reinsurance activities into a new subsidiary.
Its parent company, CCR, posted gross written premiums stands at €929 million in first half 2019, up 3.5 percent year on year. It said its natural disaster risk reinsurance activities remained stable at 93 percent.
CCR's claims expenses for the first half were particularly modest, down €260 million year on year to €135 million as no significant natural disaster events, comparable to last year's consecutive floods, occurred in the first six months of 2019. There was no adverse change in the liquidation of claims arising in previous years.
The market value of CCR assets at June 30 2019 was almost €8 billion. The €208 million increase compared to December 31 2018 reflects favourable market developments since the start of the year and a return to positive cash flows, it said.
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
Liberty adds senior underwriter in Bermuda reinsurance build-out strategy
BGC continues hiring spree from JLT to expand new aviation business
Chaucer reveals new head of Copenhagen
Pioneer Underwriters appoints new chief actuary
Feature: 10 ways insurers are using insurtech to drive new business
