French reinsurer CCR Re increases profit in first half 2020 despite combined ratio jump
CCR Re, the French government backed reinsurer, posted a year-on-year improvement in net profit due to a favorable effective tax rate, but saw its combined ratio jump and life reinsurance profit margin decline in the first half of 2020. CCR Re posted a net profit of €29 million for the period, up from €17 million in the first half of 2019. Its premium income for H1 2020 was €545 million, an increase of 23 percent on the prior year period. The company's combined ratio ballooned...
...to 105.2 percent at June 30, 2020, compared to 98.2 percent at June 30, 2019. The combined ratio does not include the impacts of the COVID-19 event retrocession.
The life reinsurance profit margin slipped to 4.5 percent in H1 2020 from 5.2 percent in H1 2019 due to claims reserves in respect of COVID-related events, amounting to €43 million for the non-life business and €5 million for life reinsurance – in the top range of current estimates for full-year 2020.
Its parent company, CCR, posted a net profit of €28 million for first half 2020. Its premium income totaled €1,068 million in first-half 2020, up 15 percent year on year.
The France-based reinsurer said the increase was primarily attributable to the State-backed intercompany credit insurance scheme in favor of small and medium-sized companies. Natural disaster risk reinsurance, which accounts for 82 percent of business, reported a 0.5 percent rise in premium income.
CCR's claims expenses net of ceded insurance amounted to €357 million in the first half amid low natural disaster claims over the period.
