SCOR hails 'excellent' P&C January renewals, predicts hardening through 2021 and 2022
Global reinsurer SCOR began 2021 with "excellent" renewal results, generating +15.9 percent premium growth in line with the forecasts. The company's chief executive outlined a "very positive" outlook for the property/casualty (P&C) reinsurance market in 2021 driven by significant treaty market hardening and overall improved conditions across all lines of business and regions.
The January 2021 renewals marked a strong acceleration of the P&C treaty reinsurance market hardening after years of high natural catastrophe losses, attritional inflation, and low interest rates, SCOR said, while noting that the demand for reinsurance was "robust" driven by increased general risk aversion.
SCOR stated that it took full advantage of these favorable market conditions, growing its reinsurance treaty premium income up for renewal by 15.9 percent at constant exchange rates. Premiums increased by €472 million to €3.445 billion, with an overall average price increase of 7.8 percent.
In the specialty insurance book, which renews throughout the year, the company said market trends were even more positive than for treaties, enabling SCOR Global P&C to record gross premium growth of 16 percent in 2020, on the back of 23 percent rate increases for large commercial lines business.
The overall technical profitability from the January reinsurance book renewed in 2021 also substantially improved as price increases outpaced the estimated increase in risk costs.
The French reinsurer focused its growth on regions and lines of business offering the most attractive underwriting conditions.
SCOR expects the current hardening market trends to continue at subsequent 2021 and 2022 renewals. The group confirmed it is "well positioned" to seize market opportunities in both insurance and reinsurance, leveraging on its global underwriting platform, in this "supportive market environment".
Jean-Paul Conoscente, CEO of SCOR Global P&C, commented: “The January 2021 renewals have shown a significant acceleration of market hardening for P&C reinsurance. In this supportive market environment, we fully leveraged our positioning and deep client relationships to achieve strong profitable growth, marked by a sizeable improvement of the profitability of our book across all regions and lines.
"Looking forward to future renewals, we are confident that price increases and improvements in terms and conditions will continue. We confirm the growth and profitability assumptions set for 2021 at SCOR’s September 2020 Investor day, which have been revised upwards since the launch of our 'Quantum Leap' plan.”
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