SCOR will trim more US casualty on fear of double-digit claims inflation
Global reinsurance group SCOR will continue to avoid the US casualty space on expectation that rate is falling well short of SCOR’s view to double digit claims inflation in the line.
“Expect a continued reduction of the relative weight of US casualty in our overall portfolio,” Jean-Paul Conoscente (pictured), SCOR's CEO for P&C reinsurance, told equity market analysts in a presentation of the 1.1 renewal results.
Cedants have clearly been working on their underlying portfolios, but remain behind the curve vis-a-vis inflation.
SCOR now expects annual claims inflation above the 10% mark “in the years to come,” the company indicated in its presentation.
“We expect profitability to continue to deteriorate and we retain a prudent approach to US casualty,” Conoscente said.
The relative size of the renewed US Casualty business has already been coming down, last at 3.3% of book t 1.1.2024 from 3.9% at 1.1.2023.
Comments follow word that SCOR grew its 1.1 renewal book by 13.6% at the January exercise, taking major growth in alternative solutions and cherry picking select specialty lines while skirting growth in core P&C lines.
In presenting its renewal book, SCOR spoke to “slightly decreasing” estimated premium from US casualty and “reduced exposures” as it renewed with “selected clients.”
Growth should continue throughout the year as “risk-adequate prices” hold up for the 2024 renewals, SCOR said. A “strong pipeline” in alternative solutions may continue to lead.
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