Jean-Paul Conoscente, CEO of SCOR P&C
The main rate increases were achieved on non-proportional treaties (+23%), in line with the trends observed during the January 1, 2023 renewals (+24%), with notably average rate on line increases on CAT XL programs of 20% in Japan and 40% in the US and India
Paris:
Like the January 2023 renewals, the April 1, 2023 P&C reinsurance renewals have taken place in a favorable market environment for reinsurers, both in terms of pricing and terms and conditions, said French reinsurer SCOR.
In this supportive market, SCOR is actively pursuing the deployment of its capital by building on its relationships with its long-term clients.
The main rate increases were achieved on non-proportional treaties (+23%), in line with the trends observed during the January 1, 2023 renewals (+24%), with notably average rate on line increases on CAT XL programs of 20% in Japan and 40% in the US and India.
Gross premiums renewed excluding Agriculture amounted to EUR 724 million, up 17% at constant exchange rates. Including the Agriculture line (for which renewals are still in progress), gross premiums renewed reached EUR 928 million, up 5% at constant exchange rates.
For Treaty P&C Lines, gross premiums were up 12 per cent . Renewals in these segments are marked by:
-Growth in non-proportional excess-loss treaties concentrated on contracts where retention has increased significantly;
-A decrease in the limits engaged by SCOR on Property proportional treaties exposed to natural catastrophes (-13%) ;
-And, consequently, a stable natural catastrophe PML(probable maximum loss) as measured by the net Aggregate Exceedance Probability 1-in-250 years.
-For Global Lines (excluding Agriculture), gross premiums were up 28% (at constant exchange rates). This strong growth was driven by the Engineering and Alternative Solutions lines.
-SCOR has reduced its PML in Agriculture by 50% as announced in Q2 2022. This translates into an expected 23% decrease in gross premiums, mainly in Brazil.
By deploying its capital in the most attractive segments, SCOR significantly improves the expected technical profitability of its risk portfolio, with an average rate increase of 7% at the April 1, 2023 renewal.
The gross New Business CSM (contractual service margin) for the contracts renewed on April 1, 2023, excluding Agriculture, is up 25% year-on-year. This increase in net value creation associated with the April 1, 2023 renewals has contributed positively to the growth of the group’s economic value, said SCOR.
Jean-Paul Conoscente, CEO of SCOR P&C, commented, “At the April 1, 2023 renewals, SCOR continues to improve the expected technical profitability and optimize the risk/return profile of its P&C risk portfolio. We are very satisfied: our objectives in terms of technical profitability have been achieved and the volumes written are up. The outlook remains positive for the June and July 2023 renewals.”