French state-owned reinsurer CCR Re has reported that its net income more than double over the course of 2021 reaching €41 million, versus €18 million in the previous year.
This performance contributed to a similar 2x increase in income at parent firm CCR, which reported net income of €134 million for the year, up from €61 million in 2020.
CCR Re’s combined ratio also improved from 103.2% to 96.6%, despite high natural disaster claims, particularly in Germany and Belgium.
The company says the improved score owes to the utilisation of its retrocession program, which reduced the cost of natural disasters from €79 million gross to €43 million.
CCR’s combined ratio similarly improved from 97.4% in 2020 to 86.5% last year, as natural disaster claims were down compared with the high number of claims, with no major flooding reported and drought only affecting a few departments in Southern and Western France. In total, disaster claims amounted to €323 million.
Additionally, CCR Re posted total premium income of €843 million, up 30% year-on-year, although CCR’s total premium income was down 13% to €1,054m, due to the gradual phasing out of credit insurance support schemes.
“In 2021, CCR fulfilled its missions in serving the French government and the French people. The natural disaster compensation scheme was strengthened, both financially through positive results and structurally through legislative reform to which CCR contributed its technical expertise,” said CCR Chairman, Jacques Le Pape.
“CCR also effectively managed the exit from crisis schemes (CAP), enabling market operators to re-establish their positioning. We also provided technical support to the French government in deciding on new schemes (tourism operators) and agricultural insurance. I would like to thank our teams for their responsiveness and collective spirit, which have helped to achieve these good results.”
Chairman and Chief Executive Officer of CCR Re, Bertrand Labilloy, also commented: “In its market reinsurance activities, CCR Re delivered an excellent performance, forging ahead in the rollout of its Streamline 2020-2022 strategic plan. As such, CCR Re can look to the future with confidence.”
