CCR Re has reported that its gross written premiums increased by 16% to €441 million during the first half of 2019, which helped contribute to a stable net income of €17 million.
The result builds on the momentum seen in 2018, when the company increased its top line by 17%, with growth continuing to be driven by new business, which accounted for 22% of the portfolio.
At the same time, AM Best has affirmed the A+ (Superior) financial strength rating of CCR and the A (Excellent) rating for CCR Re, and maintained its stable outlook for both ratings.
“The solid CCR and CCR Re ratings confirm the relevance of the healthy and balanced growth strategy deployed since 2016 and rewards innovation and risk management efforts of all teams” said Bertrand Labilloy, Chairman and CEO of CCR Re.
CCR Re also improved its combined ratio over the first six months of 2019, reporting a ratio of 98.2% at 30 June, 2018, compared with 99.8% for the same period in 2018.
The market value of CCR Re stood at €2.4 billion at the end of H1, up from €94 million at year-end 2018, while annualised return on investment was 2.5%.
With current income before equalisation reserves recorded at €28 million, the company also considers itself to be ahead of its annual target of €53 million.
Looking at the wider company, CCR achieved a 3.5% increase in gross written premiums year-on-year, which totalled €929 million at the end of June. Natural disaster risk reinsurance continued to make up 93% of CCR’s gross written premium.
Although a series of significant floods hit French territory on first half of 2018, no comparable events occurred in the first six months of 2019.
There was also no adverse change in the liquidation of claims arising in previous years, meaning claims expenses for the first half of the year were particularly modest, down €260 million to €135 million.
The market value of CCR increased by €208 million over H1 to almost €8 billion, reflecting favourable market developments since the start of the year and a return to positive cash flows.
Commenting on the decision to affirm its credit ratings, AM Best underlined the quality of CCR’s balance sheet strength and noted that the company is able to face extreme events thanks to the special reserves and equalisation provisions it has set up.
AM Best also highlighted the quality of CCR Re’s balance sheet, as well as the liquidity and high quality of its investment portfolio.