State-backed reinsurer CCR group has reported premium income of €1.4 billion and consolidated net income of €132 million for the full-year 2018, despite the impacts of catastrophe events.
The group’s reinsurance arm, CCR Re, contributed €35 million to the consolidated net income, while CCR contributed €147 million.
CCR Re maintained profitable growth throughout the year, with 17% premium income growth, strengthening of the combined ratio to 99.4%, and the €35 million of reported net income. The net combined ratio weakened from 88.6% in 2017, to 95.1%.
The whole of France was hit by catastrophe events in 2018, including droughts, storm events and flooding. Overall, CCR estimates cat losses of €872 million, which shows just how active the cat year was in 2018.
Despite this, the firm recorded net income in its reinsurance unit and at the group level, continuing profitable growth during challenging market conditions.
Gross written premiums remained stable year-on-year at €908 million for the group, assisted by the 17% increase to €464 million in CCR Re.
Speaking at a meeting of the Board of Directors on April 9th, Chairman of the Board, Pierre Blayau, commented: “2018’s results confirm once again the relevance and solidity of CCR group’s business model. The numerous weather events (872 million euros) that affected French territory in 2018 highlighted the importance of CCR’s role in providing compensation for natural disasters and ensuring all households and businesses have equal access to insurance for these risks.
“In addition, CCR RE has also continued its profitable growth and is making an increasingly significant contribution to the Group’s results. I am delighted that, as a result of the hard work of all teams, CCR RE has already achieved the strategic objectives set by the board of directors when the company was created.”
The firm has strengthened its capital to €4.3 billion, and says that in 2019, it’s equipped to face a natural catastrophe loss experience of €4.5 billion for the market without needing to call on the State guarantee.