French state-owned reinsurer CCR Re has reported overall premium income growth of 12% to €50 million at the January 1st, 2021 reinsurance renewals, a period which represents roughly 70% of its annual premium income volume across both P&C and L&H reinsurance.
The reinsurer explains that it underwrote roughly €500 million at the renewals, achieving strong growth with €65 million coming from new treaties and €25 million from improved conditions and treaty changes.
Within its P&C operation, written premiums increased by 13% at 1/1. The firm highlights strong growth on Motor business with €70 million of premium income, representing year-on-year growth of 33% when compared with the Jan 1st, 2020 reinsurance renewals.
At the same time, CCR Re says that it took advantage of the increase in primary prices under proportional covers at 1/1, which represent 68% of its P&C book, notably on Specialty lines with significant rises in Marine and Aviation, which were up by 20% and 25%, respectively.
In Credit and Surety, CCR Re did achieve some de-risking adjustments but notes that premium volume declined by 30%.
Additionally, the reinsurer’s expansion in Northern Europe was “particularly successful” at Jan 1st as the premium volume increased by 31%, year-over-year.
According to CCR Re, treaty wordings were improved with additional exclusions and the firm notes satisfactory hardening conditions.
Of course, much of the hardening is being driven by the rise in natural catastrophe and man-made disasters, with loss-hit business experiencing the greatest improvements. For loss-free treaties, says CCR Re, price increases ranged from between 3% to 5% and were set at better levels than past renewals.
Furthermore, continues the firm, improved prices and conditions were achieved to help mitigate the lower for longer interest rate environment and increasing legal threats on reserves.
On the L&H reinsurance side of the business, which represents around 33% of CCR Re’s global portfolio, the turnover at Jan 1st, 2021 remains flat with the previous year.
Bertrand Labilloy, Chairman and Chief Executive Officer (CEO) of CCR Re, commented: “The January 2021 renewals demonstrate the quality and the relevance of CCR Re business model across all regions and lines of business. Looking forward, we are in a strong position both in terms of franchise and robustness to meet our clients and partners expectations.”
The reinsurer is set to announce its financial results for 2020 on April 9th, but ahead of this has provided some preliminary figures.
During the year and despite the impacts of the COVID-19 pandemic, CCR Re’s gross written premiums increased by 16% to €649 million. However, the firm has fallen to an underwriting loss for the year as the pandemic and the Beirut port explosion saw its combined ratio reach 103.2%. Overall, the reinsurer expects to report net income of €18 million for the year.