CCR, a state-backed reinsurer that covers the French insurance market against natural disasters, has published its 2017 results, revealing a challenging year for the company that saw its net profit fall by 68% due to an exceptional tax expense, exacerbated by insured losses of €2.04 billion.
Insured losses were up from €1.10 billion in 2016 due to severe drought in mainland France and the unprecedented economic impact of Hurricane Irma on the French territories in the Caribbean.
Accounting for CCR’s underwriting results from terrorism risk and specialty lines reinsurance, as well as the income generated by its investment portfolio, the company’s income amounted to €204 million for all public reinsurance activities, down 26% from €275 million in 2016.
However, CCR remains confident in the solidity of its public reinsurance balance sheet, and maintains that it is still currently capable of covering a natural disaster market loss of €4.5 billion without resorting to the use of the State guarantee.
CCR Group Chairman Pierre Blayau, said: “In a year that put the global reinsurance industry to the test, the CCR Group demonstrated the solidity and the pertinence of its business model, serving in particular the people and the territories of France highly exposed to natural risks.”
CCR Re, a wholly owned open market subsidiary of CCR, completed its first financial year with €396 million in premium income, an improved loss ratio of 73%, and a solvency ratio of 190%.
Created in 2016, CCR Re operates in the French and international markets in life, non-life, and specialty lines of business, and allows CCR to segregate its open market and state-backed reinsurance operations.