French insurer and reinsurer SCOR has reported a strong April renewals season, during which the firm grew its premiums by more than 14%, with an overall increase in pricing of 4.3%.
The reinsurer says that it benefitted from the continued improvements in pricing and terms & conditions already seen at the January 1st, 2021 reinsurance renewals.
Gross premiums up for renewal grew by 14.3% at constant exchange rates to €600 million, with a 4.3% overall increase in pricing.
According to SCOR, the technical profitability of the portfolio benefitted from rate-on-rate compounding effects after the rate rises seen in the previous year. These improvements, says SCOR, are fully in line with the positive outlook the firm set in September and already witnessed in January.
64% of the renewed portfolio is in the Asia-Pacific region, of which each Japan and India account for approximately 28-29% of total premiums.
At April 1st, 2021, the reinsurer grew premiums in Japan by 3% at constant exchange rates to €156 million, benefiting from significant price increases, while partially redeploying capacity away from frequency-affected layers.
The reinsurer achieved price increases of 12.3% year-on-year on Japanese CAT excess-of-loss programmes, which it says accelerates its payback from the 2018 and 2019 typhoon losses.
In India, where SCOR has a Tier 1 position and market conditions are also positive, the reinsurer achieved premium growth of 21% at constant exchange rates, amounting to €178 million.
U.S. business accounts for around 16% of the portfolio up for renewal at April. According to SCOR, it maintained its disciplined underwriting approach to produce a close to stable topline of €83 million.
SCOR has now successfully renewed approximately 78% of its reinsurance treaty portfolio and is on track to meets its 2021 growth and technical profitability assumptions.
In the Specialty Insurance segment, SCOR notes continued development and the benefit of a rate-on-rate compounding effect on large industrial and commercial single risks, with rate rises of 16% across all lines of business for the Q1 2021 renewals.
Jean-Paul Conoscente, Chief Executive Officer (CEO) of SCOR Global P&C, commented: “SCOR Global P&C’s successful April 2021 renewals, which are heavily skewed towards Asia-Pacific, confirm the excellent market trends for P&C (re)insurance seen in January, with sizeable technical profitability improvements across regions and lines. These renewals fully confirm the outlook we provided in September 2020 of significant and generalized market hardening trends.
“We believe that improvements in pricing and terms and conditions on the P&C (re)insurance market will continue for future renewals. In this supportive market environment, SCOR is ideally positioned to seize profitable growth opportunities thanks to the depth of its franchise, its recognized technical expertise, its deep relationships with clients and its ability to meet their needs.”