SCOR’s GWP up 8% in 2013; 5% for January 1 Renewals

February 7, 2014

France’s SCOR Group confirmed that the reinsurer “booked 8 percent gross written premium growth (at constant exchange rates) for the full year 2013, to €4.85 billion [$6.58 billion]. SCOR Global P&C also posted a 5 percent increase in gross premiums during the January 2014 renewals, to €3.4 billion [$4.613 billion].

SCOR’s bulletin said: “As anticipated and communicated during the 2013 annual Monte-Carlo conference, the January 2014 renewals have been characterized by a challenging market environment with:

• A number of large and even mid-size insurers reconsidering their protection strategies and reinsurance buying policies, and restructuring their reinsurance programs;

• The reinsurance market witnessing a ‘tiering’ of players, to the benefit of the larger and most diversified ones, operating as true multi-liners in terms of pricing and underwriting capabilities, with a global approach to client relationships.

“In this context, SCOR Global P&C has been successful in expanding its franchise and crystalizing new business opportunities, while keeping a disciplined underwriting approach, pushing back unsatisfactory terms & conditions and accepting the non-renewal of under-priced business.

“The premiums up for renewal at 1/1 represent 71 percent of the total annual volume of treaty premiums and are distributed between P&C Treaties (72 percent) and Specialty Treaties (28 percent).”

SCOR also said the “main business line developments at the January 2014 renewals are as follows:

• For P&C Treaties: gross premiums increase by 6 percent at constant exchange rates, to

€1.927 billion [$2.614 billion], of which 4 percentage points relate to the renewal of the large quota share deals in Asia.

SCOR Global P&C continues to diversify its portfolio towards Asia (32 percent growth), this region now representing 19 percent of the P&C Treaty portfolio.

• For Specialty Treaties: gross premiums increase by 4 percent at constant exchange rates, to € 724 million [$982 million], of which 2 percentage points relate to the renewal of the large quota-share deals in Asia.

“Some segments have benefited from relatively better market conditions, leading to a 6 percent premium increase in Marine & Energy and a 4 percent increase in Engineering. The US cat segment represents only 2 percent of the overall P&C book to be renewed, and has witnessed 6 percent growth thanks to increased shares with large national, multi-national and global insurers, more than compensating the reductions on the regional book where pricing and general conditions have often been viewed as unsatisfactory.”

Victor Peignet, CEO of SCOR Global P&C, commented: “Having anticipated the market changes, SCOR Global P&C has proven to be a leading reinsurance player in the market, positioned among the preferred partners for insurers. This is particularly true concerning our targeted clients with whom we have largely managed to increase our shares, taking advantage of their program restructurings.

“The January 2014 renewals confirm our analysis of the ongoing “bifurcation” of the reinsurance market and reinforce our conviction that SCOR Global P&C is set to be among the beneficiaries of this “tiering” of the industry. In this context, size and diversification combined with the capabilities to cover all lines and offer global approaches to cedants are key competitive advantages. We are confident in our ability to further strengthen our market position, including through our complementary business platforms SCOR Business Solutions and the Channel 2015 Lloyd’s syndicate, which are in line with our strategic plan.”

Source: SCOR Group

 

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