France’s SCOR Group said it has reached its objective for “successfully consolidating two strong independent reinsurance groups into one leading franchise at this year’s January renewals.” 78 percent of the Group’s combined non-life reinsurance treaties were successfully renewed.
SCOR listed the following “highlights” for the renewals:
— Highly efficient integration of SCOR and Converium portfolios
— Enhancement of market positions and extended leadership on reinsurance programs
— €1.742 billion ($2.56 billion) of Non-Life treaty business renewed against € 1.755 billion ($2.577 billion) up for renewal at constant exchange rates
— Terms and conditions of renewed and new business in line with the net technical ratio objective for 2008 as set forth in “Dynamic Lift V2”
— Estimated 2008 Gross Premium Income of € 3.1 billion ($4.55 billion) in Non-Life and € 5.9 billion ($8.66 billion) for the Group, at current exchange rates
— Strong pro-forma 2007 business volume of an estimated € 5.85 billion for the Group In a post-merger environment, the main underlying reasons for such outstanding renewals were:
— Two very strong complementary reinsurers combining forces
— A highly efficient and swift integration process with regard to teams and systems
— Access to new business with existing clients and enlargement of client base
— Strict underwriting discipline and tight controls applied throughout the renewals; 12 percent of the Non-Life treaty business up for renewal cancelled and successfully replaced by new business
Chairman and CEO Denis Kessler commented: “In today’s challenging market environment, it is an outstanding achievement that SCOR has managed to integrate Converium and combine the portfolios for the January renewals with such limited attrition, whilst having fully followed its underwriting policy in terms of selectivity and profitability. The success of this year’s renewals is a clear demonstration that the SCOR client franchise is re-affirmed and has been strengthened by the integration of Converium. With our improved diversification stemming from Treaty, Specialty and Joint-Venture and Partnership business, SCOR is well positioned to achieve the objectives set out in the “Dynamic Lift V2″ plan.”
A further breakdown of the renewal report is available one the reinsurer’s web site: www.scor.com
Source: SCOR Group
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