SCOR Global P&C (SGPC) recorded 11 percent growth at constant exchange rates from the €328 million [$435 million] in premiums that were up for renewal on April first, “with no increase in exposure to natural catastrophes.”
SGPC also noted that it “has continued to actively manage its risk portfolio, enabling it to achieve an average weighted price increase of 7 percent whilst reinforcing the quality of its portfolios: 7 percent of the business up for renewal has been cancelled or restructured.”
The bulletin explained that the global pricing increase of around 7 percent “benefits from the trends observed in natural catastrophes (+17 percent), particularly in Asia (+19 percent) and to a lesser degree in the United States (+ 10 percent), regions in which most of the nat cat premiums renewed in April are concentrated.
“The expected profitability of business renewed in April, measured by projections of the combined ratio and returns on allocated capital, is up sharply for both Non-life and Specialty treaties, with an improvement of around 2.5 points on each of the two ratios compared to the same projections made during the renewals of April 2011.
“The premiums up for renewal, which represent around 11 percent of the total annual volume of treaty premiums, were distributed between treaties (69 percent) and Specialty treaties (31 percent) in three geographic areas: Asia (70 percent), Americas (22 percent) and EMEA (8 percent).”
SCOR CEO Victor Peignet commented: “These excellent renewals bear witness to SCOR’s ability to pursue its policy of strict underwriting and active portfolio management, whilst remaining a long-term partner for its clients.
“Although 2011 was marked by unprecedented losses in Asia-Pacific, this momentum has been made possible by the Group’s strong franchise and the quality of its client relationships. Over the first three months of 2012, SCOR records growth of 12.8 percent and an average pricing increase of around 3 percent compared to the 1st quarter 2011, in line with the objectives of Strong Momentum V1.1.”
Source: SCOR Group
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