SCOR Reports 4.3% Increase in Reinsurance Prices During April Renewals

April 19, 2021

French reinsurer SCOR said it benefited strongly from continued improvements in pricing and terms and conditions, during the April 1, 2021 reinsurance renewals – a continuation of trends already seen during the January renewals.

SCOR’s gross premiums, up for renewal, increased by 14.3% at constant exchange rates to €600 million (US$719 million), with a 4.3% overall increase in pricing.

The technical profitability of the portfolio benefited from rate-on-rate compounding effects after last year’s price increases.

The bulk of the portfolio renewing on April 1 (64%) is in the Asia-Pacific region, of which Japan and India are the most significant markets, each accounting for approximately 28%-29% of total premiums up for renewal, said SCOR. The United States represents 16% of the portfolio which renewed on April 1.

SCOR detailed its performance in these markets:

  • Japan. SCOR grew premiums in Japan by 3% at constant exchange rates to €156 million ($186.9 million), benefiting from price increases of 12.3% (over the same period in 2020) for Japanese catastrophe excess-of-loss programs. During the renewals, the reinsurer was able to partially redeploy its capacity away from frequency-affected layers, while accelerating its payback from the 2018 and 2019 typhoon losses.
  • India. Leveraging its Tier 1 position in India as well as positive market conditions in the country, SCOR achieved significant premium growth of +21% at constant exchange rates, reaching €178 million ($213.2 million).
  • United States. SCOR said it held to its disciplined underwriting approach in the U.S. to deliver a close to stable topline (-1%) of €83 million ($99.4 million), having focused its growth on geographies with market conditions deemed more appealing.

To date, SCOR has renewed approximately 78% of its reinsurance treaty portfolio and is well on track to achieve its 2021 growth and technical profitability assumptions.

In Specialty Insurance, SCOR said it continues to benefit fully from a rate-on-rate compounding effect on large industrial and commercial single risks, with rate increases of 16% across all lines of business for the Q1 renewals. The continued market improvements are spread across most lines of business and geographies, with sustained significant rate increases.

“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,” commented Jean-Paul Conoscente, CEO of SCOR Global P&C.

“These renewals fully confirm the outlook we provided in September 2020 of significant and generalized market hardening trends,” he continued in a statement. “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.”

Source: SCOR

Topics Trends Reinsurance Pricing Trends

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