SCOR Reports 19% Premium Growth in January Renewals, Average Price Hikes of 4.9%

SCOR reported 19.0% premium growth during the January property/casualty (P/C) reinsurance renewals and an overall average P/C price increase of 4.9%.

SCOR said the 19% premium growth figure includes a large structured transaction in Europe on a non-catastrophe-exposed and well-balanced portfolio. Excluding this deal, underlying growth amounted to 9.8%, which represents a year-on-year rise in premium of €371 million ($424.2 million) to roughly €4.2 billion ($4.8 billion).

“The Jan. 1, 2022 renewals evidence the continuing hardening of the P/C treaty reinsurance market, following years of large natural catastrophe losses, attritional inflation and low interest rates,” said SCOR in its renewal announcement.

SCOR said it was able to navigate a complex and prolonged January renewal season, while rigorously deploying capital.

It reduced “climate-sensitive exposures as net margins are currently insufficient to reflect the exceptionally volatile environment…,” the company said, noting that it actively steered its book towards treaty global lines such as marine, engineering, credit & surety.

Nevertheless, the company indicated, there is a “robust demand for reinsurance.”

SCOR said much of growth at the January renewals was driven by its treaty global lines with premium growth of 20.7% to €1.44 billion ($1.7 billion), with principal drivers being credit & surety and marine & energy.

In treaty P/C, SCOR reported growth of 4.8% to €2.71 billion ($3.1 billion), with principal drivers being Europe (including casualty) and motor.

SCOR said it took a number of actions to reduce volatility:

• Cost of retrocession efficiently managed. The same amount of limits were purchased while cost increases were contained. In addition, a broader pool of retrocessionaires was accessed through its successful third party capital strategy.
• Reduction of catastrophe exposures at the January renewals. Cat exposures were cut by 7% on treaty reinsurance, and by 11% on the P/C in-force portfolio for the full year 2022.

SCOR said it continues to view specialty insurance as the most attractive segment of the P/C re/insurance market currently, growing its book to 26% of P/C portfolio in 2021. In large commercial single risk insurance, SCOR recorded a gross premium growth of 18.6%, all regions contributing, and rate increases of 12.6% over the course of 2021.

Outlook for 2022

Looking forward to the April and June / July 2022 renewals, SCOR expects the current positive market trends to continue. The Group is confirms 2022 assumptions presented at its September 2021 Investor Day, including gross written premium growth of 15-18%, and a net combined ratio trending downwards towards 95% and below.

Source: SCOR

Topics Trends Pricing Trends Reinsurance Property Casualty