SCOR grows reinsurance premiums 9.7% in a more favorable market; expected profitability stable

SCOR grew P&C reinsurance premiums by 9.7% at constant exchange rates at the January 2019 renewals, to EUR 3.2 billion. The outcome of these renewals is in line with the September update of the group's strategic plan growth assumption for SCOR Global P&C, at 5%-8% p.a.

For SCOR Global P&C, whilst the burden from NatCat losses for the full year 2018 is expected to be in the range of twice the annual budget (of 6 points of net combined ratio), the forecast is that the 2018 net combined ratio will nevertheless be below 100%.

In addition to being well above average in terms of the total amount of insured NatCat losses, 2018 presents an unusual loss profile due to the geography of those losses and the diversity of the perils that caused them.

Beyond the six losses that received wide media coverage (two hurricanes in the U.S., two typhoons in Japan and two wildfires in California), the market has been impacted by a large number of smaller but still significant events all over the world. This unusual loss profile, with a high frequency of medium to high severity losses, has always been monitored by SCOR's Enterprise Risk Management system and stands within our risk appetite as an earnings event.

As planned in "Vision in Action", the largest renewal growth was in the U.S., where SCOR maintains a balance between short and long-tailed business. SCOR declined business with less attractive margins or risk profiles, particularly when pricing was insufficient, which included some very large proportional treaties. Overall risk-adjusted pricing improved 1.3% compared to January 2018. Expected profitability, which is measured by both technical profitability (loss and commission ratios) and return on risk-adjusted capital, remained stable on both measures.

Reinsurance pricing is broadly stable across nearly all lines of business and geographic markets. SCOR benefits from improving P&C insurance pricing through both Reinsurance (e.g. proportional) and Specialty Insurance, which includes SCOR Business Solutions, the Channel Syndicate, and the MGA business.

Approximately 64% of SCOR's P&C reinsurance premiums renew in January. There are no substantial changes to the division's risk appetite and profile.

Looking forward to the April, June & July renewals, the market is expected to stay firm, with the possibility of further hardening as contracts affected by the high number of NatCat and man-made losses in Q3 and Q4 2018 come up for renewal.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

SCOR, FY2018: net income of EUR 322 million and 7% raise in GWP

The French re/insurance group SCOR has recorded GWP worth EUR 15,258 million in 2018, up 7.1% at constant exchange rates compared to 2017 (+3.2% at current exchange rates), a growth well balanced between the Life and P&C divisions and a "first" in its history.


Supervisory Board Chair NN Group steps down

NN Group announces that Jan HOLSBOER, chair of the Supervisory Board of NN Group, has decided to step down as of the close of the annual general meeting (AGM) on 29 May 2019. The Supervisory Board has elected David COLE as Jan HOLSBOER's successor.


ALLIANZ reported highest net income in the last decade

German insurer ALLIANZ announced its FY2018 total revenues grew by 3.5% y-o-y, to EUR 130.6 billion, while the operating profit was up by 3.7% to EUR 11.5 billion "in the upper end of the Group's announced target range of EUR 10.6 billion to EUR 11.6 billion and the highest in our history".


AXA XL to cut over 700 jobs in Europe

AXA XL has presented the plan for its future target operating model and organizational structure of the business, which includes the reduction of 711 positions in Europe, out of a workforce of 9500 employees globally.


AXA has completed the sale of its Ukrainian units

The French insurer AXA Group announced it has successfully completed the deal with FAIRFAX Financial Holdings Limited (Canada) to sell its Ukrainian units - the non-life entity (AXA Insurance) and life entity (AXA Insurance Life) - both based in Kyiv, as the Paris-based insurer has said in a statement.



Supervisory Board Chair NN Group steps down

NN Group announces that Jan HOLSBOER, chair of the Supervisory Board of NN Group, has decided to step down as of the close of the annual general meeting (AGM) on 29 May 2019. The Supervisory Board has elected David COLE as Jan HOLSBOER's successor.


Peter CLARKE named VP & COO of FAIRFAX

FAIRFAX Financial Holdings Limited announced that Peter CLARKE has been appointed Vice President (VP) and Chief Operating Officer (COO) of FAIRFAX, reporting to FAIRFAX President, Paul RIVETT.



Inclusive Insurance - just a week to the second edition of IIF - CEE & SEE Regional Actuarial Insurance Conference in Skopje

Insurance should be accessible to all social classes, regardless of their wealth & income status. Products offered today are conventional insurance products, largely inspired from the developed markets as "one-size-fits-all" solutions, affordable to only middle- and high-income clients in the Eastern Europe's emerging & developing markets. Inclusive insurance's goal is making insurance available to all, with responsible insurance offers, thus making up for a solution to narrow the insurance coverage gap in the region.


Latest trends and challenges in the property and motor insurance lines under scrutiny, in Vienna

Property and motor insurance lines are providing for about 75% of the non-life insurance business in the CEE region, but are responsible for over 77% of the claims expenses. As such, although other classes of risks are emerging, for the time being and most probably for a rather long period ahead, property and motor insurance lines will continue to be at the heart of CEE's insurance market architecture.


FIAR 2019: Register before 28 February and save EUR 400 of the attendance fee

To the satisfaction of its traditional guests, FIAR returns in 2019 to its historical hometown, Sinaia. The forthcoming edition will benefit from the comfort and professional facilities of a new venue, the Conference Center of the International Hotel ****, located in the heart of the beautiful mountain resort. Registration is opened at a significantly discounted early bird rate until 28 February.


See all