- Taking full advantage of the positive phase of the P&C reinsurance cycle, SCOR records a 17% growth in gross written premiums (excluding Agriculture) during the April 2023 renewals.
- SCOR significantly improves the expected technical profitability and risk/return profile of its Property & Casualty portfolio renewed on April 1, 2023, with an average rate increase of 7%.
- The gross Contractual Service Margin (CSM) for the risk portfolio renewed as of April 1, 2023 (excluding Agriculture), which reflects the present value of expected future profits on this risk portfolio, is c. 25% higher than the CSM generated during the April 1, 2022 renewals, under constant economic assumptions.
Like the January 2023 renewals, the April 1, 2023 P&C reinsurance renewals are taking place in a favorable market environment for reinsurers, both in terms of pricing and terms and conditions.
In this supportive market, SCOR is actively pursuing the deployment of its capital by building on its relationships with its long-term clients.
Gross premiums renewed excluding Agriculture amounted to EUR 724 million, up 17% at constant exchange rates. Including the Agriculture line (for which renewals are still in progress1), gross premiums renewed reached EUR 928 million2, up 5% at constant exchange rates.
|
P&C reinsurance portfolio renewed as of April 1, 2023 |
Gross premiums renewed |
Evolution vs. April 1, 2022 (at constant exchange rates) |
|
Total excluding Agriculture |
EUR 724 million |
+17% |
|
Total |
EUR 928 million2 |
+5% |
- For Treaty P&C Lines, gross premiums were up 12% (at constant exchange rates). Renewals in these segments are marked by:
- Growth in non-proportional excess-loss treaties concentrated on contracts where retention has increased significantly;
- A decrease in the limits engaged by SCOR on Property proportional treaties exposed to natural catastrophes (-13%) ;
- And, consequently, a stable natural catastrophe PML3.
- For Global Lines (excluding Agriculture), gross premiums were up 28% (at constant exchange rates). This strong growth was driven by the Engineering and Alternative Solutions lines.
- SCOR is reducing its PML3 in Agriculture by 50% as announced in Q2 2022. This translates into an expected 23% decrease in gross premiums, mainly in Brazil.
By deploying its capital in the most attractive segments, SCOR significantly improves the expected technical profitability of its risk portfolio, with an average rate increase of 7% at the April 1, 2023 renewal. The main rate increases were achieved on non-proportional treaties (+23%), in line with the trends observed during the January 1, 2023 renewals (+24%), with notably average rate on line increases on CAT XL programs of 20% in Japan and 40% in the US and India.
The gross New Business CSM for the contracts renewed on April 1, 2023, excluding Agriculture, is up c. 25% year-on-year, at constant economic assumptions. This increase in net value creation associated with the April 1, 2023 renewals contributes positively to the growth of the Group's Economic Value.
Jean-Paul Conoscente, CEO of SCOR P&C, comments : "At the April 1, 2023 renewals, SCOR continues to improve the expected technical profitability and optimize the risk/return profile of its P&C risk portfolio. We are very satisfied: our objectives in terms of technical profitability have been achieved and the volumes written are up. The outlook remains positive for the June and July 2023 renewals."
1 The Agriculture line is subject to late renewals. This market practice is explained by the underlying exposures which evolution depends on the crops production cycle.
2 Based on an estimate of renewals in Agriculture.
3 PML (probable maximum loss) as measured by the net Aggregate Exceedance Probability 1-in-250 years.
