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SCOR reached its objective of successfully consolidating two strong independent reinsurance groups into one leading franchise at this year’s January renewals. The January 2008 treaty renewals for SCOR Global P&C (SCOR’s Non-Life division), at which 78% of the total Non-Life treaty premiums were up for renewal, confirmed SCOR’s strong market position around the globe, enabling the Group to renew business with minimum attrition and to fulfil its targets as set out in its strategic three-year plan “Dynamic Lift V2” in terms of volume and expected profitability.
The highlights of the renewals are as follows:
- Highly efficient integration of SCOR and Converium portfolios
- Enhancement of market positions and extended leadership on reinsurance programmes
- € 1.742 billion of Non-Life treaty business renewed against € 1.755 billion up for renewal at constant exchange rates
- Terms and conditions of renewed and new business in line with the net technical ratio objective for 2008 as set forth in “Dynamic Lift V2”
- Estimated 2008 Gross Premium Income of € 3.1 billion in Non-Life and € 5.9 billion for the Group, at current exchange rates
- Strong pro-forma 2007 business volume of an estimated € 5.85 billion for the Group
In a post-merger environment, the main underlying reasons for such outstanding renewals were:
- Two very strong complementary reinsurers combining forces
- A highly efficient and swift integration process with regard to teams and systems
- Access to new business with existing clients and enlargement of client base
- Strict underwriting discipline and tight controls applied throughout the renewals; 12% of the Non-Life treaty business up for renewal cancelled and successfully replaced by new business
Denis Kessler, Chairman and Chief Executive Officer of SCOR, said: “In today’s challenging market environment, it is an outstanding achievement that SCOR has managed to integrate Converium and combine the portfolios for the January renewals with such limited attrition, whilst having fully followed its underwriting policy in terms of selectivity and profitability. The success of this year’s renewals is a clear demonstration that the SCOR client franchise is re-affirmed and has been strengthened by the integration of Converium. With our improved diversification stemming from Treaty, Specialty and Joint-Venture and Partnership business, SCOR is well positioned to achieve the objectives set out in the “Dynamic Lift V2” plan.”
