French reinsurance mutual needs to grow and become autonomous in the face of growing nat cat losses, says Board
The board of French mutual CCR have passed a set of resolutions aimed at driving growth at its market subsidiary, CCR Re, in line with CCR’s strategic plan introduced in 2021.
It is proposing that, by July 2023, a new shareholder (or group of shareholders) will acquire a €200m stake in CCR Re as part of a capital increase, which will result in holding a majority stake in the market subsidiary.
The effect of these resolutions will also be to refocus CCR’s business activity towards, and strengthen its resources in public-sector reinsurance, particularly with a view to dealing with the challenges that lie ahead, such as insurance for natural disasters.
Under the business plan adopted by CCR Re, it will therefore seek to write €2 billion in gross premiums by 2027, with a 10% profitability.
Jacques Le Pape, chairman of CCR’s Board of Directors, said: “We are going to provide CCR Re with the resources it needs to grow and become autonomous.
”This will allow CCR to strengthen its public-sector activities, at a time when natural disasters are becoming more frequent and more intense.”
The transaction is part of the process of separating CCR’s market activities from its public-sector activities.
It will also allow CCR Re to reach the critical size and level of profitability it needs to self-finance its growth in line with market rates.
Vieillefond becomes deputy CEO
To support these initiatives, the board has appointed Edouard Vieillefond as CCR’s deputy chief executive officer, alongside Bertrand Labilloy, who remains chief executive officer of CCR and chairman and chief executive officer of CCR Re.
Vieillefond joined the Covéa Group in 2014, where he held a number of positions, becoming chief executive of GMF in 2018, a post he held until 2020. In April 2021, he founded and began managing his own consultancy firm, Praesential.