Reinsurer hails “excellent” non-life treaty renewals
French reinsurer Scor’s premium income increased 19% at the property/casualty and treaty renewals that took place at the end of June. These renewals account for 10% of the reinsurer’s total annual treaty premium volume. Scor said it had achieved the increases while fully respecting its technical underwriting profitability criteria.
According to Scor, the premium increase reflected the strengthened competitive position of its global property/casualty business, the firm’s repositioning in the US, Australia and South Africa and improved conditions in certain regions, such as Latin America, and business lines, such as credit & surety and energy.
“With this success at the third key renewal date of this year after those of 1/1 and 1/4, we are confident that we will achieve the overall premium levels indicated earlier in the year in our January 2010 renewal presentation,” said Victor Peignet, CEO of Scor Global P&C, in a statement. “Even more importantly, the underlying profitability of the underwritten business, on a normalised cat budget, is in line with the communication given in January.”
Scor reported a continuing geographic rebalancing of its property/casualty treaties towards the Americas and Asia-Pacific at the June renewals. US regional premium income, excluding natural catastrophe business, increased 67%, Australia was up 32% and Latin America increased 12%. The firm also boosted premium income by 28% in South Africa and 22% in the Middle East.
Premium volume in specialty treaties was up 15%, thanks to market share increases in areas with favourable pricing, such as credit and surety, where premium volume increased 62%, and transport and energy, which was up 46%. The growth was also attributable for areas with stable conditions, such as construction, where premiums were up 12%.
The company said that rate conditions varied by sector and market, resulting in large increases in loss-hit areas and limited decreases elsewhere. As a result, it achieved a weighted average price increase on renewed business of nearly 1%.