Reinsurer’s 1/1 renewals were characterised by ‘portfolio management, profitability and growth’
SCOR Global P&C has recorded a 7 % rise in business volume in the 1/1 2010 renewals.
The P&C division said its gross written premium projection for the 2010 accounting year is approximately EUR 3.5 billion (compared to a 2009 figure of €3.26 billion).
Net Combined Ratio for the 2010 accounting year is expected to be in the region of 96%.
Victor Peignet, Chief Executive Officer of SCOR Global P&C, comments: “Portfolio management, profitability and growth characterize SCOR’s 2010 renewals. Further executing on portfolio management, SCOR Global P&C expects an improvement in the technical profitability of its portfolio, having withdrawn from business that did not meet profitability targets and more than adequately replaced it with business showing greater performance expectancy. I am satisfied that, thanks to our teams and inline with our original expectations for the SCOR Global P&C renewals, we have been able to achieve an overall positive change in prices. The performance at the 1/1 renewals comforts us in our projection of a net combined ratio for2010 trending towards 96%”.
SCOR records a stable business volume in the EMEA zone (Europe, Middle-East and Africa), with written premiums of EUR 1,020 million compared to EUR 1,021 million in 2009. There are, however, significant differences between markets due to local conditions and measures taken by SCOR to ensure that internal profitability targets are achieved.
In Germany and the UK, business declines by 14% and 29% to EUR 174 million and EUR 65 million respectively. The main reasons for this shift are voluntary reductions in German Property and Motor Proportional business and in British Motor Non-Proportional business, partly offset in Germany by some increases in Property Non-Proportional business.
In the Middle East and Africa, business volume increases by 19% to EUR 135 million, thanks to new developments in the Middle East (e.g. Saudi Arabia) and in South Africa on short-tail business.
Significant increases are also recorded in the Americas (+15%), concentrated in the US regional clients target segment. Canada and Central America renew within an unchanged positive profitability environment, whilst a careful stance is taken in the Caribbean and South American markets.
In Asia-Pacific, SCOR Global P&C experiences significant growth thanks to our re-established local presence in Australia and new developments in Pakistan. Underwriting in China remains very selective. Bearing in mind that in this region only around 27% of Treaty P&C premiums are up for renewal at 1 January 2010, since Japan, Korea and India will renew their programmes on 1 April 2010, volume increases by 19%to EUR 67 million.
Proportional reinsurance shows a slight increase from EUR 835 million to EUR 842 million, while non-proportional increases more significantly from EUR 440 million to EUR 472million. SCOR Global P&C reduces the volume of proportional business in certain markets and lines (e.g. Germany Property and Motor), whilst increasing the non-proportional business volume (e.g. Germany, France and Benelux),applying a disciplined underwriting policy in accordance with its profitability objectives.
The natural catastrophe Property book, which represents around 15% of SCOR’s total Treaty P&C volume, shows a significant increase of 9%, rising from EUR 175 million in 2009 to EUR 192 million in 2010 thanks to a positive balance between premium income growth in countries benefiting from a favourable pricing trend (such as France and Spain) and a reduction in territories offering less attractive terms(e.g. the Caribbean & South America).