January 2024 P&C Renewal Results: Growing preferred lines of
business in attractive market conditions
Press release6 February 2024 - N°
2
January 2024 P&C Renewal
Results
Growing preferred lines of business in
attractive market conditions
- In line with its Forward 2026
strategic plan announced in September 2023, SCOR grows its P&C
business in preferred lines while building a balanced and resilient
portfolio, in a continued hard market.
- During the January 2024 P&C
renewals, SCOR achieves EGPI1 growth of 13.6%2, above the average
Forward 2026 strategic plan assumptions:
- Increasing EGPI
by 13.3%2 for Engineering, Marine, IDI and International Casualty
and enhancing portfolio diversification;
- Accelerating the
development of Alternative Solutions (more than doubling EGPI2)
from strong new business, meeting client demand for customized
solutions;
- Maintaining a
prudent approach to business exposed to climate change while
meeting the increased Property Cat capacity needs of clients;
- Keeping a
limited appetite for US Casualty with slightly decreasing
EGPI.
- Overall, SCOR further enhances its
expected technical profitability with an improvement of 1.5 points
on the net underwriting ratio (excluding Alternative Solutions),
driven by a +3.1% price change, including +6.6% on non-proportional
business.
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Jean-Paul Conoscente, CEO for P&C at
SCOR, comments: “Following very strong renewals throughout
2023 marked by the hardest market seen in the last 20 years, SCOR
continues to improve the quality and profitability of its P&C
portfolio, maintaining disciplined pricing and terms &
conditions for the 1.1.2024 renewals. In this favorable market, we
are seizing attractive opportunities, as illustrated by the 13.6%
growth delivered this January. I expect the attractive market
conditions to continue over the remainder of the year, fuelled by
the demand from cedants and continued discipline by reinsurers.
SCOR’s teams continue to lean into the hard market to generate
value and successfully deliver on the Forward 2026
plan.”
January 2024 P&C Reinsurance Treaty
Renewals
During the January 2024 renewals period, demand
for reinsurance coverage continues to increase. Despite an
increasing capital supply compared to last year, the imbalance
remains. In this context, SCOR successfully grows its preferred
lines, maintains attractive terms and conditions and improves the
profitability of its P&C reinsurance book.
Reinsurance treaties renewal book at 1 January
20241:
|
Premiums renewed (in EUR
million)2 |
Evolution vs. January 20232 |
Main lines concerned |
Treaty P&C Lines3 |
2,198 |
+0.8% |
o/w Nat Cat (+9.9%) o/w Engineering, Marine, IDI,
International Casualty (+13.3%) |
Treaty Global Lines (excluding Alternative Solutions)4 |
1,498 |
+9.4% |
Alternative Solutions |
550 |
+191.5% |
|
TOTAL |
4,246 |
+13.6% |
|
- Approximately 62% of SCOR’s P&C
reinsurance premiums – representing 41% of SCOR’s total P&C
premiums – is renewed in January.
- Excludes one large structured transaction and SCOR’s 3rd party
capital provision business at Lloyd’s (“SUL”).
- Treaty P&C Lines include
Property, Property Cat, Casualty, Motor, and other related lines
(Personal Insurance, Nuclear, Terrorism, Special Risks, Motor
Extended Warranty, and Inwards Retrocession).
- Treaty Global Lines include
Agriculture, Aviation, Credit & Surety, Inherent Defects
Insurance, Engineering, Marine and Offshore, Space, and Cyber.
P&C Lines EGPI grows by 0.8%2, driven by
continued disciplined Nat Cat underwriting and decreasing exposures
in US Casualty. Natural Catastrophe premiums increase by 9.9%,
driven primarily by price, while maintaining an underweight net
exposure. In US Casualty, SCOR maintains a prudent approach and
renews its portfolio with selected clients. This leads to slightly
decreasing US Casualty EGPI and reduced exposures to this
business.
Global Lines EGPI grows by 9.4%2, excluding
Alternative Solutions. This is driven by growth in preferred and
diversifying lines such as Engineering, Marine and IDI, in line
with the Forward 2026 plan.
Alternative Solutions EGPI grows by
191.5%2 compared to 1st January last year, with strong new
business across all regions.
The expected profitability improves, translating
to a 1.5-point reduction of the net underwriting ratio (excluding
Alternative Solutions) on the renewed portfolio. This is supported
by a +3.1% price change, including a +6.6% price increase on
non-proportional business.
Regarding terms and conditions, SCOR stands firm
on last year’s improvements.
On retrocession, SCOR improves its protection
with enhanced capacity and coverage expansion at constant cost.
For the upcoming renewals, SCOR expects
risk-adequate prices in 2024. The portfolio growth will continue
over the year including a strong pipeline of Alternative Solutions
contracts. In parallel, SCOR continues the development of risk
partnerships with new and existing partners.
*
* *
SCOR, a leading global reinsurer As a
leading global reinsurer, SCOR offers its clients a diversified and
innovative range of reinsurance and insurance solutions and
services to control and manage risk. Applying “The Art &
Science of Risk”, SCOR uses its industry-recognized expertise and
cutting-edge financial solutions to serve its clients and
contribute to the welfare and resilience of society. The
Group generated premiums of EUR 19.7 billion in 2022 and serves
clients in more than 160 countries from its 35 offices worldwide.
For more information, visit: www.scor.com |
Media Relations Alexandre Garciamedia@scor.com
Investor RelationsThomas
Fossardtfossard@scor.com Follow us
on LinkedIn |
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SCOR group since January 1, 2024, is certified with Wiztrust. You
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|
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Financial information
All figures in this presentation are unaudited
unless otherwise specified. Unless otherwise specified, all figures
are presented in Euros. Any figures for a period subsequent to 30
September 2023 should not be taken as a forecast of the expected
financials for these periods. All definitions can be found in the
appendix of the presentation. All figures are at constant exchange
rates as of December 31, 2023 unless otherwise specified. All
figures are based on available information as of January 25, 2024
unless otherwise specified.
1 Estimated Gross Premium Income (EGPI).2 vs 1 January 2023
EGPI. Excludes one large structured transaction.
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