CCR Group, 1H2019: two-digit increase for the international business

5 September 2019 — Cosmin CONCEATU
France-based CCR Group released its first half of 2019 report. CCR, the public-sector reinsurer, reported a total amount of EUR 929 million written premiums (+3.5% y-o-y), while CCR RE, the global branch of the group, a total premium volume of EUR 441 million (+16% y-o-y).

Recently, AMBEST affirmed the A+ ("Superior") Financial Strength Rating of CCR and the A ("Excellent") Financial Strength Rating of CCR Re, the outlook remaining stable.

"The solid CCR and CCR Re ratings confirm the relevance of the healthy and balanced growth strategy deployed since 2016 and rewards innovation and risk management efforts of all teams," said Bertrand LABILLOY, Chairman and CEO of CCR Re.



CCR - Public reinsurance

CCR gross written premiums were EUR 929 million in first-half 2019, up 3.5% year on year. Natural disaster risk reinsurance as a percentage of CCR GWP remained stable at 93%.

Although a series of significant floods hit French territory on first half of 2018, no comparable events occurred in the first six months of 2019. There was no adverse change in the liquidation of claims arising in previous years. As a result, claims expenses for the first half were particularly modest, down EUR 260 million year on year to EUR 135 million.

The market value of CCR assets at June 30 2019 was almost EUR 8 billion. The EUR 208 million increase compared to December 31 2018 reflects favorable market developments since the start of the year and a return to positive cash flows. The annualized return on investment was 1.7% in first half 2019 (1.8% as per the 2018 balance sheet).


CCR RE

CCR RE gross written premiums were EUR 441 million in first-half 2019, up 16% year on year (up 14% at constant exchange rates), confirming the momentum seen in 2018 (up 17% over the year). Growth was driven by new business, which accounted for 22% of the portfolio.

CCR RE's combined ratio improved, going down to 98.2% at 30 June 2019 (1H2018: 99.8%). Life technical margin slipped to 5.2% (1H2018: 6.8%) due to the revaluation of claim expenses, notably in respect of terminated business.

The market value of CCR RE assets stood at EUR 2.4 billion at the end of the period, up EUR 94 million compared to December 31 2018. The annualized return on investment was 2.5% in first half 2019 (2.2% as per the 2018 balance sheet).

Current income before equalization reserves totaled EUR 28 million, ahead of the annual target of EUR 53 million. CCR RE net income for first-half 2019 came in at EUR 17 million, stable year on year despite an unfavorable tax effect (apparent tax rate of 47%).

CCR RE's solvency ratio stood at 197% at 30 June 2019, at the same level as at end June 2018, and in the optimal range of [180%-220%] defined by the risk appetite framework.


Source: CCR.fr

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