"SCOR begins 2022 with strong renewal results in P&C reinsurance, navigating a complex and prolonged renewal season. (...) The January 1, 2022 renewals evidence the continuing hardening of the P&C treaty reinsurance market, following years of large natural catastrophe losses, attritional inflation and low interest rates. The generalized risk aversion trend is accompanied by a robust demand for reinsurance".
Overall, SCOR achieved 19% reinsurance premium growth, includes a large structured transaction in Europe on a non-catastrophe-exposed, and a well-balanced portfolio. Excluding this transaction, the growth-rate reduced to 9.8%, which represents a y-o-y rise in premium of EUR 371 million to EUR 4.15 billion.
The reinsurer informed the growth was driven by Global Lines (+20.7% to EUR 1.44 billion), which records high expected profitability. (Note: Treaty Global Lines include Agriculture, Aviation, Credit & Surety, Inherent Defects Insurance, Engineering, Marine and Offshore, Space, Cyber and Alternative Solutions).
Treaty P&C Lines (Property, Property Cat, Casualty, Motor, and other related lines) posted 4.8% increase in reinsurance premiums to EUR 2.71 billion.
In terms of geography, SCOR grows strongly in Europe (+15.0%), leveraging further its leadership in the region, and in Fast Growth Markets (+14.7%).
SCOR records an overall average price increase of +4.9% in P&C reinsurance, building further on prior years' renewals, as conditions for the P&C treaty market continue to harden.
"These changes translate into an estimated improvement of the priced net combined ratio of c. 0.5 points, taking into account SCOR's Cat retrocession renewed program, the various underwriting actions, the repositioning of the portfolio and SCOR's updated view of risk (including economic and claims inflation)".
Looking forward to the Spring and Summer renewals, SCOR expects the current positive market trends to continue. "The Group is well positioned to take full advantage of these trends in both its Specialty Insurance and Reinsurance businesses, leveraging on its global underwriting platform".
SCOR confirms the 2022 assumptions presented at the September 2021 Investor Day, including gross written premium growth of +15-18%, and a net combined ratio trending downwards towards 95% and below.