January 2024 P&C Renewal Results: Growing preferred lines of business in attractive market conditions
Press release
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.
During the
- Estimated Gross Premium Income (EGPI).
- vs
1 January 2023 EGPI. Excludes one large structured transaction.
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Page | 1
Press release
Reinsurance treaties renewal book at 1 January 20241:
|
Premiums renewed |
Evolution vs. |
Main lines concerned |
||||||||
|
(in EUR million)2 |
January 20232 |
|||||||||
|
Treaty P&C Lines3 |
2,198 |
+0.8% |
o/w |
|||||||
|
Treaty Global Lines |
o/w Engineering, Marine, |
|||||||||
|
IDI, International Casualty |
||||||||||
|
(excluding Alternative |
1,498 |
+9.4% |
||||||||
|
(+13.3%) |
||||||||||
|
Solutions) |
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
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.
*
* *
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Page | 2
Press release
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
For more information, visit: www.scor.com
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Press release
General
Numbers presented throughout this document may not add up precisely to the totals in the tables and text. Percentages and percent changes are calculated on complete figures (including decimals); therefore the document might contain immaterial differences in sums and percentages due to rounding. Unless otherwise specified, the sources for the business ranking and market positions are internal.
Forward-looking statements
This press release includes forward-looking statements, assumptions, and information about SCOR's financial condition, results, business, strategy, plans and objectives, including in relation to SCOR's current or future projects.
These statements are sometimes identified by the use of the future tense or conditional mode, or terms such as "estimate", "believe", "anticipate", "expect", "have the objective", "intend to", "plan", "result in", "should", and other similar expressions.
It should be noted that the achievement of these objectives, forward-looking statements, assumptions and information is dependent on circumstances and facts that arise in the future.
No guarantee can be given regarding the achievement of these forward-looking statements, assumptions and information. These forward-looking statements, assumptions and information are not guarantees of future performance. Forward-looking statements, assumptions and information (including on objectives) may be impacted by known or unknown risks, identified or unidentified uncertainties and other factors that may significantly alter the future results, performance and accomplishments planned or expected by SCOR.
In particular, it should be noted that the full impact of the inflation and geopolitical risks including but not limited to the Russian invasion and war in
Therefore, any assessments, any assumptions and, more generally, any figures presented in this press release will necessarily be estimates based on evolving analyses, and encompass a wide range of theoretical hypotheses, which are highly evolutive.
Information regarding risks and uncertainties that may affect SCOR's business is set forth in the 2022 Universal Registration Document filed on
In addition, such forward-looking statements, assumptions and information are not "profit forecasts" within the meaning of Article 1 of Commission Delegated Regulation (EU) 2019/980.
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SCOR has no intention and does not undertake to complete, update, revise or change these forward- looking statements and information, whether as a result of new information, future events or otherwise.
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
All definitions can be found in the appendix of the presentation.
All figures are at constant exchange rates as of
All figures are based on available information as of
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