April renewals confirm significant hardening trends: SCOR’s Conoscente

April renewals confirm significant hardening trends: SCOR’s Conoscente

The April reinsurance renewal season validated SCORs expectations of “substantial and generalized market hardening trends” according to Jean-Paul Conoscente, CEO of SCOR Global P&C. These patterns are set to continue, Conoscente and his employer believe, with an expectation of more reinsurance rate firming at the upcoming mid-year renewals and perhaps beyond.
In reporting on the April renewal season, worldwide reinsurance firm SCOR stated that it grew its premium volumes composed by a remarkable 14.3%.
At the same time the total cost increase experienced was an equally remarkable 4.3% for the reinsurer.
SCOR anticipates that the “rate-on-rate compounding results” provided by the now successive years of price firming will assist to provide higher profitability on its portfolio.
64% of the April renewal portfolios is Asia-Pacific based for SCOR, with Japan and India the main areas written, each accounting for 28% to 29% of the renewals.
SCOR grew its Japanese reinsurance premiums by 3% to EUR 156 million, mentioning “considerable cost increases.”
In specific, SCOR noted that it accomplished rate increases of 12.3% year-on-year on Japanese disaster excess-of-loss reinsurance programs, speeding up the repayment it has actually now received after the 2018 and 2019 hurricane losses.
In India, SCOR saw substantial premium growth of +21% at consistent exchange rates, reaching EUR 178 million.
16% of the April renewal portfolio was in the United States and here SCOR was more restrained it seems, delivering a steady topline (-1%) of EUR 83 million, stating that it focused its “growth on locations with market conditions deemed more appealing.”
After the April renewals, SCOR has now restored 78% of its reinsurance treaty portfolio for the year and believes it is on target to achieve its 2021 growth and technical success assumptions.
Jean-Paul Conoscente, CEO of SCOR Global P&C, commented, “SCOR Global P&Cs effective April 2021 renewals, which are heavily skewed towards Asia-Pacific, verify the excellent market patterns for P&C (re) insurance seen in January, with considerable technical success improvements throughout lines and areas.
He included, “These renewals fully confirm the outlook we supplied in September 2020 of significant and generalized market hardening patterns. We think that enhancements in rates and conditions on the P&C (re) insurance market will continue for future renewals.
” In this helpful market environment, SCOR is ideally placed to take successful growth opportunities thanks to the depth of its franchise, its recognized technical expertise, its deep relationships with clients and its ability to satisfy their requirements.”
Read all of our reinsurance renewal season news coverage here.

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