Rates for reinsurance business that renewed on Jan. 1 were largely stable, with an average 0.2% price reduction, reinsurer Scor S.E. said Wednesday.
Scor said it had increased gross written premiums by 5% to €3.4 billion ($4.59 billion) at the Jan. 1 renewals.
About 71% of its total annual volume of treaty business renews at Jan. 1, Scor said in a statement. Of that total, about 72% consists of property/casualty treaties and 28% specialty treaties.
Conditions for catastrophe business were competitive across all regions at the Jan. 1 renewals, Scor said.
The largest rate decreases for catastrophe business were in the United States and the United Kingdom, the company said, while some business in Canada and Northern Europe saw rate increases.
Rates for property/casualty treaties at the renewals rose by an average 0.4%, while rates for specialty treaty business fell, on average, by 1.6%, Scor said.
Nonproportional property business saw rate declines of 3.5% on average, Scor said, while proportional property business posted an average rate increase of 2.3%, it said.
This rise in proportional rates reflected primary rate increases across the globe, but principally in the United States, Scor said.
Auto nonproportional business saw rate increases of 0.7%, Scor said, while proportional auto business saw price increases of 0.3%, on average.
Marine business saw an average 0.1% rate increase, while liability business experienced a 0.9% decrease in rates, credit and surety saw a 1.9% average rate decrease, aviation a 2.7% average rate decrease and engineering business a 0.7% rate decrease, Scor said.
Victor Peignet, CEO of Scor Global P&C, said the Jan. 1 renewals had reinforced Scor's belief that there is a “bifurcation” taking place in the reinsurance market, with large cedents increasingly transacting with a smaller number of reinsurers.
He added that Scor believes it would be one of the beneficiaries of this trend, thanks to its size and diversification, among other factors.