Reinsurance rates slip at renewal
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Rates decreased by an average 0.7% at the Jan. 1 reinsurance renewal, according to Scor Global P&C, the property and casualty reinsurance arm of Paris-based reinsurer Scor S.E.
Rate increases seen in primary business benefited Scor Global P&C which renewed a large proportion of its proportional business at the Jan. 1 renewal, explained Victor Peignet, CEO of Scor Global P&C, in a conference call with analysts Tuesday.
Scor said that the treaties that renewed at Jan. 1 represented about 70% of the total annual volume of treaty premiums underwritten by Scor Global P&C, and that of that total, 72% was for property and casualty treaties and 28% speciality business.
Scor, which will announce results for 2014 on March 5, said that its gross written premiums for property and casualty treaties increased by 0.9% at Jan. 1 to €2.02 billion ($2.29 billion).
For specialty treaties, Scor Global P&C said gross written premiums increased by 6.5% at Jan. 1 to €788 million ($892.0 million).
In the presentation to analysts, Mr. Peignet said that rates across most lines of business in most territories remained “adequate” or “attractive” in Scor Global P&C's view.
He said that, according to Scor's traffic light system, which assigns rankings of very attractive, attractive, adequate and inadequate to the rates achievable in lines and territories, rates for proportional casualty business in Western Europe, proportional property in Northern Europe, non-proportional casualty in Latin America, proportional casualty in the Middle East, property catastrophe in Eastern Europe and China, were inadequate.
Rates for property catastrophe in the Middle East, Caribbean, India and South East Asia, however, were deemed very attractive, Mr. Peignet said.
Mr. Peignet said that for U.S. catastrophe business, Scor had shifted its focus towards larger, global clients and away from regional business where there has been fierce competition, he said.
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