January 2024 P&C Renewal Results: Growing preferred lines of business in attractive market conditions
Press release
6 February 2024 – N° 2
January 2024 P&C Renewal Results
Growing preferred lines of business in attractive market conditions
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Jean-Paul Conoscente, CEO for P&C at SCOR, comments: “Following very strong renewals throughout 2023 marked by the hardest market seen in the last 20 years, SCOR continues to improve the quality and profitability of its P&C portfolio, maintaining disciplined pricing and terms & conditions for the 1.1.2024 renewals. In this favorable market, we are seizing attractive opportunities, as illustrated by the 13.6% growth delivered this January. I expect the attractive market conditions to continue over the remainder of the year, fuelled by the demand from cedants and continued discipline by reinsurers. SCOR’s teams continue to lean into the hard market to generate value and successfully deliver on the Forward 2026 plan.”
January 2024 P&C Reinsurance Treaty Renewals
During the January 2024 renewals period, demand for reinsurance coverage continues to increase. Despite an increasing capital supply compared to last year, the imbalance remains. In this context, SCOR successfully grows its preferred lines, maintains attractive terms and conditions and improves the profitability of its P&C reinsurance book.
Reinsurance treaties renewal book at 1 January 20241:
| Premiums renewed (in EUR million)2 | Evolution vs. January 20232 | Main lines concerned | |
| Treaty P&C Lines3 | 2,198 | +0.8% | o/w Nat Cat (+9.9%)
o/w Engineering, Marine, IDI, International Casualty (+13.3%) |
| Treaty Global Lines (excluding Alternative Solutions)4 | 1,498 | +9.4% | |
| 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 Nat Cat underwriting and decreasing exposures in US Casualty. Natural Catastrophe premiums increase by 9.9%, driven primarily by price, while maintaining an underweight net exposure. In US Casualty, SCOR maintains a prudent approach and renews its portfolio with selected clients. This leads to slightly decreasing US Casualty EGPI and reduced exposures to this business.
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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| 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 EUR 19.7 billion in 2022 and serves clients in more than 160 countries from its 35 offices worldwide.
For more information, visit: www.scor.com
| Media Relations Alexandre Garcia media@scor.com
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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 30 September 2023 should not be taken as a forecast of the expected financials for these periods.
All definitions can be found in the appendix of the presentation.
All figures are at constant exchange rates as of December 31, 2023 unless otherwise specified.
All figures are based on available information as of January 25, 2024 unless otherwise specified.
1 Estimated Gross Premium Income (EGPI).
2 vs 1 January 2023 EGPI. Excludes one large structured transaction.
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