Retro market more accommodating this year: SCOR’s Conoscente

Global reinsurer SCOR found the retrocession marketplace to be more accommodating at the January 2024 reinsurance renewals, enabling the firm to lower attachment points on a non-proportional programme and increase its proportional cession, according to Jean-Paul Conoscente, SCOR Global P&C CEO.

This morning, the French reinsurer announced a rise in estimated gross premium income of 13.6% at the 1/1 2024 renewals, as the company raised new third-party capital from risk partners and expanded the capacity arrangements it has with existing risk partners.

In what the reinsurer describes as a continued hard market, SCOR took advantage of the increased availability of retrocession protection at 1/1, enabling it to improve the quality of its portfolio.

“On the retro side, we managed to increase our relationship with existing risk partners. We have also successfully raised additional third-party capital with new risk partners, and plan to continue our expansion in this space throughout the year,” said Conoscente during a recent call on the firm’s 1/1 renewal outcome.

According to Conoscente, the retro market was more accommodating at Jan 1, 2024, than last year.

“Overall, there was more capacity supply. I think as well, the retrocessionaires were more accommodating with regards to attachment points, and more accommodating in terms of the perils that were covered. Last year, it was really difficult to get cover outside of peak peril, and this year it was a little bit easier,” he said.

Subsequently, SCOR was able to lower attachment points on a non-proportional programme, explained Conoscente, while conditions meant the reinsurer was also able to grow the proportional cession that it does. In terms of aggregate protection, Conoscente said that this remains very difficult to place.

“So, overall, we bought slightly more capacity at roughly a constant budget,” said Conoscente.