SCOR grows portfolio 13.6% in favourable market at 1/1 reinsurance renewals

French reinsurer SCOR grew its estimated gross premium income 13.6% at the January 2024 renewals to more than €4.2 billion, with notable growth of 191.5% in alternative solutions, while P&C lines grew 0.8% when compared with the prior year.

The reinsurer says that demand for reinsurance protection continued to rise at 1/1 2024, although an imbalance remains despite a greater supply of capital than in 2023.

Around 62% of SCOR’s P&C reinsurance premiums, which represents 41% of the company’s total P&C premiums, is renewed at January.

At 1/1 2024, premiums renewed in alternative solutions totalled €550 million, driven by strong new business across all regions. This was supported by 9.4% growth in global lines to almost €1.5 billion, and roughly €2.2 billion in renewed P&C premiums.

Within P&C, the reinsurer highlights continued discipline in natural catastrophe underwriting and reducing exposures in US casualty. SCOR grew nat cat premiums by 9.9% on the back of favourable pricing, although it kept an underweight net exposure.

In casualty, SCOR remains prudent and renewed its portfolio with selected clients, which ultimately resulted in slightly decreasing premium income and lower exposure to this business.

The expansion of the global lines book at 1/1 2024 was driven by growth in preferred and diversifying lines, with SCOR reporting a 13.3% rise in premium income for Engineering, Marine, IDI and International Casualty.

All in all, SCOR has further enhanced its expected technical profitability with an improvement of 1.5 percentage points on the net underwriting ratio on the renewed portfolio.

Across the renewed business, SCOR achieved a positive price change of 3.1%, including a 6.6% price increase on non-proportional business.

The reinsurer also notes that in the continued hard market, the company stands firm on last year’s improvements to terms and conditions.

SCOR also purchases retrocession at 1/1 2024, and said today that it betters its protection with enhanced capacity and coverage expansion at constant cost.

Looking ahead to the April and mid-year 2024 renewals, SCOR says that it expects risk-adequate prices, with portfolio growth to persist including a strong pipeline of alternative solutions contracts.

“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,” said Jean-Paul Conoscente, CEO for P&C at SCOR.

“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,” he added.