Attractive market conditions expected to continue, CEO says
As part of its Forward 2026 strategic plan unveiled in September 2023, SCOR reported significant growth in its property & casualty (P&C) business during the January 2024 renewals.
The global reinsurance firm achieved 13.6% growth in Expected Gross Premium Income (EGPI), surpassing the growth projections set out in its strategic plan. This growth is attributed to an increase in preferred lines, including engineering, marine, IDI (Income Disability Insurance), and international casualty, reflecting SCOR’s commitment to diversifying its portfolio and enhancing technical profitability in a persistently hard market.
SCOR’s strategic initiatives have led to a doubling of EGPI in alternative solutions, driven by strong new business and client demand for tailored insurance solutions. The company also noted that it continues to exercise a cautious approach to lines of business that are significantly exposed to climate change while simultaneously meeting clients’ increased property catastrophe capacity needs.
In contrast, SCOR has maintained a conservative stance towards US casualty business, where it observed a slight decrease in EGPI.
Jean-Paul Conoscente, CEO of P&C at SCOR, emphasized the company’s success in leveraging favorable market conditions to enhance the quality and profitability of its P&C portfolio.
“I expect the attractive market conditions to continue over the remainder of the year, fueled by 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,” Conoscente said.
Capitalizing on increased demand
The January 2024 P&C reinsurance treaty renewals witnessed increased demand for reinsurance coverage amid a backdrop of growing capital supply. SCOR capitalized on this environment by focusing on preferred lines, securing favorable terms and conditions, and improving the profitability of its P&C reinsurance book.
Notably, natural catastrophe premiums saw a 9.9% increase, primarily due to price adjustments, with SCOR maintaining cautious net exposure. In contrast, the company’s disciplined approach in US casualty led to a slight decrease in EGPI and exposure reduction in this segment.
SCOR’s strategic focus on preferred and diversifying lines resulted in 9.4% growth in global lines EGPI, excluding alternative solutions. The remarkable 191.5% increase in alternative solutions EGPI underscores the strong demand for customized insurance products across regions, it stated.
Overall, SCOR’s P&C business is set for enhanced profitability, marked by a 1.5-point reduction in the net underwriting ratio for the renewed portfolio, supported by a 3.1% overall price increase, including a significant 6.6% price increase on non-proportional business.
With firm terms and conditions and improved retrocession coverage, the firm noted that it is poised for continued growth and profitability in the P&C sector, aligning with its strategic objectives for 2024 and beyond.
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