SCOR grows P&C portfolio 13.6% at Jan reinsurance renewals

Global reinsurer SCOR saw a rise in estimated gross premium income (EGPI) of 13.6% for P&C business at the January 1st, 2024, reinsurance renewals, above the average Forward 2026 strategic plan assumptions.

SCOR notes that in line with its Forward 2026 strategic plan announced in September 2023, the reinsurer grew its P&C business in preferred lines while building a balanced and resilient portfolio, in a continued hard market.

The company reported an increase in EGPI by 13.3% for Engineering, Marine, IDI and International Casualty and enhancing portfolio diversification.

Roughly 62% of SCOR’s P&C reinsurance premiums, which represents 41% of SCOR’s total P&C premiums, is renewed in January.

Within treaty P&C lines, SCOR has announced gross premiums renewed of €2.20 billion, which is a rise of 0.8% when compared with the January 2023 renewals. This rise was driven by continued disciplined Nat Cat underwriting and decreasing exposures in US Casualty.

In contrast, the firm grew its treaty global lines portfolio by 9.4% at the January 2024 renewals when compared with a year earlier, to €1.50 billion.

SCOR says that it is keeping a limited appetite for US Casualty with slightly decreasing EGPI.

Overall, SCOR further enhances its expected technical profitability with an improvement of 1.5 points on the net underwriting ratio (excluding Alternative Solutions), driven by a +3.1% price change, including +6.6% on non proportional business.

During the renewals, SCOR successfully grew its preferred lines, maintains attractive terms and conditions and improves the profitability of its P&C reinsurance book.

On retrocession, SCOR improved 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.

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

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