Scor GWP up at April renewals

Scor GWP up at April renewals

French reinsurer Scor's non-life division Scor Global P&C increased its gross written premium (GWP) for the April renewals to €396m, from €374m last year, an increase of 5.8% at constant exchange rates as of December 31 2014.

Using current exchange rates (fixed at December 31 2013 and March 31 2015), the increase was from €361m to €451m, an increase of 25%.

Scor said that it had restricted the level of price softening to minus 1.2%

Premiums up for renewal at April 1 represent about 10% of Scor's total annual volume of P&C and Specialty Treaty, with the main markets being India, the Far East, and the US.

Scor said that it had "made good use of its positioning and growth strategy in emerging markets such as India, of its client-focused initiative in the US and of its close relationships with global insurers, as part of its strategic initiative".

Scor said that three-quarters of the renewed portfolio consisted of proportional treaties, which were still benefiting from increasing prices on the primary insurance market.

The April renewals are 71% P&C Treaty. 29% Specialty Treaty, with Asia making up 55%, the US 30%, and EMEA 15%.

For P&C Treaty. GWP was up 5% at constant exchange rates to €278m. This was helped by the signing of a major contract with "a global insurer based in he United States", more than offsetting the non-renewal of a couple of Japanese contracts.

In Specialty Treaty, GWP was up 8% year on year at constant exchange rates to €117m. This was due in particular to the agriculture portfolio in India, and to the growth of engineering specialty in Asia.

From January to April this year the overall price decrease was the same as that reported in January, at minus 0.7%. That is mainly because of the low weight of April renewals in Scor's Global P&C's overall book, which is skewed towards January 1.

Scor said that the April 1 renewal took into account the cancellation of contracts by one of the three major Japanese insurance groups. The reinsurer confirmed its 94% normalised net combined ratio assumption for 2015.

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