SCOR achieves a strong performance with 24% premium growth and a 3% price increase during the June-July P&C renewals
24 July 2012
SCOR achieves a strong performance with 24% premium growth and a 3% price
increase during the June-July P&C renewals
During the June-July renewals, SCOR Global P&C (SGPC) has delivered a strong
24% premium increase at constant exchange rates to EUR 462 million. Prices are
up 3% compared to 2011 and conditions have met expectations, thereby helping to
improve year-to-date expected technical profitability, which is in line with the
objectives of Strong Momentum V1.1.
Around 12% of the annual P&C treaty premiums were up for renewal at June-July
2012. The EUR 372 million premiums up for renewal were mainly from Latin America
(27% of the total), the US (24%), China (14%) and Australia (10%), split evenly
between Specialty Lines (53%) and Treaties (47%).
These renewals have benefitted from the Group's excellent franchise and market
positions, which have been reinforced by the recent rating upgrades. On a year-
to-date basis, prices are up 3%, and the expected operational performance from
renewed and newly underwritten business meets all internal profitability
* P&C Treaties: premiums are up by 26%to EUR 220 million, with prices
increasing by around 3% on average. This is a testimony to the fact that the
Group is continuing to broaden and further deepen its franchise on a global
scale. The portfolio continues to be actively managed, with around 12% of
treaties having been either cancelled or restructured.
Â Â Â Â Â Â Â Â Â Â o The June-July renewals are particularly important for the Latin
American & Caribbean region, with close to half of the area's business up for
renewal. This region has witnessed growth of nearly 14%, with improving expected
returns thanks to a focused underwriting approach.
Â Â Â Â Â Â Â Â Â Â o A significant part of Australia and New-Zealand premiums were up for
renewal at 1(st) July, representing 20% of P&C Treaty premiums for the period.
SGPC's Australian book is down by 17%, mainly due to some large treaties
shifting from Proportional to Non-Proportional, but overall prices are up by
close to 8% in Asia-Pacific, and the expected underwriting ratio has improved by
3 percentage points.
Â Â Â Â Â Â Â Â Â Â o Many other areas, which typically do not represent a large
proportion of the June-July renewals (Europe, South Africa, Near & Middle East)
have witnessed strong growth, concentrated on a few selected large treaties, and
benefiting from the recent upgrades to "A+".
Â Â Â Â· Specialty Line Treaties: premiums are up by 23%to EUR 242 million, with
prices increasing on average by around 2%. Key drivers of this growth are:
Â Â Â Â Â Â Â Â Â Â o Credit & Surety, with premium growth of 28%, led by a significant
treaty in China, and positive development in Brazil.
Â Â Â Â Â Â Â Â Â Â o US CAT, with premium growth of 25%, on the back of price increases
of +6%. SGPC continues to re-profile its overall CAT portfolio towards more US
exposures for better balance and diversification, and its US CAT book towards
large regional and national companies.
Â Â Â Â Â Â Â Â Â Â o Agriculture business typically represents a significant part of the
June-July renewals, much of it from Latin America. However, renewals for this
business will actually continue through to August. Trends witnessed so far on
the book are favourable.
Victor Peignet, CEO of SCOR Global P&C, comments: "These very strong renewals,
combining growth with the strict application of our technical profitability
criteria, further demonstrate our confidence in the assumptions of Strong
Momentum V1.1. In addition to reinforcing its pre-renewal existing positions,
SCOR Global P&C has managed to seize interesting opportunities, thereby further
reinforcing its strong and global franchise, as witnessed in the 1/1 and 1/4
renewals this year."
*Â Â Â *
SCOR does not communicate "profit forecasts" in the sense of Article 2 of (EC)
Regulation nÂ°809/2004 of the European Commission. Thus, any forward-.looking
statements contained in this communication should not be held as corresponding
to such profit forecasts. Information in this communication may include
"forward-looking statements", including but not limited to statements that are
predictions of or indicate future events, trends, plans or objectives, based on
certain assumptions and include any statement which does not directly relate to
a historical fact or current fact. Forward-looking statements are typically
identified by words or phrases such as, without limitation, "anticipate",
"assume", "believe", "continue", "estimate", "expect", "foresee", "intend", "may
increase" and "may fluctuate" and similar expressions or by future or
conditional verbs such as, without limitations, "will", "should", "would" and
"could." Undue reliance should not be placed on such statements, because, by
their nature, they are subject to known and unknown risks, uncertainties and
other factors, which may cause actual results, on the one hand, to differ from
any results expressed or implied by the present communication, on the other
Please refer to SCOR's Document de rÃ©fÃ©rence filed with the AMF on 8 March 2012
under number D.12-0140 (the "Document de rÃ©fÃ©rence"), for a description of
certain important factors, risks and uncertainties that may affect the business
of the SCOR Group. As a result of the extreme and unprecedented volatility and
disruption of the current global financial crisis, SCOR is exposed to
significant financial, capital market and other risks, including movements in
interest rates, credit spreads, equity prices, and currency movements, changes
in rating agency policies or practices, and the lowering or loss of financial
strength or other ratings.
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