(AOF) – SCOR recorded a 19% growth in its Property and Casualty (P&C) reinsurance premiums at constant exchange rates, including a large structured transaction on a well-diversified European portfolio not exposed to natural disasters. Without this major transaction, the underlying growth stands at 9.8%, which corresponds to an increase in premiums of 371 million euros, for a total of 4.149 billion euros.
Growth is largely due to Global Lines: 20.7% to 1.44 billion euros. These premium increases benefit from a price increase of 4.9%.
Jean-Paul Conoscente, Managing Director of the P&C activity at SCOR, declared: “As predicted during the Investor Day in September 2021, the improvement of the market continues in 2022. (…) These results allow us to reinforce our goodwill, while taking a series of measures intended to reduce our exposure to lines sensitive to volatility of climatic origin, whose price increases do not allow margins to be improved to sufficient levels given the expected volatility ” .
The actions taken to reduce the volatility of the portfolio improve the expected net combined ratio on the reinsurance portfolio handled by around 0.5 point compared to last year, adjusting for the evolution of risk.
SCOR expects the positive market development to continue into the April and June/July 2022 renewals.
The reinsurer confirmed the assumptions for 2022 presented at its Investor Day in September 2021, in particular the growth in gross written premiums of between 15 and 18%, as well as the combined ratio tending to fall towards 95% and below.
SCOR’s next Investor Day will be held on March 29, 2022, during which the new strategic orientations will be presented.
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In France, the amount of contributions for the month of May 2021 has doubled compared to May 2020, rising from 5.7 billion euros to 11.4 billion euros.
The market is gradually changing due to greater investor interest in unit-linked funds, while euro funds are experiencing net outflows. In May, net inflows from unit-linked (UA) products amounted to 2.8 billion euros. Over the first five months of the year, it reached 13.7 billion euros, a level not seen for fifteen years. The share of unit-linked premiums in total premiums reached 40% in May, compared to 34% in 2020. This enthusiasm would come both from the good performance of the financial markets but also from pressure from insurers to encourage their customers to invest in this type of medium.
Another element of transformation of the sector: the market for retirement savings plans (PER) is also experiencing significant growth. 117,000 additional policyholders subscribed to a retirement savings plan in May 2021, a jump of 335% compared to the previous month.