French reinsurer Scor SE achieved an average interest rate increase of 23% in its specialty insurance business last year, with average interest rates up 7.8% on renewal of reinsurance contracts on 1 January.
Scor said it continues to benefit from the hard insurance market. with a “strong interest rate improvement effect” on large industrial and commercial individual risks. Prices are rising especially in short tail lines, it added.
The company's special insurance book grew by 16% last year compared to 2019, with price improvements "broadened globally and across all business areas." Scor said that it will actively steer its risk portfolio towards the most attractive market conditions this year.
Although many observers noted that reinsurance renewals on January 1
This helped increase its reinsurance premium by 15.9% at constant exchange rates to EUR 3.45 billion ($ 4.17 billion).
Scor said it could get favorable terms with many of its key customers and benefited from a generalized tightening of terms, including the introduction of infectious disease exceptions on short tail lines and selected long tail lines.
Scor expects the current hardening market trends to continue in the coming 2021 and 2022 renewals.
Jean-Paul Conoscente, CEO of Scor Global P&C, said: “The innovations from January 2021 have shown a marked acceleration of the market hardening for P&C re insurance. In this supportive market environment, we took full advantage of our positioning and our deep customer relationships to achieve strong profitable growth, marked by a significant improvement in the profitability of our book in all regions and lines. We look forward to future renewals, we are convinced that price increases and improvements in conditions will continue.