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SCOR has reported more competitive market conditions at the January reinsurance renewals, with increased capital supply the main driver, leading it to stay disciplined in property catastrophe risks, where it noted premiums were flat, but its net exposure slightly higher after the contract signings.
Jean-Paul Conoscente, CEO P&C at SCOR, commented on the renewals, “We are satisfied with the successful 1.1 2025 renewals results. SCOR achieves a +9.6% EGPI growth while maintaining a stable technical profitability. We continue to deliver targeted growth in our preferred lines of business, while keeping T&Cs mostly unchanged.
“Despite the slight rate reduction observed in the market, SCOR successfully maintains stable pricing thanks to its proactive portfolio management. Looking ahead, we believe the market still offers opportunities for profitable growth. SCOR will continue to leverage on its Tier 1 franchise and build on the strong momentum achieved during the 1.1 renewals.”
Demand for reinsurance protection remains elevated, SCOR noted, but, “Following an increase in capital supply, the market conditions have become slightly more competitive compared to the peak level of the cycle observed last year.”
The company said that terms and conditions across its renewal book at January 1st 2025 were “mostly stable” while the net profitability of its P&C reinsurance book is unchanged.
One slight area of change is that SCOR’s natural catastrophe book comes with slightly increased exposure, although premiums remained flat at the January renewals.
SCOR grew strongly in its alternative solutions with premiums rising almost 30% year-on-year for that business line, while specialty rose 14.3%, and P&C lines only grew in premium terms by 2.9% at the renewals.
SCOR also explained that it leveraged its third-party capital relationships and activities under its Risk Partnerships initiatives at the reinsurance renewals.
The reinsurer said it continues to “develop risk partnerships with new and existing partners,” while also explaining that it has been expanding its capacity partnerships in this business area.
In fact, so far in 2025 SCOR explained that risk partnerships capacity has grown by 17%, with two new relationships added.
As a result, SCOR said it is on-track to reach a 50% risk partner capacity growth target by 2026.
A year ago, SCOR raised new third-party capital from risk partners in January 2024, while it also expanded the capacity arrangements it has with existing risk partners by 20%.
Towards the end of 2024, SCOR also said it had added three new risk partners in 2024 and that it aims to deliver a 60% increase in fee income from risk partnerships by 2026, to EUR 132 million.
It’s clear this business has continued to expand at the January 2025 reinsurance renewals, positioning SCOR to leverage its third-party capital partnerships more over the course of this year.
Finally, SCOR noted today that “dynamic retrocession buying” helped it to maintain the technical profitability of its book after the renewals.
“The expected net technical profitability remains unchanged for the renewed portfolio. This reflects continued discipline along with dynamic retrocession buying, which offsets the inward business margin erosion from commissions, modelling changes and the impact of the business mix. SCOR leverages the changing market environment to optimize its retrocession structures,” the reinsurance company explained.
The company further explained that it leveraged market conditions to optimise its retro structure and reduce costs around the renewal, which enabled SCOR to offset some of the inward business margin erosion it experienced.
Finally, SCOR also looked ahead to the rest of the renewal seasons in 2025, saying that it expects to see “continued discipline and adequate prices.”
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