CCR reports nat cat combined ratio of 99.5% in H1
Despite a lack of major catastrophic events, the state-backed French reinsurer CCR closed the first half of this year with a combined ratio of 99.5% for its nat cat activities, mostly due to a series of floods and droughts.
CCR reported that by the end of June it had paid €427m in losses, compared to €540m in net premiums. Floods in the Hauts-de-France, Centre-Ouest, Bourgogne and Nord Est regions generated €196m in claims. An accumulation of drought claims amounted to €240m.
CCR stressed the results show that the increase in its nat cat surcharge on property and motor insurance policies, which will apply next year, is vital for the future of the nat cat regime. In January 2025, the nat cat surcharge will move from 12% to 20% on property policies and from 6% to 9% on fire and theft covers.
The reinsurer reported net profits of €114m in the first half, mostly thanks to the contribution of its investment portfolio, which reached €127m with the support of higher interest rates. The contribution from investments in the first half of last year was a mere €10m.
But technical results were far less impressive. The nat cat activity, CCR’s main line of business, delivered a profit of just €2m. Other lines of business contributed €10m.
Nat cat reinsurance amounted to 93.5% of total premiums, which reached €1.23bn in the first half, CCR said in the statement. Covers for terror attacks accounted for 6.3% of premiums and other risks 0.2%. The volume of premiums increased 3.2% compared to the first half of 2023.
“The events of the first half confirm the growing exposure of our territory to climate phenomena, which are increasing in frequency and severity,” said Edouard Vieillefond, managing director of CCR.
“The increase of the nat cat surcharge from 12% to 20%, which will be effective in 2025, will allow us to switch on the dynamics of strengthening the resources available to the nat cat regime and to CCR. It must be accompanied, in future years, by other prevention and adaptation measures to tackle the future impacts of climate change,” he added.
