French reinsurance company SCOR has recorded a 22 per cent growth in non-life reinsurance policy renewals. These expire mid year in June-July, and an average rate increase of 2 per cent has been announced.
The mid-year renewals were based on a total of EUR 320 million of premiums expiring at mid-year, based on a constant change rate.
The rise is supported by specialty contracts, which show an increase of 35 per cent. SCOR clarifies that one third of this progression is due to a major hike of one client’s business.
In the non-life reinsurance market, the growth was of 14.8 per cent, pulled by Asia, which shows a 23 per cent hike in premiums.
Concerning pricing, Scor notes that the dynamic pricing has increased beyond the markets most affected by disasters and began to spread to the damage branches without disaster.
This could be the sign of a toughening of general pricing conditions of the market, after a period of stagnation, or a lowering of prices, due to an over capacity of the reinsurance markets and from a drop of demand from insurers.
This has been favoured by natural events occurring in early 2011, mainly to the earthquake and tsunami in Japan, the cyclone and floods in Australia and the earthquake in New Zealand.
In this environment that is still evolving, the rise in prices for American contracts is linked to natural catastrophes, and has been comprised between 10 and 15 per cent in July. Scor will publish its mid-year results Thursday 28 July 2011.