CCR enjoys strong growth but profits dip in 2020

French government-backed reinsurer CCR enjoyed solid growth in 2020, but its profits were hit by losses associated with COVID-19 and losses associated with the large explosion in Beirut in August 2020.

The company noted that, in an environment shaped by the Covid-19 pandemic, the French government called on CCR to provide reinsurance cover for the portfolios of domestic credit insurers through the Cap, Cap+ and Cap Relais mechanisms, adding €260 million to its gross written premium for the year, raising it to €1.2 billion.

Its net income fell, however, to €61 million, compared with €67 million in 2019. Its net combined ratio rose to 97.4 percent in 2020 from 96.3 percent in 2019.

Meanwhile, CCR Re’s gross written premiums rose 16 percent to reach €649 million, a target the company said was in line with the trajectory set in the company’s Streamline strategic plan. CCR Re reported a net income for the year of €18 million compared to €35 million in 2019. Its net combined ratio rose to 103.2 percent in 2020 from 98.1 percent in 2019.

Chairman of the board, Pierre Blayau, said: “In last year’s singularly difficult COVID-19 environment, the CCR Group powerfully demonstrated the quality of its business model. CCR fulfilled its corporate mission by deploying a mechanism to support supplier credit, which plays an important role in fuelling the domestic economy, and by providing protection against the financial impacts of natural disasters.

“CCR Re continued to grow its business, raised new debt and improved its solvency ratio, while also preserving its income despite the losses associated with COVID-19 and the Beirut explosion. It held firm to the trajectory set in the strategic plan, and I would like to congratulate the chief executive officer and his teams for their performance.”

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