CCR handles largest ever claim; counters with 17% growth in global reinsurance

French state-owned re/insurer  Caisse Centrale de Réassurance (CCR) handled a historically large claim on its public programmes in 2022, forcing a draw down on reserves, then moved to compensate with heady 17% growth in its open-market reinsurance operations.

Drought in 2022 rendered a market loss of €2.9 billion, what CCR calls “the most expensive market event since the creation of the Natural Disaster scheme.”

All told, the loss cost for the CCR public programme on 2022 events is estimated at €1.77 billion, compared with €323 million in 2021. CCR moved to reverse €1.18 billion from its equalisation reserve for natural disasters. Shareholder equity plus lingering equalisation reserve ended down 22% to €3.7 billion.

On the segment P&L, gross written premium in the public programme was up a fractional 2.1% to €1.087 billion.

The international reinsurance unit CCR Re took some of the pall off that result, upping gross written premium by 17% to €987 million and improving life technical margins. The unit's net income was stable at €42 million.

The combined ratio for P&C elements rose lightly to 98.7% from 96.6% in 2021, despite a decline in nat cat costs.

Jacques Le Pape, chairman of the board, said: “In 2022, CCR faced the impacts of inflation and the most expensive drought in history. Victims were or will be compensated thanks to the mobilization of CCR’s reserves. The board of Directors observed that these reserves are no longer necessarily sufficient to cover both the improvement in compensation already decided over the past two years and the impacts of climate change on the claims ratio. The issue of the scheme’s resources and the level of the additional premium, currently at 12%, becomes therefore a concern from this year.”

Bertrand Labilloy, chairman & CEO of CCR Re, commented: “In 2022, the targets of the development plan were once again achieved. This strong dynamic justifies the contemplated €200m capital increase that would be subscribed by SMABTP and MACSF and would enable CCR Re to take advantage of the current buoyant market.”

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