CCR Re formally split out from parent; agencies assign first ratings

CCR, the French government backed reinsurer, has now formally unbundled its open market reinsurance activities into its new subsidiary CCR Re, which commenced operations on January, 2017.

The plan to split the company was revealed in early 2016 by CCR chairman Pierre Blayau, and has been legally in force since December 31.

Bertrand Labilloy, chairman and CEO of CCR Re, said: “An important step in the history of CCR has been taken, and in the right direction. By achieving this complex operation in only a few short months, the teams at CCR and CCR Re demonstrated a high degree of professionalism and efficiency while confirming the trust that our clients place in us.”

CCR is government owned and operates with a state guarantee in the French market.

Labilloy justified to Intelligent Insurer why he believes CCR merits a state guarantee, and explained the rationale behind launching the new CCR Re open market enterprise, in an interview last year.

The move was also partly triggered by a high-profile dispute with French reinsurer SCOR, which culminated in the European Union ruling on whether the government guarantee given to CCR Re effectively amounts to stat aid.

Since company has been split, rating agency AM Best has assigned CCR Re an A rating with a stable outlook.

S&P Global Ratings similarly confirmed its preliminary rating it had assigned CCR Re of A- (stable outlook).

CCR Re will be supported by its own resources and governance system, and will develop an autonomous strategy to meet the needs of its clients, the company said.