France's CCR allocates 2019 net income to state-guaranteed reinsurance scheme for SMEs

CCR, the French government backed reinsurer, delivered a "very satisfactory performance" in financial year 2019, despite being hit by a string of natural disasters, according to its chairman Pierre Blayau.

CCR stated that it has decided to allocate its 2019 net income to the newly launched state-guaranteed reinsurance scheme that covers credit insurance risks and supports French SMEs, instead of paying a dividend as originally planned.

The group reported consolidated net income of €104 million, including €35 million from its reinsurance subsidiary CCR Re.

The gross written premium totaled €562 million, up 21 percent compared with 2018.

CCR Re outperformed its business plan objective with a combined ratio of 98.1 percent.

In 2019, CCR recorded €766 millions of claims due to natural disasters, including severe drought conditions in a third of the country, floods in the Occitanie region, in the Cévennes region and in the South-West, the earthquake in Le Teil, in the Rhone valley, and various other events.

Blayau said: “CCR delivered a very satisfactory performance in 2019. Consolidated premium income was up 10% at €1.5 billion and consolidated net income came in at €104 million. Administrative expenses were kept under control and the investment portfolio performance improved.

"Public reinsurance regime of natural disaster risks once again shown its criticality, with 2019 extending a three-year run of high NatCat losses."

He added: "Today, more than ever, CCR is contributing to France’s resilience during the exceptionally difficult period we are going through. Alongside French Treasury, we played a very active role in launching a state-guaranteed reinsurance scheme that covers credit insurance risks. And we also decided to allocate CCR 2019 net income to funding this system, rather than paying a dividend as originally planned.”