Seeking sustainability and strategic relationships

“During the last few years, we’ve prioritised long-term client relationships, which will continue to guide our strategy,” said Bertrand Labilloy, chief executive officer of CCR Re, a company poised to capitalise on its strategic adjustments and market insights, having positioned itself over the last year for sustained growth and adaptation to evolving risks.

Labilloy began by reflecting on the company’s recent performance. “The business has been good due to the market conditions in property and casualty (P&C),” he said.

“Growth has been around 10 percent and the un-discounted combined ratio is below 90 percent—89 percent to be precise.” 

This balance marks a significant shift after years of a soft market, but the landscape for other product lines is less favourable, as Labilloy explained. “For life and health, we’ve stabilised the turnover and the profitability, but we are still waiting for an improvement in market conditions,” he said. 

“The market has not been reset after the COVID-19 pandemic and has not taken into account the rise in the cost of capital, so there is still a need for an adjustment in the rates.”

Still, Labilloy is content overall with the business portfolio. 

“We will develop it as we’ve done in the past—at quite a significant pace but always with prudence and a focus on the sustainability of our growth, which relies upon diversification, risk control, strong capitalisation,” he explained. 

Looking forward, CCR Re plans to approach upcoming renewals with caution. 

“We will be very cautious about the goals of some market participants asking for adjustments, particularly in tariffs and rates,” he said.

“The market has reached the right balance, and the reasons that underlay the adjustment in 2023 and 2024 are still present.”

Labilloy highlighted ongoing challenges, including recent natural disasters. “Climate change is a reality; the floods that impacted Quebec this summer illustrate that adjustments are necessary and that the problem is more general than just secondary perils,” he said.

Making strategic decisions

Labilloy is excited about CCR Re’s recent privatisation, allowing for operational independence and technological enhancement. 

“The restructuring does not concern business operations but follows the sale of the majority stake in CCR Risk Capital.

“We have separated from CCR in areas such as asset management and IT systems,” he explained.

The transfer of asset management to the majority stakeholder, SMA Group, and the migration of IT systems to the SMA platform, are notable changes. 

“The transfer was completed just before the Paris Olympic Games,” Labilloy said. 

“Our teams deserve gold medals for a perfect migration with no problems in five days: it was completely smooth and transparent.”

CCR Re’s new location in the heart of France also represents a strategic move. 

“We have moved our ecosystem to a very central location in Paris, which will support employees returning to the office and enhance their productivity,” he said. 

A long-term view

Labilloy stressed the importance of technology to stay ahead in the evolving risk landscape, saying: “We are always investing in our modernisation tools. 

“We’ve put in place a very modern platform for underwriting cat business and will continue to improve it.

“We are looking at other risks where insurability is in question,” Labilloy explained. “Cyber risk is a major concern, and we are waiting for the market to mature with more harmonised direct insurance offers and better retrocession support.”

As CCR Re prepares for future challenges, he is clear on one thing.

“Whatever the issue, we must look at the sustainability of the decisions we make,” he asserted. “Stability is key.”

“Loyalty and full alignment of interest should be rewarded.”

Labilloy has high hopes for Monte Carlo. “The main theme should be about how we position discussions for the long term,” he predicted. 

“After strong market adjustments in 2023 and stabilisation in 2024, we need to ensure that all decisions are serious and sustainable.”

CCR Re’s strategic vision is clear: focus on long-term client relationships, adapt to market changes and invest in technological advancements to tackle emerging risks.

“We have given priority to clients with whom we work across the board with a long-term perspective, and we will continue to do so for the next renewal,” stated Labilloy. 

“Loyalty and full alignment of interest should be rewarded.”

Bertrand Labilloy is chief executive officer of CCR Re. He can be contacted at: blabilloy@ccr-re.fr 

For more news from the Rendez-Vous de Septembre (RVS) click here.

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