Thriving in a changing landscape

“We’ve been expanding rapidly over the past few years, and while the pace might have moderated slightly, we’re still looking at double-digit increases,” said Laurent Montador, deputy chief executive officer of CCR Re, as he shared CCR Re’s strategy at the Monte Carlo Rendez-Vous de Septembre.

Emphasising a strong focus on company resilience and adaptability, Montador continued: “The acquisition by SMA Group and MACSF has positioned us strongly for future growth: the market has hardened with firmer terms and conditions and higher retentions, and rates have strengthened, which aligns with our objectives.”

Montador highlighted that CCR Re’s focus will remain on profitability, especially in light of recent market conditions. 

“In 2023 and this year, nat cat losses have been dynamic—mostly in the medium-size range, but the frequency of events, often from secondary perils, poses a significant challenge for the entire industry” he explained.

“Aligning aggregate covers with capacity has been tough, but we’ve adapted by diversifying our portfolio and developing new protective measures in response to the hard retrocession market. We continue to foster loyalty among our existing providers while bringing new ones on board. In addition. our 157 Re sidecar has been instrumental in managing risk and capital.” 

Montador hinted at further innovation in the pipeline. “Some time soon, we may issue a cat bond: this will be a significant step for us and we’re actively considering it,” he said. 

He pointed to the company’s strategic expansion as a key factor in its success.

“Our portfolio’s growth has been matched by an increase in capacity,” Montador continued.

CCR Re’s performance in the first half of 2024 has been robust, with a combined ratio below 90 percent. 

“Despite predictions of an active hurricane season, we haven’t yet seen the expected impact in the Caribbean and US,” Montador noted. 

“However, wetter hurricanes moving north such as Debby have affected our Canadian portfolio and we’re carefully monitoring these developments.”

As the 2024 renewal season approaches, Montador remains optimistic, saying: “We’re expecting a disciplined market and continued demand for reinsurance in 2025, in traditional as well as non-traditional areas.”

Client-centric innovation

Maintaining strong, long-term relationships with clients is at the heart of CCR Re’s strategy. 

“We’re committed to our clients and pride ourselves on stability and loyalty,” Montador emphasised. 

“This stability gives our clients confidence in CCR Re’s presence in the market.

“We’re looking to grow in sectors such as specialty and we’re increasing our presence in Northern Europe, Canada, MENA and Latin America, in life and health and P&C,” he explained.

CCR Re’s centralised underwriting approach is another key to its success, with strategic hubs in Paris, Lebanon, and Canada.

“Centralising our underwriting allows us to offer consistent, high-quality service across different regions,” Montador explained. 

Innovation and technology play a crucial role in CCR Re’s operations, especially in data analytics. 

“We’re focused on improving how we input and extract data.”

“We now have more granular data that we can analyse quickly with new tools,” he said. 

“This has significantly improved our operational efficiency and our ability to assess and quantify risk and deliver appropriate quotes.”

The company is investing in artificial intelligence, particularly in text mining and data classification.

“We’re focused on improving how we input and extract data,” Montador said. “Maintaining high data quality is essential, especially as we continue to deepen our involvement in data and analytics.”

Perils and parametrics

Montador acknowledges the significant challenges facing the reinsurance industry, particularly in terms of climate change, and observed: “We’re seeing more extreme weather events in areas that weren’t previously affected. 

“We need to address this, in terms of assessing the risks and determining appropriate premiums.”

He highlighted the increasing complexity of insurability. “In areas with recurring events such as wildfires or atypical weather patterns, we’re constantly reassessing whether these risks are still insurable under traditional methods,” he said. 

Other concerns are cyber, supply chains and the geopolitical climate.

“Maybe the market should explore new approaches, such as named perils or parametric insurance, to continue meeting market demands,” he said.

As for the upcoming renewal season, Montador remains confident, saying: “We believe the market will maintain its discipline.

“After years of underpricing, it’s crucial that we continue to align premiums with the risks we’re covering,” he concluded.

Laurent Montador is deputy chief executive officer of CCR Re. He can be contacted at: lmontador@ccr-re.fr  

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