CCR Re has announced financial results for the year 2023, marking a period of significant growth amid a challenging economic landscape.
The reinsurer said that it navigated an inflationary environment that exerted pressure on claim costs, and therefore it adapted a cautious approach in its evaluations. It contended with a notable increase in catastrophe claims within its operations, attributed to the frequent occurrence of large-scale secondary risks.
Despite these challenges, CCR Re experienced a buoyant financial market environment. The company’s total sales for 2023 reached €1,186 million, marking a 20% increase from 2022 at current exchange rates, and 23% at constant exchange rates.
The life insurance business maintained its premium volume, with notable growth observed in Latin America. The non-life insurance business saw uniform growth across various regions, particularly outperforming in Canada and Latin America.
Despite facing increased costs from natural catastrophes and ongoing inflation, which contributed 380 basis points to the combined ratio, CCR Re improved its combined ratio to 96.6% under French GAAP, compared to 98.7% in 2022. The life insurance portfolio also saw enhanced profitability with a technical margin of 3.9%.
The company’s investment yield stood at 2.4%, excluding an €84 million increase in unrealized capital gains, with total assets valued at €3.6 billion at market value. Operational changes led to a slight increase in the cost ratio to 4.3%.
CCR Re’s financial health was further underscored by an EBITAER of €88 million and a net income of €56 million for 2023, improvements from the previous year. Additionally, the solvency ratio at the end of 2023 was reported at 208%.
Patrick Bernasconi, president of the board, commended the results as being in line with the objectives of its newly established business plan.
“The 2023 CCR Re results are perfectly aligned with the business plan set up by the new board of directors. I would like to congratulate the CCR Re teams for yet another achievement as well as CCR Re’s clients and partners for their loyalty,” Bernasconi said.
Bertrand Labilloy, chief executive officer, also highlighted the milestone of surpassing one billion euros in sales.
“Continued profitable growth confirms the relevance of our strategy, supported by last year’s capital increase. CCR Re now has all the required resources to become a key player within the reinsurance market in Paris, in line with its ambitions,” Labilloy said.
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