CCR Passes New Resolutions To Drive CCR Re Growth

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CCR Passes New Resolutions To Drive CCR Re Growth

The CCR board of directors has approved a number of resolutions to promote expansion at its subsidiary CCR Re, which provides reinsurance.

These resolutions, the corporation claimed in a statement, are in keeping with the strategic plan it unveiled last year. In order to address issues like an insurance for natural catastrophes, it was stated that these would also be to refocus CCR’s business activities toward and increase its resources in public-sector reinsurance.

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By July 2023, the board of directors is recommending that a new shareholder (or group of shareholders) buy a €200 million investment in CCR Re as part of a capital increase, giving them control of the majority of the market subsidiary.

CCR Passes New Resolutions To Drive CCR Re Growth

This transaction is part of the process of separating CCR’s market activities from its public-sector activities, and will also allow CCR Re to reach the size and level of profitability it needs to self-finance its growth in line with market rates.

Under the business plan adopted by CCR Re, it will therefore seek to write €2bn in gross premiums by 2027, with a 10% profitability.

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The Board of Directors also decided to strengthen CCR’s executive management team and approved the appointment of Edouard Vieillefond as deputy chief executive officer, alongside Bertrand Labilloy, who will continue to serve as chief executive officer and chairman and chief executive officer of CCR Re, in order to support these strategic initiatives and CCR’s goals in relation to public-sector reinsurance.

Jacques Le Pape, chairman of CCR’s board of directors, said: “We are going to provide CCR Re with the resources it needs to grow and become autonomous. This will allow CCR to strengthen its public-sector activities, at a time when natural disasters are becoming more frequent and more intense.”

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The firm outlined its aims last year in its Horizon 2025 strategic plan, which was unveiled in June 2021.

Horizon 2025 is rooted on three targets, the first is deepening CCR’s involvement in natural disasters prevention. It was hoped this will contribute to a better management of the natural catastrophe reinsurance scheme and maintain its sustainability in the context of climate change.

CCR Passes New Resolutions To Drive CCR Re Growth

The second is to carry on with the balanced development and transformation of CCR Re to to strengthen its position in the international reinsurance market.

Thirdly, CCR aims to consolidate its expertise in modelling and managing extreme risks and to advise the state in this field.

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Earlier this month, the firm reported a 15% year-on-year rise in gross written premiums (GWP) for the first half of 2022, as the firm achieved profitable and diversified growth. The rise in premiums to €764m compares with the €665m recorded in the first half of 2021.

At the same time, the company has reported that profitability in non-life business was maintained in the period with a combined ratio of 98.2%, which is up slightly on the 97% posted a year earlier and the 96.6% reported at the end of 2021.

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