CCR Re
in 2023
In 2023, in a very tough market, CCR Re posted solid results with the support of its two new shareholders. The annual targets were met, driven by the growth in gross written premiums.
This controlled growth reflects strong financial and operational momentum, underpinned by all our businesses serving our customers and partners.
CCR Re is poised to enter 2024 in excellent conditions, wellpositioned to capitalise on the rising demand for global reinsurance across various sectors.
“With this new shareholder structure, CCR Re is poised to attain the critical mass and profitability necessary to selffinance its growth, in alignment with market dynamics.”
PATRICK BERNASCONI
Chairman of the Board of Directors
CCR Re the second largest international reinsurer based in Paris
The year 2023 formed a new chapter in the development of CCR Re.
The acquisition of CCR Re and the simultaneous capital infusion by a consortium comprised of the mutual insurance groups SMABTP and MACSF underscore its promising growth prospects in a thriving reinsurance market.
Backed by these two financially robust shareholders, with shared values and the same long-term approach to the business, CCR Re is well-positioned to further expand its operations and solidify its position as the second major player in international reinsurance in Paris.
The newly constituted Board of Directors, comprised of experts in reinsurance, insurance, and economics, has expressed confidence in the General Management to implement its business plan.
With this bolstered confidence, CCR Re can pursue its strategy of:
- achieving the critical mass and profitability needed to finance its own growth at market pace,
- positioning itself as a compelling alternative to the cohort of major global reinsurers through the development of a unique approach centred on bespoke and innovative services, fostering long-term partnerships,
- consolidating its strength based, year after year, on the diversity of its underwriting and investment portfolio, the prudence of its provisioning policy, the safeguarding of its balance sheet and earnings against market volatility and peak risks, and its internal control system.
I’d like to express my appreciation for the efficiency of the leadership and teams at CCR Re. Indeed, it is first and foremost thanks to their dedication, agility, experience, and expertise that CCR Re was able to navigate the complexities of 2023 and maintain its growth trajectory, resulting in increased gross written premiums and profitability.
CCR Re pursues its profitable growth path
BERTRAND LABILLOY, Chief Executive Officer and LAURENT MONTADOR, Deputy CEO
How did CCR Re perform since SMABTP and MACSF acquired their majority stake on 3 July 2023?
Through the capital alliance signed in 2023, SMABTP and MACSF demonstrated their willingness and ability to support CCR Re in the development of its reinsurance activities. The stability of the new shareholder structure was recognised by the rating agencies, with AM Best maintaining CCR Re’s Financial Strength Rating to single A and Standard & Poor’s upgrading it by one notch to single A. In return, CCR Re offers its shareholders a growth catalyst and the advantages of diversification, across various lines of business and geographical regions.
CCR Re pursued its profitable growth trajectory. The Board of Directors fully validated our business plan for the next five years, which continues to grow at the same pace as over the last five years. The goal is to double its written premiums by 2027, improve its profitability by 300 basis points and continue to modernise the risk management platform. Doubling our written premiums will allow us to attain critical mass in the market and meet the profitability expectations of our new shareholders.
Aligned with SMABTP and MACSF in our shared long-term vision, we benefit from a conducive environment for executing our development strategy, whether it involves geographical market expansion or diversification of our product offerings. Ceding companies seek long-term partnerships with their reinsurers to bolster their strategies and provide them with consistent capacity throughout cycles. In this respect, CCR Re stands as the preferred partner, offering agile and effective support over the long term.
« CCR Re, as an international reinsurer on a human scale, is establishing itself as the preferred partner for insurers and brokers. »
What is CCR Re’s strength today in the international reinsurance market?
CCR Re is a mid-sized reinsurer that is positioned as a relevant complement to the major global reinsurers. We strive to provide simple but innovative answers to the problems we face, and we remain true to our DNA of service and caution. We choose the partners we want to work with over the long run and in the most diversified way possible, across their entire portfolio.
CCR Re is a multi-regional reinsurer with a wide range of business lines and specialties. We underwrite from Paris, leveraging on multicultural international teams that we have revitalised and diversified over the past seven years, with a focus on gender diversity.
CCR Re provides ceding companies with an alternative for stable, long-term partnerships, irrespective of market fluctuations or claims shocks.
What were the great successes in 2023?
In 2023’s very tough market, coupled with an uncertain economic landscape, CCR Re increased its insurance capacity with the support of its two new shareholders. Climate change and inflation meant having to make choices and revising our models. This greater uncertainty resulted in an increased demand for coverage, to which we responded by providing adequate capacities.
Engineering, transport, aviation as well as credit & surety are the business lines in which growth was strongest. The Life portfolio, which accounts for almost a third of our business, was developed in the Middle East, North Africa, France, Latin America and Asia.
Beyond its business, how is the company changing?
We have introduced innovative risk management tools, including the first sidecar governed by French law. In 2023, despite the challenging conditions in the retrocession market, the use of the sidecar increased, with over a third of it being disposed of, and it now boasts a third investor.
In 2023, we continued to update CCR Re’s technology. All processes are being reimagined with innovation at the forefront, incorporating the use of artificial intelligence in underwriting analysis, actuarial processing, technical accounting, and various other support functions.
CCR Re also increased its attractiveness to hire the best talent, with a culture that is both highly agile and an atmosphere that encourages individual development and personal initiative, with short reporting lines and quick interactions to serve our customers. We are also proud of the fact that our company culture is open to international experts who interact with our clients in more than 15 languages. Finally, we are committed to our role as a responsible company and are pursuing our artistic and humanitarian patronage commitments.
How is CCR Re approaching 2024?
With the stability offered by our new shareholders and the resilience of our business model, CCR Re is well-positioned to capitalise on the rising demand for reinsurance across various sectors in 2024. More than ever, CCR Re is asserting itself as a partner of choice for insurers and brokers.
CCR Re
Board of Directors
Patrick BERNASCONI
Chairman
Agnès AUBERTY
SMAvie BTP
Jacques CHANUT
SMABTP
John CONAN
CCR Re
Monica CRAMÉR
Independent
Laurence DAZIANO
CCR
Stéphane DESSIRIER
MACSF
Pierre ESPARBES
SMABTP
Sandrine TURQUETIL DELACOUR
MACSF
Xavier TOUZÉ
SMA SA
Édouard VIEILLEFOND
CCR
Sylvie VAN VIET
Independent
CCR Re
Executive Committee
Highlight: The Privatisation of CCR Re
Finalising the Spin-off of Competitive Operations
Established in 2016, CCR Re, a subsidiary of CCR specialising in market reinsurance activities, strives to establish an international reinsurance platform in Paris and emerge as a viable alternative to market leaders.
An open and transparent process to create a second international reinsurer in Paris
“With the establishment of a subsidiary dedicated to market reinsurance activities, we have cultivated a top-tier reinsurance platform in Paris. This achievement is underscored by the interest expressed by the SMABTP and MACSF consortium in CCR Re, valuing the company at nearly EUR 1 billion. These two new shareholders have demonstrated genuine confidence in the company’s growth prospects, its technological capabilities, and, most importantly, the expertise of its leadership team and employees. The increase in capital and its opening up represent a crucial milestone in its growth trajectory, equipping CCR Re with the resources to achieve its ambition of becoming the second major independent global reinsurer in Paris.” Edouard Vieillefond, Chief Executive Officer CCR
September 2022
Initiation of the privatisation endeavour with call for candidates launched
February 2023
SMABTP and MACSF consortium project selected by CCR’s Board of Directors
March 2023
After consultation with the CCR and CCR Re Works Councils during the no-shop period, signature of the disposal contract
July 2023
The privatisation and capital increase were completed, as was the autonomy of all support functions
Decisive support from two leading mutual insurance shareholders
PIERRE ESPARBES, Chief Executive Officer, SMABTP
STÉPHANE DESSIRIER, Chief Executive Officer, MACSF
For the SMABTP and MACSF consortium, “investing in CCR Re is a great opportunity to support a profitable reinsurance company with which we share the same values and vision of the market. This acquisition will enable CCR Re to pursue its development at a time when reinsurance is at the heart of social issues.”
2024: CCR Re Will Achieve Full Autonomy from CCR
IT Project
CCR Re set up its own Information Technology department in July 2023, comprised of 13 former CCR employees, including the Head of Information Technology, the Digital Factory team, and several Research and Development team members. In 2024, there are plans for further recruitment, while the IT Department is actively collaborating with all stakeholders to develop a target master plan, aiming to complete the separation of the information system from CCR.
Transferring the Asset Management Business
This change in shareholding also provided CCR Re with the opportunity to create a fully-fledged finance department with the implementation of a management agreement for financial assets with CCR, which will expire in 2024 and will be replaced by a framework contract between CCR Re and SMABTP organising the delegation of management by portfolio of assets.
Relocation
In a bid to facilitate the company’s expansion and achieve full autonomy, CCR Re is set to relocate to new premises in 2024, once again situated in the heart of Paris’ central business district. The newly designed offices, tailored to the requirements of our teams, will provide us with the ideal environment for growth.
Reflecting on the New Identity
This transformation will not just be a change of name or logo, but a reaffirmation of our core values. Through this development, we aim to confirm our identity in the global reinsurance sector. We welcome this new era with enthusiasm, fully prepared to tackle the challenges ahead and capitalise on the opportunities that come with an independent trajectory, all while retaining the company’s DNA that has fuelled our strength so far.
The Major Claims of 2023
The year 2023 was shaped by a high frequency and intensity of natural phenomena across every continent.
Forest fires in Canada - Spring 2023
The widespread drought conditions in Canada led to massive forest fires, resulting in approximately 5% of the Canadian forests being burnt and around 200,000 people being evacuated. These fires affected Quebec, the eastern and western provinces of Canada (Alberta, Manitoba and British Columbia).
€606 M in estimated insured losses
Hurricane Otis hits Mexico - 25 October 2023
This hurricane was described by meteorologists as a “weather bomb”, having risen from Category 2 to Category 5 in just a few hours as it approached Acapulco on Mexico’s Pacific coast. It caused the deaths of around fifty people and considerable material damage (80% of the hotels in this seaside resort were destroyed), caused by gusts of over 300 km/h and torrential rain.
€4,5 Bn in estimated insured losses
Flooding in Italy – May 2023
The Emilia-Romagna region in the north of Italy experienced historic flooding in May 2023, provoking significant material losses, landslides and approximately fifteen deaths.
€509 M in estimated losses
Earthquakes in Turkey - 6 February 2023
During the night of 5 to 6 February 2023, south-east Turkey was hit by two devastating earthquakes. The first measured 7.8 on the Richter scale, followed by a second measuring 7.5, with around a hundred aftershocks occurring over the subsequent days. The destruction of thousands of buildings in Turkey and neighbouring Syria, coupled with the loss of over 50,000 lives, make it one of the most devastating earthquakes of the 21st century
€5,5 Bn in estimated insured losses
Hailstorms in Italy - July 2023
The month of July 2023 was marked by several hail storms in the north of Italy, with record hailstone sizes. The storms caused extensive floods, tornadoes, and considerable material losses.
c. €5 Bn in estimated losses
Floods in Hong Kong - 8 September 2023
The torrential rainfall in September 2023, triggered by the remnants of a typhoon, marked the most significant deluge since records began in the late 19th century. Approximately a quarter of the average annual rainfall was recorded in just one day.
€366 M in estimated losses
Forest fires in Canada - Spring 2023
The widespread drought conditions in Canada led to massive forest fires, resulting in approximately 5% of the Canadian forests being burnt and around 200,000 people being evacuated. These fires affected Quebec, the eastern and western provinces of Canada (Alberta, Manitoba and British Columbia).
€606 M in estimated insured losses
Hurricane Otis hits Mexico - 25 October 2023
This hurricane was described by meteorologists as a “weather bomb”, having risen from Category 2 to Category 5 in just a few hours as it approached Acapulco on Mexico’s Pacific coast. It caused the deaths of around fifty people and considerable material damage (80% of the hotels in this seaside resort were destroyed), caused by gusts of over 300 km/h and torrential rain.
€4,5 Bn in estimated insured losses
Flooding in Italy – May 2023
The Emilia-Romagna region in the north of Italy experienced historic flooding in May 2023, provoking significant material losses, landslides and approximately fifteen deaths.
€509 M in estimated losses
Earthquakes in Turkey - 6 February 2023
During the night of 5 to 6 February 2023, south-east Turkey was hit by two devastating earthquakes. The first measured 7.8 on the Richter scale, followed by a second measuring 7.5, with around a hundred aftershocks occurring over the subsequent days. The destruction of thousands of buildings in Turkey and neighbouring Syria, coupled with the loss of over 50,000 lives, make it one of the most devastating earthquakes of the 21st century.
€5,5 Bn in estimated insured losses
Hailstorms in Italy - July 2023
The month of July 2023 was marked by several hail storms in the north of Italy, with record hailstone sizes. The storms caused extensive floods, tornadoes, and considerable material losses.
c. € 5 Bn in estimated losses
Floods in Hong Kong - 8 September 2023
The torrential rainfall in September 2023, triggered by the remnants of a typhoon, marked the most significant deluge since records began in the late 19th century. Approximately a quarter of the average annual rainfall was recorded in just one day.
€366 M in estimated losses