January 2023 P&C Renewal Results

SCOR improves the expected technical profitability and risk-return profile of its portfolio in a favorable market environment.

Image D8 P&C Renewal 2022
  • As announced during its Investor Day on November 9, 2022, SCOR pursues a clear objective at the January 1, 2023 renewals: to improve the expected technical profitability and improve the risk-return profile of its P&C portfolio, taking full advantage of the current favorable market conditions.
  • To achieve this objective, SCOR has particularly focused on optimizing the capital allocation by line and by client, and on optimizing the portfolio mix, in terms of both risk diversification and the resilience of the technical results.
  • The implementation of these principles has led SCOR, during the January 1, 2023 renewals, to:
    • continue to grow Global Lines (+11% of EGPI1 excluding Agriculture);
    • strengthen profitable relationships with its long-term clients;
    • reduce exposure to natural catastrophe risks (-14% reduction of 1-in-250-year net Cat PML);
    • finally, to reshape its portfolio by reducing the lines most sensitive to economic and social inflation (particularly -24% of EGPI for Casualty and Motor lines). 

The combination of these four actions has resulted in an overall reduction of EGPI of -12% for renewed reinsurance business.

  • SCOR achieves its objective and significantly improves the expected technical profitability and risk-return profile of its P&C portfolio at the January 1, 2023 renewals. These actions should result in an improvement in the expected net underwriting ratio of around 2.5 to 3 points, stemming from an overall rate increase of 9% across the portfolio.
  • SCOR is confident that the current P&C cycle will continue. The Group is actively preparing the upcoming April, June and July 2023 renewals in a positive market environment. 


January 2023 P&C Reinsurance Treaty Renewals

These renewals have been marked by a decrease in reinsurance supply and strong demand for protection from cedants. 

Reinsurance treaties renewal book at January 1, 20231:


Gross Premiums renewed
(in EUR millions)

Evolution vs. January 2022

Main lines concerned

Treaty P&C Lines3



  • US Casualty, Property proportional, Motor proportional

Treaty Global Lines4



  • IDI and Engineering
  • Cyber (pricing impact only)





  1. Approximately 67% of SCOR’s P&C reinsurance premiums – representing 47% of SCOR’s total P&C premiums – is renewed in January.
  2. Excluding one large transaction in Europe, and SCOR’s 3rd party capital provision business at Lloyd’s (“SUL”).
  3. Treaty P&C Lines include Property, Property Cat, Casualty, Motor, and other related lines (Personal Insurance, Nuclear, Terrorism, Special Risks, Motor Extended Warranty, and Inwards Retrocession).
  4. Treaty Global Lines include Agriculture, Aviation, Credit & Surety, Inherent Defects Insurance, Engineering, Marine and Offshore, Space, Cyber and Alternative Solutions.

Underwriting has been thoroughly reviewed, with a particular focus on diversification and portfolio balance to take advantage of current market conditions.

Growth in Global Lines continues, with an increase in EGPI 2 of +11% excluding Agriculture. The weight of Global Lines (accounting for 43% of the January EGPI compared to 36% a year ago) and of Europe & Canada (accounting for 61% of the January EGPI compared to 55% a year ago) has also increased.

SCOR has carefully taken into account the changes in claims experience in its pricing, particularly for natural catastrophes, by revising the calibration of these risks. Consequently, the Cat PML3  has decreased by -14% (following a -21% reduction in 2022). This has essentially been achieved through reduced limits on Cat-exposed Property proportional covers (-30%) and aggregate XL (-25%), and through a significant increase in cedant retention. 

Because of the acceleration of inflation, SCOR incorporates forward-looking inflation assumptions (for economic and social inflation) for 2023, which vary between 4% and 14% depending on the geographical area. SCOR is reducing its exposure to the most inflation-sensitive lines such as US Casualty and Motor proportional. 

The expected net underwriting ratio4 of the portfolio renewed on January 1, 2023, has improved by 2.5 to 3 points. This improvement stems from a rate increase of 9% before taking inflation assumptions into account. The main rate increases are observed on Property Cat treaties, most notably in North America and Europe (+71% and +44% respectively).

SCOR obtains better terms during these renewals, such as the exclusion of additional perils, higher attachment points and tightened reinstatement provisions.

Jean-Paul Conoscente, CEO for P&C at SCOR, comments: “In one of the best reinsurance environments witnessed in a few decades, SCOR is taking all possible steps to improve the risk-reward profile and technical profitability of its portfolio. To achieve this, SCOR has been particularly focused on controlling exposures, on optimizing the capital allocated to the various lines, and on diversifying its risk portfolio. I am confident: the technical profitability of the renewed portfolio should increase significantly. Market hardening looks set to continue, which will allow SCOR to continue to deploy its capital under favorable market conditions during the next renewals”.  

SCOR will publish its full year results on March 2nd, 2023.


1 Estimated Gross Premium Income (EGPI)
2 Estimated Gross Premium Income (EGPI)
3 PML (probable maximum loss) as measured by the net Aggregate Exceedance Probability 1-in-250 years
4 Sum of the expected cost of claims, commissions and the brokerage costs net of retrocession
divided by the premium net of retrocession for the underwriting year
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