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Paris Re reports 13% drop in renewal premium
17 February 2009
Paris Re saw its January 1 renewal premium drop by approximately 13% to $583m of written premium in 2009.
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[Paris Re]
[results]
[premium]
[reinsurance]
Paris Re saw its January 1 renewal premium drop by approximately 13% to $583m of written premium in 2009. This was largely the result of its decision to cancel approximately one-third of its proportional business because of inadequate margin expectations.
The reinsurer reported increases in reinsurance rates, particularly classes affected by losses in 2008. Meanwhile, loss-free programmes renewed with very moderate increases or remained flat, and rates in primary insurance showed no sign of hardening.
Paris Re reported that credit and bond quota shares saw commission improvement of up to 15%. This class continues to be an important component of Paris Re's portfolio, in spite of the reduction in overall exposure. Agriculture and life, accident and health writings increased in line with the reinsurer's expectations.
Excess of loss business reduced slightly in volume. Paris Re chose to retain a part of its capacity for mid-year renewals in anticipation of a further firming of rates. On a net basis, Paris Re expects excess of loss premiums to increase modestly because of a futher reduction in its level of retrocession on the excess property book.