Paris-headquartered CCR RE has been profitable since its creation as a stand-alone company in 2016, with earnings from both underwriting and investment activities. Since inception, the company has experienced strong growth, notes AM Best.
Net written premium expanded at an average annual rate of 21% for the five-year period to 2023 (20% in 2023).
In addition, net results have trended higher during the past few years, with a return on capital and surplus average of 7% for the five-year period ending in 2023 (2023: 8%).
Ratings affirmed
AM Best has affirmed CCR RE’s Financial Strength Rating of ‘A’ (Excellent) and the Long-Term Issuer Credit Rating of ‘a’ (Excellent). The outlook of these credit ratings is ‘Stable’.
The ratings reflect CCR RE’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management.
Balance sheet strength
CCR RE’s balance sheet strength assessment reflects its risk-adjusted capitalisation being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by internal capital generation.
The company’s majority shareholder, Société Mutuelle d'Assurance du Bâtiment et des Travaux Publics (SMABTP), together with minority shareholder Mutuelle d’Assurance du Corps de Santé Français (MACSF), contributed an additional EUR200m ($218m) to CCR RE’s capital base in 2023.
This assessment also factors in the company’s low dependence on reinsurance, conservative reserving practices, and its liquid and good quality investment portfolio. CCR RE has demonstrated its financial flexibility most recently with the issuance of EUR300m of subordinated debt in 2020.
Business profile
CCR RE’s neutral business profile is supported by its established presence in the international reinsurance market, with the company having a well-diversified underwriting portfolio and benefiting from a long-established brand.
CCR RE ranks among the top 30 global reinsurers.