CCR results hit by flood losses

Reinsurer Caisse Centrale de Réassurance (CCR) saw its 2016 net income decline to EUR141 million (USD154 million) and its combined ratio weaken to 89.9 percent, as flooding in May-June saw its natural catastrophe France claims expenses increase by over EUR400 million (USD436 million).

“The 2016 results, marked by a high level of claims, demonstrate the relevance and robustness of the CCR model. They also report on the efforts made to improve the operational efficiency of the company,” said CCR Chairman, Pierre Blayau.

Parts of France were hit with intense and damaging floods in May-June of last year, and CCR notes that its natural catastrophe France claims expenses grew by over EUR400 million as a result, and its claims/premiums ratio increased from 61 percent to 74 percent in response to the “strong cat loss ratio.”

The decline in net income for the year from EUR216 million (USD235 million) in 2015 to the EUR141 million (USD154 million) recorded in 2016, says CCR, is a result of the “amortisation effect of provisions for equalisation,” which it realised a EUR165 million (USD180 million) benefit, and the “sound administrative and financial management of CCR.”