SI Re grows premiums by 10% during January renewals

By Aidan Gregory

Jan 29 - (The Insurer) - Swiss reinsurer SI Re has said that it grew its premium volume by 10 percent during a “successful” January renewal marked by “significant diversification and expansion of its portfolio”.

In an update to the market on Wednesday, the Zug-based carrier said that its premium volume reached €225mn ($234mn), up 10 percent from €205mn, aided by the recent upgrade its to credit rating by Fitch to A+, which SI Re said “facilitated access to new business and clients who were previously less familiar with our longstanding mutual setup”.

New business contributed around 20 percent of the business written during January renewals, and SI Re’s new clients increased by 9 percent.

“SI Re accomplished yet another highly successful renewal,” said Bertrand Wollner, CEO of SI Re, in the statement on Wednesday. “SI Re's prudent underwriting over the years enabled us to expand our portfolio during this hard market maintaining our focus on sustainable and long-term partnerships while not compromising on underwriting discipline.

“Thus, SI Re was able to further solidify its profitable book of business and its standing in the market. Also, the disciplining of the insurance value chain, which commenced in the retro market in 2022, has reached the original markets, resulting in tighter terms and conditions and higher rates throughout the risk-transfer chain,” added Wollner.

Last year was characterised by a challenging macroeconomic and geopolitical environment, although inflation receded and capital markets performed well, according to SI Re.

The year was also affected by multiple natural catastrophes, with industry losses totalling around $150bn. In Europe, these losses included flooding in Central and Eastern Europe, southern Germany and Spain.

Europe’s reinsurance industry was nevertheless well positioned to absorb these insured losses due to restructuring efforts which began at the January 2023 renewals.

“The restructuring efforts initiated by reinsurers within the insurance markets proved effective,” said SI Re in the update. “With inflation moderating, insurers were finally able to not just keep up with inflationary trends but strengthen their portfolios by enforcing adequate rates and sustainable conditions for their policyholders.

“Overall, this results in a strengthening of the markets’ resilience and its ability to absorb and recover from losses more effectively and to manage insurers’ retention levels that have moved up during the hard market,” added SI Re. “Investor confidence rebounded since 2/2 and with the strong performance of the ILS market, the retrocession market reopened.”