NEWS

2016 results reflect robust performance and balance sheet despite adverse impact of floods in France

04/26/2017

2016 results reflect robust performance and balance sheet despite adverse impact of floods in France

The Board of Directors of CCR met on April 25, 2017 to approve the 2016 financial statements. Following that meeting, company Chairman Pierre Blayau stated: “Our 2016 results, impacted by significant loss experience, prove the pertinence and reliability of the CCR business model. Furthermore, they testify to our efforts to improve the company's operational efficiency.”

• Gross premium income increases by 2.2% to 1,315 million euros, driven by the consolidation of the open market reinsurance portfolio.

  • Premium income from public reinsurance is stable at 872 million euros.
  • Premium income from open market reinsurance increases by 5.8% to 443 million euros, thanks to a life reinsurance portfolio that generated opportunities for profitable growth.
     

• The loss ratio increases from 61% to 74% as a result of significant Cat loss experience.

  • The cost of insured losses from natural disasters arising in France increases to over 400 million euros due to the floods of May-June (1,766 municipalities affected in total).
  • Cat loss experience has a limited impact on the open market portfolio.
     

• Net income stands at 141 million euros backed by the cushioning effect of equalization reserves and CCR's sound administrative and financial management practices.

  • Income before tax is 295 million euros, a sharp decline compared to 2015. It benefits, however, from a 165 million euro reversal from the equalization reserves.
  • Moreover, the group's operating expenses decreases by 2% excluding exceptional expenses relating to the creation of CCR Re.
  • Despite a decrease in interest rates, financial income is stable at 174 million euros.
     

• CCR 2016 balance sheet remains extremely solid.

  • Unrealized capital gains slightly increases to 1.09 billion euros for a total of assets under management of nearly 10 billion euros.
  • Despite a decrease in its equalization reserves, CCR could potentially cover a natural disaster market loss of 5.7 million euros without resorting to the use of a State-backed guarantee.

*Consolidated information
**Non-consolidated Shareholder's equity amounted to 2,111 million euros at December 31, 2016