French reinsurer CCR Re announced that, effective Jan. 16, 2025, it will officially change its name to Arundo Re. This rebranding comes roughly 18 months after a consortium led by SMABTP and MACSF acquired a majority stake in the firm.
CCR Re, which was founded in 2016, was created to take over the reinsurance activities of public-sector reinsurer CCR. The reinsurer began operations on Jan. 1, 2017, during the treaty renewals, following the transfer of CCR’s open market portfolio.
Since then, CCR Re has expanded its operations, and in early 2023, CCR entered exclusive negotiations with SMABTP and MACSF to transfer control of CCR Re and increase its capital by €200 million.
Earlier this year, CCR Re released its activity report, highlighting a year of significant growth and strategic improvements. The report noted that the reinsurer is well-positioned to move into 2024, supported by favorable market conditions and a stronger partnership with its shareholders.
Throughout the year, CCR Re navigated an inflationary environment that put pressure on claims costs. The company adopted a cautious approach in its evaluations, particularly as it faced a marked increase in catastrophe claims due to frequent large-scale secondary risks.
Despite these challenges, the reinsurer benefited from a favorable financial market environment, which contributed to its overall growth.
CCR Re reported total sales of €1.186 billion for 2023, a 20% increase from 2022 at current exchange rates, and a 23% rise at constant exchange rates. Although the company dealt with increased costs related to natural catastrophes and inflation—factors that contributed 380 basis points to the combined ratio—CCR Re improved its combined ratio to 96.6% under French GAAP, compared to 98.7% in 2022.
Additionally, the life insurance portfolio saw improved profitability, with a technical margin of 3.9%.
The company’s investment yield stood at 2.4%, excluding an €84 million increase in unrealized capital gains. Total assets were valued at €3.6 billion at market value. Operational changes resulted in a slight increase in the cost ratio, which rose to 4.3%.
CCR Re’s financial health was further bolstered by an EBITAER of €88 million and net income of €56 million for 2023, both of which were improvements from the previous year.
The company also reported a solvency ratio of 208% at the end of 2023, reflecting its strong capital position heading into the rebranding as Arundo Re.
What are your thoughts on this story? Please feel free to share your comments below.
