Interview: Bertrand Labilloy, CCR Re
CCR Re to grow Asia-Pac life
CCR Re is looking to expand the life business with its existing partners in the
Asia-Pacific region, as Bertrand Labilloy, CCR chairman, told SIRC Today.
Wednesday October 31 2018 SIRC Today Day 2
CCR Re is looking to expand the life
business with its existing partners
in the Asia-Pacific region, where
it is currently mostly focused on property/
casualty, Bertrand Labilloy, CCR chairman,
told SIRC Today.
The French reinsurer was formed in
January 2017 when its parent, Frenchgovernment
backed CCR, split its open
market reinsurance activities to form a new
subsidiary. For the first half of 2018, CCR
Re posted premium income of €381 million
($440 million), a 12 percent increase on the
same period a year earlier, and net profit of
€17 million ($19.6 million), equal to its
profit for the whole of 2017.
Asia currently represents around 25
percent of CCR Re’s book and the firm is
facing strong demand driven by economic
expansion in the region. CCR Re operates
mainly in the big markets in Asia such
as India, Japan, China, Malaysia, Korea,
and Hong Kong, but it is in the process
of expanding its footprint in the region,
looking at opportunities particularly in the
Philippines, Thailand and Vietnam.
CCR Re partners mostly with local insurers
in the region, offering tailor-made solutions
CCR Re operates in the reinsurance
market in life, non-life and specialty lines
in France and internationally. Its non-life/
property and casualty reinsurance offering
includes property, motor, fire and third party
liability. Its life business operations focus
on accident and health reinsurance where it
offers proportional, non-proportional and
alternative reinsurance protection covering
mortality, long-term care, disability and
In specialty lines, CCR Re provides tailormade
solutions in areas such as credit and
surety, political risk, non-life cat, marine, and
aviation, among others.
“In Asia, CCR Re underwrites traditional
non-life reinsurance business as well as marine
reinsurance, credit and bond reinsurance.
“It is growing its agri business, which is
developing rapidly particularly in India and
China,” Labilloy said.
Industry insured losses from Typhoon
Mangkhut in mainland China, Hong Kong,
and Macau are expected to be between $1
billion and $2 billion, according to estimates.
On the cat side of the business, CCR Re
is interested in participating in risk pools
in the region as governments seek to reduce
the protection gap and offer more effective
protection to populations.
Indonesia has, for example, recently
been hit by severe earthquakes and a major
tsunami, but the losses are largely uninsured.
By setting up a scheme which would include
the private sector, affected parts of the
population could receive financial support
more quickly after a catastrophe through,
for example, a scheme based on parametric
Such a structure would also protect the
fiscal budget of the government from the
required financial compensation and enable a
reasonably priced cover for everyone, Labilloy
However, developments in this area in Asia
which require the support and initiative of
governments has been slow so far, he said.
Meanwhile, cedants in Asia are also
wanting to discuss cyber risk protection and
the risks related to autonomous driving,
but these are areas that will take some time
to develop into significant business for
reinsurers, Labilloy said.
In the short term, CCR Re wants to focus
on expanding its life business in Asia. The
reinsurer will target opportunities to expand
this area through existing franchises with its
long-term local insurance partners, he added.
CCR Re sees growing demand for
reinsurance, for example in healthcare and
in the personal accident life business. At the
moment CCR Re operates in these business
lines particularly in Europe and the Middle
East, but the firm is now expanding these
activities to other parts of the world.
For its life expansion in Asia, CCR Re
is focusing primarily on its partners in
Singapore, Hong Kong, Taiwan and Japan.
As of June 30, 2018, CCR Re’s life technical
margin was at 6.8 percent, from 6.7 percent at
year-end 2017. l
will target opportunities
to expand this area
Cats and cyber
The cat business in Asia is of particular
importance to CCR Re as natural catastrophe
events impacted by climate change are
increasing in frequency and severity. For
example Typhoon Jebi, dubbed the strongest
typhoon to strike Japan since Yancy in 1993,
made landfall over Japan on September 4 as a
category 5 typhoon. Insured losses from Jebi
are estimated at between $5 and $7 billion.
Japan was also hit by typhoon Trami in
September as well as by two earthquakes and
very heavy rainfall.