Arundo Re’s Impressive Financial Performance in 2024
Arundo Re, a notable French reinsurance firm primarily owned by SMABTP, MACSF, and CCR, has reported a significant rise in its turnover, achieving €1.361 billion in 2024. This represents a 15% increase compared to the previous year, alongside an improvement in the company’s undiscounted combined ratio by 1.9 percentage points, reaching 94.7%.
Following a promising 13% premium growth across its portfolio during the January 1st, 2025, reinsurance renewals, Arundo Re has announced strong financial results for 2024. This growth in turnover, equivalent to 12% at constant exchange rates, was fueled by advancements in both non-life and specialty segments across all geographic regions.
Enhanced Underwriting Performance Despite Challenges
Arundo Re’s combined ratio, now at 94.7%, has shown consistent improvement over consecutive years, declining from 96.6% in 2023 and 98.7% in 2022. This enhanced underwriting performance was achieved despite facing an “exceptional accumulation of events” in Canada, including wildfires, hailstorms, floods, and a cyclone, as well as a high frequency of medium-sized claims directly linked to climate change.
On the life insurance side, the portfolio’s profitability stood at 1.5%, marking a decline from 2023, attributed to the reconstitution of provisions, according to the carrier.
Stable Cost Ratio and Asset Performance
Arundo Re’s cost ratio remains unchanged at 4.3% from 2023, slightly higher than the 4.1% reported in 2022. On the asset front, the accounting yield on its assets was 2.6%, driven by a favorable interest rate environment and unrealized capital gains, totaling €20 million on assets valued at €3.82 billion at market value.
Noteworthy EBITAER and Net Profit Growth
The culmination of these factors led to a 2024 EBITAER of €109 million and a net profit of €64 million, marking increases of 24% and 14% respectively, compared to the previous year.
Strengthened Solvency and Executive Remarks
Additionally, the company’s solvency ratio saw further improvement as of December 31, 2024, reaching 211%, up from 208% in 2023 and 205% in 2022.
Patrick Bernasconi, Chairman of Arundo Re’s Board of Directors, remarked on the 2024 results: “The 2024 results are in line with the business plan set by the new Board of Directors. It is a great pleasure to share this new success with Arundo Re’s teams, customers, and partners. We are honored by the loyalty of the relationships we have established, which are bearing fruit.”
Chief Executive Officer, Bertrand Labilloy, stated: “In 2024, Arundo Re maintained its profitable growth trajectory despite the rising cost of natural catastrophes. These results continue to demonstrate the relevance of our strategy: the solidity of our balance sheet continues to strengthen, and this gives us an attractive degree of flexibility in this ever-changing environment.”
News
