Paris-based reinsurer Caisse Centrale de Reassurance (CCR) has informed its Australian, New Zealand and Thai partners it will no longer provide reinsurance for their markets.

According to reports coming from flood-stricken Thailand, where CCR is believed to have a 10% market share, the French state-owned company has decided to limit its operations to a smaller number of countries in a bid to maintain long-term profitability.

In a letter sent to partners last week, CCR is understood to have cited the high frequency of natural catastrophe losses in the Asian sector over the past 12 months.

After a strategic review, CCR had decided to focus the group on “key targets”, a report in Thai newspaper The Nation said.

Diversification is right as long as the portfolio is not too scattered, the letter tells its customers.

It is believed CCR’s main focus is in Asia rather than Australia and New Zealand. It had been operating in Thailand since 2001.

Thailand is experiencing its worst floods in 50 years with the central plains and outskirts of Bangkok inundated. More than 600 people have died and 10,000 factories have closed.

The Federation of Thai Industries has estimated flood damage will cost around 1.1 trillion baht ($36.32 billion).

CCR was unavailable for comment. Owned by the French Government and established in 1946, it guarantees losses from natural disasters in France.