The reinsurance market is splitting into tiers, with the top five to 15 companies benefitting from their size and diversification, according to French reinsurer Scor.

Scor Global P&C increased gross premiums by 5% to €3.4 billion ($5.15 billion) at the January renewals, as variations in primary insurance prices offset reinsurance prices.

CEO Victor Peignet says as the reinsurance market separates into tiers, “size and diversification, combined with the capabilities to cover all lines and offer global approaches to cedants, are key competitive advantages”.

Since the financial crisis, insurers are reducing and limiting their counterparties to minimise counterparty risk and cut monitoring costs, so tend to place most of their program with a restricted number of reinsurers.

This favours large reinsurers that can provide security and a global approach in terms of offering, local presence and support.

Scor rates Australia as “very attractive” in property covers and “attractive” in casualty and motor.