|
American Risk Managers News
|
Reinsurers Expect Generally Flat Renewals
-
Tuesday, September 08, 2009
at
16:45
|
Following catastrophe reinsurance 2009 increased rate of 8% average should remain level for the 2010 renewals. According to Guy Carpenter & Company annual survey the 2009, the root cause was the result of 2008 financial crisis and its negative impact on reinsurers’ balance sheet was made worse by hurricanes Ike and Gustav.
According to the September 7, 2009 report of Advisen FPN Business Wire these increase came after declines of six (6%) in 2008 and ten (10%) in 2007. The flat rates are predicated on a mild hurricane season and slower demands in some segments.
Advisen further reports that most of the major players are meeting in Monte Carlo this week with clients to kick off talks that will determine the rates that will be charged next year. According to Landesbank Baden Wuerttemberg analyst primary insurers' stronger balance sheets, following the recovery in investment markets allow them to keep more business on their own books, rather than paying to reinsure it.
Hannover Re AG (HNRLXE), one of the four largest reinsures worldwide by gross premium income, Monday said it expects to attain broadly stable rates in the reinsurance contract coming up for renewal Jan 1. Based on the sufficiency of reinsurance capacity available and an absence of major losses prior to the 2010 renewal the Company expect stable pricing environment for the January 1, renewals.
Munich Re AG (MUV2XE) Said on Sunday that it expects average rates for reinsurance contract for January 1, renewal to be mostly flat but sees no reduction.
Swiss Re Co. (RUKN,VX) Monday gave the most up beat projection. Rates tend to be somewhat mixed with lower property rates in property business improving, long-tail segment especially have yet to adjust to the lower interest rate environment, and still don't adequately reflect years of premium reduction and anticipated loss trends.
|
|
 |
 |
