Munich Re, the world’s biggest reinsurer, said it expects stable rates for property and casualty reinsurance during January price negotiations.
Insurers and reinsurers may limit the coverage they offer for supply-chain disruptions and negotiate higher prices after record claims from natural disasters in Japan and Thailand.
Munich Re and Scor SE said overall reinsurance prices will increase, driven by more expensive catastrophe coverage, while brokers said claims haven’t risen enough to push prices higher.
Munich Re, the world’s biggest reinsurer, shrugged off losses from Hurricane Sandy to raise its full-year earnings forecast after an almost fourfold increase in third-quarter profit.
Flooding in Europe last month will cause more than 12 billion euros ($15.5 billion) of damage, the year’s most expensive natural catastrophe, according to Munich Re, the world’s biggest reinsurer.
Munich Re, the world’s largest reinsurer, said global losses from natural catastrophes were cut in half in 2012, with Hurricane Sandy causing the highest costs.
Swiss Re Ltd. and Munich Re, the world’s biggest reinsurers, expect rates to increase after posting second-quarter earnings that exceeded analyst estimates.
Munich Re, the world’s biggest reinsurer, reported a 3.8 percent increase in second-quarter profit, beating analyst estimates as the tax rate fell.
"' In standard business, we will continue to resist pricing pressures and withdraw from business if necessary."
- Torsten Jeworrek on Sep 14, 2014