Retrocessional reinsurance market remains flat at Jan. 1 renewals: Guy Carp

The retrocessional reinsurance market is enduring a pricing environment of flat to minus 10% off rate for loss-free cat retro and cat on direct and facultative programs at Jan. 1, 2011 renewals, Guy Carpenter reported.

There has been significant international catastrophe loss activity in 2010. Estimates for these losses are being steadily revised upwards, which has resulted in some lower layers and aggregate covers being hit twice, Guy Carpenter reported.

“While some markets contracted capacity a little, this was offset by increases from existing and new market participants,” the report says. “There were no significant market entries or exits, though some collaterized capacity did enter the market in the second half of the year. Capacity overall remains fairly consistent as a result.”