On the 1st April, 2008, Willis Group Holdings (NYSE: WSH), the global insurance broker, has released its annual reinsurance renewals report for April 2008.
Entitled `Plenty of Capacity, Plenty of Capital` the report refers to the first quarter of 2008 as one where reinsurers have experienced an increased number of large single risk losses and an increased frequency of attritional catastrophe losses. One key positive is the strong capital position many reinsurers currently enjoy based on their excellent 2006 and 2007 results.
The report focuses on rate movements across numerous territories and includes detailed analysis from Willis Re\’s product line experts. Key findings of the report include:
A continuing softening in rates over a wide range of classes and territories.
Modest rate reductions in the larger mature markets and greater competition in the smaller markets.
Continuing investor appetite for ILS products and a number of new catastrophe bonds being completed in the first quarter of 2008.
Reinsurers are facing an increasingly volatile 2008 as the support available from investment income and reserve redundancy falls away.
Peter Hearn, CEO, Willis Re comments: `Our clients are confronted by an array of challenges in every country and line of business and we hope this report will help them to formulate a more comprehensive picture of the key issues facing the market this renewal season and in looking forward to the rest of 2008.`
To read the report in full, please download below.