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Reinsurance capital stable: Guy Carpenter

Reinsurance capital levels stabilised at the January renewals, according to a Guy Carpenter report.

No growth was seen “for the first time in several years”, but capacity remained abundant due to moderate loss experience.

“In a highly competitive environment, companies assessed broader opportunities and the rate of incoming capital slowed,” the report says.

“The continued scarcity of costly catastrophe losses and more than adequate capacity led to reinsurance pricing reductions, although there are signs the rate of descent is slowing as compared with [last year].”

Reductions took place across most business lines and geographies, but the decline moderated, particularly in US property catastrophe.

As reinsurers strive to compete in the soft market “an environment of innovation, responsiveness and customisation has become the norm”, Global Head of Property Specialty Lara Mowery says.