Global reinsurance prices fell by an average of 9% last year, according to global reinsurance broker Guy Carpenter.

The group's 2008 review highlights excess supply, strong profits and minimal losses as combining to drive prices down, along with a fortuitous catastrophe season.

Guy Carpenter Head of Business Intelligence Chris Klein cautions against complacency and warns the impact of last year's cats could have been much worse.

"A number of close calls in 2007, including two category 5 hurricanes and several earthquakes - not to mention the subprime crisis - demonstrate how quickly things can change in the reinsurance market and should underscore the need for continued