Reinsurance rates fell for the sixth consecutive year at June renewals and the pace of reductions is accelerating, according to JLT Re.

The reinsurance broker’s Florida property catastrophe index – a benchmark measure for the US market – shows a decrease of 5.1% this year, more than last year’s 3.1% drop.

Excess capacity and strong competition, plus “renewed vigour” to place capital through insurance-linked securities markets, were “instrumental” in driving down rates.

JLT Re says losses from Hurricane Matthew had “little bearing” on renewals.

“While the pace of average rate reductions accelerated at June 1 compared with last year, the results were very much determined by cedent size and performance,” EVP North America Bob Betz said.

“More intense competition for cedents with a stronger track record saw risk-adjusted pricing typically fall within a range of flat to down 10% at June 1.

“But even here, results were often layer-specific, reflecting historical performance, loss activity and terms and conditions.”