Reinsurers are likely to seek acquisition opportunities as changing market dynamics put pressure on returns, industry leaders have heard.

Guy Carpenter International CEO James Nash told a symposium in Baden-Baden that some companies view consolidation as a solution, while others are seeking vertical integration opportunities from policyholders through to the capital provider.

Hamilton Insurance Group CEO Pina Albo says mergers and acquisitions (M&A) are being driven by alternative capital, the insurtech phenomenon and “the entire digital revolution”.

“We’re watching the M&A movie again, but this time around we’re seeing different plot twists,” she told the event, hosted by Guy Carpenter.

Axis Re CEO Steve Arora told the symposium long-term trends for the industry are good, but it must adapt to a period of unprecedented change.

“We know that one of the biggest challenges we face is the price equilibrium dynamic, and we must tackle that,” he said.

The symposium was part of the annual industry gathering in the German spa town, where major reinsurers, insurers and brokers consider upcoming renewals and pricing, plus wider issues.

Swiss Re’s Head of Northern, Central and Eastern Europe Frank Reichelt told insuranceNEWS.com.au: “This year it was amazing to see that most of the discussions with our clients not only touched deeply on the renewals of our core business, but also on Swiss Re’s solutions and transaction capabilities – a clear and significant difference to many earlier Baden-Baden conferences.”