Morgan Stanley (NYSE:MS)’s take from the Global Reinsurance meetings in Monte Carlo is that reinsurance pricing would continue to trend lower, and as at January 1, renewals could be down from 0-15% on pricing. Reinsurance busniess January 1 renewals account for over 50% of annual reinsurance business, and this is an early indication of a decline in pricing power through 2014, subject of course, that there is no major loss event of a size larger than $50B. It may be noted that the outlook for 2014 builds upon a previous loss of pricing power witnessed in 2013 when Superstorm Sandy…
Global Reinsurance Pricing Comes Under Pressure
HFA Staff
The post above is drafted by the collaboration of the Hedge Fund Alpha Team.