Despite unprecedented catastrophe losses in 2004, increasing competition is forcing underwriters to choose between sacrificing premiums, profit or capital, according to a report by Benfield.
The report ‘Outrageous Fortune' on the 2004/05 reinsurance renewals, notes that there was ample capacity in most classes.
Strong earnings and fewer reserve shortfalls eased pressure on balance sheets and hedge funds also brought additional capital to an already over-supplied market, it said.
According to the report, overall property rates softened further in most areas, except for those affected by hurricane losses. Casualty rates remained stable with some exceptions, most notably D&O. While pricing softened in many lines, terms and conditions showed little or no change.
Loss-free US cedants saw property catastrophe prices drop by as much as 10%, the report said.
However, it said, firms with catastrophe losses saw prices rise by up to 20%, while, catastrophe pricing in Western Europe dropped between 5% and 10%.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
