Swiss Re says prices are rising

Swiss Re said reinsurance prices are rising and its capacity to write business has grown.

Michel Liès, head of client markets said: “We are observing a broad upward trend in overall reinsurance pricing, although this varies significantly between different lines of business.

“While the prices on property lines of business are improving, long-tail industry segments, especially casualty, have yet to adjust to the lower interest rate environment and still do not adequately reflect years of premium reductions, and anticipated loss trends.

“We therefore continue to steer capacity away from casualty into the more profitable property lines of business.”

Increased capacity

Swiss Re’s chief executive Stefan Lippe, said: “Since the beginning of 2009, we have significantly increased our capacity to enable clients to benefit from attractive business opportunities. At the end of June our excess capital was estimated at CHF 4.5bn above the AA required level.

Liès, said: “Even when the financial crisis was in full swing, we were able to deliver capacity to our clients. This has created a lot of goodwill and positioned us well for the upcoming January 2010 renewals.”

Liès said: “Strong client-specific analyses and solutions are called for, and Swiss Re works closely with its clients to develop both traditional and innovative solutions that respond to their individual needs.”

Improving through 2009

Lippe said: “Our top priority is to deploy capacity and innovative solutions for the benefit of our clients and shareholders. Conditions in the reinsurance market have been improving throughout 2009. In a difficult market environment, we have demonstrated that Swiss Re’s client franchise is powerful and that we deliver value to our clients.”