However, according to Litmus Analysis, there were significant differences between the four reinsurers. Hannover Re achieved the greatest overall growth with an increase of 15% in renewed premiums – almost twice as much as SCOR with 8%.
But SCOR was the leader at almost 8% when it came to price increases. In contrast, Swiss Re reported average interest rate changes of an estimated 0.7%. For the past six quarters, SCOR also leads the way with an average quarterly increase of 6.3%. In the last six quarters, Swiss Re came in second with 5%, followed by Hannover Re with 4.3% and Munich Re with 2.3%.
The report also found that premium increases appeared to have slowed for the most part by mid-2021 compared to those reported on Jan. 1.
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“This report highlights some key differences between the four major reinsurance groups in the recent renewal – and this could have an impact on the way they approach the negotiations as we move towards the much larger year-end renewal,” said Lewis Phillips, Senior Consultant at Litmus Analyze. “Some groups are clearly pushing for price increases – and are doing well – while others may be taking a more nuanced approach. Buyers can find the details here interesting and informative when they start negotiations. “
“It is interesting that both Munich Re and SCOR have emphasized that buyers are looking for a high level of financial strength to support long-term relationships,” said Stuart Shipperlee, Head of Analysis at Litmus. “Given their very good reviews, you’d expect that from them, and the price increases they’ve seen don’t necessarily prove that. Nonetheless, it is not difficult to see how, over the past 18 months, cedants have continued to focus on reinsurers’ financial strength ratings and their likely resilience to heavy burdens. “