MUNICH Re's renewal portfolio recorded price increases of around 0.8% at 1 January

7 February 2018 — Vlad BOLDIJAR
Reinsurance giant MUNICH Re pointed out in a statement about the Group's preliminary annual results that prices for the reinsurance treaties increased in the renewals as at 1 January 2018, particularly in the markets most affected by natural catastrophes.

"Other markets and branches were also freed from the pricing pressures of previous years, and price development was stable or even slightly positive. Despite the high losses from natural catastrophes in 2017, the availability of reinsurance capital remained high during the January renewals, so price increases were moderate overall, due also to the slight rise in market interest rates".

As at 1 January 2018, around half of MUNICH Re's non-life reinsurance business was up for renewal, representing premium volume of EUR 8.3 billion. Of this, 14% (around EUR 1.2 billion) was not renewed. At the same time, MUNICH Re wrote new business with a volume of approximately EUR 2.3 billion.

"The volume of business written at 1 January thus increased by 19% to around EUR 9.9 billion, due partly to new large-volume treaties in the USA and Australia. Prices increased by around 0.8%; they had fallen by 0.5% on average in all 2017 renewal rounds".