Munich Re, the world’s biggest reinsurer, jumped as much as 4.3 percent, the biggest intraday gain since June 7, and was up 3.5 percent at 139.75 euros at 11:29 a.m. in Frankfurt. Swiss Re and Hannover Re rose 2 percent and 1.9 percent, respectively.
Reinsurers are meeting with brokers and their clients, primary insurers, in Monte Carlo to negotiate terms and conditions of next year’s property and casualty policies. The industry is under pressure to shore up earnings hurt by an increase in catastrophe claims, low interest rates and as near-record capital available for coverage weighs on prices.
“There is confidence for the next contract renewals,” Peter Casanova, a Zurich-based analyst with J. Safra Sarasin, wrote in a note to investors. Casanova has a buy recommendation on Munich Re (MUV2) and a neutral on Swiss Re.
Munich Re said in a statement yesterday that “prices will remain largely stable,” while Hannover Re Chief Executive Officer Ulrich Wallin today forecast “rather stable” prices. Swiss Re said it expects the price of natural-catastrophe reinsurance to stabilize in 2014 after a drop this year.
Reinsurers typically renew about two thirds of their annual property and casualty contracts in January.
To contact the reporter on this story: Carolyn Bandel in Zurich at email@example.com
To contact the editor responsible for this story: Frank Connelly at firstname.lastname@example.org