Hannover re experiences renewal premium increase

One business insurance and reinsurance provider recently stated that it had recently experienced a 2 per cent increase in underwriting premium treaty renewals.

Hannover Reinsurance stated that the commercial insurance market was generally stable.  However it did note some modest reductions in rates in its North American property treaties.  North American standard casualty business rates were stable in comparison.

Hannover Re’s rates for professional indemnity lines experienced either a slight reduction or were flat, according to a statement released by the insurance firm.  Overall catastrophe reinsurance rates fell at the January 1 renewal.  US catastrophe reinsurance business showed significant reductions in rate.

This led to the firm reducing the premium volume of related underwritten businesses by a rate of 15 per cent.  However catastrophe programmes that had seen losses last year demonstrated increases measured in the double digits.  Hannover Re found that its South Amercian prices showed a 40 per cent rise for select programmes in the wake of the devastating Chilean earthquake in 2010.

The firm experienced sharp surges in its marine business in the wake of last April’s Deepwater Horizon oil rig catastrophe.  Hannover Re increased its premium volume in the offshore energy sector by one fifth as a result.

Prices remained relatively stable in aviation business despite plentiful capacity according to the insurer.  The sector saw an increase in premium volume of 14 per cent.

Hannover Re stated that credit reinsurance rates declined at the January 1 renewal due to an increase in competition.  This followed two straight years of higher than average rate increases for surety and credit business, added the company.  This area saw a reduction of 11 per cent in premium volume despite relative stability in surety reinsurance prices.

Hannover Re stated that rate increases were only seen on programmes impacted by losses in its domestic market of Germany.

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