Munich Re reinsurance rates rise 3%

Munich Re’s P&C contract rates as renewed in January 2006 saw an increase of 3%, even after the record 2005 hurricane season. Approximately 66% of Munich Re’s traditional non-life reinsurance business saw renewals in January with a premium volume of about 8.9 billion euros (US$10.6 billion). Only around 6% of the business was not renewed as a result of the fact that premiums or conditions didn’t meet requirements. High premium levels are trying to be maintained by reinsurers in 2006 as a result of record nat cat losses caused extreme insurable damages. The 2005 cat losses almost doubling the 2004 figure to reach a figure of over US$75 billion, according to Munich Re. U.S. Hurricanes alone caused over US$60 billion of the damages.With the January renewals Torsten Jeworrek, board member, says that Munich Re has created the basis for reinsurance business to contribute strongly to the profitability of the whole group in 2006.