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A representative group of reinsurers posted a combined ratio of 94.9 for 2006–a 34.5-point improvement over the 129.4 registered in catastrophe-scarred 2005, according to an annual sampling of reinsurers by the Reinsurance Association of America.

Last year’s dramatic decline in the combined ratio among the 23 reinsurers surveyed, compared with 2005′s record storm losses from Hurricanes Katrina, Rita and Wilma, was prompted by a sharp spike in pricing for the renewal season–particularly for catastrophe risk–as well as the fact there were no major hurricanes last year, analysts said.

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