The decline in reinsurance pricing moderated at the January 1,2017 renewal across most classes of business and geographies, ascompared to the past three renewal seasons, Guy Carpenter & Company, LLC, global risk andreinsurance specialist and wholly owned subsidiary of Marsh & McLennanCompanies reported today.

Several sectors faced increased losses, which had only alocalized impact on pricing, Guy Carpenter reported, while capacityremained plentiful. According to calculations by Guy Carpenter andA.M. Best, after remaining fairly stable in 2015, dedicatedreinsurance capital increased by 5 percent from Jan. 1, 2016 toJan. 1, 2017. The convergence capital segment increased by 10percent.

The Guy Carpenter Global Property CatastropheRate-on-Line index tracking property catastrophe pricing fell3.7 percent at Jan. 1, as compared to close to 9.0 percent a yearago. The insurance-linked securities, or ILS, space, in contrastsaw significant changes in pricing during the fourth quarter withdecreases as high as 30 percent.

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Rosalie Donlon

Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].