Here’s Guy Carpenter on Florida’s cat reinsurance renewals, most of which incept June 1:
[Reinsurance pricing] continued its 2010 trend of price declines and dropped year over year on a risk adjusted basis by 10 percent to 12 percent on average. This drop returns pricing to a level close to that seen in 2008, particularly in upper layers.
And Global Reinsurance, citing Aon Benfield:
For Florida reinsurance programmes, which represent the majority of activity at the June 1 renewals, reinsurers have experienced positive underwriting results for the past four years due to minimal reinsured catastrophe events, Aon Benfield said. The record levels of capital pushed rates down by 10% to 15% on average, with greater variance based on reinsurers’ views of cedant credit quality.