...Soft Market to Continue: If loss activity remains unchanged, Fitch Ratings expects further price softening for 2015 renewals. The higher weighting of non-proportional catastrophe business that is re-priced in April, June and July raises the possibility of steeper price declines than for January's renewals. Despite the challenging outlook, we expect pricing at the portfolio level to remain adequate for most traditional reinsurers throughout 2015. Major Players Prove Resilient: The four tier 1 European reinsurers (Hannover Re, AA-/Stable; Munich Re, AA-/Stable; SCOR, A+/Positive; Swiss Re, A+/Positive) reported modest, low single-digit rate reductions across their property and casualty (P&C) reinsurance portfolios following the major January 2015 renewal. This is the second consecutive year of overall price reductions for these reinsurers but we do not expect a material deterioration in their 2015 key performance indicators. Diversity Aids Cycle Management: Compared with the January 2014...
