Swiss Re executive says reinsurer has plans to cut catastrophe coverage: Report
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Swiss Re Ltd. apparently plans to cut its catastrophe coverage and compensate by looking to new lines of business as pricing declines hit the reinsurance sector, a senior executive said.
Speaking to Bloomberg at the industry's annual Rendez-vous de Septembre in Monte Carlo, Monaco, this week, Christian Mumenthaler, head of Swiss Re's reinsurance business, said, “The super profits from (natural catastrophe) are probably over for now.”
After reinsurance prices saw declines during January, April and July renewals, the reinsurer is taking a hard look at where to write business, he said.
“My feeling is that this is the first year we hit technical limits in some of the business, and therefore a few of the bigger players will cut business,” offering less coverage as they earn too little for the risks, Mr. Mumenthaler said, adding that “it would take time to build up other lines of business to compensate for the falling prices.”
The report said that both Swiss Re and competitor Hannover Re S.E. see price declines for natural catastrophe reinsurance slowing.
Swiss Re could not be reached to comment on the Bloomberg report.
Earlier at the conference, Michel M. Liès, group CEO of Swiss Re, said the company is looking for more opportunities in the casualty sector.
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