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High catastrophe losses could force reinsurance prices to bottom out

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Analysts at Macquarie Research have suggested that high level of catastrophe losses in the second quarter of 2016 might be enough to force reinsurance pricing to bottom out at the January 2017 renewal season, Artemis.bm reported.

"Considering that prices already appear to be stabilizing, we believe that the recent increase in catastrophe losses will prompt more underwriting discipline and thus forecast flat pricing at future renewals," Macquarie said.

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