Reinsurers' capital management activities can stabilize pricing: Swiss Re

Swiss Re Ltd. has said that traditional reinsurers' capital management activities would help counter the pressure from alternative capital on reinsurance pricing and stabilize the pricing, Artemis.bm reported.

Few major losses have increased capital at traditional reinsurers. Swiss Re believes that removal of excess capital from the market would reduce the pressure on rates. Swiss Re chairman Walter B. Kielholz said insurance-linked securities and alternative capital does not pose any threat to the reinsurer.

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