At the April 1, 2010 renewals, lead reinsurers were fairly firm in the first round of quotations and buyers were made to work hard for reductions. After several rounds of negotiation, firm orders were generally set at modest reductions over 2009 pricing within a range of down 2.5 percent to down 6 percent on a risk adjusted basis, with an average reduction of approximately 4.5 percent. The market that resulted was tight and price sensitive. Reinsurers were willing to cut lines if reductions were seen as too great or in cases where they perceived pricing was already competitive.

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