Market behavior is similar to earlier patterns. Overall 2010 quoting behavior was less volatile than 2009 with average quotes in the range of declines of 10 percent to increases of 10 percent versus 2009 when the range was declines of 15 percent to increases of 15 percent.
Reinsurers have continued to present the position that those companies that are more highly rated should seek to have that financial strength recognized by commanding a higher price. However, until this year, we have not seen strong evidence for their attempting to achieve this outcome in the quoting behavior. Throughout 2010 there is more evidence of a relationship between reinsurers’ rating and their average quotes than previously displayed. The following chart shows overall quoting behavior through 2010 with reinsurers represented by their A.M. Best ratings.