Rates on line (ROL) for loss-free programs in France were relatively stable, as they were at the January 1, 2010 reinsurance renewal. On a risk-adjusted basis, pricing fell between 0 to 5 percent. There were few loss-affected programs in 2010, and those hit had only slight reinsurance rate increases. In the liability sector, markets remained disciplined.
2010’s windstorm activity, such as Xynthia, mostly impacted cedent retentions and thusdid not have a substantial effect on the reinsurance market. Risk-adjusted ROLs were flat,despite increased original property rates and reflecting a net advantage for cedents. In the motor sector, the same dynamic is at play, with original rates increasing faster than reinsurance rates. This is a change from 2010, in which reinsurance rates increased while original rates fell.
Capacity was stable at around EUR10 billion. Several reinsurers have increased their
appetites to write business, offsetting those that have either cut or stopped entirely.
The annual aggregate excess of loss market is nearly saturated.