In general terms primary rates on global marine and energy covers were flat. Despite the relatively recent large losses that occurred even energy rate increases tailed off somewhat. There were no specific moves to increase primary rates, which filtered through to marine reinsurance placements, where individual accounts were treated on case by case bases. There did not appear to be any particular areas where reductions were seen. These only occurred if there were specific extenuating circumstances. Marine ILW contracts were one area where pricing and attachment levels increased, primarily driven by the Costa Concordia loss. The original loss reserve recently increased to the USD1 billion level.
The reinsurance market returned to stability and normality following the April 1, 2012, renewal. While July renewals were seemingly quite late, reinsurers took a more predictable stance at the quotation and placement stages of business, reaching levels that were acceptable to both clients and markets.
There was limited availability of retrocessional capacity at the July 1, 2012, renewal. One new entrant in the marine excess of loss market for 2013 will start writing marine business at January 1, 2013.