Today, GC Capital Ideas begins a series of videocasts delivered by Guy Carpenter & Company, LLC experts covering trends and developments impacting the global         (re)insurance marketplace. Over the next several weeks, on a daily basis, you will be able to hear and see our thought leaders offer their views on and interpretations of a wide range of timely issues. The topics will include: financial constraints impacting the market, the role of enterprise risk management on book value, the states of the property and non-property reinsurance markets, including upcoming June 1 and July 1 renewals and the current view of the insurance linked securities* market. We are pleased to put you in closer touch with Guy Carpenter leaders and experts, and our intellectual capital, through this medium.

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Chris Klein, Global Head of Business Intelligence
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The April 1, 2010 reinsurance renewals are dominated by Asia, but were conducted with one eye on the catastrophes that occurred elsewhere in the world. Reinsurance rates in most cases continued the decline experienced at January 1, 2010 which occurred largely because of the effects of healthier (re)insurer balance sheets. The large earthquake in Chile, and, to a lesser extent, windstorm Xynthia in Europe, both striking in the first quarter of 2010, caused pause for thought. There are several significant renewals at April 1 in the US, which did not show signs of any impact from the recent global loss activity. There was some evidence of price tightening in parts of Latin America. The Chile situation remains uncertain and earthquake losses generally develop more slowly than wind events. Up to half of catastrophe loss ratio budgets were consumed, causing reduced headroom for a larger catastrophe later in the year. This scenario, along with buoyant balance sheets, lower investment yields and thinner reserve releases will put pressure on returns, sustaining active capital management and perhaps, in time, stabilizing the market.

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