There may be zero urge for food at reinsurance big Munich Re to budge on attachment factors or weaken any phrases and situations, the agency’s CFO Christoph Jurecka defined right now.
The corporate additionally mentioned it anticipates optimistic renewals on the mid-year, regardless of a recognition that market strain is rising within the reinsurance house.
Requested throughout an investor name this morning whether or not Munich Re expects any strain on its phrases, particularly whether or not it foresees any decline in reinsurance contract attachment factors, the agency’s CFO Christoph Jurecka mentioned there’s zero likelihood.
As a substitute, the corporate is hoping for a secure outlook in reinsurance by means of 2024, on each value and phrases.
Which means no loosening of underwriting phrases and situations, on which Jurecka was very clear.
In response to an funding analysts query about whether or not Munich Re would take into account decreasing attachment factors for its shoppers, Jurecka mentioned, “Decrease attachment factors, or these sorts of issues, is clearly nothing we might need to go into.”
He went on to elucidate that Munich Re would, “Somewhat actually deal with sustaining the improved phrases and situations after which persevering with to put in writing enterprise on the engaging value degree, of the place we presently are.”
Commenting on the stabilisation of the reinsurance value atmosphere , Jurecka mentioned, “It appears as if we’re on a plateau degree for 1-1 and 1-4 now, from a pricing perspective, the place provide and demand met one another at very cheap phrases.”
Including that, trying forwards on value expectations for renewals, “I’d simply assume that continues.”
Jurecka then reiterated the significance of self-discipline, particularly on phrases and situations.
Telling the analyst, “Then once more, our urge for food to weaken a few of our T&C’s. or to be looser on the underwriting facet, the urge for food is totally zero and the self-discipline must be maintained going ahead.”
