There’s zero urge for food at reinsurance big Munich Re to budge on attachment factors or weaken any phrases and circumstances, the agency’s CFO Christoph Jurecka defined in the present day.
As we reported this morning, Munich Re had a really robust first-quarter to 2024 and stated that April reinsurance renewals had been optimistic when it comes to volumes, however flatter when it comes to charges.
The corporate additionally stated it anticipates positive renewals at the mid-year, despite a recognition that market pressure is rising in the reinsurance space.
Requested throughout an investor name this morning whether or not Munich Re expects any stress on its phrases, particularly whether or not it foresees any decline in reinsurance contract attachment factors, the agency’s CFO Christoph Jurecka stated there’s zero likelihood.
As a substitute, the corporate is hoping for a steady outlook in reinsurance by means of 2024, on each worth and phrases.
Meaning no loosening of underwriting phrases and circumstances, on which Jurecka was very clear.
In response to an funding analysts query about whether or not Munich Re would think about decreasing attachment factors for its shoppers, Jurecka stated, “Decrease attachment factors, or these sorts of issues, is clearly nothing we’d wish to go into.”
He went on to clarify that Munich Re would, “Somewhat actually concentrate on sustaining the improved phrases and circumstances after which persevering with to write down enterprise on the engaging worth degree, of the place we presently are.”
Commenting on the stabilisation of the reinsurance worth atmosphere , Jurecka stated, “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 worth expectations for renewals, “I might simply assume that continues.”
Jurecka then reiterated the significance of self-discipline, particularly on phrases and circumstances.
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 aspect, the urge for food is completely zero and the self-discipline must be maintained going ahead.”