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Rate softening slows but widespread stabilization remains elusive at July 1 renewals

The June/July 2016 renewal season has seen a continuation in market softening, though a slowing in the magnitude of rate reductions is increasingly apparent, according to the latest Willis Re 1st View report. However, as yet, any indication of widespread pricing stabilization remains elusive.

Traditional reinsurance capital reduces to $357B; pressure on RoEs continues

2015 saw a 3.5% reduction in traditional capital dedicated to reinsurance, down $13B from $370B at year-end 2014. However, capital oversupply remains a fundamental industry challenge and market pressures continue to manifest themselves in diminishing Return on Equity.