For an in-depth review of the state of the reinsurance market and appraisal of january renewals click here for Guy Carpenter's 80 page publication.Note it takes some time to open!

A precis has been provided by Guy Carp as follows

The January 1, 2012, renewals saw a shift in industry behavior as both insurers and reinsurers implemented more sophisticated, customized approaches to risk assessment and mitigation, according to Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist and a member of Marsh & McLennan Companies (NYSE: MMC). In its 2012 global reinsurance outlook, Catastrophes, Cold Spots and Capital: Navigating for Success in a Transitioning Market, Guy Carpenter reported that reinsurers were in a position to undertake a major review of pricing and underwriting going into the renewal season. This led to significant market fragmentation and increased market volatility at January 1.

There were wide-ranging rate movements at national, regional and even local levels, depending on loss experience and exposure perceptions. The broader reinsurance market experienced mixed renewals. Despite the prospect of sustained low interest rates, rate movements for casualty lines continued to be subdued. Most other lines also saw moderate price changes, with increases and decreases in the low single digits.

The 80-page report provides:

- A comprehensive update on reinsurance renewals by line and geography.
- A summary of 2011 catastrophe losses and reinsurance capital levels.
- An overview of the reinsurance marketplace from a macroeconomic perspective.
- An analysis of key capital management trends and strategies, including mergers and acquisitions, catastrophe bonds and industry loss warranties.
- A discussion of ten major themes expected to dominate the industry in 2012, from aggregate covers used to protect against severe shock losses and horizontal coverage to the internationalization of losses.

Hampden comment: Section three on the impact of 2011 catastrophe losses on capital is interesting reading and demonstrates that the market's fortunes depend on the level of catastrophe losses and the economic situation. This report assists in understanding the issues as well as providing granularity on the various classes of business current conditions.