BADEN-BADEN, Germany, Oct 20 (Reuters) - Hannover Re said it expected its reinsurance business in Germany to see broadly stable prices and conditions when annual reinsurance contracts with its insurance company clients are renewed from Jan. 1.
German insurers have been hit by billions of euros in damage payouts for storms this year and last, underpinning reinsurance prices in the local market, while prices elsewhere in the world are falling due to a mismatch of supply and demand.
“Heavy loss expenditures...should be a factor in the upcoming renewals and serve to at least keep rates stable for loss-impacted covers”, board member Michael Pickel told a journalist briefing.
Reinsurers help insurance companies pay big damage claims from hail storms or floods in exchange for part of the premium. (Reporting by Alexander Huebner, writing by Jonathan Gould; Editing by Harro ten Wolde)