BADEN-BADEN, Germany, Oct 20 (Reuters) - Munich Re sees no reason for reinsurance prices in its home market Germany to decline, it said on Monday, as it starts annual contract talks with insurance company clients for reinsurance cover in 2015.
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 even as prices elsewhere in the world decline.
“I see no reason why reinsurance prices should fall,” Munich Re board member Ludger Arnoldussen told a news conference in the southwestern German resort town of Baden-Baden, where reinsurers and insurers begin hammering out contracts for 2015.
Reinsurers help insurers pay big damage claims from hail storms or floods in exchange for part of the premium.
Munich Re’s chief financial officer said in a newspaper interview that declining reinsurance prices would make it difficult to maintain profit levels at the world’s largest reinsurer in 2015. (Reporting by Alexander Huebner Writing by Jonathan Gould; Editing by Christoph Steitz)