Hannover Re says it is “largely satisfied” with its treaty renewals as of January 1, amid “sustained, significant competition” in most areas of property and casualty (P&C) reinsurance.

“Even though the price decline in some markets was considerable, our broad diversification enabled us to secure a level of profitability for our portfolio that can still be described as good,” CEO Ulrich Wallin said. “We do not therefore anticipate any negative impacts on our profit targets [this year].”

The situation in worldwide P&C reinsurance markets was “essentially unchanged” year on year, according to Hannover Re. With large claims losses again absent last year and clients carrying more risks in their retentions, supply of reinsurance continues to exceed demand.

“However, there are indications the decline in rates is bottoming out,” the reinsurer said. “Signs of this trend had already begun to emerge last year for the US market.”

Of the €6.78 billion ($10.5 billion) total premium volume booked the previous year in P&C reinsurance, nearly two-thirds of the treaties worth a combined €4.42 billion ($6.84 billion) were up for renewal at January 1. Of this, a premium volume of €4 billion ($6.2 billion) was renewed. Treaties worth €419 million ($648.7 million) were either cancelled or renewed in modified form.

Including increases from new treaties and changes in prices and treaty shares, total renewed premium volume was €4.36 billion ($6.75 billion) – equivalent to a 1.5% drop at unchanged exchange rates.

In other updates, Partner Re renewed $US2.5 billion ($3.47 billion) of non-life treaty premium during the January 1 treaty renewal season. On a constant foreign exchange basis, this represents a drop of 5% from the renewable premium base.

The company renewed 65% of its total annual non-life treaty business on January 1. The remainder comprised treaty business that renews at other times of the year.