(Updates with closing shares in second paragraph.)
Sept. 9 (Bloomberg) -- Munich Re, Swiss Re Ltd. and Hannover Re, the world’s three biggest reinsurers, rose after forecasting stable rates in January price renewals.
Munich Re, the world’s biggest reinsurer, jumped as much as 4.3 percent, the biggest gain since April 2, and closed at 139.20 euros, up 3.1 percent. Swiss Re and Hannover Re rose 1.6 percent and 1.3 percent, respectively.
Reinsurers are meeting with brokers and their clients, primary insurers, in Monte Carlo to negotiate terms and conditions of next year’s property and casualty policies. The industry is under pressure to shore up earnings hurt by an increase in catastrophe claims, low interest rates and as near- record capital available for coverage weighs on prices.
“There is confidence for the next contract renewals,” Peter Casanova, a Zurich-based analyst with J. Safra Sarasin, wrote in a note to investors. Casanova has a buy recommendation on Munich Re and a neutral rating on Swiss Re.
Munich Re said in a statement yesterday that “prices will remain largely stable,” while Hannover Re Chief Executive Officer Ulrich Wallin today forecast a “rather stable” development. Swiss Re sees prices of natural-catastrophe reinsurance stabilize in 2014 after a drop this year.
Reinsurers typically renew about two thirds of their annual property and casualty contracts in January.
--Editors: Simone Meier, Edward Evans