Renewal of reinsurance treaties

The April 1 renewal, which mainly relate to Japan and Asia, led to the renewal of the same terms and conditions of the previous year. The reinsurers’ attitude is accounted for by the absence of natural catastrophes over the past year.

Furthermore, strong upward adjustments were made in 2011 and 2012 following the tsunami and earthquake that hit the country. Non-traditional reinsurance reported a decrease of Cat Bonds prices and of tariffs on securitization contracts. This coverage cost decline is indicative of an increased appetite for this type of reinsurance transactions. Japanese insurers remain, nonetheless, very much attached to traditional reinsurance.