Few disasters and increased capital led to softer market

A general recovery in the global investment markets and an absence of major catastrophes ensured 2009 was profitable for the reinsurance industry, according to Cooper Gay’s reinsurance market review.

While the primary market struggled, the reinsurance sector proved to be more robust, the broker said. There were few disasters and the plentiful supply of capital led to a general softening of reinsurance rates.

Seymour Matthews, chairman of reinsurance at Cooper Gay, said: "Couple the low loss levels with a better investment performance than expected and 2009 will go down as a very profitable year.”