With primary companies eagerly awaiting the Jan. 1 renewal season, one factor that might keep pricing down is the influx of new capital into the reinsurance market, according to an analyst.
Bear Stearns property-casualty insurance analyst David Small said recently in a note to investors that more than $7.5 billion in capital is expected to flow into the market in the aftermath of Hurricane Katrina.
Last week Chubb Corp., Warren, N.J., announced it was investing into a new Bermuda entity that was expected to have an initial capital base of $1.5 billion. Harbor Point, as the company will be called, is the first new reinsurance entity established in the aftermath of Katrina.
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