Peter Hearn, Willis Re chief executive officer, said in a statement, "Our clients are confronted by an array of challenges in every country and line of business, and we hope this report will help them to formulate a more comprehensive picture of the key issues facing the market this renewal season and in looking forward to the rest of 2008."

Mr. Hearn said in an introduction to the report that April 1 renewals have "confirmed a continuation, and in some markets acceleration, of the pricing decreases seen across January renewals."

He said the greatest reductions were evident in smaller markets, "driven by an increase in both the number and capacity of regional reinsurers, as well as by a continuing appetite for diversification by larger global reinsurers."

He noted that "plentiful capacity is not restricted to traditional markets. Despite difficult credit markets, investor appetite for insurance-linked securities remains strong, with a number of new catastrophe bond issues being completed in the first quarter of 2008."

The report focuses on rate movements across numerous territories, including detailed analysis from London-based Willis Re's product line experts.

According to the report, the most competitive sector within U.S. property reinsurance, with plentiful capacity for adequately priced business, is catastrophe. There are some signs that cedants may be dropping retentions as pricing continues to lower, but supply materially outweighs demand, the report said.

Key findings of the report include:

o Continuing softening in rates over a wide range of classes and territories.

o Modest rate reductions in the larger mature markets and greater competition in the smaller markets.

o Continuing investor appetite for some products and a number of new catastrophe bonds being completed in the first quarter of 2008.