However, the trend has flattened, Holborn said, after significant losses in Chile from the Feb. 27 earthquake and the "significant liability exposure" from the Deepwater Horizon disaster in the Gulf of Mexico. Equity market volatility has not furnished reinsurers with equity gains they have enjoyed, and a strong dollar has had a modest reduction to some reinsurers' capacity.

"We estimate this is the worst-ever first half for large reinsured losses," said Holborn.

While capacity remains abundant, prices remain soft, the broker continued. Companies are maintaining underwriting discipline, but ceding companies are placing programs at improved terms, the broker said.

Holborn said the worldwide reinsurance industry is modestly profitable but volatile, shrinking organically and moving out of the United States.

Net earned premiums in 2009 were $187 billion with a combined ratio of 85 and net income of $26 billion.

The broker said that for 2010, the global reinsurance market will see lower underwriting profits driven by the soft market. The surplus will be lower based on falls in the British pound and Euro for the first half of the year. Premium volumes will be lower because any rate increases will not outpace the continuing soft market.

Copies of the report are available by contacting Holborn at 212-797-2285.