Greenberg says that with the plethora of information gained through advances in computerization, executives better understand risk retention levels and have become more comfortable with higher retention levels.

At the same time, reinsurers, while highly disciplined, are hungry for business and are chasing market shares. Reinsurance pricing is soft, he says, due to the combination of good results and capacity from alternative risk markets.

“It's the old supply and demand thing,” Greenberg says.

Ace's results underscored the direction rates are taking. In terms of net premiums written, North American P&C had the largest Q2 increase at 12 percent to $1.5 billion, followed by Overseas General insurance growing 11 percent to $1.6 billion.

The results translated into a combined ratio of 87.9 in Q2, and 88.1 for the six months, an improvement of 0.8 points for both periods. A

After-tax second-quarter catastrophe losses, including restatement premiums, stood at $66 million–an increase from $41 million for the prior year. Greenberg attributed half of the loss to floods in Canada and adds there are indications that Q2 catastrophe numbers could see an additional $10 million in losses to show up in third-quarter results.

Greenberg says the company's P&C business continued “to benefit from an improved pricing environment with another quarter of rate-on-rate increases.” North American pricing was up 4 percent. He says while property related pricing is moderating, casualty “accelerated modestly in the quarter as many lines experienced their strongest level of rate increase yet.” Property business was up 4 percent and casualty increased 4.5 percent. Retentions stood at 90 percent.

Turning to Ace's U.S. wholesale business, rates were up 4.5 percent overall, with property up 3 percent and casualty lines up over 7.5 percent.

International P&C rate environment “remains competitive, but stable” with rates flat and competition restraining increases.

Ace's global reinsurance business was down about 5 percent and Greenberg says this is due to a very competitive market with an abundance of capacity—particularly in catastrophe. ACE's cat pricing is down 5 percent internationally and down 10-15 percent in the U.S.

“We expect these trends to continue for the foreseeable future,” says Greenberg.