Rates fell this year because of the record $425 billion of surplus capital that was available to underwrite risk, coupled with one of the quietest years for catastrophe losses in the past decade. (Photo: Thinkstock)

(Bloomberg) — The world’s largest reinsurers are anticipating even bigger price declines when policies are renewed in 2016 than envisaged a month ago as a flurry of takeovers in the industry fails to absorb some of the excess capital.

Reinsurers and brokers including Guy Carpenter, owned by Marsh & McLennan Cos., flew into the German town of Baden-Baden this weekend to continue negotiating terms and conditions for contracts due for renewal in January. It follows discussions that were held in Monte Carlo in September, which suggested the price slump may be slowing.

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