'The tide is turning' for European Reinsurers and London Market, RBC says

Hannover Rueck SE

14/10/2025 08:30

** RBC Capital Markets sees multiples are under pressure for European reinsurers and the London market, as catastrophe pricing is off its peak

** RBC expects the decline to accelerate into 2026, particularly if there are low losses in natural catastrophes in H2

** The broker double-downgrades Lancashire LRE.L to "underperform" from "outperform" on its exposure to rate weakening in big ticket lines

** The broker draws a contrast to Hiscox HSX.L, which it raises from "sector perform" to "outperform" on its expectations of strong top and bottom-line growth from its retail division and material cost-cutting programme

** RBC downgrades reinsurers Swiss Re SRENH.S to "underperform" from "sector perform" and Hannover Re HNRGn.DE to "sector perform" from "outperform" on valuation and growth concerns

** Lancashire falls 3.37%, Swiss Re falls 1.4%, Hannover Re falls 0.38%, Hiscox rises 0.07% at 07:18 GMT

 (Reporting by Bernadette Hogg)

 ((bernadette.hogg@thomsonreuters.com))