JPM cuts German reinsurers on tough pricing outlook
BUZZ-JPM cuts German reinsurers on tough pricing outlook ** JPMorgan cuts its ratings on Hannover Re HNRGn.DE and Munich Re MUVGn.DE, citing tough outlook on pricing after a benign 2026 hurricane season and the reinsurers' recent share price gains
** It moves Hannover Re to "underweight" from "neutral"; stock down 4% in early Frankfurt trade
** It cuts Munich Re to "neutral" from "overweight"; down 4% in early trade, and sticks to "neutral" rating for Swiss Re SRENH.S
** JPM notes that pricing pressures in reinsurance accelerated this year with a 12% decline in property catastrophe lines in January increasing to 15% at the mid-year renewals
** "Our outlook for the January 2027 renewals is for more of the same in the coming year," it says
** It adds that double-digit price declines in property catastrophe business again in 2027 would make top line growth "very difficult" to achieve and will continue to weigh on margins
(Reporting by Paolo Laudani in Gdansk)