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(From Reinsurance)
MG: What's happening to rates in your specialty lines?
NB: Talking insurance, one of the major factors of course has been the 2005 hurricanes.
And here, even for the classes of business that haven't been directly affected by the hurricanes themselves, and marine hull and war business, the cost of capital has gone up - the ratings agencies are now saying that they need to hold more capital in the future than they did in the past because of increased volatility. Therefore, the amount of capital needed on a company's books to service its business has gone up, and the cost of servicing that capital has also gone up.
As a ...