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

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