MUNICH (Bloomberg) ? Munich Re, the world?s largest reinsurer, said rates for property and casualty contracts renewed in January rose three percent after the 2005 record hurricane season.

Munich Re renewed 66 percent of its traditional non- life reinsurance business in January with a premium volume of about 8.9 billion euros ($10.6 billion), it said yesterday. About six percent of the business was not renewed because premiums or conditions didn?t meet requirements.

?All reinsurers are painting the same picture of the market,? said Tim Dawson, an analyst at Helvea who has a ?neutral? rating on Munich Re?s shares. ?What happened last year is not an industry-changing event, and it?s not going to lead to sustainable rise in return on equity.?

Reinsurers are trying to maintain high premium levels this year after insured damages from natural catastrophes reached a record in 2005, almost doubling from the year before to more than $75 billion, Munich Re estimated. More than $60 billion of the damages resulted from US hurricanes alone.

With the January renewals, ?we have created the basis for reinsurance business to contribute strongly to the profitability of the whole group in 2006?, said Torsten Jeworrek, Munich Re management board member.

The largest price increases were seen in the areas affected by the 2005 hurricanes, where rates went up in the ?high two-digit figures,? Munich Re said. ?The highest increases were in offshore energy, with approximately 400 percent on the primary insurance side.?

Munich Re expects premium volume from the property and casualty business to rise by around five percent, taking into account the price increases. The reinsurer raised rates in US hurricane affected areas by 50 percent to 100 percent, Jeworrek said.

Swiss Reinsurance Co., the world?s second-largest reinsurer, on Tuesday said premium volume for traditional non-life reinsurance policies renewed in January were unchanged.