Bermuda reinsurers were knocked yesterday when Citigroup cut its ratings on a number of sector leaders.

Hardest hit were Renaissance Re and Axis Capital, which were cut to sell from hold, with Citigroup saying of RenRe that while the company stands to greatly benefit from its increased property catastrophe-related premiums, it believes this is already priced into the stock.

In addition, the broker told clients that should the fourth quarter see few storms as well, the January 1 renewals may see depreciating property rates and force the company between to choose between decreased net premiums and increased peak zone exposure.

Citigroup also cut reinsurance groups PartnerRe and Everest Re from hold to buy, saying it sees few growth prospects for PartnerRe on the horizon and deteriorating combined ratios while casualty markets soften and the company seeks to cap its exposures.

Despite the cut, RenaissanceRe?s share price rose 53 cents to close at $56.31.