Convergence capital is depressing reinsurance rates in the face of higher than average catastrophe losses during the first six months of 2013, according to a Guy Carpenter’s June renewal briefing.Catastrophe losses reached $20 billion in the first six months of 2013, but “robust catastrophe bond, sidecar and collateralised reinsurance activity” has pushed capital markets pricing to “decouple” from levels set by the traditional market, Guy Carpenter said.“This has in turn prompted downward pressure on overall traditional market pricing.”The report adds that convergence capital, at $45 billion, now accounted for 14 percent of the market.“The amount of excess capital in the market helped mitigate the impact of catastrophe losses resulting from severe tornado activity in the United States and floods in parts of Europe, India and Canada during the second quarter of 2013,” the report says.David Flandro, Global Head of Business Intelligence at Guy Carpenter, said it was expected that rates will continue trending downwards through the rest of the year and into the January 1 renewals.Insurance linked securities such as cat bonds have proven extremely popular with investors seeking a higher return than what is currently available from the traditional equity markets.About one third of the global cat bond market is in Bermuda where the Bermuda Stock Exchange has hosted some high profile listings in recent months.