When reinsurance executives gathered in Monte Carlo in September for their annual industry get-together, they were already contemplating far-reaching changes to the reinsurance sector after the insured losses of up to $60bn inflicted by Hurricane Katrina.

The industry is now reeling from another shock: Swiss Re leapfrogging Munich Re to become the world's largest reinsurer after its $7.6bn acquisition of General Electric's reinsurance activities. According to Charlie Cantlay, deputy chairman of Aon UK's reinsurance division, the deal represents "a very significant move in the business".