BUZZ-European reinsurers: supportive price tailwinds in 2018 - Barclays

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** Barclays (LSE: BARC.L - news) believes European reinsurers are well positioned to increase earnings well above pre-hurricane levels after a costly Q3, upgrading 2018 earnings in the sector by 9-25%

** In the next 9 mths, broker expects P&C business and nat cat business to be renewed at higher rates and at double-digit rates, respectively

** However, the market should start to soften again by late 2018, brokerage says, adding price pressure may become more pronounced in 2019-20

** Maintains its "negative" rating on the sector but ups Swiss Re (LSE: 0QL6.L - news) to "overweight" and Lancashire to "equal weight", expecting the two reinsurers to be able to navigate the soft pricing cycle

** Barclays expects Q3 to be "relatively uneventful" for the insurance, as the market waits for investor days in November and comments on reinsurance pricing

** Broker is hoping and thinks the market is hoping too for some earnings growth to come back into the insurance sector, stemming either from cost cutting and self-help or price increases in reinsurance

** Deutsche Bank (IOB: 0H7D.IL - news) , separately, raises the 2018/2019 combined ratio for all European reinsurers by 1.5 pct as broker sees prices swinging back to 2015 level, improving profits by 6 pct