Predictions that insurers would be unable to obtain reinsurance cover this year in the Australia and New Zealand markets following a year of acute losses have proved unfounded, according to reinsurance broker Guy Carpenter's review of the January 1 renewals. Many reinsurers were said to have taken advantage of the up-to-50% spike in rates either to increase their capital allocation or to return to a sector that they had previously avoided on the grounds that pricing was inadequate. Guy Carpenter said that rate increases on January 1 continued the trend established last July 1, a frequent renewal date in Australia and New Zealand because of their financial year. Guy Carpenter also noted that an expected implementation later this year by the Australian Prudential Regulatory Authority (APRA)  of tougher capital rules for insurers was likely to keep active a desire on the part of insurers for aggregate and sideways covers.