Dedicated global reinsurance capital is expected to grow more than 9% by the end of 2024 to between $620 billion and $625 billion, according to a report by A.M. Best Co. Inc. released Friday.
Traditional reinsurance capital is expected to grow 10% and third-party capital, which includes insurance-linked securities, is expected to grow between 5% and 10%.
This follows a 7.2% increase in global reinsurance capital in 2023, including a 13.9% increase in traditional capital, according to Best.
Reinsurer earnings improved last year as some companies exited the catastrophe reinsurance market due to poor results and the remaining reinsurers increased rates, Best said.
“The absence of start-up reinsurers has allowed traditional reinsurers to maintain their market shares without compensating with softening conditions. The property reinsurance market has stabilized through the first half of 2024 and even softened slightly at the highest attachment points,” the report said.
