Dedicated reinsurance capital grew by 6.9% over the course of 2024, but alternative capital that largely represents the capacity deployed by insurance-linked securities (ILS) fund managers and through other ILS structures expanded slightly faster by 7% to reach $107 billion this year, according to Guy Carpenter and AM Best.
Previously, the reinsurance broker and the rating agency had made a projection that alternative and ILS capital in the reinsurance market would end the year at between $105 billion to as high as $110 billion.
Now, the pair have honed their projection and come to a conclusion that alternative capital in reinsurance will have reached $107 billion at the end of 2024, which represents 7% growth from the $100 billion level it stood at a year earlier.
It’s interesting to note that more than half of the alternative capital growth came from the catastrophe bond market in 2024.
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