According to ratings agency AM Best, underlying insurance-linked securities (ILS) capital expanded throughout 2024 due to a large quantity of investors reinvesting their earnings across the market, which further expanded deployable ILS capacity.
AM Best and reinsurance broker Guy Carpenter previously revealed that dedicated reinsurance capital grew by 6.9% over the course of 2024, however, alternative capital that largely represents the capacity deployed by ILS fund managers and through other ILS structures expanded slightly faster by 7% to reach $107 billion for year-end 2024.
The reinsurance broker and the rating agency had previously made a projection that alternative and ILS capital in the reinsurance market would end 2024 sitting between $105 billion and $110 billion.
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