The amount of alternative capital from insurance-linked security (ILS) and third-party investor sources in the global reinsurance market grew by 7% in 2024, to end the year at a new high of $115 billion, according to Aon’s Reinsurance Solutions.
When Aon last reported on alternative and ILS capital in the reinsurance market, the figure was $113 billion as of the end of September 2024.
Meaning the ILS capital base expanded by almost a further 2% by the end of the year and given the strong activity levels seen in catastrophe bonds in particular in the first-quarter of 2025, we suspect that the figure will be higher again by this time.
Aon cited catastrophe bond market inflows as a key driver of the rise in alternative reinsurance capital through 2024.
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