Strong alternative reinsurance capital market growth to persist into 2026: Fitch

The recent growth trend in the alternative reinsurance capital market is forecast to persist into 2026, as supply of capital from investors and demand from sponsors seeking risk transfer remain robust, Fitch Ratings has said.

The rating agency also notes how alternative capital and insurance-linked securities (ILS) market growth has resumed in sidecars as well as catastrophe bonds, while capital provided to retrocession opportunities has also served to moderate pricing as well.

Capital levels in the insurance-linked securities (ILS) market has reached new highs so far in 2025, especially thanks to the record levels of activity in the catastrophe bond market, as well as the launch of new reinsurance sidecar vehicles, Fitch explained in a new report.

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