Reinsurance sidecar market estimated to have grown 183% since 2023: AM Best

The outstanding market for collateralized reinsurance sidecar structures has expanded rapidly, with estimates from rating agency AM Best valuing the space between $16 billion and $18 billion, which marks an 183% increase over the mid-point of the $5 billion to $7 billion range estimated by the agency in 2023.

The rating agency has published a detailed new report on catastrophe bonds and insurance-linked securities (ILS), which also examined the recent growth that’s been seen across the sidecar market in recent years too.

“The sidecar segment of the ILS market expanded materially in the past couple of years. The sidecar market is USD 16 billion to USD 18 billion in size, up from USD 5 billion to USD 7 billion in 2023, with most of the growth coming from property catastrophe coverage,” the report reads.

Aon had previously estimated that by the end of Q3 2025, property reinsurance sidecars had reached $17.9 billion of invested capital, while the relatively newer casualty reinsurance sidecar segment had reached $1.7 billion.

FULL ORIGINAL PUBLICATION HERE