According to the latest projection from rating agency AM Best and broker Guy Carpenter, third-party capital deployed in reinsurance is anticipated to grow by almost 7% this year, projected to end the year at a new high of $114 billion.
Third-party capital, that largely represents the capacity deployed by insurance-linked securities (ILS) fund managers and through other ILS structures into reinsurance opportunities, was put at $107 billion at the end of 2024 by these two companies.
That represented 7% growth over the course of that year and AM Best and Guy Carpenter feel that level of growth is being sustained by the ILS market.
Aon and Guy Carpenter project that global dedicated reinsurance capital will grow almost 7% to around $649 billion by the end of 2025.
Traditional reinsurance capital is projected to expand 7%, as reinsurers continue to reap the benefits of still-firmer pricing and high levels of retained earnings.
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