Solid returns generated by the insurance-linked securities (ILS) market in recent years have encouraged investors to maintain or increase their allocations, leading rating agency AM Best to highlight third-party reinsurance capital as an increasingly important part of global reinsurance capacity.
As we highlighted in a previous article, AM Best and reinsurance broker Guy Carpenter have raised their end of 2025 figure for third-party reinsurance capital, from the previous estimate of $120 billion to now $123 billion, while forecasting continued growth to $130 billion by the end of 2026.
AM Best explained that the growth has been supported by strong investor demand for catastrophe bonds and other forms of insurance-linked securities.
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