Allocations to reinsurance grew fastest among direct institutional investors in 2025, outpacing the growth rate of assets deployed at independent insurance-linked securities managers and reinsurer sponsored managers, according to recent data from broker Marsh Re.
The reinsurance sector has a record amount of excess capital at this time, with this expected to grow further by the end of 2026.
As reinsurer earnings remain strong, abundant investor interest keeps expanding the alternative capital base and major loss activity remains relatively benign so far, the capital base of the sector has kept expanding.
Recent data from AM Best and Marsh Re (under the Guy Carpenter branding at the time) showed that third-party capital in reinsurance, deployed through alternative capital vehicles, catastrophe bonds and insurance-linked securities, had reached $123 billion by the end of 2025 and is projected to grow to around $130 billion by the end of 2026.
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