Total allocated reinsurance capital grew 7% in 2023, to $568 billion, and is forecast to grow even more to $625 billion for 2024, according to the Reinsurance News website, citing a report from credit rating agency AM Best.
According to the report, traditional reinsurance capital increased 14% year-on-year in 2023, by about $57bn to $468bn.
According to AM Best, apart from Berkshire Hathaway National Indemnity, the most significant capital growth came from Bermuda, thanks to strong operating profits reported by various Bermudian companies.
AM Best forecasts for 2024 traditional reinsurance capital growth of 10% to $515 billion, while third party capital is expected to be between $105 billion and $110 billion.
Thus, total allocated reinsurance capital at the end of 2024 is estimated at $620 billion to $625 billion, and AM Best analysts expect this market to continue to thrive through 2024.
