Total dedicated reinsurance capital rose 5.4% last year to a new high of $769 billion, driven by growth in both traditional and alternative capital, according to the Reinsurance News website, citing data from reinsurance broker Gallagher Re. According to Gallagher Re’s analysis, dedicated reinsurance capital rose from $730 billion at the end of 2023 to $769 billion at the end of 2024.
From this new high, capital for companies that account for more than 80% of the industry’s capital increased 5.3% to $629 billion. Gallagher Re attributes this to retained earnings and high net income of $117 billion, somewhat offset by return of capital of $58 billion and amortization of unrealized investments of $23 billion.
Meanwhile, alternative reinsurance capital, which excludes life, accident and health and mortgage insurance, rose 6.6% year-over-year to $114 billion thanks to a record year for the catastrophe bond market.
“In addition to growth on an accounting basis, global reinsurers’ capital adequacy remains strong on an economic basis, a metric that Gallagher Re sees as better suited for decision-making by management teams,” the company said.
global reinsurance, Total capital
