Dedicated global reinsurance capital is expected to grow more than 9% to between $620 billion and $625 billion by the end of 2024, according to a report released Friday by AM Best Company Inc.
Traditional reinsurance capital is expected to increase by 10% and third-party capital, which includes insurance-linked securities, is expected to increase between 5% and 10%.
According to Best, global reinsurance capital will grow by 7.2% in 2023, including a 13.9% increase in traditional capital.
Best said reinsurance company earnings improved last year as some companies exited the catastrophe reinsurance market because of poor results and the remaining reinsurers raised rates.
“The absence of start-up reinsurers has allowed traditional reinsurers to maintain their market shares without compensating with softer conditions. The property reinsurance market has stabilized through the first half of 2024 and has even softened slightly at the highest attachment points,” the report said.
