Total dedicated reinsurance capital increased by 5.4% during 2024 to a new high of $769 billion, driven by growth in both traditional and alternative capital, according to reinsurance broker Gallagher Re.

The broker’s full-year 2024 reinsurance market report, which tracks the capital and profitability of the global reinsurance sector, dissects another strong year for reinsurers with a continued capital build on the back of strong retained earnings.

In fact, 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.

Of this new high, capital for INDEX companies, which contribute more than 80% of the industry’s capital, increased by 5.3% to $629 billion, which Gallagher Re attributes to retained profits and strong net income of $117 billion, somewhat offset by capital return of $58 billion and unrealised investment depreciation of $23 billion.

At the same time, non-life alternative reinsurance capital, which excludes life, accident and health ILS AuM and mortgage ILS AuM, rose by 6.6% year-on-year to $114 billion, supported by a record year for the catastrophe bond market.

“As well as increasing on an accounting basis, global reinsurers’ capital adequacy remains strong on an economic basis, the measure that Gallagher Re views as more relevant for management teams’ decision-making,” says the reinsurance broker.

Adding: “Average solvency for the top four European reinsurers remained robust at 265% (2023 FY: 273%), which, on average, is well above the top end of the target solvency range set by these companies.”

You can see the growth in total reinsurance capital since 2014 in the chart below, provided by Gallagher Re.

 

It shows that since the end of 2014, total dedicated reinsurance capital has increased by approximately 77%, with growth of 83% for the INDEX companies and growth of 75% in the volume of non-life alternative reinsurance capital.

Fuente: Reinsurance News

Enlace: https://www.reinsurancene.ws/total-reinsurance-capital-reached-new-high-of-769bn-in-2024-gallagher-re/