Alternative reinsurance capital hits $66bn
Saturday, 07 04 2015, Category: Insurance and Reinsurance, Country: World
Alternative reinsurance capital, so third-party investor funding allocated to catastrophe bonds, collateralized reinsurance, sidecars and other insurance-linked securities (ILS), grew by more than 3% in the first-quarter to $66 billion, outpacing total reinsurance capital growth.
As the capital markets increase their direct participation in the global reinsurance market, broker Aon Benfield says that alternative capital and ILS grew faster in Q1 2015 than the overall total amount of capital available in the reinsurance market.
Alternative reinsurance capital grew by over 3% to reach an estimated $66 billion at the end of March 2015. Once again collateralized reinsurance drove much of this growth, along with sidecars, while catastrophe bond risk capital shrank a little, due to high-levels of maturing cat bonds in the quarter.