No sign alternative capital will shrink
Wednesday, 09 28 2016, Category: Insurance and Reinsurance, Country: World
Despite a slowdown in the growth of alternative reinsurance capital in more recent times there’s no sign of the pool shrinking, and with a wealth of capacity waiting to enter post-event it’s unlikely a large event will turn the market, according to a recent note from Peel Hunt.
It’s clear that the growth alternative reinsurance capital has slowed when compared with the record-breaking volumes seen in 2014 and 2015, a period where catastrophe bond issuance spiked and third-party capital meaningfully increased its share of the overall reinsurance market volume.
But despite a slowdown the market is still growing, a trend that was recently highlighted by Aon Benfield’s note that alternative reinsurance market capacity increased by 4% during the first-half of 2016, to an estimated $75 billion.