Total dedicated reinsurance capital is projected to grow to a new record level of $705bn in 2026, reflecting the continued expansion of Bermudian reinsurers and diversification in capital deployment across the segment.
Other takeaways from a new AM Best report include:
- Traditional reinsurance capital benefitted from another year of strong underwriting profitability, and investment and retained earnings
- Investor appetite supported continued growth in insurance-linked securities capital
- Traditional reinsurer capital utilisation improved to 77% at year-end 2025 (20024: 85%), primarily driven by growth in available capital
- CAT probable maximum loss exposure remained broadly stable. As available capital increased, overall CAT risk budgets declined, providing reinsurers with additional capacity to absorb volatility or deploy capital strategically.