{"id":1321,"date":"2024-08-23T12:00:17","date_gmt":"2024-08-23T12:00:17","guid":{"rendered":"https:\/\/calebdewey.com\/?p=1321"},"modified":"2024-08-24T05:14:46","modified_gmt":"2024-08-24T05:14:46","slug":"reinsurance-market-will-continue-to-thrive-with-dedicated-capital-poised-to-increase-am-best","status":"publish","type":"post","link":"https:\/\/calebdewey.com\/index.php\/2024\/08\/23\/reinsurance-market-will-continue-to-thrive-with-dedicated-capital-poised-to-increase-am-best\/","title":{"rendered":"Reinsurance market will continue to thrive with dedicated capital poised to increase: AM Best"},"content":{"rendered":"

Total dedicated reinsurance capital went up by 7% in 2023 to $568 billion, and an even larger increase is projected for 2024 of up to $625 billion, according to a recent report by credit rating agency, AM Best.<\/p>\n

\"\"The report revealed that traditional reinsurance capital increased 14% year over year, by approximately $57 billion, to $468 billion in 2023.<\/p>\n

According to AM Best, aside from Berkshire Hathaway\u2019s National Indemnity, the most substantial capital growth was generated in Bermuda, owing to robust operating returns reported by various Bermudian companies.<\/p>\n

Regarding third-party reinsurance capital, the report revealed that this increased to $100 billion, or by 3.7% in 2023.<\/p>\n

For 2024, AM Best is forecasting traditional reinsurance capital growth of 10% to $515 billion, while third-party capital is expected to land between $105 billion and $110 billion.<\/p>\n

This puts estimated, total dedicated reinsurance capital for year-end 2024 at between $620 billion and $625 billion, and AM Best analysts expect that the reinsurance market will continue to thrive throughout 2024.<\/p>\n

The report also noted that, despite the increases, since year-end 2018, traditional reinsurance capital has been less than 60% of the consolidated shareholders\u2019 equity of the groups identifying as reinsurance writers.<\/p>\n

Analysts highlighted that this figure dropped to 49% of shareholders\u2019 equity in 2023, as reinsurers continued to expand into primary and specialty insurance lines.<\/p>\n

AM Best works in conjunction with reinsurance broker Guy Carpenter to estimate the total amount of capital supporting the reinsurance industry.<\/p>\n

Dan Hofmeister, associate director, AM Best, commented: \u201cCapital in the industry has expanded quickly, due to higher retained earnings and lower mark-to-market investment losses.<\/p>\n

\u201cAdditionally, the absence of startup reinsurers has allowed traditional reinsurers to maintain their market shares without compensating with softening conditions. The reinsurance market seems well-positioned to absorb a reasonable level of losses and still grow capital.\u201d<\/p>\n

The post Reinsurance market will continue to thrive with dedicated capital poised to increase: AM Best<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Total dedicated reinsurance capital went up by 7% in 2023 to $568 billion, and an even larger increase is projected for 2024 of up to $625 billion, according to a recent report by credit rating agency, AM Best. The report revealed that traditional reinsurance capital increased 14% year over year, by approximately $57 billion, to […]<\/p>\n","protected":false},"author":1,"featured_media":1323,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/1321"}],"collection":[{"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/comments?post=1321"}],"version-history":[{"count":2,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/1321\/revisions"}],"predecessor-version":[{"id":1324,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/1321\/revisions\/1324"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media\/1323"}],"wp:attachment":[{"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media?parent=1321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/categories?post=1321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/tags?post=1321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}