Global reinsurer aggregate capital is estimated to have reached a new high of $540 billion in 2013, an increase of 7% over the previous year, according to a report released Friday by Aon Benfield Group Ltd.
The Aon Benfield Aggregate report also found that that gross property/casualty insurance and reinsurance premiums written by the 31 companies analyzed rose 5% to $199 billion, and the group's combined ratio improved 2.8 percentage points to 89.6%.
The report is the company's semi-annual analysis of results reported by 31 leading reinsurers around the world. Capital among the group of 31 reinsurers rose 6%, or $20 billion, to $337 billion, driven largely by $34 billion in net income, Aon Benfield said in its statement.
“Reinsurers have reported resilient results in an increasingly competitive marketplace,” said Mike Van Slooten, Head of Aon Benfield's International Market Analysis team, in a statement. “Most are now adapting their business models to accommodate the increasing availability of lower cost capital, thereby enhancing both their risk transfer capabilities and their offering to clients. We expect capital management activity to accelerate, as the advantages become more apparent.”
The report can be accessed here.