Demand grew as reinsurer capital rose to $575B in 2014
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Reinsurer capital grew to $575 billion over the course of last year with $62 billion of that total being deployed alternative capacity, according to a report issued Monday by Aon Benfield, the reinsurance brokerage arm of Aon P.L.C.
According to the report, “Reinsurance Market Outlook,” cedent demand for property catastrophe reinsurance grew at a slightly higher rate in 2014 and at the Jan. 1, 2015 renewal than in prior periods, although “the demand growth rate was still less than the growth in catastrophe reinsurance supply,” it noted.
“Growth in demand for multiple year programs, aggregates, underlying and overlying capacity were most notable,” the report said.
Both cedents and reinsurers currently are placing great emphasis on partner selection for casualty reinsurance programs, the report noted, and cedents are able to buy highly customized structures, and secure improved terms and conditions, according to the report.
“We expect these trends to continue into the April, June and July 2015 renewal cycles,” the report noted.
“Insurers have the widest selection of high quality offers of accretive underwriting capital choices we can recall,” the report notes.
“Growth and consolidation plans for leading insurers have found complementary support from partners in the reinsurance market — more to come,” it added.
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