Reinsurer capital reaches record $570B: Aon Benfield

Global reinsurer capital reached a record $570 billion as of June 30, according to Aon Benfield Analytics' Aon Benfield Aggregate report released Monday.

That represented a 6% increase over the level posted on Dec. 31, 2013, the Aon P.L.C. unit reported. Aon Benfield said that its calculation “is a broad measure of capital available for insurers to trade risk with and includes both traditional and non-traditional forms of reinsurance capital.”

The report said that the growth was driven by generally solid earnings, unrealized gains on bond portfolios and a continuing influx of new funds from capital markets investors. It also noted that catastrophe losses declined “relative to the prior year and were well below the long-term average.”

“The influx of alternative capital is lowering risk transfer costs for both insurers and reinsurers, creating a win-win situation that should drive market expansion in the medium-term,” said Mike Van Slooten, head of Aon Benfield's international market analysis team, in a statement accompanying the report.