In a notable turnaround, the dedicated reinsurance capital witnessed a robust resurgence in 2023, recovering from the substantial setbacks of the previous year.
According to a joint assessment by Guy Carpenter and AM Best, traditional dedicated reinsurance capital surged by 12%, reaching an estimated USD 461 billion, bolstered by strong underwriting and investment earnings.
The alternative capital sector also showed resilience, experiencing a 3.7% increase to a net value of USD 100 billion.
Overall, dedicated reinsurance capital marked an impressive 10% uptick from the initial year-end 2022 level.
In 2023, the catastrophe bond market experienced a record-breaking performance, with 69 bonds entering the 144A market, generating a cumulative limit exceeding USD 15.2 billion, including USD 415 million in cyber limited placements, and propelling the total outstanding notional amount of Property & Casualty (P&C) and cyber catastrophe bonds to an unprecedented high of USD 41.3 billion.
In terms of insured industry losses, 2023 saw significant events leading to a preliminary estimate of USD 94 billion in total, aggregating losses from events exceeding USD 100 million in insured value.
Notable contributors to this figure included Hurricane Otis, the Turkey earthquake, New Zealand floods and cyclone, and US windstorms.
However, this estimate is expected to evolve as the year concludes, with adjustments anticipated as more comprehensive information becomes available.
