Reinsurance News

Traditional reinsurance capital declined by $3 billion in Q4 2016: Aon

11th April 2017 - Author: Luke Gallin

The volume of traditional reinsurance capital declined in the final quarter of 2016 by $3 billion to a reported $514 billion as at December 31st, 2016, while alternative capital growth in the quarter ensured dedicated reinsurance capacity remained at $595 billion, according to Aon Benfield.

Reinsurance brokerage and advisory firm, Aon Benfield, has released its latest Aon Benfield Aggregate (ABA) report, which shows that the volume of traditional reinsurance capital declined by $3 billion, or 0.5% during the final quarter of 2016.

Following the release of Aon Benfield’s January 2017 Reinsurance Market Outlook report, reported that the broker saw the volume of dedicated reinsurance capacity hit $595 billion as at September 30th, 2016. Of the $595 billion, Aon Benfield said that $517 billion was traditional capital, with the remaining $78 billion being alternative reinsurance capital.

Interestingly, however, Aon’s latest ABA report states that as at December 31st, 2016 global reinsurance capital remained at $595 billion, but the volume of traditional capital had declined by $3 billion while the level of alternative reinsurance capital increased by $3 billion, or 3.9%, to $81 billion.


Overall, global reinsurance capital increased in 2016 by 5% to $595 billion, as shown by the above chart. Despite declining in the final quarter of 2016, traditional reinsurance capital did increase year-on-year by 4% to $514 billion, and alternative reinsurance capital grew by 13% to $81 billion, for the full-year 2016.

AmericanAg - Global Reinsurance Solutions

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