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Reinsurance sidecar capital tops new highs, Aon Securities says
Aon Securities data shows sidecar invested capital reached $19.6 billion by Sept. 30, 2025, with property at $17.9 billion and casualty around $1.7 billion.
Reinsurance sidecars remain a major theme for 2026, with third-party capital deployment broadly stable even as reinsurance perils and deal structures keep evolving, according to Aon Securities.
In its latest reinsurance market report, the broker-dealer and investment banking arm of Aon said increased investor appetite is supporting traditional reinsurers as they expand use of collateralized vehicles, while total sidecar capacity leveled off through the first quarter of the year.
Aon Securities’ data showed reinsurance sidecars hit a record high of $17 billion in invested capital as of June 30, 2025. The segment then grew further in the third quarter, with invested capital rising 15% to $19.6 billion by Sept. 30, 2025.
That $19.6 billion total included property sidecars at $17.9 billion and casualty sidecars at around $1.7 billion. Aon Securities said demand is strongest for asset-driven casualty and whole-account portfolios, supported by elevated premium rates and the ability to allocate to higher-yielding assets, and it expects substantial activity to continue through the rest of 2026.