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Alternative reinsurance capital hits record $147bn in H1 2026

Gallagher Re said alternative non-life capital rose 9% in the first half, lifting total reinsurance capital to $688bn, while equity return reached 19.9% for the six months.

Reported · Written up by our desk · Reinsurance

Global non-life alternative reinsurance capital rose 9% in the first half of 2026 to a record $147 billion, driven by favorable returns and net inflows of capital, according to Gallagher Re.

Gallagher Re’s HY 2026 Reinsurance Market Report also said total reinsurance capital increased 5% in the period to $688 billion, as dedicated capital grew from $547 billion at year-end 2023. Traditional capital climbed 23% to $541 billion, while alternative capital rose more than 37% to $147 billion.

The report attributes the alternative capital growth to strength in the ILS market, including the expansion of non-life catastrophe bonds. It noted that issuance in the first half of 2026 set a new record at nearly $18 billion, and that the outstanding catastrophe bond market size reached an end-of-quarter high of $65.6 billion by June.

Gallagher Re said its composite tracking leading global reinsurers posted a 19.9% return on equity for the first six months of 2026, the second-highest half-year figure over the past decade, while higher capital return to shareholders dampened some of the gains. The broker also said non-life alternative capital is increasingly moving into additional lines such as casualty beyond natural catastrophe risk.

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