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Reinsurance sidecar market hits record $23 billion in 2026

Aon Securities estimates collateralized reinsurance sidecar invested capital rose to $23 billion by end of June 2026, up about 50% from the end of 2024.

Reported · Written up by our desk · Reinsurance

The collateralized reinsurance sidecar market reached a record $23 billion in 2026, according to estimates from Aon Securities, reflecting about 50% growth since the end of 2024.

Aon Securities data show the sidecar segment hit $10 billion in capital at mid 2024, climbed to $17 billion by the end of June 2025, and then grew further to $19.6 billion by September 30, 2025, after a 15% increase in the third quarter.

In full-year 2025, Aon Securities previously estimated sidecar capital grew by more than $5 billion, driven by casualty and non-catastrophe vehicles, and it says the latest rise has been fueled by both earnings from existing sidecars and new vehicles using asset-driven strategies.

The broker’s ILS market report attributed demand to favorable conditions for (re)insurers and asset managers, alongside attractive premium levels and elevated interest rates, which it said support the economics of deploying third-party capital into reinsurance and insurance markets.

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