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Reinsurance capital keeps rising, reshaping competition for reinsurers

Marsh Re and AM Best forecast dedicated reinsurance capital will reach $705 billion by end-2026, up from $663 billion at the end of last year.

Reported · Written up by our desk · Reinsurance

Reinsurance capital continues to grow, creating a more favorable backdrop for insurers while increasing pressure on reinsurers to prove their value beyond balance sheet strength, according to Laurent Rousseau, CEO of Global Capital and Advisory at Marsh Re.

Speaking ahead of the Monte Carlo Rendez-Vous, Rousseau said the buildup of capital is part of the sector’s longer-term structure. He pointed to traditional reinsurers adding capital through strong written earnings, alongside faster growth in the alternative capital market, which is taking a larger share of total reinsurance capital.

Marsh Re and AM Best project dedicated reinsurance capital will rise to $705 billion by the end of 2026, from $663 billion at the end of last year. The outlook includes traditional capital growing from $540 billion in 2025 to $575 billion in 2026, while alternative reinsurance capital is forecast to reach a record $130 billion.

Rousseau attributed the strength of reinsurers’ balance sheets to sustained underwriting profitability and improving investment returns, with 2026 expected to be the fourth consecutive year of strong sector performance. He warned against complacency, saying capital abundance should shift emphasis toward client service, relevance, and meaningful support for insurers and policyholders.

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