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Direct institutional allocations to reinsurance accelerated in 2025

Marsh Re data cited by Artemis estimates direct institutional allocations rose from $7 billion to $11 billion of total third-party capital in 2025.

Reported · Written up by our desk · Reinsurance

Allocations to reinsurance grew fastest among direct institutional investors in 2025, outpacing growth at independent insurance-linked securities managers and reinsurer sponsored managers, according to data from broker Marsh Re cited by Artemis.

Artemis reports the reinsurance sector is operating with a record amount of excess capital, which is expected to grow further by the end of 2026, supported by strong reinsurer earnings and relatively benign major loss activity so far.

Third-party capital deployed through alternative capital vehicles, catastrophe bonds, and insurance-linked securities reached $123 billion by the end of 2025 and is projected to rise to around $130 billion by the end of 2026, Artemis says. Total third-party capital grew 15% in 2025 and is expected to expand nearly 6% in 2026.

Artemis adds that direct institutional allocations were estimated to increase by about 57% in 2025, with the cohort rising from $7 billion to $11 billion of the total third-party capital market. Over the same year, independent specialist ILS investment managers grew assets deployed by around 11%, to $70 billion, and reinsurer sponsored third-party teams grew 13.5%, to $42 billion.

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