Kathmandu. According to AON, global reinsurance capital outpaced demand in mid-year renewals of 2025. As a result, a more competitive environment has been created for the insured or insurer who buys insurance.
According to Artemis, reinsurance broker AON in its review report also estimated that insurance-linked securities capital remained stable at $115 billion at the end of the first quarter of 2025. This has increased the continued strength and flexibility of alternative capital sources.
“With Hurricane Atlantic approaching the start of the season, June 1 and July 1 are major renovations for the U.S. and Latin America, as well as Australia and New Zealand. Despite the first half-year period active for natural disaster losses, mid-year renovations have experienced a widely competitive environment.
AON explained in its mid-year 2025 renewal reinsurance market dynamics report as reinsurers, insured securities markets and new entrants sought to increase capacity and increase market share. “
Despite the financial impact of the California state fires, global reinsurer capital rose by $5 billion to $720 billion in the first quarter of 2025. That was only $715 billion in 2024.
According to Aon, the growth was driven by strong retained earnings among established players, with two-thirds receiving double-digit annual returns on stock capital.
At the same time, the great disaster bond market in the first half of 2025 had a record insurance with two largest insurance agreements in the history of the market. Each of them was more than $1.5 billion.
In early May, Florida’s Civil Property Insurance Corporation secured a then-record $1.525 billion reinsurance from the issuance of its Everglades Ray to Ltd. (Series 2025-1).
Later that month, State Farm secured a reinsurance limit of record amounts from the capital market on a single trip as a CAT bond, as it valued $1.55 billion of multi-risk protection through sponsorship of four Merna Ray (Series 2025) disaster bonds.
