Kathmandu. About 76 percent of the world’s reinsurance companies will achieve double-digit capital growth in 2025. This indicates that capital growth will continue in 2026 with strong financial health in the reinsurance sector.
According to Gallagher Rico’s 2025 reinsurance market, the global reinsurance dedicated capital is expected to reach a record $648 billion in the review year. This is 11 percent more than the previous year 2024.
This is the second-highest annual growth rate recorded in the last decade. According to a reinsurance broker, the increase in capital supply in 2025 has significantly outpaced the growth of capital demand, using earnings growth as a proxy for reinsurance demand. “This imbalance has continued until 2026,” the reinsurance broker said.
Traditional reinsurance has been the main driver of capital growth. It accounts for about 68% of the total capital gains. This segment grew 10 percent year-on-year to $513 billion.
At the same time, non-life alternative capital has been increasing steadily. Strong net flow rose 18 percent to $135 billion.
According to Gallagher Rica, this is the strongest annual growth rate since the alternative capital market began tracking. The report also highlights the breadth of capital growth across the industry. “76 per cent of reinsurers reported double-digit growth for the year,” the report said.
Gallagher relayed that the foreign exchange movement has significantly boosted capital gains for non-U.S. dollar reporting reinsurance companies. “That’s because in 2025, local currencies strengthened against the U.S. dollar,” Gallagher said. –Agency
