Kathmandu. Dedicated reinsurance capital is expected to grow by about 9 percent to $660 billion in 2025. This will be supported by a 10 percent increase in alternative capital.
That’s according to Guy Carpenter’s January 2026 renewal report. According to Dean Klisura, president and CEO of Guy Carpenter, this capital increase, particularly in alternative capital and catalyst bonds, is supported by underwriting profits, retained income, asset value recovery and strong investor interest. “The trade tensions have not affected capital flows and the reinsurance market is doing well,” he said.
According to the report, between 2025 and 2027, there will be an additional $50 billion in capital increases. Earnings maintained in 2025 are said to have helped support traditional capital growth. That’s because the insured catastrophe loss was $121 billion in one year. That’s 18 percent lower than the 5-year inflation-adjusted average in the U.S. due to favorable wind weather.
Guy Carpenter said the rate and attachment point adjustment, which will take effect on January 1, 2023, has created a new format. “This has reduced the reinsured share of disaster losses from 20 per cent (in 2022 and earlier) to a new average of 12 per cent,” the report said.
