Aon Benfield, the global reinsurance intermediary and capital advisor of Aon plc, releases the September 2014 edition of its flagship Reinsurance Market Outlook report, which provides a comprehensive analysis of the key variables affecting reinsurance buyers in the approach to the January 1 reinsurance renewals.
The report, Growth capital from growing reinsurer capital, reveals that the cost of reinsurance capital for catastrophe risk has decreased to one third to one half of the cost of equity capital for insurers in many instances. The significant increase in multiple-year capacity from reinsurers makes sustainable growth plans of insurers in catastrophe prone regions more plausible.
Reinsurance capital had reached a record USD570bn as at June 30, 2014, an increase of six percent over the preceding six months (YE2013: USD540bn), including USD59bn of alternative capital – an increase of more than 18% since year end 2013.
