Reinsurers enjoy robust capital growth – Willis Re

Global reinsurers saw robust capital growth in 2019, although underlying returns remained low, according to the latest Reinsurance Market Report from Willis Re.
Total capital dedicated to the global reinsurance sector was $605 billion at the end of 2019, reflecting year-over-year growth of 15%. The growth was driven primarily by 2019’s strong investment market performance, and was achieved despite a 3% contraction in alternative capital, Willis Re reported.
Much of this expansion will have unwound by now due to the steep sell-off in the equity and corporate bond markets, Willis Re said. The swings in investment markets in March and April have resulted in impacts to the global reinsurance capital base ranging from -5% to as much as -20%.