Dedicated capital continued to grow across the reinsurance market, meeting industry needs despite significant losses in some sectors.
Guy Carpenter and A.M. Best estimate total dedicated reinsurance capital at USD 534 billion at the end of 2021, a 2.8% increase from year-end 2020. Traditional and alternative capital increased 2.7% and 3.7%, respectively. This is total committed capital and does not reflect a decrease in currently available capital due to funding obligations. Guy Carpenter estimates this “trapped” capital to be less than 5% of overall dedicated reinsurance capital.
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