Reinsurance capital jumps 10% as new entrants crowd market: Guy Carpenter

Growth is driven by asset managers increasing exposure to life risk transfer strategies.

Global life reinsurers’ dedicated capital is estimated to rise 10% in 2025 for an estimated total of over $160b deployed, according to a forecast by Guy Carpenter—a Marsh business—and AM Best.

The growth has been driven in part by third-party investors, including asset managers and private equity-backed reinsurers. 

These players accounted for around one-third of total market capacity in 2025, with capital more than doubling to about $57b from roughly $24b in 2022.

Regional growth has been broad-based. Over the past year, reinsurance capital increased by about 18% in North America, 28% in Europe and the UK, and 29% in Asia. 

Other regions also recorded a combined increase of around 19%, reflecting rising interest in developing markets.

The report noted that higher competition amongst reinsurers is leading to more product development, particularly in asset-intensive and structured reinsurance. 

At the same time, insurers are using reinsurance to manage risk and improve capital efficiency.

Despite concerns about the long-term commitment and risk management of newer entrants, the mix of traditional and third-party capital is creating a more diverse market. 

The report expects capital levels to keep growing as insurers seek to shift towards more capital-light business models.