Reinsurance market remains well-capitalized, with global catastrophe bond issuance and ILS capacity reaching record highs.

AM Best reports that the reinsurance market remains well-capitalized, with the global issuance of catastrophe bonds reaching record highs, and insurance-linked securities (ILS) capacity growing. Despite global insured natural catastrophe losses reaching $62bn during the first half of 2024, the ILS market has maintained strong returns. Reinsurers have improved their risk profiles, and large players are increasing capital deployment efficiency. The reinsurance capacity remains abundant in both the traditional market and the insurance-linked securities sector, suggesting a stable outlook for the industry.