Dedicated capital in reinsurance sector up 8.4%
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Dedicated capital in the reinsurance sector rose 8.4% to $728 billion at year-end 2021, Gallagher Re said Thursday.
The reinsurance unit of Arthur J. Gallagher & Co. said the increase was driven by strong underwriting and investment performance by reinsurers last year together with continued rate improvement in nearly all primary insurance lines.
Reinsurers’ weighted average reported combined ratio showed a substantial improvement to 97.6%, from 104.1% in 2020.
Hurricane Ida was last year’s most costly natural catastrophe at $37 billion, contributing to an annual market loss for 2021 of $116 billion, 63% higher than the average since 2011 of $71 billion.
Gallagher Re Global CEO James Kent said in a statement that the 2021 result is good news even as reinsurers faced another year of significant natural catastrophe losses.
