Bermudian-based reinsurers delivered the strongest capital growth of any region in 2024, according to a new AM Best report released before the Rendez-Vous de Septembre in Monte Carlo.

The report, Momentum Remains for Dedicated Reinsurance Capital Beyond the Market Peak, found that Bermudian-based reinsurers grew capital by 16 per cent year-on-year, outpacing peers in Europe, the United States and Asia. That growth came despite major headwinds, including adverse casualty reserve development and catastrophe losses from hurricanes Helene and Milton in late 2024.

Bermudian-based companies represent about 15 per cent of global reinsurance capital, the report found.

Overall, traditional reinsurance capital rose by $32 billion, or 7 per cent, to $500 billion in 2024, buoyed by strong underwriting results, retained earnings and higher investment yields.

“Reinsurers continue to transition towards more diversified and balanced business models, including a growing allocation to primary and speciality insurance lines, reflecting a deliberate move away from purely relying on property catastrophe risk,” said Antonietta Iachetta, an associate director at AM Best.

“This structural shift supports earnings stability and more agile capital deployment.”

Bermudian players were singled out for particularly strong operating performance, with combined ratios below 100 in most cases and returns on equity in the mid-to-upper teens, well above the segment’s five-year average of 10.9 per cent. Their growth has also reduced the dominance of the biggest reinsurers, as mid-sized firms take a larger share of the global market.

Looking ahead, AM Best and Guy Carpenter project total dedicated reinsurance capital to reach $649 billion in 2025, including $114 billion in third-party capital, driven by record-setting catastrophe bond issuance.

“Assuming a more normal level of catastrophic events, reinsurers are on pace to report upper-single-digit capital growth in 2025,” said Dan Hofmeister, another associate director at AM Best.