Reinsurance Market Size, Share, Growth Analysis, By Type(Property Reinsurance and Casualty Reinsurance), By Distribution Channel(Brokers and Captive Insurance Companies), By Region - Industry Forecast 2024-2031

Reinsurance Market size was valued at USD 498.7 billion in 2021 and is poised to grow from USD 552.56 billion in 2022 to USD 1255.15 billion by 2030, growing at a CAGR of 10.8% in the forecast period (2023-2030).

In 2022, the global reinsurance sector continued to report strong premium growth and underwriting profitability. However, ROEs and capital levels were pulled lower due to a fall in the market value of bonds (due to rising interest rates and widening credit spreads) and equities.

Nevertheless, the global reinsurance industry’s financial strength remains healthy with an improving trend of underlying profitability. Over the ten years from 2012 through 2021, reinsurers’ average annual total shareholder return (TSR) of 14.5% eclipsed that of all sectors of primary insurance (property and casualty, multiline, and life & health). In recent years, the impact of natural catastrophes has put pressure on reinsurers’ TSR.

Even so, their average annual TSR of 8.1% over the five years from 2017 through 2021 still surpassed that of all primary insurance sectors except for property and casualty. Demand for catastrophe bonds currently outpaces supply, as insurers and reinsurers increasingly turn to alternative capital markets to supplement traditional reinsurance and maximize placements in a challenging environment. Munich Re and Swiss Re accounted for 24.3% of the

Top 50 reinsurer's gross written premiums in 2021, down slightly from 25.6% in 2020, likely driven by the depreciation of the euro. Despite notable catastrophe losses in 2021, many stemming from secondary perils, the Top 50 companies on average posted a combined ratio under 100 for the first time in 2021 for the last 5 years. The average combined ratio of the Top 10 companies was 99.2, significantly better than the 104.9 in 2020.

US Reinsurance Market is poised to grow at a sustainable CAGR for the next forecast year.