Aon reveals “near-perfect storm” experienced by reinsurance buyers

Aon found that reinsurer capital decreased to $645 billion as of March 31 from the $675bn recorded at the end of 2021, which it attributed to unrealized losses on bonds, in turn, linked to rising interest rates. Within the $645 billion figure, however, alternative capital increased to $97 billion, showing investors’ increased appreciation of the need to diversify while buffing margins amid turbulent financial markets.

After years of higher-than-average catastrophe claims, reinsurers have finally reduced their appetite for catastrophe exposure. For the first time since the 2004 and 2005 hurricanes – including Charley, Ivan, and Katrina – property natural catastrophe

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