Aon has estimated that global reinsurer capital fell by $30bn from the end of 2021 to the end of the first-quarter of 2022.
The firm said in a statement that this was driven mainly by unrealised losses on bonds, linked to rising interest rates.
In addition, the firm estimated that the equity of traditional reinsurers declined by around five percent to $548bn over the three months to March 31, 2022. It also said that underwriting results were were undermined by volatility in the financial markets, linked partly to Russia’s invasion of Ukraine. Interest rates rose to counter growing inflationary pressures, resulting in unrealized losses on bond portfolios, while weak stock markets reflected the deteriorating economic outlook.