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Dedicated reinsurance capital may slip back this year: AM Best

August 22, 2022

According to a new AM Best report, the recent spike in dedicated reinsurance capital growth may prove short-lived, given expectations for depressed investment markets, continued geopolitical turmoil and a potential decline in global gross domestic product.

Dedicated reinsurance capacity in 2021 increased to $568 billion, driven by an increase of nearly 11% from traditional reinsurance capacity providers.

But AM Best’s expectation for 2022 is that total dedicated capital will slide back after a decade of year-over-year increases, driven by reductions in traditional reinsurance capital.

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