ILS capacity reaches a record of USD 107 billion in 2024: best

A current report of Am Best In cooperation with Guy Carpenter shows that the ILS market (Insurance Linked Securities) has reached a record capacity level of USD 107 billion by the end of 2024, which is due to received profits and new capital inflows.

This growth was further strengthened by two consecutive years, in which the ILS segment did not cause any material loss losses.

The report again emphasizes that cat bonds recorded the greatest growth within the segment, the capacity on the market for 144A cat Bond exceeded over $ 45 billion by 2024.

“ILS managers believe that the strong returns in the CAT bond segment can intensify investors' appetite to other forms of ILS,” said Matt Tuite, Director Ils.

The strong growth of the Bond segment has also led to remarkable developments in other ILS components.

According to the report, the Sidecar capacity has expanded, which has now been estimated at $ 8 billion and $ 10 billion.

Conversely, the warranty capacity of the industry loss has remained relatively stable and swung between USD 5 billion and $ 7 billion.

In addition, the secured reinsurance capacity is estimated at $ 45 billion and $ 50 billion. ILS managers are optimistic about future growth in this area, which has been occupied by two consecutive years of robust investor.

At this year's renovations on January 1, the capacity of the real estate disaster exceeded demand, which led to a risk -controlled overall rate.

The report also refers to the Guy Carpenter Global Property Catastrophen-on-on-Line index, which reflects the result of the capacity offer and the demand dynamics on January 1.

This index fell by 6.6% in January 2025 by 6.6%, which corresponds to an increase of almost 30% at a time of increasing demand and the subdued offer two years ago.

“The retro capacity was widespread and essentially ended with loss-free year, so that these businesses in the range of 10% to 20% tend to take a larger rate,” said Wai Tang, Senior Director Ils. “The capacity was also plentiful in the upper layers of reinsurance storms, which are usually covered by cat bonds, a trend that signaled the pricing and the size of CAT -Bond deals in 2024.”