Reinsurance
Reinsurance companies providing risk transfer solutions to primary insurance carriers on a treaty or facultative basis.
- 4
- Verticals
Overview
Reinsurance provides risk-transfer solutions to primary insurers on a treaty or facultative basis, led by global reinsurers (Munich Re, Swiss Re, Hannover Re, Berkshire) and the Bermuda market. It absorbs catastrophe and large-loss risk from primary carriers, making it central to the system's capacity.
Rates hardened sharply after years of catastrophe losses, restoring profitability and attracting capital, including insurance-linked securities and alternative capital. It is a consolidated, capital-intensive, globally concentrated market.
Market snapshot
- Market size
- ~$99B
- Growth
- ~8.2%CAGR (2017–22, nominal)
- Companies
- ~650
U.S. Census Bureau 2022 CBP/Economic Census, NAICS 524130 (Reinsurance Carriers); revenue is reinsurance premiums.
Business model & economics
- Revenue model
- Reinsurance premiums against ceded losses, plus investment income
- Recurring revenue
- High — renewing treaty relationships
- EBITDA margin
- Combined-ratio-driven; catastrophe-exposed
- Capex intensity
- Low
- Absorbs catastrophe and large-loss risk from primary carriers.
- Rates hardened after years of catastrophe losses.
- Alternative capital (ILS) supplements traditional capacity.
M&A deal context
Who’s acquiring
What’s driving deals
- Hardening rates restoring profitability.
- Alternative capital and ILS growth.
- Catastrophe-driven capacity dynamics.
Verticals in this segment
- 3.3.6.1Catastrophe Reinsurance
Reinsurers providing property catastrophe excess-of-loss coverage.
- 3.3.6.2Facultative Reinsurance
Reinsurers providing coverage on individual risk placements.
- 3.3.6.3Life & Health Reinsurance
Reinsurers supporting life, health, and mortality risk transfers.
- 3.3.6.4Treaty Reinsurance
Reinsurers providing proportional and excess of loss treaty coverage.
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