The capital held by the world's reinsurance firms has grown to $510bn (£327.3bn), according to an analysis of the industry's finances by advisory firm Aon Benfield.
The firm's Aggregate report, published today, estimated that the available capital in the industry, used to trade and cover risks, increased by $5bn (£3.2bn) during the first six months of the year. This is based on examinations of global trading patterns and company reports.
However, the study also found that the capital held by 31 global reinsurers that make up Aon Benfield's aggregate index had fallen by $4bn (£2.6bn) to $313bn (£200.9bn) over the same period, as international firms were hit by foreign exchange movements.
Among the other findings in the report was that revenue from property and casualty insurance, and from reinsurance premiums, was up by 5% across the industry to $109bn (£70bn). This was primarily due to growth in the US market, which increased as a result of both improving economic conditions and higher pricing in certain primary insurance lines.
Among the top 31 firms, profit rose by 26% to $8.9bn (£5.7bn), with all constituents reporting positive results across the six months to the end of June.
Mike Van Slooten, head of Aon Benfield's international market analysis team, said the companies had produced strong results so far this year.
'Interest rates have begun to rise ahead of expected tapering of the Federal Reserve's quantitative easing programme, which is negative for book values in the short-term but positive for earnings in the longer-term.
'We continue to see evidence of operational restructuring and strategic repositioning, as established reinsurers react to the threats and opportunities posed by the deployment of new funds from capital markets investors.'
