Global life reinsurance capital is projected to surpass $160 billion in 2025, driven by a surge in private equity and asset manager participation, according to a new report by Guy Carpenter, a Marsh business.
The April 2026 report, titled “Reshaping Capacity: The Global Growth of Life Reinsurance Capital,” draws on data from AM Best and public disclosures to track a decade of expansion in the sector. It projects a further 10% increase in total life reinsurance capital for 2025, continuing a growth trend that has held despite a brief contraction following COVID-19-related uncertainty.
Among the most significant findings in the report is the rapid rise of third-party capital, which now accounts for roughly one-third of total life reinsurance capacity. Guy Carpenter estimated this segment reached approximately $57 billion in 2025, more than doubling from around $24 billion in 2022.
The report attributes this growth to private equity-owned reinsurers and asset managers entering the market through reinsurance companies or sidecars, drawn by the opportunity to gather assets under management and earn management fees. However, the report also flags concerns about whether newer participants carry the same long-term commitment and risk management discipline as established players.
The report found that capital growth has not been confined to any single region. North America recorded an estimated 18% year-over-year increase in reinsurance capital provision, while Europe and the UK posted 28% growth and Asia logged 29%.
Guy Carpenter attributed the Asia figure to rising interest in Japanese asset-intensive transactions and pension risk transfers. The firm projected that Asia’s capital growth would continue to outpace North America and Europe in the coming years.
Regions outside these three major markets also recorded an estimated 19% year-over-year increase in deployed capital, which the report said reflects both reinsurers seeking new business and increasingly sophisticated cedants in maturing life markets across the developing world.
The report described well-capitalized life and annuity reinsurers as continuing to develop solutions aimed at improving capital efficiency for cedants. The influx of new entrants has intensified competition and driven innovation, particularly in asset-intensive and structured reinsurance products, the report said.
Guy Carpenter concluded that growing reinsurance capacity is expected to remain an attractive option for life insurers seeking to reduce risk and adopt leaner capital models, especially in markets that have historically paid less attention to reinsurance strategy.
