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
- ~177 firms
68.4% of firms have fewer than 20 employees: 121 micro-businesses, below most mandates.
- 20–99
- 1730%
- 100–499
- 1527%
- 500+
- 2443%
The system's shock absorber — global reinsurers (Munich Re, Swiss Re, Hannover Re, Berkshire) and the Bermuda market take catastrophe and large-loss risk off primary carriers. Rates hardened sharply after years of catastrophe losses, restoring profitability and pulling in capital, including insurance-linked securities and other alternative capital. A consolidated, capital-intensive, globally concentrated market; revenue is reinsurance premiums.
NAICS 524130. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.
Business model & economics
Revenue model
Reinsurance premiums against ceded losses, plus investment income
Key economics
- Revenue per firm
- $557,886,554
- Employees per firm
- 79.5
- Recurring revenue
- High
- EBITDA margin
- Combined-ratio-driven; catastrophe-exposed
- Capex intensity
- Low
renewing treaty relationships
Characteristics
- Scale-driven — payroll is only 3% of revenue; the cost base is assets, not headcount
- Thin strategic-buyer pool — only 24 firms exceed 500 employees; exits skew sponsor-to-sponsor
- Absorbs catastrophe and large-loss risk from primary carriers.
- Rates hardened after years of catastrophe losses.
- Alternative capital (ILS) supplements traditional capacity.
NAICS 524130. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.
M&A deal context
Who’s acquiring
- Global reinsurers
- Bermuda & alternative-capital platforms
- Insurance-linked-securities investors
What’s driving deals
- Hardening rates restoring profitability.
- Alternative capital and ILS growth.
- Catastrophe-driven capacity dynamics.
Verticals in this segment
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