Global insurance market report [gimar]

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Figure 4.5c:
Reinsurance capacity – composition of total available capital (%, year-end 2014–2018)
Source: 2019 IAIS survey
capital portfolio in 2018, despite decreasing 
nominally by 8%. Paid-up capital decreased 
by 50%, resulting in a 10% relative share. The 
unrealised gains/losses on potential sales held a 
13% relative share and the “other items” category 
increased to 21%. Hybrid capital decreased by 
2% and contingency reserves decreased by 6%, 
both in nominal terms.
4.6 ASSETS AND LIABILITIES 
ALLOCATION
In 2018, total reported asset exposure decreased 
by 4.3%, from $1,179 billion the previous
year to $1,129 billion. The decrease may be 
explained by the fact that debt securities, 
representing 32% of all asset exposures, 
increased by only 0.6% to $354 billion, while cash
decreased by 15% (and accounts for 10% of the 
pool) to $114 billion and reinsurance recoverables 
decreased by more than 23% (while holding a 
15% relative share) to $171 billion.
Equity securities increased by 2.5% to 
$334 billion, while constituting almost 30% of all 
asset exposures. Looking at the period 2014 to 
2018, both equity and debt securities peaked in
2018, while reinsurance recoverables hit a trough 
in 2018.
In terms of reported liabilities allocation, gross 
claims and life assurance provisions for assumed 
reinsurance business accounted for 67% of all 
key liabilities exposures in 2018, and increased 
by 3.4% to $391 billion. The gross claims and 
life assurance provisions for primary business 
only accounted for 16%, with a 2.5% increase 
to $91 billion. Financial debt held a 10% relative 
share, which translates to $58 billion in nominal 
terms, while paid-up capital had a 7% share, or 
$42 billion in nominal figures. Derivative financial 
instruments with negative fair value accounted for 
0.6%, or $3.5 billion.

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