Reinsurers have emerged from one of the worst catastrophe years on record with little change in capacity, a new market analysis reveals.

Willis Re says total shareholder equity was $US343.7 billion ($453.9. billion) at the end of last year, excluding an unrealised investment gain by National Indemnity, compared with $US344.1 billion ($454.4 billion) at the close of 2016.

“When a few exceptional transactions are considered, total reinsurance capacity is roughly stable, despite the hurricanes, earthquakes, wildfires and other events that brought misery to millions of people,” Willis Re Global CEO James Kent said.

“That’s a significant achievement for the reinsurance market, and a testament to its strength.”

The Willis Reinsurance Index tracks shareholder equity in 34 companies. Including unrealised investment gains, equity grew 7.8% to $US371 billion ($489.9 billion).

Alternative capital increased to $US88 billion ($116.2 billion) from $US75 billion ($99 billion), contributing to a continued dampening of renewal price increases.

“The pressure on traditional reinsurers from alternative capital suppliers is stronger than ever, as many participants in this market cleared their first true major test,” Mr Kent said.

The weighted combined operating ratio for tracked reinsurers increased 10.4 percentage points to 104.8%.

The index also analyses the disasters’ impact compared with previous catastrophe-affected years. A subset of companies in the index reported a combined operating ratio of 107.4% last year, compared with 108.2% in 2011 and 112.8% in 2005.

Combined net profit fell to $US12 billion ($15.8 billion) last year from $US26.6 billion ($35.1 billion), with return on equity falling to 3.4% from 8%. Net written premium increased 11.3%.