Reinsurance capital reached $US427 billion ($535 billion) at the end of last month, up 2% on a year earlier despite the high level of catastrophe losses in the past year, according to estimates by Guy Carpenter and AM Best.

Traditional capital was flat, while convergence capital from alternative sources grew 9% to $US82 billion ($103 billion), including replacement of lost or trapped capital.

“Despite substantial catastrophe losses [last year], the market demonstrated significant resilience with no notable capital withdrawal and moderate price increases,” Guy Carpenter Vice-Chairman David Priebe said.

“The reinsurance and capital markets responded favourably to those companies that were able to present quality data and well-developed and executed loss mitigation strategies.”

Guy Carpenter estimates insured catastrophe losses last year of $US113.5 billion ($142.1 billion), excluding the US National Flood Insurance Program.

In most lines, loss-impacted policies or those with thin margins were most likely to see price increases. The Guy Carpenter Global Rate on Line Index, measuring the change in catastrophe premiums year over year, increased 6.1%.