The amount of capital held by reinsurers hit record highs at the end of 2010, according to reinsurance broker Aon Benfield.

In a report analysing the financial position of the world’s leading reinsurers, the broker has found that total global reinsurer capital at December 31 stood at $US470 billion ($430 billion), up 17% on 2009.

Catastrophe losses and reduced investment income during the year were countered by sharply increased capital gains and higher prior-year reserve releases, the report says.

It concludes that while the catastrophes of 2011 have caused estimated losses of $US12.1 billion ($11.1 billion) for those reinsurers studied by the report, “the losses to date fall within expected annual income and represent an earnings event rather than a capital event for the reinsurance industry”.