(Bloomberg) — Capital available for reinsurance coverage hit a record $575 billion at the end of the third quarter, placing pressure on prices, according to broker Aon Benfield.

Capital rose 6.5% from $540 billion at the end of 2013, the reinsurance brokerage unit of London-based Aon Plc said in a report today. Alternative capital from sources such as pension funds, which compete with reinsurers such as Munich Re, Swiss Re AG and Hannover Re, rose 25% to a record $62 billion in the period.

"The price of traditional reinsurance, particularly property-catastrophe reinsurance has fallen in response to disruptive alternative capital that has grown in influence to become a price maker rather than a price taker," Aon Benfield said in the report.

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