Guy Carpenter and A.M. Best have re-issued our joint dedicated reinsurance capital estimate for September 2020 of USD 471 billion, down 2.4 percent since year-end 2019. The recent update and change is the result of additional analysis and mid-year reporting from our initial June forecast.
Traditional capital is estimated at USD 385 billion, down 2.3 percent for the period and alternative capital is estimated at USD 86 billion, down 2.7 percent. Furthermore, it is becoming increasingly evident that an above average catastrophe year combined with losses relating to COVID-19 as well as lower reserve releases from prior years, will result in a capital loss for many reinsurers. On the asset side of the balance sheet, unrealized investment losses from the first quarter have mostly recovered in the second quarter, though investment volatility remains. We continue to believe that the reinsurance sector is resilient to the many challenges confronting it.