Globe Life sets up Bermuda reinsurer to back affiliate risk
US life and supplemental health insurer Globe Life has established and licensed a Bermuda-domiciled reinsurance affiliate, Globe Life Re, under the island’s Class C framework, formalising its entry into the offshore reinsurance market to support intra-group risk cessions.
Globe Life Re will write affiliated quota share reinsurance business, assuming a proportional share of risk on specified insurance policies, with all arrangements conducted on an arm’s length basis and subject to appropriate regulatory oversight. The first reinsurance transaction has been executed in accordance with the Company’s business plan.
The establishment of Globe Life Re aligns with broader strategic priorities among US life insurers to leverage offshore reinsurance vehicles for capital management and balance-sheet optimisation. Bermuda’s economic capital framework and longstanding regulatory infrastructure have made it a focal point for similar initiatives, particularly in life and annuity risk cessions. Bermuda accounted for a substantial share of global life reinsurance capital and ceded reserves in recent years, reinforcing its position as a centre for captive and affiliate reinsurance structures.
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