Life and annuity reinsurance: Bermuda’s most significant growth story
Bermuda has become a leading centre for life and annuity reinsurance, aiding insurers in managing long-term liabilities and supporting policyholders worldwide.
Life and annuity reinsurance, also described as long-term insurance and reinsurance in Bermuda, has become one of Bermuda’s most significant growth stories. Over the past decade, the jurisdiction has established itself as a leading centre for the assumption of long-term liabilities, attracting business from insurers around the world, particularly the US.
Life and annuity reinsurers help insurers manage long-term obligations associated with products such as life insurance, annuities, pension risk transfers and retirement savings solutions. By assuming a portion of these liabilities, reinsurers provide insurers with additional capital flexibility and balance sheet capacity, enabling them to write new business while continuing to meet commitments to policyholders that can extend for decades.
The data in this chapter highlights Bermuda’s growing importance within the global life and annuity reinsurance market, particularly as a destination for long-term liabilities ceded by US insurers.
One of the clearest indicators of this trend is Bermuda’s increasing share of in-force reserves assumed from US life and annuity insurers. Between 2021 and 2025, Bermuda’s share rose from 31.2% to 42.7%, an increase of 11.5 percentage points. Over the same period, the US share declined from 60.6% to 48.9%, narrowing the gap between the two jurisdictions from almost 30 percentage points to just over six.
The growth reflects a broader expansion in ceded reserves. According to AM Best, total ceded reserves increased by 10% annually between 2021 and 2023, followed by a further 6% increase in 2024. The figures indicate that insurers continue to make active use of reinsurance to manage long-term liabilities and optimise their balance sheets.
While Bermuda attracts business from multiple jurisdictions, the market remains heavily concentrated. The US accounts for 82% of ceded business, representing $686.5 bn of best estimate liabilities, while Japan contributes a further 11%, or $90.4 bn. Together, the two markets account for more than nine-tenths of ceded business.
The scale of the sector’s reach is reflected in the number of policyholders ultimately supported by Bermuda-based reinsurers. BILTIR estimates that Bermuda services around 90 million policyholders globally. While one third are located in the US, significant concentrations are also found in the Middle East, Japan, the Eurozone and the UK, illustrating the international nature of the market.
The data also points to a sector that remains resilient. According to the Bermuda Monetary Authority’s 2025 stress test, 71% of Bermuda long-term reinsurers remained above 150% capital under the prescribed stress scenario. While firms face a range of market, longevity and investment risks, results suggest the majority entered the test from a position of considerable capital strength.
Taken together, the figures reinforce Bermuda’s position as a leading global centre for life and annuity reinsurance. The jurisdiction continues to increase its share of assumed reserves, attracts substantial volumes of international business and plays a growing role in supporting policyholders around the world.
*Figures displayed are the latest available at the time of press.
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