The Cayman Islands (aka Cayman) has captured about 10% of the US offshore life reinsurance market, according to an estimate in US regulatory filings, Gallagher Re reports on its website. It stresses that the Cayman Islands is well known as a major offshore financial center, but is looking to enter new sectors.
Assets linked to international insurance companies in the Cayman Islands have more than doubled from $71.2 billion at the end of the first half of 2023 to $154 billion at the end of the third quarter of 2024, according to the islands’ regulator, the Cayman Islands Monetary Authority (CIMA).
According to Moody’s, Bermuda remains the unchallenged leader, accounting for about 81% of cross-border reinsurance transactions from the US. However, Cayman’s growing importance has caught the eye. Mark Rowan, CEO of private equity group Apollo, which owns the Athene life insurance business, said in November that he wants to add a “caveat word” regarding the islands.
While the jurisdiction may not be as strict as Bermuda, it has its own risk-based solvency calculations that determine capital levels. Some Cayman-based companies have a customized approach to risk-based capital (RBC), while others apply the standard model. When considering any counterparty, it is important to assess how that entity measures and maintains adequate capital, the report stresses.
Cayman Islands, offshore market, US life reinsurance
