Bermuda Reinsurers Command Growing Share of U.S. Life Insurance Risk

The scale of this migration is significant, with total ceded liabilities reaching $2.7 trillion nationwide. Bermuda’s influence has accelerated sharply over the last four years; reserves held there have more than doubled since 2021, rising from a 30.9% market share to current heights. The report attributes 92% of these outstanding reserves to transactions finalized between 2017 and 2025, a period defined by the entry of new reinsurance entities and sidecar structures that have collectively absorbed $355 billion in assets.

During 2025 alone, insurers finalized $73 billion in new Bermuda-based transactions, with the ten largest deals accounting for $60 billion of that volume. While firms cite capital management flexibility and access to third-party capital as primary drivers, the trend has triggered heightened regulatory scrutiny. Both U.S. and Bermudian authorities are now prioritizing liquidity testing and the rigorous oversight of affiliated transactions. As the market matures, the Cayman Islands is beginning to emerge as a secondary alternative, though Bermuda remains the dominant hub for offshore risk management.