Cayman reinsurance boom fueled by US annuity surge
Tax neutrality lures insurers post-Bermuda tax shift
By Kenneth Araullo From Reinsurance Business
The Cayman Islands has seen a sharp increase in reinsurance activity over the past five years, with the Cayman Islands Monetary Authority (CIMA) reporting that the number of Cayman reinsurance companies nearly doubled from 58 at end-2020 to 113 at end-2025.
Total premiums reached $30.2 billion, up from $9.3 billion six years prior, while total reinsurance assets grew 341% from $23 billion to $101 billion.
The growth significantly outpaces the broader global reinsurance market, where premiums rose 84% over the 2015–2024 period, according to Atlas Magazine. Research and Markets valued the global reinsurance market at roughly $690 billion in 2025, projecting 9.7% growth into 2026.
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The surge has been driven largely by record annuity sales in the United States, which have strained domestic capital reserves and pushed insurers toward offshore reinsurance capacity. LIMRA reported that US retail annuity sales hit a record $434.1 billion in 2024, rising 13% year over year, and projected full-year 2025 sales to surpass $450 billion.
AM Best found that the reinsurance leverage ratio for the US life and annuity industry reached 328% at end-2024, up from roughly 200% a decade earlier. Deloitte’s 2026 insurance outlook noted that firms such as Apollo and Brookfield continue to be drawn to life insurers as new sources of investable capital.
Approximately 90% of the Cayman jurisdiction’s reinsurance business originates from the US and Canada.
The territory’s tax-neutral framework – it does not impose additional tax on globally sourced premiums and investment returns – has factored into its positioning, particularly as Bermuda enacted a 15% corporate income tax in January 2025 under the OECD Pillar Two framework.
Qualified jurisdiction bid gains traction
The jurisdiction is also pursuing NAIC qualified jurisdiction status, which would allow Cayman reinsurance companies to become certified reinsurers eligible for reduced collateral requirements when transacting with US insurers. Currently, offshore reinsurers not domiciled in a qualified jurisdiction must post 100% collateral.
CIMA head of insurance supervision Kara Ebanks has described progress as “positive,” though the authority has not set a formal timeline. In late 2025, Premier André Ebanks confirmed that qualified jurisdiction status is “firmly part of this administration’s priority for 2026 and 2027,” with budget allocated toward the effort.
Read more: Cayman Islands captive market holds steady with 42 new licenses in 2025
Oklahoma Insurance Commissioner Glen Mulready said of Cayman’s engagement at the time: “They have continued to reach out and work with us. We will do our due diligence.”
Only seven jurisdictions – including Bermuda, France, Germany, and Japan – were placed on the NAIC’s first qualified jurisdiction list in 2015. Bermuda was elevated to reciprocal jurisdiction status in 2019, granting its reinsurers zero-collateral relief.
CIMA’s regulatory framework is aligned with International Association of Insurance Supervisors standards, requiring reinsurers to meet minimum capital and risk-based prescribed capital requirements.
All US reinsurance agreements must comply with NAIC model laws, and a minimum of 100% of US statutory reserves from transactions between US cedents and Cayman reinsurers must be held in the US.
Brittany MacVicar (pictured above), associate director for insurance and reinsurance at Cayman Finance, said the jurisdiction is well-positioned as the global insurance protection gap widens.
“Cayman combines regulatory flexibility with robust oversight, tax neutrality and proximity to the US market with access to global capital,” MacVicar said.
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