Insurance
Home›Insurance›Reinsurance›Bermuda reinsurers and sidecars expand their share of…
Bermuda reinsurers and sidecars expand their share of US life reinsurance
Bermuda-based reinsurers took on $1.1 trillion of the $2.7 trillion in ceded US life and annuity liabilities at end-2025, according to ALIRT Insurance Research.
ALIRT Insurance Research says steady growth in Bermuda-based reinsurers and sidecar structures is behind a substantial share of the US life insurance sector’s expansion in recent years.
The firm estimates that US life insurers had about $2.7 trillion in ceded life and annuity liabilities at the end of 2025. Of that total, around $1.1 trillion was transferred to Bermuda-based reinsurers, equal to 40.7% of all ceded liabilities, and 85% of liabilities ceded to non-US jurisdictions.
ALIRT also found that Bermuda’s role has grown quickly: reserves ceded to Bermuda more than doubled between 2021 and 2025, while Bermuda’s share of total ceded US life and annuity reserves rose from 30.9% in 2021 to 40.7% in 2025.
The report says about 92% of outstanding Bermuda-ceded reserves at year-end 2025 came from transactions initiated between 2017 and 2025, including affiliated and third-party deals spanning annuities, life insurance, pension risk transfer, structured settlements, and legacy insurance blocks. ALIRT’s research is backed by AM Best, which pointed to strong US annuity sales and noted that total ceded reserves managed through sidecar formations climbed to more than $90 billion in 2025 from $64 billion in 2024 and $55 billion in 2023.