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Bermuda life and annuity sidecar market grows to $375 billion by 2025
Morningstar DBRS attributes the rise to continued creation and expansion of sidecars, pointing to more insurance capital flowing into private-market strategies.
Bermuda’s life and annuity sidecar market has expanded rapidly in recent years as insurers move beyond legacy blocks, with Morningstar DBRS estimating the segment reached $375 billion in assumed liabilities as of 2025.
The agency said the growth is being driven by new sidecars launched alongside expansions of existing structures, a trend it expects to continue. It also links the momentum to the growth of rated feeder funds, noting both models as vehicles for deploying insurance capital into private-market strategies.
Among 2025 launches, Morningstar DBRS highlighted Fortitude Carlyle Asia Reinsurance, Ltd., formed through a joint initiative between Fortitude Re and Carlyle and capitalized with more than $700 million in deployable capital, including equity and anticipated debt capacity.
It also cited Chariot Reinsurance, launched by MetLife in partnership with General Atlantic, which completed its first transaction in July 2025 by assuming $10 billion of liabilities, and later raised additional capital to support further expansion. For 2026, the report referenced Wilton Re partnering with Sun Life to launch Windsor Life Re, expected to deploy around US $900 million in capital, and a separate West Grove Re Ltd. structure launched by Talcott Financial Group with about $1 billion in capitalization following a fundraising effort with Goldman Sachs.
Morningstar DBRS added that while recapture mechanisms can exist in some L&A reinsurance arrangements, there have been no recaptures from existing sidecars as far as it is aware, with deals staying in force and new ones continuing to be initiated.