Cayman Islands Reinsurance Market Growth and Strategic Developments

Reinsurance activity in the Cayman Islands has rapidly increased, with the Cayman Islands Monetary Authority (CIMA) reporting a rise in reinsurance firms from 58 in 2020 to 113 by the end of 2025. The total premiums underwritten soared to $30.2 billion, a significant jump from $9.3 billion six years earlier, while reinsurance assets expanded from $23 billion to $101 billion, showcasing a 341% growth.

This notable growth in Cayman outpaces the global reinsurance market, which experienced an 84% increase in premium growth over 2015-2024. According to Research and Markets, the global market was valued at around $690 billion in 2025, with an expected growth rate of 9.7% heading into 2026.

The surge in Cayman reinsurance is mainly driven by increased US annuity sales, compelling insurers to seek additional offshore reinsurance capacity due to pressures on local capital reserves. US retail annuity sales reached $434.1 billion in 2024, representing a 13% increase year over year. Projections for 2025 suggest sales will surpass $450 billion.

AM Best highlighted a rise in the reinsurance leverage ratio within the US life and annuity sector, reaching 328% in 2024, up from about 200% a decade ago. Meanwhile, Deloitte's 2026 insurance report points to growing interest from firms like Apollo and Brookfield in life insurers as new investment capital sources.

Approximately 90% of Cayman’s reinsurance business comes from the US and Canada, favored by its tax-neutral status that avoids additional taxes on international premiums. This advantage has grown since Bermuda's adoption of a 15% corporate income tax in early 2025 under the OECD Pillar Two initiative.

Cayman is pursuing NAIC qualified jurisdiction status, aiming to allow its reinsurance companies to become certified reinsurers with reduced collateral requirements for US engagements. Currently, non-jurisdiction reinsurers must provide full collateral. CIMA’s Kara Ebanks noted promising progress, with Premier André Ebanks emphasizing its priority status for 2026 and 2027.

CIMA follows International Association of Insurance Supervisors guidelines, ensuring reinsurance agreements in the US comply with NAIC model laws, requiring 100% of US statutory reserves in US transactions with Cayman reinsurers. Brittany MacVicar from Cayman Finance lauded the jurisdiction's competitive edge, citing its regulatory flexibility, tax neutrality, and strategic market proximity.