Commercial Insurance

Each year the Reinsurance Association of America (RAA) provides an overview of the countries from which U.S. insurance companies obtain reinsurance, i.e., the countries to which they have ceded, or transferred, some of their risk. The analysis includes premiums that a U.S. insurance company cedes to offshore, i.e., foreign, reinsurance companies that are not part of the insurer’s own corporate group (unaffiliated offshore reinsurers in the chart below), as well as business ceded to overseas reinsurers that are part of the insurer’s corporate family (affiliated offshore reinsurers in the chart below).

The RAA report, Offshore Reinsurance in the U.S. Market, compares U.S. insurance premiums ceded to U.S. professional reinsurance companies to the U.S. premiums ceded to offshore, i.e., foreign, companies. U.S. professional reinsurance companies accounted for 37.1 percent of the U.S. premium written that was ceded in 2017, while offshore companies accounted for 62.9 percent. However, a number of U.S.-based reinsurers are owned by foreign companies. Taking this into consideration, offshore or foreign owned U.S. reinsurers accounted for 91.0 percent of premiums assumed in 2017, while U.S. professional reinsurers accounted for 9.0 percent.

Top 10 Countries By U.S. Reinsurance Premiums Ceded to Unaffiliated And Affiliated Offshore Reinsurers, 2017

(US$ millions)

Unaffiliated offshore reinsurers Affiliated offshore reinsurers
Rank Country Premiums ceded Rank Country Premiums ceded
1 Bermuda $10,954 1 Bermuda $26,438
2 United Kingdom 5,622 2 Switzerland 13,817
3 Switzerland 5,079 3 Germany 2,510
4 Germany 4,584 4 Cayman Islands 1,262
5 Cayman Islands 4,097 5 France 1,039
6 Turks and Caicos 1,736 6 United Kingdom 618
7 Barbados 651 7 Turks and Caicos 567
8 British Virgin Islands 599 8 Spain 526
9 Ireland 558 9 Ireland 491
10 Channel Islands 510 10 Japan 399
Total, top 10 countries   $34,389 Total, top 10 countries   $47,668
Total world   $36,638 Total world   $48,302

Source: Reinsurers Association of America.

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