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 (foreign) companies. U.S. professional reinsurance companies accounted for 34.3 percent of the U.S. premiums written that was ceded in 2018, while offshore companies accounted for 65.7 percent. However, many U.S.-based reinsurers are owned by foreign companies. Taking this into consideration, offshore or foreign owned U.S. reinsurers accounted for 88.9 percent of premiums assumed in 2018, while U.S. professional reinsurers accounted for 11.1 percent.

Top 10 Countries By U.S. Reinsurance Premiums Ceded to Unaffiliated And Affiliated Offshore Reinsurers, 2019

(US$ millions)

Unaffiliated offshore reinsurers Affiliated offshore reinsurers
Rank Country Premiums ceded Rank Country Premiums ceded
1 Bermuda $13,597 1 Bermuda $16,748
2 Germany 7,422 2 Switzerland 7,733
3 United Kingdom 6,490 3 Cayman Islands 1,215
4 Switzerland 6,355 4 Germany 975
5 Cayman Islands 4,604 5 Turks and Caicos 551
6 Turks and Caicos 2,333 6 Japan 537
7 Ireland 766 7 United Kingdom 432
8 Barbados 729 8 France 246
9 British Virgin Islands 619 9 Spain 225
10 Channel Islands 595 10 Canada 166
Total, top 10 countries    $43,509 Total, top 10 countries    $28,828
Total world   $47,083 Total world   $29,365

Source: Reinsurance Association of America.

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