Cayman Reinsurance Assets Quadrupled since 2020

• Reinsurance Assets in Cayman exceed $100 billion, up from $23 billion six years ago.

• Cayman is now home to 113 reinsurance companies – an increase from 58 in 2020.

• Reinsurance growth has been driven by a shortage of US domestic reinsurance capacity, access to international capital, ease of establishing entities, and a commitment to tax neutrality.

• Cayman uses a principles-based, risk-sensitive regulatory framework fully aligned with international standards.

23 February 2026 – Cayman Finance reports rapid growth in the jurisdiction’s reinsurance sector, following the publication of the 2025 Insurance Statistics by the Cayman Islands Monetary Authority (CIMA).

The number of reinsurance companies in the Cayman Islands has increased from 58 at the end of 2020 to 113 at the end of 2025. Total premiums in the reinsurance sector have risen to $30.2 billion, up from $9.3 billion six years ago. Total reinsurance assets have grown by 341% since 2020, from $23 billion to $101 billion at the end of 2025. Around 90% of Cayman’s reinsurance business comes from the United States and Canada. More than 40 representatives of Cayman’s reinsurance sector recently attended the ReFocus conference in Las Vegas as the jurisdiction expands its outreach in the US this year.   

Cayman’s growth as a reinsurance hub is due to a range of factors. A shortage of domestic capital, particularly in the life and annuity space, has created demand for jurisdictions that can efficiently channel international capital into US insurance markets. US insurers have increasingly partnered with well-capitalised offshore reinsurers to diversify risk and support long-term policyholder obligations.

Cayman’s rise has been driven by its ability to efficiently attract international capital, as the jurisdiction is home to an increasing number of reinsurance platforms sponsored by global asset managers and private equity groups. These firms are taking a larger role due to the insurance industry’s growing capital needs, especially in the US lending and annuity markets. Many of these fund managers already have substantial footprints in the jurisdiction. Cayman is the largest offshore funds domicile with more than 30,000 funds and $16 trillion in total assets. This connection between insurance and Cayman’s wider financial ecosystem has helped reinsurers access specialist expertise and global sources of funding.

Cayman’s commitment to tax neutrality and its proportionate fee structures remain further advantages when structuring cross-border reinsurance and pooling international capital. While some jurisdictions have introduced new corporation taxes, Cayman continues to offer a tax-neutral platform designed to avoid layering additional tax onto globally sourced premiums and investment returns. For multinational reinsurance groups and asset managers, this environment translates directly to lower operating costs. From an operational perspective, the jurisdiction also has meaningful advantages for certain business models. In some cases, Cayman insurers can use US risk-based capital methodologies, US GAAP and/or US statutory accounting. This can reduce regulatory duplication, streamline reporting and reduce operational friction for insurers that are predominantly US-based.

The jurisdiction’s overall appeal is based on English common law certainty, political and economic stability as a UK Overseas Territory, and an established network of experienced service providers across insurance, legal, actuarial, accounting and fiduciary disciplines. Insurance expertise has developed through Cayman’s 50-year-old captive sector, which is the second largest in the world and the largest for healthcare captives. Cayman’s streamlined licensing process and efficient operating environment have also made it practical for reinsurers to establish and grow in the jurisdiction.

Importantly, growth has been accompanied by robust safeguards that protect policyholders. All US reinsurance agreements must comply with NAIC model laws governing co-insurance arrangements. It is a dual-layer system in which both US and Cayman regulators ensure that policyholder funds remain secure and accessible. The system includes multiple safeguards: A minimum of 100% of US statutory reserves arising from reinsurance transactions between US cedents and Cayman reinsurers are held in the US by the US cedents on an asset-withheld basis or in reinsurance trust accounts in the custody of regulated US-based reinsurance trustees, giving ceding insurers unfettered access to those assets and eliminating counterparty risk.

The Cayman Islands Monetary Authority operates a principles-based, risk-sensitive regulatory framework fully aligned with International Association of Insurance Supervisors (IAIS) standards. Reinsurers must meet two levels of capital requirements: a minimum capital requirement for licensing, and a risk-based prescribed capital requirement calculated via a standard formula or an approved internal model. Further, CIMA regularly exercises its powers to impose an operating target level customised to the specific risk profile of a reinsurer.

When internal capital models are used, they’re calibrated to a 99.5% confidence level, equivalent to a 1-in-200-year loss event. This matches or exceeds typical US statutory requirements and equals standards in other major jurisdictions. The alternative standard formula applies risk-based charges across premiums, reserves, catastrophe exposure, and asset classes, all tested at the same confidence level required in the US.

Brittany MacVicar, Associate Director for Insurance and Reinsurance at Cayman Finance, said: “The latest figures reinforce the rapid growth we’re seeing across the reinsurance sector in Cayman. The jurisdiction has become a domicile of choice for international reinsurers seeking an efficient, well-regulated jurisdiction with English common law certainty and a deep bench of specialist expertise. As the global insurance protection gap continues to widen, Cayman is well-positioned to play an increasingly important role in channelling international capital to meet growing demand for insurance and reinsurance capacity. Cayman combines regulatory flexibility with robust oversight, tax neutrality and proximity to the US market with access to global capital.”

Henry Conner   

Public Relations Specialist